India now hosts half of world's GCCs: CEA Nageswaran

India now hosts half of world's GCCs: CEA Nageswaran

India is now home to nearly half of the world's Global Capability Centers (GCCs), Chief Economic Adviser (CEA) V Anantha Nageswaran said on Thursday.

He made the remark while addressing the CII GCC Business Summit.

The GCC ecosystem in India has evolved from its initial role as a back-office hub to a major player in various sectors, including finance and technology.

Over 2,000 back offices in India

Nageswaran highlighted that two decades ago, India had only a handful of back offices.

Now, there are more than 2,000 such centers in the country employing over two million professionals.

The employment figure is now heading toward 2.3 million while revenue has crossed $60 billion and is on its way to touch $100 billion.

GCCs contribute nearly 2% to India's GDP

The Chief Economic Adviser also noted that GCCs now contribute nearly 2% to India's GDP. They also account for a growing share of new office space in Indian cities every year.

"On the latest count, India now hosts around half of the world's GCCs. No other country comes close," Nageswaran said at the summit.

Role of Indian GCCs expanded across sectors

The role of Indian GCCs has expanded across sectors, Nageswaran said.

Global banks run risk systems and trading platforms from Mumbai and Bengaluru, while carmakers design vehicles and embedded systems from Chennai and Pune, he added.

Semiconductor firms do chip design in India while pharma companies do clinical analytics here whereas consumer firms build digital products from the country through these centers, noted the CEA.