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What is the story about?
India’s Global Capability Centre (GCC) story is no longer a niche corporate strategy. It is fast becoming a central pillar of the country’s employment engine, office real estate cycle, and institutional capital flows. Even as global growth remains uneven and boardrooms turn cautious on capital allocation, India’s office market has defied the slowdown narrative—clocking record leasing in 2025 and setting the stage for a structurally different decade ahead.
The FICCI–ANAROCK report Workplaces 2025: India Commercial Real Estate Reimagined estimates that India will host over 2,400 GCCs by 2030, employing more than 2.8 million professionals, up from 1,700+ GCCs and 1.9 million employees at the end of 2024. In value terms, the GCC market is projected to expand from USD 64 billion in 2024 to USD 105–110 billion by 2030, implying a 10% CAGR.
What stands out this time is the convergence of three forces—policy intent, corporate strategy and capital-market depth—all reinforcing India’s position as a long-term global capability hub.
GCCs now anchor India’s office demand
India’s top seven cities recorded gross office leasing of 80.5 million sq ft in 2025, the highest ever. GCCs accounted for over 32.5 million sq ft, or more than 40% of total leasing, according to the report.
This marks a decisive break from the past. A decade ago, office demand was largely driven by Indian IT services firms. Today, multinational captives—housing global finance, engineering R&D, cybersecurity, healthcare analytics and AI-led operations—are dictating both the scale and quality of office absorption.
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“India’s GCCs have moved up the value chain,” said Anuj Puri, Chairman, ANAROCK Group. “They are no longer support centres but integral to global decision-making, which explains the sustained demand for Grade A offices and long-term leases.”
Bengaluru continues to dominate, accounting for over a third of GCC leasing in 2025 and hosting more than 875 GCCs—nearly 29% of India’s total. Pune, Delhi-NCR and Hyderabad together make up another 40%, reflecting a diversified but still metro-centric footprint.
Geography widens: Tier-2 cities and GIFT City step in
One of the most consequential shifts underway is the geographic diversification of GCC expansion. Rising rentals, wage inflation and congestion in top metros are prompting companies to evaluate Tier-2 cities such as Jaipur, Indore, Kochi, Coimbatore and Surat for incremental growth.
These markets offer lower operating costs, improving airport and digital infrastructure, and a steady pipeline of skilled graduates. Several state governments have also rolled out dedicated GCC policies, offering plug-and-play infrastructure, faster approvals and targeted skilling support.
At the same time, India’s only operational International Financial Services Centre is emerging as an unexpected GCC magnet.
Speaking at the World Economic Forum in Davos, GIFT City Managing Director and Group CEO Sanjay Kaul said the next phase of expansion will focus on attracting global capability centres, global innovation centres and centres of excellence—signalling a strategic shift beyond core financial services.
“Interest in GIFT City has moved well past the early stage and is now translating into concrete plans and commitments,” Kaul told CNBC-TV18. “It’s not at the point of take-off. It’s taken off already.”
According to him, enquiries surged after GIFT City’s global outreach at Davos this year, reflecting growing seriousness among multinational firms evaluating the IFSC. While banks, fintechs, insurers and asset managers remain the backbone, Kaul noted that a new and fast-growing source of interest has emerged over the past six to eight months.
“The latest interest that is coming is from the GCCs—people wanting to set up GCCs,” he said, adding that this demand is closely linked to Gujarat’s manufacturing ecosystem. Companies with existing manufacturing operations in India are increasingly looking at GIFT City as a base for their global capability and support functions.
The development underscores how GCCs are no longer confined to traditional IT corridors, but are increasingly embedded within broader industrial and policy ecosystems.
Budget 2026 reinforces the cycle
The Union Budget 2026 has added further momentum to the GCC-led office story. While not framed as a single GCC-specific scheme, multiple provisions collectively strengthen India’s competitiveness.
