Lok Sabha Question No. 2996 (UNSTARRED), answered on 2026-03-11
Subject: Global Capability Centres
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Dr. Rani Srikumar, Thiru Dr. S Jagathratchakan

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO.  2996

TO BE ANSWERED ON: 11.03.2026

## GLOBAL CAPABILITY CENTRES

## 2996. THIRU DR. S JAGATHRACHAKAN DR. RANI SRIKUMAR:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the number of Global Capability Centres (GCCs) currently operating in the country, State-wise;
- (b) the details of employment generated and the contribution of GCCs to India's GDP;
- (c) the steps taken by the Government to make India a global hub for GCCs and if so, the details thereof;
- (d) the steps or any framework proposed or considered by the Government to attract more GCCs to Tier2 and Tier-3 cities including Tamil Nadu; and
- (e) whether the Government has proposed any plans or taken interventions to address challenges faced by GCCs such as cybersecurity threats, regulatory complexities, infrastructure gaps and others and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (e): As per National Association of Software and Services Companies (NASSCOM), more than 1700 Global Capability Centres (GCCs) are operating in India directly employing over 19 lakhs persons. The total revenue generated by these GCCs is USD 64.6 billion in FY24-25.

## Strengthening GCCs in India

To strengthen India's GCC ecosystem, Union Budget 2025 -26 provided for national framework to guide states on promoting GCCs in emerging tier-2 cities.

Accordingly, Ministry of Electronics & IT (MeitY), in consultation with relevant stakeholders such as industry, industry associations, State Governments, Central Ministries/Departments has identified the key enablers for growth of GGCs in emerging Tier-2 cities.

The key enablers emerged through stakeholders consultation include enhanced Ease of Doing Business (EoDB), simplification in international taxation, harmonization of labour laws which have been addressed through recent labour reforms and budget announcements of FY 2026-27.

Government has done major reforms in international taxation particularly w.r.t GCCs:

- Eligibility threshold under Safe Harbour Regime (SHR) increased from ₹300 crore to ₹2,000 crore
- IT,  ITeS,  KPO,  Software  Development  and  Contract  R&D  services  clubbed  under  a  single category i.e. 'IT Services'
- Uniform Safe Harbour margin for all 'IT services' reduced to 15.5% replacing the earlier higher margin range of 17-24%
- Automated approvals process under the Safe Harbour Regime is valid for five years
- Fast-tracked processing for Unilateral Advance Pricing Agreements (APAs) with a two-year target completion timeline

These reforms provide tax certainty and enhanced Ease of Doing Business (EoDB) for GCCs. Further, many State Governments such as Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Karnataka, Telangana, Maharashtra etc. have come with dedicated policies to support establishment and expansion of GCCs. *******