Global Capability Centers (GCCs) have emerged as a crucial component of India’s digital and economic transformation. In 2025, Andhra Pradesh, Gujarat, and Madhya Pradesh unveiled new GCC policies, signaling their intent to attract global enterprises and strengthen their position in this competitive landscape. While Andhra Pradesh has positioned itself as a rising GCC destination, Gujarat and Madhya Pradesh are also competing with their own tailored policies. In this article, we compared the policies of these three states, analyzing their key incentives, infrastructure, and talent development initiatives to understand how each is positioning itself in the evolving GCC landscape.
State Overviews
Andhra Pradesh: The Rising IT & Innovation Hub
Andhra Pradesh is leveraging its strong STEM education base and IT expertise to create a hybrid workforce model that supports both on-premise and remote GCC operations. The Visakhapatnam IT hub is being positioned as a leading global destination, attracting Fortune 500 companies and fostering a high-skilled talent ecosystem. The state’s IT & GCC Policy (4.0) focuses on flexible workspaces, skill development, and digital transformation.
Gujarat: India’s Economic Powerhouse
Gujarat, known for its strong industrial base and progressive policies, contributes 8.3% to the national GDP and accounts for 31% of India’s total exports. With the presence of GIFT City, world-class logistics, and a thriving IT ecosystem, Gujarat is transforming into a major hub for technology-driven investments. The state’s business-friendly governance and Viksit Gujarat 2047 vision aim to establish it as a global leader in GCC-driven innovation and R&D.
Madhya Pradesh: An Emerging Growth Hub
Madhya Pradesh, often referred to as the Heart of India, is focusing on AI, data analytics, and IT-driven services to attract GCCs. The state offers cost-effective infrastructure, investment incentives, and digital governance models, making it an appealing choice for businesses seeking an affordable yet growing ecosystem. Its strategic central location also provides logistical advantages for global firms.
The Vision: Emerging GCC Hubs with Distinct Approaches
Andhra Pradesh, through its IT & GCC Policy (4.0) 2024-2029, aims to:
- Establish itself as a global GCC hub, leveraging its strategic location and business-friendly governance.
- Attract 250+ new GCC units and generate 50,000+ new jobs.
- Drive AI-led digital transformation, R&D, and financial services expansion.
Gujarat is crafting its identity as an emerging GCC destination, focusing on:
- Attracting major global players to set up GCCs.
- Promoting AI and analytics-driven operations.
- Creating specialized zones with plug-and-play infrastructure.
Madhya Pradesh, with its GCC Policy (2025-30), aims to:
- Position itself as a cost-effective IT & GCC hub.
- Leverage its strong STEM education base to provide a talent pipeline.
- Develop Visakhapatnam as a global IT destination.
Key Incentives for GCCs
| Category | Andhra Pradesh | Gujarat | Madhya Pradesh |
|---|---|---|---|
| Financial Incentives | CAPEX & OPEX support for IT infrastructure, employment-linked incentives, and power tariff waivers. | Capital investment support, interest subsidies. | Capital and rental subsidies, incentives for large-scale IT parks. |
| Talent Development | Workforce skilling programs, direct benefit transfers for IT certifications, AI-driven education programs. | CoEs in universities for AI & data analytics. | Workforce upskilling, “Future Skills Credit Scheme” for continuous learning. |
| Infrastructure Support | GIFT City is India’s first International Financial Services Centre, GCC-specific clusters. | Special GCC zones with plug-and-play workspaces. | IT parks in Visakhapatnam, co-working, and neighborhood workspaces. |
| Ease of Doing Business | Streamlined digital approvals, and business-friendly policies. | Digital licensing platforms, fast-tracked approvals. | SIPB investment board for approvals simplified regulatory processes. |
| Industry Collaboration | IT & ITeS expansion, partnerships with global enterprises, R&D incentives. | Integration with MSMEs, foreign collaboration opportunities. | Public-private partnerships, incentives for Fortune 500 companies. |
Strategic Takeaways: Where Do the States Stand?
- Andhra Pradesh: A GCC-Friendly Investment Destination
Andhra Pradesh is taking a hybrid-focused approach, emphasizing:
- Remote work & IT hubs, with co-working spaces across the state.
- Visakhapatnam is a premier GCC hub, attracting Fortune 500 firms.
- Strong talent development, supported by academic collaborations and digital skills initiatives.
- Gujarat: Attracting First-Time GCC Investors
Gujarat is positioning itself as a GCC investment hotspot, leveraging:
- GIFT City’s ecosystem, attracting financial services and tech-oriented GCCs.
- Robust infrastructure & incentives, providing significant CAPEX and OPEX support.
- Focus on AI, fintech, and IT services, with extensive skilling programs.
- Madhya Pradesh: An Emerging Hybrid-Work Hub
Madhya Pradesh’s policy is foundational, focusing on creating a business-friendly environment to attract new GCCs. It offers:
- Cost-effective infrastructure, making it attractive for global players.
- AI-driven focus, positioning the state as a center for advanced analytics and tech-led operations.
- Ease of entry, with government-backed financial support and rapid approvals.
Final Thoughts: Which State Has the Edge?
- For GCCs in fintech, financial services, and R&D, Gujarat offers strong infrastructure and incentives.
- For companies looking for cost-effective entry points with emerging AI capabilities, Madhya Pradesh presents an attractive alternative.
- For firms prioritizing remote work and hybrid models, Andhra Pradesh provides a forward-looking approach with significant incentives.
