KARNATAKA

GLOBAL CAPABILITY CENTRE ( GCC )

POLICY
2024-2029
 Shri Siddaramaiah
Hon’ble Chief Minister,
Government of Karnataka

It is with great enthusiasm that I unveil the Karnataka Global Capability Centres
(GCC) Policy 2024. This Policy marks a milestone in our journey to cement
Karnataka's position as a premier destination for innovation, business services,
and cutting-edge technology solutions. In today's interconnected world, GCCs
stand as pillars of economic vitality, fostering skill enhancement and
generating employment opportunities. Our State, with its unparalleled
infrastructure, diverse talent pool, and forward-thinking governance, has
consistently led the evolution of the GCC landscape.

The Karnataka GCC Policy 2024 is designed to reinforce this leadership by

nurturing an ecosystem that is conducive to the growth and success of GCCs
throughout the state. We are dedicated to providing the necessary incentives
for businesses to flourish, supporting their expansion into burgeoning clusters,
and stimulating innovation in our tier 2 cities, thereby democratizing
opportunities for prosperity.

I would like to express my heartfelt gratitude to all the stakeholders, industry

pioneers, and thought leaders whose insightful contributions have been pivotal
in shaping this policy. Together, we will continue to strive towards a future where
Karnataka is synonymous with excellence for GCCs, driving progress for our
State and the entire nation.
 Shri Priyank M Kharge
Hon’ble Minister for Electronics, IT,Bt and
Rural Development and Panchayat Raj,
Government of Karnataka

In our ever-more connected global landscape, Karnataka is reinforcing its

position as a preeminent hub for innovation and business services with the
introduction of the Karnataka Global Capability Centres (GCC) Policy 2024. This
policy is a testament to our unwavering dedication to nurturing the expansion
of GCCs, which are vital engines of technological innovation, operational
prowess, and employment generation across diverse industries. With precision,
we have tailored incentives and support structures to meet the distinct needs
of these centres, enabling them to harness Karnataka's full potential.

The policy is built upon four foundational pillars: cultivating a highly skilled
workforce, fostering collaboration between GCCs and Karnataka's vibrant
innovation ecosystem, establishing a supportive regulatory framework, and
offering targeted incentives for growth both within Bengaluru and beyond.

Our vision extends beyond reinforcing Bengaluru's reputation as a top choice

for GCCs; we aim to spread the prosperity of this booming sector to other cities
within the state, promoting balanced regional development.

Our ambition is to forge a mutually beneficial alliance with GCCs, providing

them with a rich soil for innovation that yields economic and intellectual
dividends for the state. Concentrating on sustainability, skill development, and
digital empowerment, we are charting a course towards a new chapter of
expansion and wealth in the innovation sector of Karnataka.

I warmly invite international businesses to embark on this promising venture

with us and discover the exceptional opportunities that Karnataka presents.
Karnataka - powering GCC
ecosystem in India
Karnataka Innovation ecosystem

World-Class Infrastructure
crucial for supporting industries and
investment

Top Destination for Investment

Karnataka is a leader in FDI, having
attracted $51.03 billion between
2019-2024
Unmatched Talent Pool
Enabling GCCs to access the most diversified
talent to support key business operations
and research incl. AI and deep-tech
Karnataka
India’s Innovation India’s Largest Startup Hub and Unicorn Capital
Capital powering Provide a fertile ground for experimentation,
the GCC growth
collaboration and co-innovation for GCCs
story

Diversified presence of GCCs across industries

Enhance customer targeting, personalization,
and lead generation, for more effective
campaigns

Dynamic and cosmopolitan culture

Deepening people-to-people connectivity
across borders and providing rapid growth
opportunities

Fastest growing commercial real estate

Provide a ready to access market for GCCs to
begin operations rapidly

Industry-friendly government policies

Generate new ideas, simulate scenarios, and
assist in the development of cutting-edge
products

30%
The city is home to over

#1
Ranked

35%
of the country’s GCCs and

in the India Innovation Index 2021 by NITI Aayog, Karnata-

of the workforce, thanks to the state’s robust talent pool, ka’s leadership in technology and startups continues to
innovation ecosystem, and favourable business climate. flourish through sector-specific policies.

