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Uttar Pradesh Unveils a Bold Bet on GCCs: Inside the State’s All-New Incentive-Driven Push

With a bold new policy, Uttar Pradesh aims to become India’s next big hub for Global Capability Centres, backed by generous subsidies, infrastructure, and a future-ready workforce.

The Indian state of Uttar Pradesh is ready to make a serious play for the attention of global corporations with its newly drafted Global Capability Centres (GCC) Policy. In a sector dominated by metro cities, UP’s proposition is clear: combine scale, talent, infrastructure, and unmatched financial incentives to emerge as India’s next GCC magnet.

The state’s vision is ambitious — attract over 1,000 new GCCs and create 500,000 high-quality jobs over the next few years. But it isn’t just the vision that’s compelling — it’s the execution plan backed by a comprehensive set of fiscal and non-fiscal incentives that might just tip the scales in UP’s favour.

What’s on Offer: A Look at the Fiscal Incentives

UP’s new policy isn’t holding back. It offers a powerful package of financial support to both new and expanding GCCs:

  • Land Subsidies
    Up to 50% subsidy on land allotment:

    • 30% in Gautam Buddha Nagar and Ghaziabad

    • 40% in Paschimanchal and Madhyanchal

    • 50% in Bundelkhand and Purvanchal

  • Stamp Duty Reimbursement
    100% exemption or reimbursement on purchase/lease of land or office space.

  • Capital Subsidy
    Up to ₹25 crore for Advanced GCCs (₹10 crore for Level-1 GCCs), released over 7 years. Companies can alternatively opt for SGST refunds on capital goods.

  • Interest Subsidy
    5% per annum, up to ₹1 crore per year, for 5 years on term loans for infrastructure and equipment.

  • Operational Expense (Opex) Subsidy
    20% reimbursement on lease rentals, bandwidth, cloud/data center costs, and power charges —

    • ₹40 crore cap for Level-1 GCCs

    • ₹80 crore for Advanced GCCs over 5 years

  • Payroll Subsidy

    • ₹1.2 lakh per employee annually (₹1.8 lakh for UP-domiciled women, SC/ST, and special category employees)

    • Up to ₹20 crore per year for 3 years

    • ₹20,000 per fresher hired from UP-based institutions

  • EPF Reimbursement
    100% employer contribution for eligible categories, capped at ₹1 crore annually for 3 years.

  • Skilling & Talent Development

    • Internship support: ₹5,000 per intern/month (up to 50 interns/year)

    • Training reimbursement: ₹50,000 per employee, up to ₹50 lakh per year

  • Innovation & R&D Incentives

    • Up to ₹2 crore annually for startup PoCs

    • Patent fee reimbursements: ₹5 lakh (domestic), ₹10 lakh (international)

    • Support to set up Centres of Excellence (CoEs)

Not Just the Money: UP’s Non-Fiscal Push

Beyond cash, the state is focused on making it easier to operate and scale:

    • 24×7 operations and women’s employment in all shifts permitted

    • Self-certification and inspection exemptions under key labour laws

    • FAR benefits and streamlined regulatory approvals

    • Technical Support Group (TSG) comprising GCC leaders for advisory and advocacy

    • Commercial space listings and plug-and-play office support in major cities

    • University and CoE linkages for talent sourcing and innovation partnerships

With its combination of cost competitiveness, infrastructure readiness, and a clear pro-GCC policy framework, Uttar Pradesh is positioning itself as the next frontier for global capability expansion.

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Author

  • Editorial Desk

    Editorial Desk brings you expert insights, industry trends, and thought leadership on the evolving GCC (Global Capability Centers) ecosystem.

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Editorial Desk

Editorial Desk brings you expert insights, industry trends, and thought leadership on the evolving GCC (Global Capability Centers) ecosystem.

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