Karnataka plans to establish 500 new global capability centres (GCCs) by 2029, in a move aimed at accelerating job creation and strengthening its position as a global technology hub.
The expansion is expected to generate around 3.5 lakh jobs and nearly $50 billion in economic output, according to Analytics India Magazine, which cited Chief Minister Siddaramaiah’s announcement during the state budget presentation.
The southern state already hosts about 550 GCCs, making it one of India’s largest hubs for multinational captive centres. The latest push signals an effort to scale that ecosystem while reducing dependence on Bengaluru, long regarded as the country’s primary technology hub.
A key part of the strategy involves expanding infrastructure beyond the capital. The government plans to develop a new IT park in Mangaluru through the Karnataka State Electronics Development Corporation (KEONICS), aimed at attracting global firms and supporting GCC growth.
Siddaramaiah pointed to early signs of success in smaller cities. “Over 30,000 employees are working across nearly 100 IT companies in Mysuru,” he said, highlighting the potential of Tier-2 cities to absorb future technology investments.
The policy shift comes amid a broader trend of companies exploring alternative locations to manage costs and access talent. Industry observers note that mid-sized enterprises now account for nearly half of India’s GCC landscape, increasingly setting up their own centres.
At the same time, Karnataka is witnessing the rise of so-called “nano GCCs” — smaller, innovation-led units typically based in emerging cities. These centres are expected to drive experimentation and offer greater operational flexibility, particularly for firms without large in-house R&D capabilities.
The government’s decentralisation push also aligns with calls from industry and academia to strengthen regional innovation ecosystems. Former ISRO chairman Sreedhara Panicker Somanath recently proposed developing Mysuru as a “startup laboratory”, underlining the role of smaller cities in India’s technology future.
Karnataka’s GCC strategy reflects a shift in how global firms approach location planning, with increasing emphasis on distributed operations, cost efficiency and access to diverse talent pools.
If executed as planned, the initiative could reinforce the state’s leadership in India’s IT services sector while broadening the geography of tech-led growth, setting a template for other states seeking to replicate its model.