GCCs' contribution to Indian economy to rise to $200 billion by 2030: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Monday said Global Capability Centres ( GCC) could contribute up to USD 200 billion to the Indian economy and create additional jobs by 2030.

Speaking at the CII-GCC Business summit, Sitharaman said on an average one new GCC per week was set up in 2024 and approximately 50 per cent of Fortune 500 companies have set up their GCCs in India.

GCCs employ nearly 2.16 million professionals in India, having grown at a compound annual growth rate (CAGR) of 11 per cent over the last 5 years. It is expected to reach 2.8 million by 2030.

"India's GCC sector contributes USD 68 billion as direct gross value addition (GVA), i.e. around 1.6 per cent of the national GDP. By 2030, the gross value addition from GCCs could potentially range between USD 150-200 billion. That is the scope we have before us and the potential we can see," Sitharaman said.

The setup rate of engineering research & development GCCs has grown 1.3 times faster than the overall GCC setup over the last 5 years, indicating a clear shift towards high value-added work in India, she added.

There are about 1,800 GCCs in India which employ 2.16 million professionals, which is expected to go up to 2.8 million by 2030. "And I guess this is a very conservative number," Sitharaman said.

"Our talent is more cost-effective compared to other countries. It is estimated that it costs 30-50 per cent less than the US, UK and Australia."

Over the past decade, India's GCC ecosystem has matured significantly, moving beyond execution to become centres of strategic leadership and transformation, Sitharaman added.