India has solidified its position as a premier destination for Global Capability Centres (GCCs), hosting over 1,800 centres that occupy more than 240 million sq. ft of Grade A office space. A recent report by JLL India highlights a remarkable growth trajectory, with the number of GCCs expected to exceed 2,300 and their footprint to expand to over 280 million sq. ft by 2026-27.
This surge is indicative of India’s growing significance in the global business landscape, with the GCC sector experiencing a notable uptick in activity. In just the past 18 months (January 2023 to June 2024), GCCs leased an impressive 35.2 million sq. ft of office space—a 49% increase compared to the previous 18 months.
Bengaluru, often dubbed the “Silicon Valley of India,” leads the charge, accounting for approximately 42% of the space occupied by GCCs. Hyderabad and Chennai are also significant players, together representing three-quarters of the leasing activity during the same period. The predominance of GCCs in these cities highlights their strong infrastructure, skilled talent pools, and vibrant business ecosystems.
Dr. Samantak Das, Chief Economist and Head of Research at JLL India, noted, “Recent leasing activity underscores the robust growth of the GCC sector, with Bengaluru, Hyderabad, and Chennai capturing the majority of this momentum.”
The GCC landscape in India is primarily dominated by three sectors: Manufacturing, IT/ITeS, and BFSI, which together make up around 78% of the occupied area. This concentration reflects India’s strengths in technology and finance, positioning the country as a hub for high-value operations.
Rahul Arora, Head of Office Leasing & Retail Services at JLL, emphasized that India’s transformation from a cost-saving destination to a strategic innovation powerhouse is reshaping the global business landscape. He stated, “Today, we’re witnessing GCCs in India leading in R&D for AI, machine learning, and advanced manufacturing. They are evolving from mere service providers to critical nerve centers for global corporations.”
Looking ahead, the future of India’s GCC sector appears promising, with GCCs currently accounting for about 50% of ongoing space requirements across the top seven cities. As these centres continue to evolve, India’s role in driving global business innovation and digital transformation is set to expand.
With its vast talent pool, quality infrastructure, and supportive government policies, India is firmly establishing itself as the world’s leading destination for Global Capability Centres, driving innovation and high-end capabilities for multinational enterprises.
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