CII Calls For National Policy Framework For GCCs With Fiscal & Regulatory Support

New Delhi, Sep 15 (KNN) The Confederation of Indian Industry (CII) has urged the government to introduce a comprehensive national policy framework for Global Capability Centres (GCCs), proposing fiscal incentives, regulatory clarity, and infrastructure support to accelerate growth in the sector.

In its recommendations, CII called for concessional corporate tax rates or tax holidays for GCCs located in notified special economic zones (SEZs), along with the harmonisation of permanent establishment rules. 

It also sought policy clarity to ensure GCC services are not classified as ‘intermediary’ transactions, a move it said would ease GST refunds and reduce excessive scrutiny. 

Further, the body suggested allowing GCCs to utilise input tax credit (ITC) for GST paid under the reverse charge mechanism on imported services.

CII is also drafting a national GCC framework, which it said should establish a single-window system to simplify investments, reduce regulatory hurdles, and provide plug-and-play infrastructure across metros as well as tier-II and tier-III cities. 

It has recommended creating a legislatively backed National GCC Council to drive policy, ensure cross-ministry coordination, and align Centre–state strategies.

The framework proposes the development of next-generation Digital Economic Zones (DEZs) with integrated physical and digital infrastructure, harmonised regulations, and global-standard facilities. 

It also highlights the importance of industry-academia collaboration, suggesting the creation of centres of excellence in areas such as AI, cybersecurity, engineering R&D, and product innovation.

According to CII, India currently hosts over 1,800 GCCs employing 2.16 million professionals, contributing nearly USD 68 billion to GDP. Nearly half of all global capability centres worldwide are based in India. 

With the right policy environment, CII projects the ecosystem could scale to 5,000 centres by 2030, contribute up to USD 600 billion to GDP, and generate 25 million jobs, including 5 million direct roles.

The industry body said the growth will be fuelled by the rise of nano-GCCs, technology-focused centres of excellence (CoEs), and greater functional ownership of global operations from India. 

To support talent, it has recommended specialised academic programmes, training initiatives, and guaranteed employment schemes, producing job-ready professionals for the sector.

(KNN Bureau)