Econ secy says more states need reforms to attract global capability centres
This story was originally published at 14:53 IST on 14 July 2025
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NEW DELHI – More and more Indian states must try and mirror the policies and reforms in select states like Karnataka, Tamil Nadu, and Telangana, where global capability centres are focussed, Economic Affairs Secretary Anuradha Thakur said Monday. The governments (Centre and states) and the industry need to work together to ensure GCCs are not restricted to only some states, Thakur added.
"We know those states have specific policies, both on physical infrastructure and digital infrastructure," Thakur said. "They also have certain regulatory policy initiatives which have helped GCCs there and grow further."
The central government is open to having dialogues with state governments to ease compliance for GCCs, Thakur mentioned. The government also wants Indian industries to point out reforms that it should undertake to further facilitate GCCs in India, Thakur said at the Confederation of Indian Industry's GCC Business Summit. Labour Secretary Vandana Gurnani, and K.K. Singh, joint secretary at the electronics and information technology ministry, also voiced similar opinions, while delivering their addresses at the same session.
Gurnani, while talking about her ministry's contribution to facilitate GCCs in India, said the labour ministry has been coordinating with states to rationalise labour compliances that may have a bearing on the industry.
In the recent past, the government has intensified its focus on expanding GCCs in India. In fact, in her Budget speech for 2025-26 (Apr-Mar), Finance Minister Nirmala Sitharaman announced the formulation of a national framework to guide states in promoting GCCs in tier-II cities. "This (framework) will suggest measures for enhancing availability of talent and infrastructure, building-byelaw reforms, and mechanisms for collaboration with industry," Sitharaman had said.
The electronics and IT ministry is responsible for formulating the framework. The ministry has started the work and is likely to deliver it soon, Singh said. End
Reported by Krity Ambey and Sagar Sen
Edited by Tanima Banerjee
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