How Uttar Pradesh is Emerging as India’s Next Global Capability Centre (GCC) Hub

Introduction

Uttar Pradesh (UP) is no longer just India’s heartland, it's fast becoming the pulse of the future-driven service economy. With an ambitious GCC (Global Capability Centre) Policy, robust infrastructure, and a massive young workforce, the state is positioning itself as India's next global GCC powerhouse.

• Ambitious Government Vision
  In early 2025, Uttar Pradesh launched its GCC Policy to attract multinational capability centers offering specialized services like AI, analytics, finance, HR, and cybersecurity . This move is part of a broader strategy to transform UP into a $1 trillion economy—an engine of innovation and service-powered growth.
   
• Powerful Infrastructure Backing
  UP boasts the highest infrastructure investment in India—₹5.31 lakh crore over five years . It has a network of IT parks and SEZs, data centre and semiconductor parks near Jewar Airport, and strategic corridors like the Ganga Expressway boosting connectivity and industrial spread.
   
• A Young and Educated Talent Pool
  With over 12–13 lakh graduates added every year and marquee institutions like IIT Kanpur and IIM Lucknow, UP is brimming with skilled professionals. This abundant, affordable talent—combined with high youth employability makes UP hard to ignore for global firms.
   
• Unbeatable Fiscal Incentives
  UP’s policy offers some of the most competitive incentives in India, from operational subsidies (20% on rent, bandwidth, cloud costs up to ₹40–80 crore) to payroll reimbursements (₹1.8 lakh for local talent) and land and stamp duty concessions.
• Employment & Inclusive Growth
  The GCC policy targets generation of over 200,000–500,000 jobs within the next few years. It emphasizes inclusive hiring incentivizing employment of women, SC/ST, transgender, and Divyangjan individuals thus directing growth across demographics and regions.
   

The Real Appeal: Beyond Policy

• Cost Efficiency That Speaks Volumes
  Operating in UP is significantly more cost-effective. In Lucknow, real estate costs are around 50–70% lower than in Bengaluru or Hyderabad office rents at $0.30–0.60/sq ft vs ₹1–1.1, and rent for a 2BHK is ₹10,000–25,000/month versus ₹20,000–50,000 elsewhere.
   
• Hub-and-Spoke Model for Balanced Growth
  UP is not just focusing on Noida or NCR. The government follows a hub (Noida)—spoke (Lucknow) satellite (Kanpur, Varanasi, Agra, Gorakhpur, Prayagraj) model to spread opportunities evenly.
   
• Investor Confidence Is Climbing
  At a recent GCC conclave in Lucknow, industry leaders from Microsoft, TCS, NASSCOM, and more expressed strong belief in UP’s evolving potential—including its supportive ecosystem and ease of doing business.
   

• Policy Turns into Action
  Since 2017, UP has made bold leaps from hosting North India's first data centre in Gautam Buddh Nagar to pushing software exports to new highs. Plans are underway to set up AI Cities in Lucknow and Kanpur by 2030, and expand GCC hubs in NCR, Lucknow, and Noida .
   
• Electronics & Semiconductor Leadership
  UP already contributes to 55% of India’s mobile phone production, hosts numerous electronics clusters and SEZs, and is deepening its chip ambitions via the Semiconductor Policy 2024 and the HCL‑Foxconn OSAT plant at Jewar.
   
• Experts Praise GCC Policy
  Analysts applaud the GCC Policy’s structured incentives, talent development measures, and infrastructural depth calling it a roadmap that outpaces metro-centric competitors.