Wednesday, July 24, 2024

Global Capability Centres to employ 2 million, generate up to 80bn revenue in next 2 years in India

New Delhi, June 28, 2024
Global Capability Centres (GCCs) in India could employ 2 million people with a revenue of up to $80 billion in the next two years, a report showed on Friday.

The country currently has more than 1,580 GCCs, employing 1.66 million people, as companies navigate the complexities of today’s business environment.

In the next two years, GCCs could move up to 1,900 centres in India, employing 2 million people with revenue of $60-80 billion, according to the report by Deloitte India before the upcoming budget.

“The mature technology ecosystem, talent and cost advantage and politically stable environment amid global uncertainty are the main factors that make India a successful GCC global leader and a preferred location,” said Gaurav Gupta, partner and GCC industry leader, Deloitte India.

However, GCCs need support in infrastructure development, increased investment in skill development, consistent taxation policies and an ecosystem that fosters innovation to realise their full potential.

The report mentioned that the current direct tax policy landscape in India is constantly evolving, driven by the government’s efforts to reform existing systems and processes, with a focus on improving efficiency and transparency.

“Significant measures, such as a reduction in corporate tax rates, introduction of concessional tax regimes and elimination of the minimum alternate tax regime, have been undertaken to attract investment and foster a favourable business-friendly tax climate,” said Gupta.

The Indian government has also adopted various globally accepted best practices to provide trust and confidence to foreign investors and prevent disputes.

“Safe harbour rules, an advanced pricing regime, an effective MAP programme and the adoption of the sixth method for transfer pricing analysis are a few examples,” the report mentioned.

The pool of digital talent in India with expertise in the areas of cloud computing, Artificial Intelligence (AI), big data and the Internet of Things (IoT) grew at a CAGR of more than 35 per cent over the past four years.

The talent pool is expected to reach 2.6 million by 2024, said the report.(Agency)

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