Karnataka Offers Incentives To GCCs, Aims To Attract 500 New Centres By 2029

The Karnataka government's draft Global Capability Centre policy, which was unveiled on Friday, is offering multiple incentives for companies to set up centres in the state as it aims to attract 500 new GCCs by 2029. 

Karnataka is the first Indian state to come up with a GCC policy. The state government is aiming to support the creation of 3.5 lakh new jobs in Karnataka and generate economic output of $50 billion through the GCCs being established by 2029, according to the document. 

The government will fund the development of industry-orientated future skills courses and master faculty training in state government universities and affiliated colleges. Each institution can receive up to Rs 10,000 per student for training and Rs 20,000 for each master faculty trained, with a maximum limit of Rs 1 crore per institution. 

To qualify, institutions must train at least 100 students and 10 master faculty. Courses must be industry-approved, and institutions can collaborate with the GCCs for development, it said. 

The government will also support applied research for industrial applications by funding 50% of the approved budget, up to Rs 75 lakh per project. Participating GCCs must contribute at least 25% of the project cost, with the remainder funded by the academic institution, the draft policy stated.

For projects involving two institutions, funding can go up to Rs 1 crore, with both required to fund at least 25% of the total cost. Each entity can avail this funding once during the policy period, with a limit of five projects funded annually.

In terms of supporting skilling initiatives for new recruits within their first year, the government is offering a reimbursement of 20% of the total expenses, up to Rs 36,000 per graduate and Rs 18,000 per diploma holder, for up to 100 employees or 15% of the total workforce, whichever is less. 

Each government-certified company can claim this incentive once per policy period and annually. The skilling initiatives can include technical training for non-technical roles and soft skill enhancement for both technical and non-technical employees.

"Through this policy, we expect the GCC sector to grow at a compound annual rate of 12–14% over the next decade and foresee Karnataka holding nearly 50% of the national GCC market share by 2029," Priyank Kharge, minister for electronics and IT/BT, said. "We are committed to creating an ecosystem that fosters innovation, supports R&D, and nurtures top talent, ensuring Karnataka remains the most attractive destination for GCCs globally."

The government will also establish global innovation districts with three new technology parks—one in Bengaluru and two in "Beyond Bengaluru" clusters. These parks will feature cutting-edge infrastructure to foster collaboration between startups, tech leaders, and academia.

To support artificial intelligence research, the government will establish a centre of excellence for AI in Bengaluru, operating through a hub-and-spoke model across academic institutions. An AI Skilling Council with industry participation will also be launched, with the government funding curriculum development.

A dedicated GCC support unit within the Department of Electronics, IT and BT will be established to serve as a single point of contact for the GCCs. This unit will streamline coordination with government departments, fast-track approvals, provide real estate scouting support, and facilitate local ecosystem integration.

A global outreach initiative with substantial marketing budgets will promote Karnataka’s GCC ecosystem on the international stage.