GCCs To Contribute 3.5% To India’s GDP By 2030: Economic Survey 2024
This contribution translates to a revenue forecast of approximately USD 121 billion
The Economic Survey 2024 on Monday mentioned the growth trajectory for Global Capability Centres (GCCs) in India. According to the survey, the number of GCCs has skyrocketed from 760 in 2012 to over 1,600 by March 2023, with expectations to reach 2,100 by 2028.
GCCs are projected to hugely boost India’s economy, with an estimated contribution of 3.5 per cent to the nation’s GDP by 2030. This translates to a revenue forecast of approximately USD 121 billion.
The sector’s expansion has also led to employment growth, with GCCs employing over 16.6 lakh individuals in FY23. Over 42 per cent of these employees are engaged in engineering, research, and development (ER&D).
The focus on ER&D within GCCs is increasingly prominent, with this segment experiencing a 30 per cent growth to USD 25 billion in FY23. This shift comes as traditional sectors like IT and Business Process Management (BPM) continue to thrive. The IT segment of GCCs saw a 30 per cent increase in market size, reaching USD 9.7 billion, while the BPM segment grew by about 27 per cent, reaching USD 10.7 billion in the same fiscal year.
Looking ahead, the market size of GCCs is projected to hit USD 90 billion by 2028, reflecting the sector’s expanding footprint and influence. Despite the optimistic outlook, the survey also mentioned a slowdown in hiring within the IT sector. The report suggested that while there may not be further declines in hiring, a big increase is unlikely in the near term.
