The Bengal government is working on a policy on Global Capability Centres (GCCs) that could offer incentives to woo investments in the state from multinational companies.

Bengal IT minister Babul Supriyo pointed out that the state is working on developing the requisite policy framework for the growth of the IT and overall services sector in the state.

According to government sources, preparatory work for the policy is being undertaken and is likely to be announced at the Bengal Global Business Summit in February.

Karnataka already has a head start and has announced the draft policy in September. The state intends to attract 500 GCCs, create 3.5 lakh jobs, and generate $50 billion in economic output by 2029.

With a focus on creating infrastructure beyond Bengaluru, the policy offers incentives such as reimbursement on interest expenses, EPF contributions, skilling expenses, internship stipends and research expenses, and waiver of electricity duty, subject to specific ceilings and limitations.

Earlier in March, the Tamil Nadu government had announced incentives in the form of payroll subsidies ranging from 10 per cent to 30 per cent for jobs in GCCs with pay above ₹1 lakh per month.

It is not clear how ambitious Bengal’s plan will be in terms of setting goals for the creation of infrastructure and jobs and how much incentives will be on offer.

However, industry observers in Bengal are upbeat about the prospects of such a policy as it will draw global investors into the state and create high-paying jobs.

Nasscom defines Global Capability Centers (GCCs), also known as Global Centers of Excellence (GCOEs) or Global In-house Centers (GICs), as offshore services units established by multinational corporations (MNCs) to perform strategic functions, leveraging knowledge-based talent, solutions, enhance cost and operational efficiencies and accelerate innovation.

GCCs encompass the technology, engineering, and operations functions, including shared services centresof multinational corporations in India.

According to Nasscom, between FY19 and FY24, more than 400 GCCs and 1,100 centers were established in India, bringing the total number of GCCs to over 1,700. As of FY24, GCCs in India generate $64.6 billion in export revenue and employ over 1.9 million people.

By 2030, the GCC market in India is estimated to grow to $99-105 billion, with the number of GCCs reaching 2,100-2,200 and headcount rising to 2.5-2.8 million.