Number of GCC Units GCC Talent Pool GCC Market Size

India 2975+ 1.9 million+ US$ 64.6 billon

Karnataka 875+ 0.6 million+ US$ 22.2 billion

Karnataka GCC
Policy-on-a-Page
To support creation of
3.5 lakh new jobs in
Karnataka by 2029
Policy Targets

To attract establishment of 500

new GCCs in Karnataka achieving
a total number of 1,000 GCCs in
Karnataka by 2029

To generate economic output

of US$50 billion in Karnataka
through the GCCs being
established by 2029

Marquee
announcements
Global Innovation Districts

Innovation Fund

CoE for AI

Beyond Bengaluru Package

Dedicated GCC support unit

GCC Acceleration and Investment

Council

Internships for 1 lakh candidates

Global Leadership Development

Skilling program
Contents
1 INTRODUCTION 02

2 GLOBAL CAPABILITY CENTRES 04

2.1 Emergence of GCC Sector in India 04

2.2 Karnataka: India’s Innovation Capital 06

powering the GCC growth story

2.3 Future of GCCs in Karnataka 24

3 KARNATAKA GCC POLICY OVERVIEW 26

3.1 Karnataka’s Goal 2030 for the GCC Ecosystem 26

3.2 Objectives of the Policy 27

3.3 Targets 27

3.4 Marquee announcements 28

3.5 Key Pillars of the Policy 33

4 POLICY INCENTIVES 38

4.1 Pillar 1: Talent 38

4.2 Pillar 2: Local Ecosystem 42

4.3 Pillar 3: Infrastructure and Incentives 45

4.4 Pillar 4: Regulatory easing 48

5 SUMMARY OF THE INCENTIVES 52

6 DEFINITIONS 56

7 ABBREVIATIONS 60
01
INTRODUCTION
Karnataka stands as a beacon of innovation, with its
vibrant ecosystem hosting 875+ esteemed Global
Capability Centres (GCCs) Units.

The State boasts the largest share of India's GCC

talent, with approximately 35% of the country's GCC
workforce contributing to its dynamic economy. In
recent years, these centres have evolved from
traditional back-office roles to become crucibles of
innovation, reflecting a significant climb up the value
chain.

Against this backdrop, Karnataka is poised to ascend

as the preeminent Global Innovation Hub. To realize
this vision, it is imperative to address the challenges
faced by GCCs in establishing and operating within
the state. Karnataka’s robust ecosystem is key to
facilitating this transition. The Government of
Karnataka is resolute in its mission to promote the
state as a global nexus of innovation by both
spotlighting existing ingenuity and drawing industry
leaders who will pioneer future advancements.
Furthermore, the government is dedicated to
fostering a research-friendly environment that
nurtures innovation and intellectual exploration.

A key objective is to ensure balanced growth

throughout the state by championing the 'Beyond
Bengaluru' initiative, aiming to decentralize
development and cultivate a thriving ecosystem that
supports seamless GCC operations across Karnataka.

In light of these ambitions, a comprehensive policy

framework is vital to nurture and sustain Karnataka's
growth, reinforcing its status as the destination of
choice for global innovators and thought leaders.

02
03
GLOBAL CAPABILITY CENTRES
2.1 Emergence of GCC Sector in India

2.1.1 Global Landscape of GCCs

Global Capability Centres (GCCs) have evolved from being cost-centric

back-office hubs to strategic entities within multinational corporations (MNCs).
Originating in the early 2000s, these centres capitalized on emerging markets
like India for their cost-effective talent and affordable real estate, focusing on
Business Process Outsourcing (BPO) tasks such as data processing and
customer service, alongside IT support services aimed at operational
efficiency.

The transformative years between India emerged as a leading location

2005 and 2012 marked the rise of for these innovation centres,
Global In-house Centres (GICs), as leveraging its robust talent pool and
GCCs began to undertake more cost benefits. The GCC landscape in
complex, value-added roles. They India diversified across various
transitioned from basic BPO functions sectors, including engineering
to taking ownership of global product research and development (ER&D),
lifecycles, enhancing process information technology (IT), retail,
efficiency, and driving delivery and banking and financial services
excellence. The development of (BFSI). Today, India's GCCs are not just
Research and Development (R&D) support centres but critical
capabilities during this period led to components of MNCs' strategic
product and service innovation, with operations, driving innovation and
a strategic shift towards digital high-value outcomes.
transformation.
GCCs now serve as integral parts of
The establishment of innovation the global corporate structure,
centres from 2013 onwards providing specialized capabilities
represented a new era for GCCs, across IT services, R&D, customer
characterized by high-value support, innovation, finance,
activities and the adoption of marketing, and more. They are pivotal
advanced technologies such as AI, in achieving cost efficiencies, tapping
machine learning, data science, into talent pools, and promoting
blockchain, and advanced analytics. collaboration between parent
These centres expanded their focus companies and offshore affiliates.
to include strategic functions like
product conceptualization and
vendor management, reflecting a
growing emphasis on digitalization

