Madhya Pradesh has become the first state in India to introduce a dedicated Global Capability Centre (GCC) policy, aiming to position the state as a leading destination for global innovation and collaboration. The Madhya Pradesh GCC Policy 2025 offers a range of incentives, including capital expenditure support, payroll benefits, upskilling initiatives, and funding for research and development. A designated nodal agency will oversee the policy’s execution, according to a government statement.
The policy targets key sectors such as IT, finance, engineering, human resources, and emerging technologies, with a special focus on artificial intelligence (AI) and cybersecurity. This pioneering policy is India’s first framework to promote the growth of GCCs in tier-2 cities, marking a shift towards decentralizing business hubs away from traditional metropolitan areas.
The initiative aims to attract over 50 GCCs and generate more than 37,000 direct jobs, positioning Madhya Pradesh as a center of excellence for IT/ITeS, advanced analytics, R&D, and digital transformation. By encouraging foreign investment and infrastructure development, the state seeks to create a thriving ecosystem catering to industries like automotive, pharmaceuticals, logistics, textiles, aerospace, and emerging technologies such as AI and cybersecurity.
The policy was introduced ahead of Madhya Pradesh’s Global Investors’ Summit, set for February 24-25 in Bhopal. The event aims to attract investment and showcase the state’s economic potential, highlighting its favorable investment climate and industrial infrastructure.
Madhya Pradesh offers a strong value proposition for GCCs, with a combination of strategic incentives, skilled talent, and robust infrastructure. The state’s IT/ITeS sector has experienced rapid growth, with exports tripling in the past three years and an annual growth rate of 43%.
With over 300 engineering colleges producing more than 50,000 tech graduates each year, the state ensures a steady stream of skilled professionals. Madhya Pradesh also boasts over five Special Economic Zones (SEZs), 15+ IT parks, and 150+ Electronics System Design and Manufacturing (ESDM) units in cities like Indore, Bhopal, and Jabalpur, further enhancing its infrastructure readiness.
Additionally, Madhya Pradesh offers a cost advantage, significantly reducing operational expenses compared to metro cities, making it an attractive alternative for global companies. The state is ranked 4th in the Ease of Doing Business Rankings (2023), offering streamlined regulatory processes, single-window clearances, and investor-friendly policies.
The Madhya Pradesh State Electronics Development Corporation Limited (MPSeDC) will act as the nodal agency for implementing the policy. A dedicated Policy Implementation Unit (PIU) will handle project approvals, incentive distribution, and compliance monitoring to ensure smooth execution and support for investors.
Through the GCC Policy 2025, Madhya Pradesh aims to transform its cities into global hubs of innovation and excellence, creating an ecosystem where multinational companies can thrive. With its world-class infrastructure, policy-driven incentives, and focus on digital transformation, Madhya Pradesh is poised to become a preferred GCC destination, contributing to India’s goal of achieving a USD 110 billion GCC market by 2030. As global businesses seek cost-effective and innovation-driven locations, Madhya Pradesh is ready to lead India’s next phase in the GCC revolution.
