In a major step towards making Uttar Pradesh the hub of Global Capability Centres (GCC), the Uttar Pradesh government has approved the he Global Capability Centres Policy. The Chief Minister Yogi Adityanath-led government aims to position Uttar Pradesh as a hub of office space while also generating more than 2 lakh high-paying jobs over the next five years.
For this, a 30–50% front-end subsidy on land cost, a 25% capital subsidy up to Rs 10 crore for Level-1 and Rs 25 crore for advanced GCCs, and 100% stamp duty exemption has been announced by the state government.
Speaking about the GCC Policy, Nand Kumar Nandi, UP’s Minister for Industrial Development, Export Promotion, NRI and Investment Promotion, said: “The incentives will be based on the performance of the company with a focus on job creation, export growth, and technology innovation. The process of availing the benefits of these incentives will also be streamlined by the state government to reduce the administrative burden on the companies.”
There are two categories of the GCCS under the newly approved policy, Level 1 and Advanced (Unnat) GCCs, depending upon investment and employment generation. Level 1 GCCs require a minimum capital investment of Rs 15–20 crore and create employment for 100–200 people, depending upon the city in Uttar Pradesh.
Meanwhile, Advanced (Unnat) Global Capability Centres are the ones which undertake a minimum capital investment of Rs 50–75 crore and which create employment for at least 300–500 employees depending upon the city.
To facilitate the swift implementation of the new GCC policy, the Uttar Pradesh government will an interest subsidy of 5% on construction and purchase of plant and machinery; a 20% subsidy on operating expenditure; payroll subsidy up to Rs 20 crore; subsidy on recruitment of new employees. The government will also provide EPFO refund and support for creation of internship opportunities.
Moreover, the Yogi government will provide technical and regulatory support to GCCs. The regulatory support will include exemptions d under various Acts for five years, including pollution, maternity, factories, etc.
As per the industry experts, access to skilled talent pool, improved infrastructure, metro expansions, new expressways, alongside the development of large-scale commercial complexes, are the factors contributing to increase in corporate leasing.
Why Global Capability Centres matter?
As per Coldwell Banker Richard Ellis (India) or simply CRBE India, a real estate consultancy company, India’s GCC market is projected to reach $100 billion by 2030, with a headcount of over 2.5 million, and nearly 90% of GCCs operating as multifunctional centres.
In 2025 alone, a CRBE India report published in April this year says, Global Capability Centres are expected to account for about 35-40 per cent of the total office space absorption across the major Indian cities besides Tier I cities like Bengaluru, Hyderabad and Pune.
The report added that the state-specific policies designed to support the GCC expansion will encourage leasing growth in the smaller cities, complementing the activity observed in the established hubs.
Notably, cities such as Bengaluru, Hyderabad, Chennai, Mumbai, Pune besides Delhi NCR are the major hubs for GCCs in India. The report added that the technology sector will lead the total office demand in the country, given its focus on pioneering advanced solutions.
GCCs within the BSFI (Banking, Financial Services, and Insurance) and Evaluation and Management (E&M) sectors will drive space take-up, with notable demand stemming from niche occupier groups, often actively pursuing digital transformation initiatives.
Additionally, as per the report, the semiconductors, aerospace, automobiles, and life sciences sectors are likely to exhibit strong GCC absorption levels. Global corporations are increasingly capitalising on India’s expansive talent pool, positioning their GCCs as strategic hubs or secondary headquarters to drive innovation, digital transformation, and the development of high-value capabilities.
The expansion of GCCs into multifunctional centres is expected to be fuelled by the consolidation of existing operations and the entry of the new firms, all of which are likely to contribute to the sustained leasing activity.
How UP government is taking measures to make the state a hub of GCCs
In India, there are around 1700 Global Capability Centres at present, however, this number will increase exponentially in the coming years. The Uttar Pradesh government is also actively working towards transforming the state into a hub of GCCs.
Earlier this year, Microsoft laid the foundation stone of a 10,000-seater development centre in Noida. Meanwhile, MAQ, a software company has also set up a 3,000-seater engineering development centre. The Uttar Pradesh government is reported to be taking mesures to take GCCs in cities like Varanasi, Kanpur and Prayagraj along with NCR and Noida.
Explaining how and why several multinational companies are setting up their GCCs in Uttar Pradesh, Alok Kumar, the Principal Secretary, Industrial Development said, “To get better quality work at less cost, many multinational companies are setting up their offshore development centres in Uttar Pradesh….”
The GCCs established by IT and software companies include machine learning, cloud computing, robotic process automation, AI-driven development, cyber security, and engineering development, etc.
Besides IT firms, many companies from the automotive sector, electronics and semiconductor manufacturing sectors are also making their way to Uttar Praedesh. “Multinational companies are coming to India to outsource work in banks, financial services and insurance sector,” Kumar said.
On 10th June 2025, Uttar Pradesh’s investment promotion agency Invest UP held its first GCC conclave in Lucknow to launch the new GCC Policy. The event was attended by representatives from more than 20 MNCs including Microsoft, Deloitte, TCS, HCL, Standard Chartered Bank, SRK Gamechangers, Trident etc. Reports say that these MNCs and other foreign investors showed deep interest in setting up their GCCs in Uttar Pradesh and also lauded the state government’s efforts to foster a conducive ecosystem to facilitate timely approvals, land allocation and relevant subsidies.
As per the Uttar Pradesh government, the state has a competitive edge as around 56% of the population comes under the working-age bracket, living costs average Rs 28,000 monthly, real estate and talent costs run 14-45% lower than metro cities. Moreover, a single-window clearance system guarantees seamless approvals. The government say that around 20 incubators and over 300 registered start-ups are playing a remarkable role in the state’s growth in this arena. With more investment pouring in Uttar Pradesh, employment opportunities will also increase and contribute towards the growth of the state’s economy.
