Karnataka has set an ambitious target to attract 500 new global capability centres (GCCs), create 3.5 lakh jobs and generate $50 billion in economic output by 2029, as it seeks to strengthen its position as India's leading destination for multinational technology and business operations.
The roadmap was outlined at Katalyst Connect, an industry event organised by the IT/BT Department and the Karnataka Digital Economy Mission (KDEM), where senior state leaders engaged with representatives from more than 200 GCCs operating in Karnataka.
State outlines growth roadmap beyond Bengaluru
Speaking at the event, Chief Minister DK Shivakumar said the government is working to create "more Bengalurus beyond Bengaluru" by extending infrastructure and investment opportunities to Tier 2 and Tier 3 cities.
He said the government is committed to providing the same ecosystem available in Bengaluru to emerging cities across the state.
To encourage companies to expand beyond the capital, Shivakumar highlighted several advantages, including lower real estate costs and development incentives. According to the Chief Minister:
- Karnataka aims to attract 500 new GCCs by 2029.
- The initiative is expected to create 3.5 lakh jobs.
- The state targets $50 billion in economic output through the expansion.
- Office rentals in Bengaluru range between $1 and $1.5, while comparable space in Tier 2 and Tier 3 cities is available for around $0.50.
- The government plans to offer double floor area ratio (FAR) in these cities to support larger commercial developments.
Shivakumar also said Karnataka is investing in high-quality education and remains open to industry feedback as it develops the next phase of its GCC strategy.
Focus shifts to infrastructure and regional expansion
The Chief Minister said improving last-mile connectivity for employees remains a priority in Bengaluru, while the government's Beyond Bengaluru initiative will continue to replicate the city's successful business ecosystem in other parts of the state.
During the event, Shivakumar met representatives from more than 150 GCCs, including executives from Target, to discuss the capabilities being developed from Karnataka across technology, finance, merchandising, marketing and store design.
Industry leaders discuss the next phase of GCC growth
The event brought together representatives from leading multinational companies including Google, Intel, IBM, Anthropic, Nokia, Bosch, JP Morgan Chase, HSBC, Chevron, Philips, Thermo Fisher Scientific, Takeda, Novo Nordisk Global Business Services, Lowe's India, Rolls-Royce, Raytheon, Ford, eBay, Snowflake, Carl Zeiss, Collins Aerospace, Johnson Controls, Wayfair, Waters, Verint, A.P. Moller-Maersk and Delta Airlines.
Discussions centred on strengthening links between Karnataka's startup ecosystem and global capability centres, alongside expanding high-value engineering, research and product development activities.
Government seeks stronger partnership with global enterprises
Priyank Kharge, Karnataka's Minister for IT/BT, said the state's position as India's leading GCC destination has been built through long-term collaboration with global enterprises.
He said GCCs are increasingly evolving from delivery centres into global hubs for engineering, research and development, and product innovation. Karnataka's priority is to continue providing the talent, policy support and innovation ecosystem needed for companies to take on larger global responsibilities.
Dr N Manjula, Secretary of the IT/BT Department, said industry recommendations gathered during the event will help shape Karnataka's future GCC roadmap. She added the government's focus is on keeping policy aligned with evolving industry requirements while strengthening the state's talent ecosystem for emerging technologies.