These include a continued thrust on urban infrastructure and transport to improve liveability and workforce mobility; expanded skilling and digital talent allocations aligned with AI, semiconductor design, healthcare tech and advanced manufacturing; and tax clarity and stability for REITs—critical for global yield-seeking capital.
Senior government officials have repeatedly positioned GCCs as a high-quality employment multiplier rather than a pure outsourcing model—a narrative echoed at global forums, including Davos, where multiple CEOs described India as a “strategic second headquarters” for talent.
Office real estate becomes strategic infrastructure
“For three decades, office real estate in India was treated as a cost line,” said Raj Menda, Chairman, FICCI Committee on Urban Development and Real Estate and Chairman of the Supervisory Board, RMZ Corp. “Today, it determines where global capital is deployed and where high-value jobs are created.”
This shift explains the rapid expansion of Grade A office stock, which touched nearly 800 million sq ft across the top seven cities in 2025. Net absorption crossed 58 million sq ft, while new completions exceeded 51 million sq ft.
Office demand is also diversifying. Coworking accounted for 23% of leasing, BFSI for 18%, alongside steady IT/ITeS demand—signalling a broader and more resilient occupier base.
REITs: the missing scale story
Despite strong occupier fundamentals, India’s REIT market remains under-penetrated. The country has five listed REITs with a combined market capitalisation of around USD 18 billion, accounting for only about 20% of institutional real estate.
Of the 520 million sq ft of REIT-able office stock, just 165 million sq ft is currently listed. By contrast, mature markets such as the US and Singapore offer deeper, more liquid yield platforms.
The next phase of growth is expected to come from asset diversification—data centres, logistics parks and retail malls—segments that increasingly co-locate with GCC ecosystems. With policy stability and improving asset quality, REIT penetration could rise to 25–30% by 2030.
A structural, not cyclical, shift
Crucially, the GCC-led office boom is not being driven by easy liquidity or speculative development. It is anchored in long-term corporate restructuring, global talent strategies and India’s relative macro stability. FDI inflows of USD 81.04 billion in FY25, up 14% year-on-year, reinforce this view.
As global companies rebalance risk and resilience, India’s role is expanding—from back office to brain centre. By 2030, GCCs will not just shape India’s skylines, but also define its position in the global economic order.
The FICCI–ANAROCK report Workplaces 2025: India Commercial Real Estate Reimagined estimates that India will host over 2,400 GCCs by 2030, employing more than 2.8 million professionals, up from 1,700+ GCCs and 1.9 million employees at the end of 2024. In value terms, the GCC market is projected to expand from USD 64 billion in 2024 to USD 105–110 billion by 2030, implying a 10% CAGR.
What stands out this time is the convergence of three forces—policy intent, corporate strategy and capital-market depth—all reinforcing India’s position as a long-term global capability hub.
GCCs now anchor India’s office demand
India’s top seven cities recorded gross office leasing of 80.5 million sq ft in 2025, the highest ever. GCCs accounted for over 32.5 million sq ft, or more than 40% of total leasing, according to the report.
This marks a decisive break from the past. A decade ago, office demand was largely driven by Indian IT services firms. Today, multinational captives—housing global finance, engineering R&D, cybersecurity, healthcare analytics and AI-led operations—are dictating both the scale and quality of office absorption.
ALSO READ: Why affordable homes have dried up
“India’s GCCs have moved up the value chain,” said Anuj Puri, Chairman, ANAROCK Group. “They are no longer support centres but integral to global decision-making, which explains the sustained demand for Grade A offices and long-term leases.”
Bengaluru continues to dominate, accounting for over a third of GCC leasing in 2025 and hosting more than 875 GCCs—nearly 29% of India’s total. Pune, Delhi-NCR and Hyderabad together make up another 40%, reflecting a diversified but still metro-centric footprint.
Geography widens: Tier-2 cities and GIFT City step in
One of the most consequential shifts underway is the geographic diversification of GCC expansion. Rising rentals, wage inflation and congestion in top metros are prompting companies to evaluate Tier-2 cities such as Jaipur, Indore, Kochi, Coimbatore and Surat for incremental growth.
