Context:

With the vision of making Uttar Pradesh a leading hub for global services and achieving its $1-trillion economy target, the state government has implemented the UP Global Capability Centres (GCC) Policy, 2024.

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  • This policy will attract global companies to invest in UP, generating new employment opportunities and driving economic growth in tier-2 cities.
  • The GCCs are offshore branches of multinational corporations that deliver specialized services like IT, research and development, data analytics, and customer support.
  • Amid rising global demand in emerging sectors like artificial intelligence, robotics, quantum computing, and fintech, the policy lays out a strategic roadmap to facilitate both cutting-edge research and development and the large-scale expansion of operations. 
  • The policy is designed to establish Uttar Pradesh as a top destination for Global Capability Centre (GCC) investments. 
  • By providing targeted support and creating a favorable business environment, it aims to attract multinational corporations and drive innovation-led growth throughout the state.
  • Backed by the strongest fiscal and non-fiscal incentives to date, the policy is set to ignite substantial investments and create a wealth of job opportunities across critical service sectors. 
  • It presents a holistic support framework designed to attract global enterprises in IT/ITeS, BFSI, healthcare, automotive, telecom, and emerging technologies.

Key Points

  • Operational subsidy: A20% subsidyon operating expenses covering lease rentals, bandwidth, power, and data center/cloud costs up to ₹40 crore per year for level-1 GCCs and up to a maximum of ₹80 crore per year for advanced GCCs, for five years.
  • Payroll subsidy: Reimbursement of salaries up to ₹1.8 lakh per year for UP-domiciled employees and ₹1.2 lakh per year for others, with a maximum of ₹20 crore for three years.
  • Freshers’ recruitment subsidy: A subsidy of ₹20,000 per fresh graduate with UP domicile, graduating from UP-based colleges/institutions, will be provided for the annual recruitment of at least 30 such employees, for five years.
  • R&D and innovation incentives: Grants up to ₹10 crore for setting up centres of excellence, startup ideation, and academic partnerships under IIEPP-2022.
  • IPR subsidy: Full reimbursement for patent filing costs, up to ₹5 lakh for domestic patents and ₹10 lakh for international patents.
  • Land subsidy: 30-50% subsidy on land from State Industrial Development Authorities or other state agencies.
  • SGST refund: Reimbursement of state GST on capital goods.
  • Interest subsidy: 5% subsidy on term loans up to ₹1 crore per year for five years.
  • Single window & fast-track approvals: Priority land allocation, online clearances, and dedicated support via Invest UP.

Reasons:

  • Uttar Pradesh boasts India’s largest IT park in Noida, electronic manufacturing clusters, and expanding 5G connectivity. 
  • With five strategic cities—Noida, Greater Noida, Lucknow, Kanpur, and Varanasi. 
  • The state offers dedicated GCC zones and plug-and-play infrastructure. 
  • A strong business ecosystem, home to global IT firms, startups, and top-tier transport networks, reinforces its appeal. 
  • Ranked top in the National Logistics Index and Ease of Doing Business, UP also features Nivesh Mitra, India’s largest single-window clearance system, ensuring smooth investment facilitation.
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