Indore, the commercial capital of Madhya Pradesh, is rapidly emerging as a prominent hub for Global Capability Centres (GCCs). The recent announcement of two firms establishing GCCs in the city underscores its growing significance in the global business landscape. This development is poised to generate approximately 40,500 new employment opportunities in the region.
The state's cost-effectiveness and an expanding pool of proficient talent have made it an appealing destination for multinational corporations contemplating investment in the information technology (IT) sector. Madhya Pradesh has garnered ₹700 crore investment dedicated to GCCs and an additional ₹5,000 crore in foreign direct investment (FDI).
With the increasing demand for business expansion, many companies are also looking for small office space in Noida, ready to move office space in Noida, commercial space for sale in Noida,to establish a strong presence in northern India.
Madhya Pradesh’s GCC Policy 2025: A Revolutionary Initiative
The Madhya Pradesh government has introduced the Global Capability Centres (GCC) Policy 2025, aiming to position the state as a frontrunner in the global business landscape. This pioneering policy marks India's first initiative to bolster the growth of GCCs in non-metro regions, positioning tier-2 cities like Indore as dynamic hubs of global innovation and excellence.
Strategic Significance of GCCs
Global Capability Centres have evolved beyond their traditional roles as cost-arbitrage entities, now serving as strategic assets for multinational corporations. They drive process optimization, digital transformation, and advanced analytics while fostering research, innovation, and global business excellence. With India already home to over 50% of the world's GCCs, Madhya Pradesh aims to position itself as a key player in this high-growth sector.
Why Madhya Pradesh?
Madhya Pradesh presents a compelling value proposition for GCCs, offering:
Robust IT/ITeS Ecosystem: The state boasts a rapidly growing IT sector, with IT/ITeS exports tripling over the last three years and an impressive annual growth rate of 43%.
Skilled Talent Pool: Over 300 engineering colleges produce 50,000+ tech graduates annually, providing a steady supply of skilled professionals.
Infrastructure Readiness: With more than five Special Economic Zones (SEZs), over 15 IT parks, and 150+ Electronic System Design and Manufacturing (ESDM) units across cities like Indore, Bhopal, and Jabalpur, the state creates an enabling business environment.
Cost Advantage: Business operations in Madhya Pradesh are significantly more affordable than in metro cities, reducing operational costs for GCCs.
Business-Friendly Governance: Ranked 4th in the Ease of Doing Business Rankings (2023), Madhya Pradesh offers streamlined regulatory processes, single-window clearances, and investor-friendly policies.
As businesses expand, many are also exploring small office space in Noida, ready to move office space in Noida, and commercial property in Noida for their satellite offices and corporate headquarters. Noida’s strategic location near the national capital makes it an attractive destination for companies seeking both growth and accessibility.
Incentives and Policy Framework
The Madhya Pradesh GCC Policy 2025 offers a range of financial incentives to GCCs, including:
Capital Expenditure (CAPEX) Subsidy: Up to ₹30 crore for eligible GCCs establishing operations in Madhya Pradesh.
Payroll Subsidy: Covering up to 50% of employee salaries for the first year, ensuring financial support for high-value talent acquisition.
Patent Assistance: Up to ₹30 lakh per international patent, commercial property in Noidaincentivizing innovation and intellectual property development.
Research & Skill Development Grants: Financial support for upskilling employees and research initiatives within GCCs.
Internship Support: Internships under the Mukhya Mantri Seekho Kamao Yojana (MMSKY), providing stipends for skill development.
Non-Fiscal Incentives
Exemptions under the Madhya Pradesh Shops and Establishments Act (1958): Flexibility in working hours and night shifts for women employees.
Simplified Compliance Framework: Unified labor law compliance, minimizing administrative burdens for GCCs.
Fast-Track Approvals: Single-window clearances for investment proposals and regulatory approvals.
Centers of Excellence and Innovation Clusters
The policy underscores a commitment to research, development, and cutting-edge technological advancements by establishing Centers of Excellence (CoE) for AI & Cybersecurity. These CoEs will be developed under a Public-Private Partnership (PPP) model, with the government covering up to 50% of the project cost (capped at ₹10 crore). Additionally, Innovation Clusters will be established with a government contribution of up to ₹25 crore, fostering collaboration between academia, industries, and GCCs.
Implementation and Governance
The Madhya Pradesh State Electronics Development Corporation Limited (MPSeDC) will serve as the nodal agency for policy execution. A dedicated Policy Implementation Unit (PIU) will oversee the allocation of incentives, project approvals, and compliance monitoring.
Conclusion
The establishment of two new Global Capability Centres in Indore signifies a pivotal moment in the city's economic development. Supported by the Madhya Pradesh GCC Policy 2025, these initiatives are set to transform the state into a preferred destination for multinational corporations seeking to establish or expand their GCC operations in India.
As Indore becomes a key investment hub, many corporations are simultaneously considering commercial space for sale in Noida and small office space in Noida to expand their business reach in different parts of the country. With strategic investments, a robust policy framework, and a commitment to innovation, Madhya Pradesh is on track to becoming a global business powerhouse.
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