Finance Minister Nirmala Sitharaman strongly urged global centers of competence (GCCs) to move up the value creation chain. Concurrently, Chief Economic Advisor (CEA) V Ananthageswaran warned that artificial intelligence (AI) could undermine India's price advantage if companies fail to innovate.
Calls for GCC Development
Speaking at the CII GCC Summit in 2026, Sitharaman demanded that GCCs continue to aggressively advance up the value chain. She emphasized the need to create intellectual property, guide cutting-edge research, develop AI applications, own product architecture, and stimulate global innovation.
Warning on AI Impact
CEA Nageswaran cautioned against complacency, noting that India's current advantage could weaken as competing nations copy the GCC model and domestic costs continue to rise. He stressed that a country viewing powerful technology (AI) as inevitable will be shaped by it, whereas a country using it as a tool can shape it. Nageswaran stated that India must firmly belong to the latter group.
Current Status and Goals
Sitharaman called the goal of establishing 5000 GCCs by 2030 'realistic and achievable,' pointing to the large pool of global companies that have yet to open centers of competence in India. She noted that about two-thirds of companies from the Fortune Global 2000 list have not yet established GCCs in the country, representing one of the largest untapped investment opportunities.
According to data presented by Sitharaman, India currently hosts over 2100 GCCs, which employ 2.3 million specialists and generate nearly $100 billion in annual revenue. More than 500 companies from the Forbes Global 2000 list have already set up GCCs in India, making India home to over 50 percent of global GCCs. Sitharaman also reported an acceleration in investments: if one new GCC was opened per week in 2024, the average pace has now reached one new center daily.
Evolution of Value Proposition
Sitharaman highlighted the changing nature of these investments, indicating that more than half of new GCCs are now 'AI-first.' She stated that India's value proposition has transformed from cost efficiency to capability leadership. She added that the next decade should be defined not just by the number of centers, but by the growing share of global 'ideas, patents, products, algorithms, platforms, and corporate capabilities' developed, designed, and led from India.
Geographical Expansion and State Policy
The Finance Minister also announced efforts to spread GCC investments beyond established hubs like Bangalore, Hyderabad, and Gurugram. She suggested that the next wave would be 'geographically much more diverse,' given that the first 2000 centers were concentrated in megacities, naming Varanasi, Chandigarh, Visakhapatnam, Tiruchirappalli, and Mysuru as potential innovation centers. Sitharaman reported that at least 10 states have either announced or are developing special policies for GCCs. She advised states to avoid duplication and instead create specialized ecosystems around their competitive advantages.
The next phase of expansion opens opportunities to attract companies from East and West Asia, Eastern Europe, Nordic countries, and Australasia. Sitharaman concluded that India's journey in the GCC sphere is much broader than the story of one successful sector; it is about making India indispensable to the global knowledge economy.
Role of Government and Challenges
Despite Sitharaman and the CEA highlighting recent government measures to ensure tax certainty for GCCs, Nageswaran warned that state support alone is insufficient to maintain India's competitive edge. He stated: 'The government can build the runway. It cannot fly the plane,' adding that India continues to face a significant employment challenge despite graduating a large number of students annually.