Madhya Pradesh’s Global Capability Centre Policy

February 15, 2025

Madhya Pradesh has recently introduced the Global Capability Centre (GCC) Policy 2025, becoming the first state of India to do so. This policy aims to establish the state as a premier hub for global innovation and collaboration. It is part of a broader strategy to decentralise business operations from traditional metro cities to tier-2 cities, encouraging economic growth and job creation.

Key Features of the GCC Policy 2025

The GCC Policy 2025 includes incentives for capital expenditure, payroll, upskilling, and research and development.
It targets sectors like IT, finance, engineering, human resources, and emerging technologies, especially artificial intelligence and cybersecurity.
The aim is to attract over 50 GCCs and create more than 37,000 direct jobs.

Strategic Focus on Infrastructure and Talent

Madhya Pradesh boasts a robust infrastructure with over five Special Economic Zones (SEZs) and more than 15 IT parks.
Key cities like Indore, Bhopal, and Jabalpur are very important in this development.
The state produces over 50,000 tech graduates annually from 300+ engineering colleges, ensuring a steady supply of skilled professionals.

Investment Climate and Economic Potential

The state ranks fourth in the Ease of Doing Business Rankings (2023). It offers streamlined regulatory processes and single-window clearances, making it attractive for investors. The Global Investors’ Summit scheduled for February 24-25 aims to showcase Madhya Pradesh’s investment climate and industrial infrastructure.

Cost Advantages for Global Firms

Madhya Pradesh provides a cost-effective alternative for global firms. Operational costs are lower compared to metropolitan cities. This financial advantage, combined with infrastructure readiness, makes the state an appealing destination for setting up GCCs.

Implementation and Oversight

The Madhya Pradesh State Electronics Development Corporation Limited (MPSeDC) will act as the nodal agency for the GCC Policy. A dedicated Policy Implementation Unit (PIU) will manage project approvals, incentive allocation, and compliance monitoring to ensure effective execution and support for investors.

Future Prospects

The GCC Policy 2025 is poised to transform Madhya Pradesh and its tier-2 cities into global hubs of innovation. The state aims to play role in India’s vision of achieving a $110 billion GCC market by 2030. By combining infrastructure, talent, and cost-effective business environments, Madhya Pradesh is ready to lead India’s GCC revolution.

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