Karnataka to Set Up 500 Global Capability Centres, Aims Job Surge by 2029

By 2029, Karnataka intends to have established 500 new global capability centres (GCCs), which will help to speed up the development of jobs and solidify its status as a hub for global technology. Approximately 3.5 lakh jobs and approximately $50 billion in economic production are anticipated to be generated by the expansion.

During the presentation of the state budget, Chief Minister Siddaramaiah made the announcement. One of India's major centers for multinational captive centers, the southern state already has over 550 GCCs. The most recent initiative is an attempt to diversify the economy away from Bengaluru, which has long been considered the country's principal technological center, and to expand that ecosystem.

Karnataka Building its IT Infrastructure

The latest plan fits in with the state of Karnataka's plans to build infrastructure outside of the capital. A new information technology park is being planned for Mangaluru by the Karnataka State Electronics Development Corporation (KEONICS). The new IT Park is developed with the core purpose of luring international companies and bolstering the growth of the Gulf Cooperation Council (GCC). Smaller cities showed early signs of success, according to Siddaramaiah. Almost 100 information technology enterprises in Mysuru employ more than 30,000 people, according to the chief minister.

He emphasised the possibility of Tier-2 cities absorbing investments in technology in the future. Companies are increasingly looking for ways to cut costs and gain access to talent, and this policy adjustment is just one example of that trend. Experts in the field have seen that MSMEs, who are rapidly establishing their own centres, make up over half of India's GCC scene. The so-called "nano GCCs" are also on the increase in Karnataka; these are smaller, innovation-led organisations that are usually located in developing cities. For businesses without substantial in-house R&D resources, these hubs should spur innovation and provide more operational leeway.

Mysuru to Become Startup Laboratory

In addition, the government's initiative to decentralise is consistent with the demands from academia and industry to fortify regional innovation ecosystems. The idea of transforming Mysuru into a startup laboratory was put forward by Sreedhara Panicker Somanath, the former chairman of ISRO. This initiative highlights the importance of smaller cities in India's technological future.

The GCC strategy of Karnataka is indicative of a trend in the way multinational corporations think about site selection, which is to place more value on decentralised operations, reduced overhead, and access to a wide range of talent. If all goes according to plan, the project could make the state even more dominant in India's IT services industry and expand the areas experiencing tech-led growth, becoming an example for other states to follow.

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