04
2.1.2 Importance of GCCs for India’s $1 trillion digital
economy ambition

Global Capability Centres (GCCs) The key themes which summarize the
have significantly transformed the GCC ecosystem in India in the last
country's economic landscape. These five years can be summarized as
centres have been instrumental in job follows:
creation, technology advancement,
and skill enhancement; positioning Talent-driven growth: India’s deep
India at the forefront of innovation and STEM talent pool has driven GCC
service delivery. As of March 2024, the growth. In FY2024, 32% of global GCC
GCCs in India generated annual talent was based in India, up from
revenues of US$64.6 billion having 24% in FY2019. Indian talent in key
grown at nearly double digits (~9.8%) roles such as Product Management
between FY2019 and FY2024 . and Architecture has grown even
more.
The role of engineering, research, and
development (ER&D) sector has been Increased complexity and scope:
pivotal in this growth and ER&D GCCs Leading organizations are
now account for more than half of this centralizing their tech ecosystems in
revenue (US$36.4billion). India, with one-third of global
engineering activities based here. The
This has resulted in a cumulative 2,975 average GCC in India has grown by
GCC units and 1,700 GCCs across the 24% in the last five years in terms of
country, generating an employment employees, now employing 1,130
for over 1.6 million individuals. This people on average .
accounts for more than half of the
global GCC market clearly AI-led transformation: India’s 120,000
establishing India as the preferred AI/ML professionals and 500+
destination for GCCs. AI/ML-enabled GCCs are powering
innovation. Additionally, 185 GCCs
The growth also underscores this have established dedicated AI/ML
sector's dynamic evolution and its Centres of Excellence (CoEs).
increasingly critical role in the global
supply chain. With projections Hub expansion: Over 980 new GCC
suggesting a headcount surpassing units have been set up in Tier-I cities,
2.5 million to 2.8 million by 2030, and with Bengaluru leading, followed by
market size exceeding US$100 billion, NCR, Hyderabad, Pune, and Mumbai.
India's GCCs are set to further elevate Tier-II and Tier-III cities are also
their contribution to the global attracting new setups due to cost
economy. advantages and emerging talent
pools.
GCCs in India are driving growth
across key sectors such as Engineering Strategic global importance: India is
Research & Development, Information home to 6,500+ global leadership
Technology, Retail, Banking, Financial roles, with each GCC averaging four
Services & Insurance (BFSI), Travel & global roles in India, highlighting the
Transportation, and Healthcare & Life country’s growing importance in
Sciences. global operations .

05
2.2 Karnataka: India’s Innovation Capital powering
the GCC growth story
As India has become the preferred global destination for GCCs, Karnataka,
particularly Bengaluru, has been at the forefront of this growth. Bengaluru’s
status as a leading GCC hub is reinforced by its robust innovation ecosystem,
talent availability, and favourable environment for talent mobility. With over
30% of India’s GCCs located in Bengaluru and accounting for 35% of the total
GCC workforce , the city dominates the ecosystem.

India Karnataka

Number of
2,975+ 875+
GCC Units

GCC
1.9 million+ 0.6 million+
Talent Pool

GCC
US$ 64.6 Bn US $ 22.2 Bn
Market Size

These outcomes stem from several factors, including progressive government

policies, world-class infrastructure, a curated skilled workforce, a strong
high-tech industry presence, and a thriving innovation culture driven by
startups.

Karnataka is ranked #1 in the India Innovation Index 2021 by NITI Aayog, being
the first state to implement sector-specific policies in various sectors including
IT, biotechnology, startups, AVGC (Animation, Visual Effects, Gaming, and
Comics), Data centre, Cyber security, and Electronics System Design and
Manufacturing (ESDM). This strategic approach has solidified Karnataka's
position as a driving force of technological advancement and a prime
destination for investment.

06
World-Class Infrastructure: Karnataka’s robust infrastructure is crucial for
supporting industries and investment

Home to 14 National Highways and boasts the 2nd highest road density in
India.

Significant maritime and air connectivity with Mangalore Port, 9 minor ports,
and 6 airports, including Kempegowda International Airport, Bengaluru, the
3rd largest in India.

