The Next Chapter of India's Tech Story: GCCs and AI Take Center Stage

The Centre is prioritizing the growth of global capability centres (GCCs) in India, recognizing their vital role in creating employment, driving economic growth, and spurring technological innovation, according to S. Krishnan, Secretary to the Union Ministry of Electronics and Information Technology.

At the Nasscom GCC Summit, Krishnan emphasized the government's commitment to extending the GCC ecosystem beyond metro cities into tier II and III locations. This initiative seeks to tap into untapped talent pools and foster inclusive growth across the country. As part of the 2025-26 Union Budget, a national framework has been proposed to assist states in promoting GCC expansion into smaller cities, aiming to reduce operational costs and improve talent retention in regions less saturated than traditional tech hubs.

States like Tamil Nadu and Karnataka have already introduced programs to support GCC development in tier II and III cities, and the Centre’s framework is designed to encourage other states to follow suit, contributing to more balanced regional development.

In addition to discussing GCC growth, Krishnan addressed inquiries about the India AI Mission. The government has received significant interest in developing indigenous AI models, including large language models (LLMs), with 67 proposals in the first round and 120 in the second round, highlighting strong engagement from both academia and industry.

The government’s focus on nurturing a dynamic AI ecosystem through strategic investments and research collaborations reflects its broader ambition to position India as a global technology and innovation hub, leveraging its skilled workforce and supportive policies to drive sustainable digital transformation.

News by Rahul Yelligetti.