Tier-2 Cities: The Next Frontier for GCC Growth Needs Payroll Incentives, Grade-A Infra
Technology
M
Moneycontrol•27-01-2026, 15:29
Tier-2 Cities: The Next Frontier for GCC Growth Needs Payroll Incentives, Grade-A Infra
- •India's next phase of Global Capability Centre (GCC) growth hinges on expanding beyond metros into Tier-2 cities.
- •Industry leaders advocate for payroll-linked incentives, top-tier infrastructure, and cluster-led strategies to make Tier-2 cities competitive.
- •Finance Minister Nirmala Sitharaman announced a national framework in Budget 2025 to guide states in promoting GCCs in emerging Tier-2 cities.
- •Talent readiness, specialized skilling in AI, data, product engineering, and cybersecurity are crucial differentiators for future GCC expansion.
- •Transfer pricing friction and tax predictability remain key challenges for GCCs moving into higher-value and IP-linked work.
Why It Matters: Expanding GCCs into Tier-2 cities requires strategic incentives, robust infrastructure, and skilled talent.
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