UP GCC Policy 2024: Yogi Adityanath's vision to transform state into global MNC, AI hub
By Team Asianet Newsable | First Published Oct 4, 2024, 3:50 PM ISTGCCs have emerged as a vital element of global value creation, driving digital transformation and fostering technological innovation. They play a crucial role in facilitating high-value operations, including engineering, research, development, and advanced analytics.
To achieve its goal of transforming Uttar Pradesh into a one-trillion-dollar economy, the Yogi government is actively working to position the state as a ‘super hub’ for Global Capability Centers (GCCs). In line with CM Yogi Adityanath's vision, a new policy is being developed that aims to establish Uttar Pradesh as a leading center for sectors such as multinational corporations (MNCs), artificial intelligence (AI), product development, data analytics, and cybersecurity.
GCCs have emerged as a vital element of global value creation, driving digital transformation and fostering technological innovation. They play a crucial role in facilitating high-value operations, including engineering, research, development, and advanced analytics. Under CM Yogi’s guidance, Uttar Pradesh will actively encourage substantial investment in the development of technology parks, special economic zones (SEZs), and co-working spaces equipped with cutting-edge facilities.
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To support these initiatives, the UP GCC Policy 2024 will soon be introduced in the state. With Uttar Pradesh's strategic location, improved connectivity, skilled workforce, and supportive policies from the Yogi government, this campaign has the potential to be a game changer, positioning the state as the largest hub in the country for these sectors.
India has firmly positioned itself as a global leader in the Global Capability Centers (GCC) sector. It is projected that the GCC sector will account for nearly $110 billion of the domestic market by 2030, driven primarily by software exports. By 2024, India's GCC industry had employed over 1.9 million professionals and contributed $64.6 billion to the economy, representing over 1% of the nation’s GDP. The number of GCCs in India is anticipated to increase from 1,700 to more than 2,400 by 2030, with the potential for expansion to 2,550 centers, creating over 2.5 million jobs.
The annual establishment of new GCCs is expected to rise from 70 to 115, further solidifying India's status as a global technology and services hub. In alignment with these goals, Uttar Pradesh has introduced the draft UP GCC Policy 2024, prepared by Invest UP. Additionally, Karnataka is set to implement a similar policy and has also drafted its version.
The growth of GCCs in the country and the state has been remarkable, evolving from traditional business process outsourcing (BPO) centers to knowledge process outsourcing (KPO) and multifunctional centers.
Uttar Pradesh is strategically positioned to capitalize on this growth, thanks to its advantageous location, youthful workforce, and rapidly developing infrastructure. By prioritizing infrastructure development, talent enhancement, and financial incentives, the state aims to emerge as a premier destination for GCC investments.
Gautam Buddha Nagar already hosts a significant GCC hub focused on the software and technology sectors.
GCC regions are generally categorized into upstream and downstream sectors. Upstream regions are highly specialized and require a pre-existing ecosystem of industrial clusters, including artificial intelligence, cloud computing, quantum computing, deep-tech, and robotics, to foster growth.
Conversely, downstream sectors can function independently of economies of scale and can be established in various locations with a skilled workforce, quality infrastructure, and business-friendly governance. These sectors include banking, financial services, and insurance (BFSI), software and technology, and energy and utilities.
Currently, upstream sectors constitute approximately 25% of all GCCs in India, while downstream sectors account for about 75% of the total GCC share.
With a robust presence in the Electronics System Design and Manufacturing (ESDM) and IT/ITES sectors—where India leads in exports and employs over 350,000 professionals—Uttar Pradesh is well-positioned to attract downstream GCCs. This creates significant potential for the state to emerge as a hotspot for downstream GCC sectors, including software and technology, banking, financial services, and insurance (BFSI), semiconductors, healthcare, and medical devices.
Furthermore, Uttar Pradesh has a unique opportunity to tap into emerging fields such as artificial intelligence (AI), data analytics, and digital engineering.
According to the draft proposal, the policy is intended to span five years. Once the notification is issued, Invest UP will implement the policy by establishing a Policy Implementation Unit (PIU), which will oversee its execution through an evaluation and empowered committee, ensuring regular monitoring.
* The state boasts 40 IT parks and 25 special economic zones (SEZs) that provide modern, ready-to-use office spaces. In this context, the GCC policy will also promote investment and business establishment in these facilities.
* Noida has emerged as a key destination for global competence centers (GCCs), attracting substantial investments from leading global technology and manufacturing firms, particularly in the electronics and semiconductor sectors.
* Uttar Pradesh has positioned itself as a data center and semiconductor hub in North India, hosting major players such as Yotta, STT Global, and Web Works. Recently, the state government announced plans for a 1,000-acre semiconductor park near Jewar International Airport, which will benefit from access to a multi-modal logistics park at YEIDA and the Rapid Rail Transit System (RRT).
* Additionally, the state is developing a 250-acre electronic park, a data center park, and other electronic manufacturing clusters (EMCs) in the YEIDA region.
* The proposed AI City in Lucknow, covering 40 acres, will further enhance the state's infrastructure offerings. Uttar Pradesh also supports GCC development through facilities such as the Integrated Industrial Township (750 acres), a Medical Device Park (350 acres), and a Fintech Park in the YEIDA area.
* Currently, Software Technology Parks of India (STPIs) are operational in Kanpur, Lucknow, Prayagraj, Noida, and Meerut, serving approximately 300 registered IT units. Plans are underway to establish new STPIs in Agra, Bareilly, Gorakhpur, and Varanasi.
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