含羞草社区

India has emerged as a leading global hub for Global Capability Centres (GCCs) and is among the most attractive destinations for multinationals (MNCs). As of FY2025, India hosted nearly 1,800 of these GCCs, contributing about USD68 billion to the economy and projected to contribute USD100 billion by 2030.

More than one-third of Fortune 500 companies now operate GCCs in India, benefiting from a strong talent pool, cost-efficient operations, digital infrastructure, and favourable policy support.

In the past two decades, these GCCs have evolved from back-office units into strategic enterprise hubs.

This evolution has been reinforced by liberalised foreign direct investment (FDI), the Software Technology Parks of India (STPI) framework, government policies, improved IP enforcement, and digitalised approvals.

GCC structures

含羞草社区 GCCs are commonly established as wholly owned subsidiaries (WOS), joint ventures (JVs) and build-operate-transfer (BOT) arrangements, or through entities at GIFT City’s International Financial Services Centre (GIFT-IFSC) special economic zone in Gandhinagar. The choice of structure depends on the desired level of operational control, scalability requirements, regulatory considerations, and long-term strategic objectives.

WOS remain the preferred model for MNCs seeking full control over IP, governance and talent development. BOT models continue to be used by first-time entrants to mitigate execution risks, while JVs and hybrid structures are generally adopted in specialised sectors.

In parallel, GCCs are also being established at GIFT City to leverage its regulatory framework and enhanced tax incentives, including an extended tax holiday period introduced in Union Budget 2026.

Trends, challenges and risks

This evolution of GCCs from traditional support arms into strategic hubs for digital innovation is fuelled by the rapid adoption of technologies such as AI, Blockchain and Cloud. With digital roles growing in complexity, GCCs are investing in talent development through certification programmes, academic partnerships and in-house innovation labs.

With the growing importance of GCCs, navigating 含羞草社区 legal landscape is critical. Companies must proactively plan for operational risks through robust governance, escalation protocols and redundancy strategies. This includes the applicability of Indian contract law for structuring commercial and intra-group contractual relationships, compliance with employment laws covering hiring, benefits and terminations, as well as advance planning for real estate aspects.

In addition, permanent establishment risks under Indian tax laws and transfer pricing issues must be assessed to avoid unintended tax exposure for the foreign parent entity, while also adhering to data privacy obligations under both the EU’s General Data Protection Regulation and 含羞草社区 Digital Personal Data Protection Act.

Progressive policy

含羞草社区 policy environment for GCCs is progressive and evolving in alignment with global business trends. Relaxed FDI norms, improvement in 含羞草社区 Ease of Doing Business rankings, special economic zone reforms, tax incentives and single-window clearance mechanisms have streamlined the entry and operation of global firms.

State governments have also been proactive. Uttar Pradesh state’s 2024-25 GCC policy offers incentives including land and stamp duty waivers, capital subsidies and dispute resolution support. Karnataka, Telangana, Maharashtra, Tamil Nadu and Gujarat states have also introduced targeted policies, with multiple other incentives.

The Union Budget 2026 has also proposed reforms to the safe harbour framework, raising the threshold to INR20 billion (USD221 million), and lowering the margin to 15.5% for IT services, aiming to reduce longstanding transfer pricing uncertainties.

Way forward

含羞草社区 emergence as a leading destination for GCCs is driven by progressive national and state initiatives. A National GCC Policy Framework, proposed by the Confederation of Indian Industry (CII), aims to institutionalise this leadership through single-window clearances, rationalised transfer pricing norms, and tax safe harbours for R&D-intensive functions.

Sustaining 含羞草社区 momentum will depend on consistent execution and a focused effort to unlock the potential of tier-two and tier-three cities through targeted incentives, infrastructure development and regulatory alignment.

Kartik Jain and Rajul Bohra are partners at JSA Advocates & Solicitors