Karnataka unveils GCC policy; aims for $50 billion economic output by 2029

BL Bengaluru Bureau Updated - November 19, 2024 at 06:03 PM.

The GCC Policy 2024-2029 aims to establish 500 new GCCs, creating 3.5 lakh jobs

Karnataka Chief Minister Siddaramaiah with Deputy Chief Minister DK Shivakumar, Minister for IT & BT Priyank Kharge, French politician Alexandra Dublanche, Biocon chairperson Kiran Mazumdar-Shaw and other dignitaries during the Bengaluru Tech Summit 2024, in Bengaluru on Tuesday | Photo Credit: PTI

Karnataka government has unveiled its GCC policy, claiming it was the first ever State government in the country to do so. Highlighting the sector’s growth, the GCC Policy 2024-2029 aims to establish 500 new GCCs, creating 3.5 lakh jobs and generating $50 billion in economic output.

“We will establish three dedicated global innovation districts in Bengaluru, Mysuru, and Belagavi. These will be dedicated parks for GCCs,” said Chief Minister Siddaramaiah.

“The launch of India’s first Policy Centre for GCCs and the Nipuna Karnataka programme, aimed at skilling 1,00,000 individuals in cutting-edge technologies, reflects our commitment to empowering local talent and fostering global competitiveness. The Centre of Excellence in AI, in collaboration with IIT Alumni Center Bangalore, positions Karnataka as a hub for advanced R&D and start-up innovation,” he added.

“With $17.5 billion in potential investments and participation from over 50 countries, BTS 2024 emphasizes global collaboration through MoUs with Switzerland, Finland, and Sharjah. Karnataka continues to lead in shaping a future of transformative growth and remains a beacon of innovation and opportunity for the world,” he explained.

Minister for IT-BT Priyank Kharge also said the government will set up another vertical within the department to facilitate GCCs. The policy mentions a dedicated group of influential leaders from various GCCs’ that will steer the initiatives.

“To capture the full spectrum of the GCC landscape, the Council will have representatives from various industries such as IT, finance, biotech, and manufacturing, ensuring that policies and strategies are comprehensive and industry-specific,” the report read.

GCC policy will emphasise a ‘Beyond Bengaluru’ initiative to promote development across tier-2 and tier-3 cities such as Mysuru, Mangaluru, Shivamogga, and Hubballi-Dharwad. The policy aims to generate over 5,000 jobs in Bengaluru, with an additional 1,000 jobs expected in areas beyond the city.

India’s GCC market size is $64.6 billion including over 2,975 of which over 875 GCCs are in Bengaluru. According to the report, 30% of the country’s GCCs and 35 per cent of the workforce are in Bengaluru, which contributes over a third to the overall market size at $22.2 billion.

Addressing the media at the event, IT/BT minister Priyank Kharge said, “A big anchor for GCCs or any company for ‘why Bangalore’ is because of the talent, the infrastructure, and the social infrastructure it offers on a global scale. If they can replicate this environment beyond Bangalore, which is happening, we will be accelerating growth across sectors. For example, IT exports from Mysore or Mangaluru are over ₹4,000-5,000 crore put together.”

He added the government is coming up with plug-and-play facilities for GCCs in Tier II and Tier III cities. If companies want a feel of the Mysore or Mangaluru talent pool, a plug-and-play will be created by putting up a 25 or 100-seater. Once the companies get a feel of the ecosystem, they can invest in a 500 or 1000-seater.

Published on November 19, 2024 12:33

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