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Tamil Nadu Industries Minister T.R.B. Rajaa said the state is not "catching up" with others in attracting Global Capability Centres (GCCs) but "regaining lost ground," positioning itself once again as a hub for high-value corporate innovation and technology operations.
Speaking to CNBC-TV18, Rajaa said Tamil Nadu was among the original leaders in the GCC story before it lost momentum as cities like Bengaluru and Hyderabad gained from better airport infrastructure and faster policy support. "TN was the OG of GCCs—we saw a dip as Bengaluru and Hyderabad airports took off and Chennai airport did not. But we’re fixing that now," he said.
The minister emphasised that Tamil Nadu is unique among Indian states for ensuring distributive growth rather than concentrating development in just one or two cities. "In Tamil Nadu, the single-window clearance system is actually a single-window clearance system," he added, underlining ongoing efforts to make state-level bureaucracy more responsive to investor needs.
Rajaa acknowledged that constraints on Floor Space Index (FSI) have limited the construction of large towers—a key requirement for major GCC players—but said the government is working to remove such bottlenecks. "We are correcting the systems to ensure we can get GCCs to Tamil Nadu," he said.
He projected Hosur as the next big growth centre for GCC activity. "Hosur will become the next Bengaluru as GCCs kick off there," Rajaa said, citing its growing industrial base and proximity to Bengaluru's talent ecosystem.
On the technology front, Rajaa urged companies to "reinvent themselves" for the next wave of automation and AI-led transformation. "GCCs need to reinvent themselves. What better place to do that than in Chennai? We can leapfrog straight to agentic AI and capture that market," he said.
Despite competition from other metros, Rajaa argued that Tamil Nadu’s enduring strength lies in its skilled workforce. "TN is the talent capital of India—that’s an edge no other state has," he asserted.
Speaking to CNBC-TV18, Rajaa said Tamil Nadu was among the original leaders in the GCC story before it lost momentum as cities like Bengaluru and Hyderabad gained from better airport infrastructure and faster policy support. "TN was the OG of GCCs—we saw a dip as Bengaluru and Hyderabad airports took off and Chennai airport did not. But we’re fixing that now," he said.
The minister emphasised that Tamil Nadu is unique among Indian states for ensuring distributive growth rather than concentrating development in just one or two cities. "In Tamil Nadu, the single-window clearance system is actually a single-window clearance system," he added, underlining ongoing efforts to make state-level bureaucracy more responsive to investor needs.
Rajaa acknowledged that constraints on Floor Space Index (FSI) have limited the construction of large towers—a key requirement for major GCC players—but said the government is working to remove such bottlenecks. "We are correcting the systems to ensure we can get GCCs to Tamil Nadu," he said.
He projected Hosur as the next big growth centre for GCC activity. "Hosur will become the next Bengaluru as GCCs kick off there," Rajaa said, citing its growing industrial base and proximity to Bengaluru's talent ecosystem.
On the technology front, Rajaa urged companies to "reinvent themselves" for the next wave of automation and AI-led transformation. "GCCs need to reinvent themselves. What better place to do that than in Chennai? We can leapfrog straight to agentic AI and capture that market," he said.
Despite competition from other metros, Rajaa argued that Tamil Nadu’s enduring strength lies in its skilled workforce. "TN is the talent capital of India—that’s an edge no other state has," he asserted.
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