Government to Assess AI's Impact on India's GCC Growth

The proposed assessment was announced by S. Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), during the Confederation of Indian Industry's GCC Business Summit in New Delhi. According to Krishnan, the government wants to evaluate whether recent policy reforms aimed at encouraging GCC investments have translated into stronger momentum and, if not, whether AI is emerging as a contributing factor.

Over the past few years, India has introduced a series of reforms to make the country more attractive for multinational companies establishing Global Capability Centres. These include changes to safe harbour taxation provisions, labour regulations and state-level policy measures intended to simplify business operations. Krishnan said many of the industry's longstanding concerns have now been addressed, making it an appropriate time to measure the impact of those reforms on GCC expansion.

Despite the review, the government's outlook on AI remains positive. Krishnan noted that while artificial intelligence is expected to automate repetitive tasks, it could also enable GCCs in India to move beyond traditional back-office operations and take on more complex technology, engineering and innovation-led functions. He added that enterprise AI adoption globally is still in its early stages, presenting an opportunity for India's GCC ecosystem to support organisations as they scale AI deployment across business functions.

According to the MeitY secretary, GCCs currently contribute nearly 2 per cent of India's gross domestic product, while the country's information technology and IT-enabled services sector continues to generate around USD 250 billion in exports annually. As AI transforms enterprise operations, the government expects the nature of work within GCCs to evolve, with greater emphasis on higher-value technology roles rather than routine operational functions.

The comments come as India's GCC sector continues to expand despite broader uncertainty around global hiring. Recent industry estimates indicate that India now hosts more than 2,100 Global Capability Centres, with GCC hiring projected to cross the five lakh mark in 2026. AI-related roles are also becoming increasingly prominent, with nearly two out of every three new GCC jobs expected to require skills in artificial intelligence, data science or intelligent automation.

Chief Economic Adviser V. Anantha Nageswaran, who also addressed the summit, said the government has already taken several policy steps through recent Budget measures to strengthen the GCC ecosystem. He emphasised that the next phase of growth will depend on industry investments in workforce skilling, innovation and capability building to ensure businesses remain competitive as AI adoption accelerates.

Finance Minister Nirmala Sitharaman has also outlined an ambitious vision for the sector, calling on India to move beyond being primarily a cost-efficient delivery hub and instead become a global centre for innovation-led GCCs. She recently set a target of establishing 5,000 GCCs in the country by 2030, supported by stronger research, advanced technology capabilities and policy reforms.

The government's latest assessment reflects a broader shift in how policymakers are approaching AI's impact on employment. Rather than viewing automation solely as a replacement for existing jobs, officials believe the technology could reshape India's role within global enterprise operations by creating demand for specialised engineering, AI, cybersecurity and product development talent.

As multinational companies increasingly embed artificial intelligence into their operations, India's ability to supply skilled talent for higher-order digital work is expected to play a key role in determining the next phase of GCC growth.