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State GCC Policies Aim for 1.18 Million Jobs and 1,380 Centres by 2029-31: CBRE Report

Dedicated state-level policies targeting Global Capability Centres (GCCs) are projected to generate approximately 1.18 million new jobs and establish nearly 1,380 centres across India by 2029-31, according to a comprehensive report by commercial real estate services firm CBRE. The report highlights that the sector is preparing for its next phase of multi-city growth, gradually broadening beyond primary metropolitan markets into emerging tier-II and tier-III locations.

What Happened

India’s commercial real estate landscape is witnessing an unprecedented push as state governments formalise targeted GCC policies. According to CBRE, these strategic policy initiatives align with a significant surge in demand for commercial office space. Between 2022 and the first half of 2026, GCCs leased more than 123 million square feet of office space across India’s top nine cities.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, stated that the speed at which state governments have formalised dedicated policies for GCCs is unprecedented in the country’s commercial property sector. While traditional powerhouses like Bengaluru, Hyderabad, Chennai, Delhi-NCR, and Pune continue to account for the majority of operations, geographic diversification is emerging as a critical factor for sustained expansion.

Key Highlights

  • Employment and Centre Targets: State policies are aiming for around 1.18 million new jobs and nearly 1,380 GCC setups between 2029 and 2031.
  • Office Space Absorption: GCCs have taken up more than 123 million square feet of office space across nine major Indian cities between 2022 and H1 2026.
  • Workforce Concentration: Approximately 94 per cent of India’s 2.36 million GCC professionals currently work out of six tier-I cities, offering immense headroom for tier-II and tier-III cities to capture future market share.
  • Larger Real Estate Footprints: Large-format deals surpassing 100,000 square feet now underpin GCC leasing, with average transaction sizes rising by 18 to 20 per cent since 2023.
  • Sectoral Distribution: Technology represented 23 per cent of GCC leasing during 2022–H1 2026, followed closely by Banking, Financial Services, and Insurance (BFSI) at 22 per cent, and Engineering and Manufacturing at 16 per cent.
  • Functional Evolution: About 90 per cent of GCCs function as multi-functional units, and over half have developed into portfolio and transformation hubs handling research and development, artificial intelligence, data, cybersecurity, and product development.

Why This Matters

The transition toward emerging cities is being facilitated by hub-and-spoke models, which benefit from lower operational costs, access to engineering talent, and state policy incentives. Furthermore, the operational nature of GCCs in India has shifted significantly from basic back-office support functions to high-value technical roles, including AI, product engineering, and cybersecurity. This evolution is directly influencing commercial real estate, driving demand for larger, integrated office spaces capable of supporting complex operations.

What to Watch Next

According to CBRE, sustaining this growth momentum will require state authorities and developers to move beyond initial financial incentives. Future expansion, particularly in emerging tier-II and tier-III locations, will rely on swift policy execution, robust infrastructure development, the delivery of high-quality large-format office spaces, and the establishment of deeper local talent pipelines.

Frequently Asked Questions

What are the key job and centre targets for Indian GCCs?

State-level policies aim to create around 1.18 million new jobs and establish nearly 1,380 Global Capability Centres across the country by the 2029-31 timeframe.

Which sectors dominate GCC office space leasing in India?

Between 2022 and H1 2026, the technology sector led GCC office leasing with 23 per cent, followed by BFSI at 22 per cent, and engineering and manufacturing at 16 per cent.

How are GCC operations shifting geographically?

While 94 per cent of India’s 2.36 million GCC workforce remains concentrated in six major tier-I hubs, companies are increasingly exploring tier-II and tier-III cities via hub-and-spoke models to leverage cost efficiencies and regional talent.

Source: CBRE report, via ANI / The Tribune.