These markets offer lower operating costs, improving airport and digital infrastructure, and a steady pipeline of skilled graduates. Several state governments have also rolled out dedicated GCC policies, offering plug-and-play infrastructure, faster approvals and targeted skilling support.
At the same time, India’s only operational International Financial Services Centre is emerging as an unexpected GCC magnet.
Speaking at the World Economic Forum in Davos, GIFT City Managing Director and Group CEO Sanjay Kaul said the next phase of expansion will focus on attracting global capability centres, global innovation centres and centres of excellence—signalling a strategic shift beyond core financial services.
“Interest in GIFT City has moved well past the early stage and is now translating into concrete plans and commitments,” Kaul told CNBC-TV18. “It’s not at the point of take-off. It’s taken off already.”
According to him, enquiries surged after GIFT City’s global outreach at Davos this year, reflecting growing seriousness among multinational firms evaluating the IFSC. While banks, fintechs, insurers and asset managers remain the backbone, Kaul noted that a new and fast-growing source of interest has emerged over the past six to eight months.
“The latest interest that is coming is from the GCCs—people wanting to set up GCCs,” he said, adding that this demand is closely linked to Gujarat’s manufacturing ecosystem. Companies with existing manufacturing operations in India are increasingly looking at GIFT City as a base for their global capability and support functions.
The development underscores how GCCs are no longer confined to traditional IT corridors, but are increasingly embedded within broader industrial and policy ecosystems.
Budget 2026 reinforces the cycle
The Union Budget 2026 has added further momentum to the GCC-led office story. While not framed as a single GCC-specific scheme, multiple provisions collectively strengthen India’s competitiveness.
These include a continued thrust on urban infrastructure and transport to improve liveability and workforce mobility; expanded skilling and digital talent allocations aligned with AI, semiconductor design, healthcare tech and advanced manufacturing; and tax clarity and stability for REITs—critical for global yield-seeking capital.
Senior government officials have repeatedly positioned GCCs as a high-quality employment multiplier rather than a pure outsourcing model—a narrative echoed at global forums, including Davos, where multiple CEOs described India as a “strategic second headquarters” for talent.
Office real estate becomes strategic infrastructure
“For three decades, office real estate in India was treated as a cost line,” said Raj Menda, Chairman, FICCI Committee on Urban Development and Real Estate and Chairman of the Supervisory Board, RMZ Corp. “Today, it determines where global capital is deployed and where high-value jobs are created.”
This shift explains the rapid expansion of Grade A office stock, which touched nearly 800 million sq ft across the top seven cities in 2025. Net absorption crossed 58 million sq ft, while new completions exceeded 51 million sq ft.
Office demand is also diversifying. Coworking accounted for 23% of leasing, BFSI for 18%, alongside steady IT/ITeS demand—signalling a broader and more resilient occupier base.
REITs: the missing scale story
Despite strong occupier fundamentals, India’s REIT market remains under-penetrated. The country has five listed REITs with a combined market capitalisation of around USD 18 billion, accounting for only about 20% of institutional real estate.
Of the 520 million sq ft of REIT-able office stock, just 165 million sq ft is currently listed. By contrast, mature markets such as the US and Singapore offer deeper, more liquid yield platforms.
The next phase of growth is expected to come from asset diversification—data centres, logistics parks and retail malls—segments that increasingly co-locate with GCC ecosystems. With policy stability and improving asset quality, REIT penetration could rise to 25–30% by 2030.
A structural, not cyclical, shift
Crucially, the GCC-led office boom is not being driven by easy liquidity or speculative development. It is anchored in long-term corporate restructuring, global talent strategies and India’s relative macro stability. FDI inflows of USD 81.04 billion in FY25, up 14% year-on-year, reinforce this view.
As global companies rebalance risk and resilience, India’s role is expanding—from back office to brain centre. By 2030, GCCs will not just shape India’s skylines, but also define its position in the global economic order.
