Launched in 2014, Make in India aimed to position India as a global manufacturing hub. A decade later, the impact is visible beyond industrial corridors — it now influences strategic boardroom decisions across continents. Among the biggest beneficiaries of this policy shift are Global Capability Centers (GCCs), which are reshaping their operational blueprints to align with India’s ecosystem.
As of early 2025, India hosts over 1,700 GCCs, employing 1.9 million professionals across IT, finance, healthcare, automotive, and aerospace. In 2015, the count stood at 700 centers. This growth is not incidental. It reflects India's expanding relevance in global business strategy.
From A Slogan To A Structure
The Make in India initiative has matured from a slogan into a structured, incentive-backed framework that merges cost, scale, and policy clarity. Global firms are leveraging this environment to establish or expand GCCs that go beyond support functions. Today’s centers drive innovation, manage critical processes, and contribute directly to revenue-generation models.
India’s pull is no longer limited to its workforce size. The infrastructure upgrades, direct production-linked incentive (PLI) schemes, and a clear digital-first government stance have made it easier for CXOs to greenlight long-term commitments.
What was once viewed as a back-office location is now being treated as a strategic value zone. And that shift is not theoretical. It’s in the quarterly filings, board-level expansions, and multi-billion-dollar commitments pouring into Indian cities, tier-1 and tier-2 alike.
India’s Position in Global Manufacturing and Services
India ranked fifth in global manufacturing output by value lately, with a projected contribution of $1.25 trillion to manufacturing GDP by 2025. Sectors like mobile production, electronics, pharmaceuticals, semiconductors, and defence are now key contributors.
Under Make in India, the electronics industry saw exports grow from $6 billion in 2014 to over $23 billion in FY24. The PLI schemes have allocated ₹2 lakh crore across 14 sectors, including pharma, telecom, white goods, and solar PV modules.
At the same time, India’s IT and professional services sector crossed $250 billion in revenue in FY24, supporting the dual momentum of manufacturing and services. The country now produces over 1 million engineering graduates annually, giving it the workforce depth needed to support both factory floors and digital transformation centers.
GCCs are no longer cost centers. They now function as centers of excellence and innovation. Multinationals in BFSI, aerospace, telecom, healthcare, and consumer goods have expanded their GCC presence due to India’s evolving value proposition.
JP Morgan opened its fifth Indian GCC in Hyderabad, focusing on AI, risk analytics, and trading platforms. SAP Labs India now drives global product development, servicing 90+ countries from Bengaluru. Boeing, through its Indian engineering center, is co-developing aerospace solutions with local teams.
By the end of 2025, India is expected to house over 50% of all new GCC setups globally. The US, Germany, Japan, and the Middle East are leading this shift. The top 500 global firms are increasingly moving their digital, supply chain, and AI ops to Indian GCCs.
India has introduced several structural changes to boost ease of doing business. The National Single Window System now integrates 31 central departments and over 20 state governments to facilitate investment approvals.
FDI policy changes post-2014 include:
India improved from rank 142 in 2014 to rank 63 in the World Bank’s Ease of Doing Business Index, and continues to introduce state-level reforms. Decriminalisation of minor business offences and digitisation of compliance frameworks have directly benefited MNCs looking to scale GCCs rapidly.
While Bengaluru, Hyderabad, and Pune remain GCC hubs, smaller cities are gaining ground. Coimbatore, Vizag, Kochi, Jaipur, and Ahmedabad are attracting interest due to lower attrition rates, competitive costs, and regional policy support.
Walmart Global Tech expanded into Chennai and Kochi. Harman, a Samsung subsidiary, opened its R&D GCC in Pune to tap embedded systems talent. HSBC, Bosch, and L&T have initiated operations in growing cities, supported by better road networks, fibre connectivity, and university collaborations.
This tiered expansion allows firms to diversify risk, tap regional skill sets, and reduce operating costs without compromising capability.
India is benefiting from the global China + 1 strategy. The country accounted for 16% of Apple’s iPhone production in 2024, with Foxconn, Pegatron, and Wistron expanding facilities across Tamil Nadu and Karnataka.
Micron Technology broke ground on a $2.75 billion semiconductor plant in Gujarat. AMD announced a $400 million India expansion to build R&D capabilities. Samsung continues to expand its Noida plant, now one of the world’s largest mobile manufacturing units.
These moves reflect a shift in global thinking: India is no longer a fallback option but a strategic manufacturing partner.
The growth of GCCs aligns closely with India’s digital infrastructure push. The India Stack, encompassing Aadhaar, UPI, DigiLocker, and eSign, has shown the world what scalable, inclusive tech ecosystems can achieve.
India is home to the third-largest startup ecosystem globally. Edtech, healthtech, fintech, and SaaS firms are contributing to a digitally ready workforce. Programs like FutureSkills Prime and Skill India have trained millions in AI, cloud, cybersecurity, and data analytics.
As GCCs evolve into product engineering, cybersecurity, and data science centers, India's digitally skilled workforce is closing the capability gap.
The government introduced reforms in Special Economic Zones (SEZs) with the DESH Bill (Development of Enterprise and Service Hubs). It replaces outdated SEZ laws and allows more flexible operations for service-oriented GCCs.
Mega industrial corridors like Delhi-Mumbai, Chennai-Bengaluru, and Hyderabad-Warangal now include cluster-based infrastructure for electronics, aerospace, and EV manufacturing.
India’s corporate tax rate was cut to 15% for new manufacturing firms, making it among the lowest globally. Exporters enjoy duty refunds through RoDTEP, and GST input credit mechanisms have been streamlined to reduce cash blockages.
India today offers a predictable operating environment for global business continuity. Beyond labour arbitrage, leaders are evaluating India for:
The country’s multi-city footprint and strong bilateral trade ties across ASEAN, the US, and the UAE also help multinational firms create globally distributed yet locally optimised value chains.
India is expected to touch $1 trillion in manufacturing exports by 2030, supported by GCC-led service exports estimated at $180 billion annually. As AI, clean tech, and semiconductors become core to industrial value chains, India is building capabilities across all three.
The government's focus is now shifting towards deep tech, EV ecosystems, and chip design. The upcoming National Logistics Policy 2.0 and continued FTA negotiations with the UK, Canada, and the EU aim to further boost global competitiveness.
India is no longer in the waiting room. For GCCs and manufacturing giants alike, the country has become a central node in global business strategies.
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