Tuesday, May 21, 2024

Boosting Investment and Innovation: Karnataka’s New Policy for Global Capability Centres and Excellence Centre Initiative

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Policy on Global Capability Centre Soon in Karnataka; Rs 10 cr for Excellence Centre

In an effort to boost investment and enhance the economic landscape, the Chief Minister of Karnataka, Siddaramaiah, recently announced an ambitious plan to roll out a new policy tailored for Global Capability Centers (GCCs) within this year. GCCs, also known as captives, are offshore units dedicated to supporting the global operations of multinational companies across various sectors. Karnataka, and especially its capital city Bengaluru, is at the forefront of this trend, hosting over 400 GCCs — a significant portion of the country’s total count of 1,500. These centres are not only pivotal in employing approximately 1.3 million individuals but also contribute a staggering $33.8 billion in revenue, accounting for nearly 1% of India’s Gross Domestic Product (GDP).

In addition to the introduction of the GCC policy, the Chief Minister also laid out plans for the establishment of a Centre of Excellence (COE) focusing on key sectors such as Fintech, Spacetech, and Automotive Tech. This initiative, which involves a planned investment of Rs 10 crore over the next five years, is expected to foster collaboration between entrepreneurs and educational institutions, thereby elevating the state’s innovation and technological advancements.

To further support Karnataka’s burgeoning startup ecosystem, the Chief Minister announced the launch of three new programmes. These include the Rajiv Gandhi Entrepreneurship Program aimed at facilitating early-stage funding, a new initiative designed to support women entrepreneurs in their early stages, and a dedicated effort to promote agricultural startups in the state, for which five acres of land will be provided to C-Camp Agri innovation park.

Lalit Ahuja, Founder and CEO of ANSR, expressed his support and enthusiasm for the GCC policy’s introduction. He remarked, “This proactive step reflects the state’s commitment to maintaining its leadership position in the GCC market segment, fostering innovation, and catalyzing even higher levels of investment and job creation in the sector.”

Karnataka, with Bengaluru at its core, is recognized as a leading global hub for GCCs, significantly contributing to the socio-economic development of the state. With nearly 40% of India’s GCCs situated in Karnataka, the state’s dominance in this sector is unparalleled. “The introduction of the GCC policy will provide the necessary impetus to maintain Karnataka’s leadership in the GCC sector. By offering a conducive environment and incentives for investment, the policy will encourage more companies to establish their centres in the state,” Ahuja added, highlighting the anticipated benefits of the forthcoming policy on the regional economy and employment landscape.

This strategic move by Karnataka’s leadership not only underscores the state’s commitment to reinforcing its position as a global leader in technological development and innovation but also aims at attracting more foreign investment, thereby providing a significant boost to the local economy and job market.

Alex Sterling
Alex Sterlinghttps://www.businessorbital.com/
Alex Sterling is a seasoned journalist with over a decade of experience covering the dynamic world of business and finance. With a keen eye for detail and a passion for uncovering the stories behind the headlines, Alex has become a respected voice in the industry. Before joining our business blog, Alex reported for major financial news outlets, where they developed a reputation for insightful analysis and compelling storytelling. Alex's work is driven by a commitment to provide readers with the information they need to make informed decisions. Whether it's breaking down complex economic trends or highlighting emerging business opportunities, Alex's writing is accessible, informative, and always engaging.

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