The Karnataka government has launched a draft Global Capability Centres (GCC) policy intending to attract 500 new GCCs, create 3.5 lakh new jobs, and generate economic output of $50 million by 2029.
The draft policy, available in the public domain now for feedback, has announced incentivisation for the GCCs for skilling local talent, including technical and soft skill enhancement for graduates and diploma holders.
The other announcements include the establishment of global innovation districts with three new tech parks — one in Bengaluru and two beyond the capital city. According to the document, companies establishing their GCCs as anchor investors in the global innovation districts in Beyond Bengaluru areas would be given a special package of incentives.
“With a workforce of over 1.2 million and contributing $22.2 billion to the economy, GCCs have been a vital source of growth and employment for Karnataka. Through this policy, we expect the GCC sector to grow at a compound annual rate of 12-14% over the next decade and foresee Karnataka holding nearly 50% of the national GCC market share by 2029,” said Priyank Kharge, Minister for IT, Biotechnology, and RDPR, at the launch event.
Focus on AI
An innovation fund with an allocation of ₹100 crore is also in the offing. The fund is intended to support joint research between GCCs and academia, and innovation challenges.
A new centre of excellence for artificial intelligence will be established in Bengaluru, notes the draft policy. The centre will work with multiple academic institutions of excellence across the State to create computer capacity, curated datasets, responsible/ethical AI principles, start-up acceleration facilities, and other support needed to build the AI ecosystem.
The government will also establish an AI skilling council with industry participation, as per the document.
Bolstering the ‘Beyond Bengaluru’ dream
The draft policy has given increased prominence to clusters beyond Bengaluru such as Mysuru, Mangaluru, Hubballi-Dharwad-Belagavi, Tumakuru, Kalaburagi, and Shivamogga.
“The government will actively support the establishment of nano GCCs in the Beyond Bengaluru areas, positioning them as strategic centres with flexible operations and staffing ranging from five to 50 employees. These nano GCCs will benefit from a range of incentives without being subject to minimum employment or investment thresholds, making it easier for companies to set up and scale operations with agility and minimal risk,” the document reads.
Reimbursement of expenses such as rent, property tax, EPF contributions for new employees for the first two years of operations, and internet for the first three years, and exemption from electricity duty for five years are some of the other incentives offered to the GCCs operating in Beyond Bengaluru.
Dedicated support to GCCs
According to the document, a unit comprising professionals from the industry will be set up within the Department of Electronics, IT, Biotechnology and Science and Technology to offer dedicated support to GCCs establishing operations in the State. A single point of contact for GCCs would be set up to streamline approvals and government coordination.
The government will also establish a dedicated GCC acceleration and investment council which will guide the State’s GCC initiatives. Karnataka is currently home to more than 30% of the country’s GCCs and employs more than 35% of the country’s GCC workforce.
Published – September 27, 2024 08:56 pm IST
