UP Approves Global Capability Centres Policy To Attract MNCs, Targets $1-Trillion Economy

The Uttar Pradesh government has approved the Global Capability Centres (GCC) Policy, aiming to position the state as a prominent global service hub and achieve its ambitious $1-trillion economy target, the Indian Express reported. 

Cleared during a cabinet meeting chaired by Chief Minister Yogi Adityanath on Tuesday (6 May), the policy is designed to attract large-scale investments from multinational companies in sectors such as IT, banking, healthcare, engineering, and emerging technologies.

Officials expect that the incentives offered will draw global firms to establish operations in Uttar Pradesh.

Principal Secretary for Industrial Development, Alok Kumar, highlighted the state's skilled workforce across various fields, including science, law, and engineering.

He noted that many multinational companies are setting up offshore development centres in Uttar Pradesh to obtain high-quality work at lower costs.

The policy offers several incentives to investors:

Operational Subsidy: A 20 per cent subsidy on expenses such as rent, electricity, bandwidth, and data services, with assistance up to Rs 180 crore.

Payroll Subsidy: Reimbursement of up to Rs 1.8 lakh per annum for salaries of employees residing in Uttar Pradesh.

Fresher and Intern Subsidy: Assistance up to Rs 20,000 for hiring new graduates and Rs 5,000 per month for internships.

The policy also includes provisions for socially backward classes under EPF, training, and R&D grants.

Other benefits encompass exemptions in land and stamp duty, capital and interest subsidies, and SGST reimbursement.

Currently, India hosts around 1,700 GCCs, with expectations of rapid growth. 

Microsoft has initiated the construction of a 10,000-seat development center in Noida, and MAQ has established a 3,000-seat engineering development center.

The state plans to expand such centers to cities like Varanasi, Kanpur, and Prayagraj, in addition to the NCR and Noida regions.

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