Global Capability Centres (GCCs) have undergone a fundamental transformation — evolving from cost-driven back-office operations into full-fledged hubs for research, design, and innovation — and are now a critical pillar of India's economic ambitions, Ajoy Sharma, Additional Secretary and Director General (Employment) at the Ministry of Labour and Employment, said on Thursday, 9 July. Speaking in New Delhi, Sharma positioned GCCs as central to realising Prime Minister Narendra Modi's vision of Viksit Bharat — a developed India.

From Back-Office to Innovation Engine

Sharma noted that the perception of GCCs as entities focused purely on cost-effective support functions has shifted decisively. 'The GCC is a very important pillar of our economy, and as we have seen, GCCs have grown tremendously. This is a time when a great transformation is taking place. Earlier, GCCs were thought of as entities doing back-office work cost-effectively, but that has changed significantly. They are now undertaking research and design work, which is much higher up the value chain,' he said.

This shift up the value chain reflects a broader global trend, with multinationals increasingly using their India-based GCCs not just for IT support but for product engineering, artificial intelligence research, and strategic decision-making functions.

GCCs and the Viksit Bharat Vision

Sharma drew a direct line between the GCC sector's growth trajectory and the government's long-term development agenda. He emphasised that the Viksit Bharat goal is not a government-only initiative but a collective endeavour involving industry and all stakeholders. 'Prime Minister Modi's vision of Viksit Bharat is something that not only the government but also the industry and everyone else is working towards. It is something that everyone is focusing on,' he stated.

India currently hosts over 1,700 GCCs, according to industry estimates, employing upwards of 1.9 million professionals. The sector is projected to grow significantly over the coming years, with several global corporations expanding their India footprints in technology, finance, and engineering.

Whole-of-Government Approach

Sharma underlined that achieving the Viksit Bharat objective demands coordinated action across every ministry, not siloed efforts. 'It's not only the government. In achieving the vision of Viksit Bharat, every ministry is working hand in hand, and it is a whole-of-government approach, whatever project we take up,' he said.

He stressed that industry participation is equally essential, framing the public-private partnership model as non-negotiable for India's long-term development goals. The Ministry of Labour and Employment's engagement with the GCC sector signals growing policy attention to how these centres contribute to formal employment generation and skilling outcomes.

What This Means for India's Economy

The GCC sector's evolution carries significant implications for India's employment landscape. As centres move into higher-value functions, demand for skilled professionals in domains such as data science, chip design, and advanced manufacturing is rising sharply. This aligns with the Centre's broader push on skilling and workforce development under various national missions.

With global corporations doubling down on their India operations, the GCC sector is increasingly seen as a strategic lever — not merely an outsourcing destination — in India's bid to become a developed nation by 2047.