The Global Capability Centres (GCCs) in India have become a cornerstone of the country’s economic growth and transformation over the past two decades. Initially established as cost-effective extensions of multinational corporations (MNCs), GCCs have evolved to play a pivotal role in driving GDP growth, creating employment, and enhancing skill development in India. This article examines the comprehensive economic impact of GCCs on India, highlighting their contribution to GDP, job creation, and the broader socio-economic benefits.
Contribution to GDP: A Major Economic Force
The economic contribution of GCCs to India’s GDP has been substantial and growing. As per NASSCOM’s latest data, GCCs contribute approximately $28.3 billion annually to the Indian economy. This figure represents a significant portion of India’s service exports and reflects the integral role of GCCs in the country’s economic framework.
Growth Trajectory and Economic Integration
The establishment of GCCs in India began in the late 1990s and early 2000s, driven primarily by cost arbitrage. However, the nature of their operations and economic contributions has evolved significantly. In the early years, GCCs were focused on delivering basic IT and back-office services. Over time, they have moved up the value chain to include complex R&D, product development, and strategic business functions.
This shift has led to a deeper e...
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