India’s GCC ecosystem is evolving rapidly, and so is the competition to attract it. Across India, state governments are unveiling dedicated policies, introducing incentives, streamlining approvals, and investing in infrastructure to position themselves as preferred destinations for global enterprises.
This marks a significant shift. States are no longer waiting for investment to arrive. They are actively shaping policies to attract global enterprises. But as the policy race gathers momentum, an important question emerges: Are policies the deciding factor when multinational companies choose where to establish a GCC?
For many large enterprises, the answer is more nuanced than it appears.
The Policy Race Across India
Over the past two years, India’s GCC landscape has evolved from organic growth to policy-driven competition. Karnataka set the tone by becoming the first state to launch a dedicated GCC policy, marking the beginning of a more structured approach to attracting global enterprises.
Since then, several states have introduced ambitious roadmaps. Maharashtra unveiled its GCC Policy 2025 with plans to attract 400 new GCCs and generate 4 lakh jobs. Andhra Pradesh has positioned Visakhapatnam as a preferred Tier-2 GCC destination by emphasizing speed of approvals and ease of doing business. Uttar Pradesh has entered the race with an incentive-driven policy to establish itself as India’s next major GCC hub, while Gujarat and Madhya Pradesh are also strengthening their GCC ambitions through dedicated policy initiatives.
Each of these developments reflects the same ambition: to secure a larger share of India’s rapidly expanding GCC ecosystem. However, they raise a much bigger question: when every state is offering incentives, what ultimately influences where global enterprises choose to invest?
Through our frequent interactions with GCC stakeholders, we’ve consistently found that successful location decisions are rarely driven by incentives alone. The real differentiators are talent, a mature ecosystem, long-term scalability, execution capability, and the ability to deliver sustained business value.
Policy Is the Entry Ticket, Not the Deciding Factor
Government policies undoubtedly matter. They improve ease of doing business, reduce administrative friction, and signal a state’s commitment to attracting investment. In today’s competitive landscape, however, these advantages are increasingly becoming a baseline expectation rather than a true differentiator.
For large multinational enterprises, a supportive policy may help a location make the shortlist, but it rarely determines the final decision. Once the basics are in place, companies begin evaluating factors that have a much greater impact on long-term business success.
What Large GCCs Actually Prioritize
Enterprise GCCs are established to build long-term business capabilities, not simply to reduce operational costs. Their focus is on creating centers that can support global business functions and scale over time.
Talent remains the biggest deciding factor. Companies evaluate the availability of skilled professionals across engineering, AI, cybersecurity, product development, finance, analytics, and leadership. They also assess whether a city can support growth from a few hundred employees to several thousand without facing talent or infrastructure constraints.
Beyond talent, large enterprises value mature ecosystems that offer experienced leadership, strong recruitment networks, quality infrastructure, academic partnerships, and an established community of global organizations.
This is why incentives alone rarely determine location decisions. For enterprise GCCs, long-term scalability, execution capability, and business success matter far more than short-term cost savings.
Why Smaller GCCs May Think Differently
For emerging, first-time, or mid-sized GCCs, government incentives, operating costs, and ease of setup can play a much larger role in location decisions. With smaller teams and tighter investment budgets, policy support can significantly improve the business case and influence where operations are established.
This doesn’t mean they value talent any less. Rather, their priorities reflect a different stage of growth. While enterprise GCCs optimize for long-term capability and scalability, smaller GCCs often need to balance growth ambitions with financial efficiency.
The Bigger Opportunity for States
The growing number of state-level policies is a positive development for India’s GCC ecosystem. They strengthen investor confidence and encourage healthy competition among states.
However, as more states introduce similar policy frameworks, incentives alone will no longer be the key differentiator. The real advantage will lie in building strong ecosystems with skilled talent, experienced leadership, robust infrastructure, and innovation-driven collaboration.
Policies may attract investment, but ecosystems drive long-term growth.