Hosts 6 Inland Container Depots (ICDs), including India’s 2nd largest by

trade value, and 5 Container Freight Stations (CFSs).

Two key industrial corridors: Chennai-Bengaluru Industrial corridors (CBIC)

and Bengaluru-Mumbai Economic corridor (BMEC).

Furthermore, the State is undertaking massive infrastructure initiatives to

drive economic development in Bengaluru city:

• Easing traffic congestion: Bengaluru’s expanding metro network

(purple, blue, yellow, and pink lines) will target key bottlenecks like
Electronic City, Silk Board Junction, and Outer Ring Road (ORR),
boosting connectivity and alleviating congestion.

• Enhanced airport access: The upcoming blue line will connect

ORR’s commercial corridor to the international airport, spurring
growth in northern areas.

• Improved regional connectivity: Expressways like the Bengaluru

Mysuru highway, BBC (Bangalore Business Corridor) and Satellite
Town Ring Road (STRR) will create a seamless loop, diverting traffic
from the city core and improving links with surrounding regions.

07
Top Destination for Investment: Karnataka is a leader in FDI, having attracted
$51.03 billion between 2019 and 2024

Major industries include:

IT/ITeS: 42% National software (IT) exports contributed by Karnataka.

Electronics: 4th largest contributor, accounting for 16% of India’s

electronics exports.

Biotechnology: Contributing 20% to India’s bioeconomy, valued at $31

billion in 2023 .

Automobiles: 4th largest manufacturer, contributing 8.5% to national

output .

Aerospace: 25% of India’s aircraft/spacecraft production and 65% of

aerospace exports.

Unmatched Talent Pool: Karnataka’s dynamic workforce makes it a leader in

talent

Bengaluru is home to 37% of India’s senior IT talent and 44% of mid-level IT

talent.

Renowned institutions like Indian Institute of Science (IISc), Indian Institute of

Management (IIM), International Institute of Information Technology (IIIT)
Bangalore, Indian Institute of Technology (IIT) Dharwad, contribute world
leading skilled workforce.

Bengaluru is the world’s 2nd largest hub for AI talent and provides 1.2 million
direct jobs, and 0.3 million indirect jobs .

08
 World-Class Diversified presence of GCCs
Infrastructure across industries
Enhance customer targeting,
crucial for supporting
personalization, and lead generation,
industries and investment
for more effective campaigns

Top Destination for Dynamic and

Investment cosmopolitan culture
Karnataka is a leader in FDI, Deepening people-to-people
having attracted $51.03 billion connectivitya cross borders and
between 2019-2024 providing rapid growth opportunities

KarnatakaIndia’s
Innovation Capital
powering the GCC growth
Unmatched Talent Pool story Fastest growing
commercial real estate
Enabling GCCstoaccessthemost
diversified talent to support key Provide a ready to access
business operations and research market for GCCs to begin
incl. AI and deep-tech operations rapidly

India’s Largest Startup Hub Industry-friendly

and Unicorn Capital government policies
Provide a fertile ground for Generate new ideas, simulate
experimentation, collaboration scenarios, and assist in the
and co-innovation for GCCs development of cutting-edge products

India’s Largest Startup Hub and Unicorn Capital: Bengaluru’s startups provide
a fertile ground for experimentation, collaboration and co-innovation for GCCs

Karnataka is home to 18,000+ active startups, making it the largest startup

hub in India. Bengaluru, known as the Unicorn Capital, houses ~40% of India’s
unicorns.

The state offers a thriving network of incubators, accelerators, and

collaborative innovation platforms.

• 37% of India’s open innovation programs are active in Bengaluru .

• 42% of Bengaluru based GCCs have mature innovation programs

(‘innovation as a process’ or ‘Innovation as a culture’ stage) and
many more are running innovation programs, labs and are
supporting startups to solve business problems.

09
Diversified presence of GCCs across industries: Bengaluru hosts GCCs of the
key industries which have built the most innovative, diversified, and
cutting-edge hubs in India.

Retail: Bengaluru hosts over 44% of India’s Retail/CPG (Consumer Packaged

Good) GCCs (35+), driven by a strong talent pool with deep expertise in
digital, data analytics, and AI/ML. These capabilities enable Retail GCCs to
achieve operational excellence and drive innovation.

BFSI: With 33% of BFSI GCCs (90+) in India located here, Bengaluru is a major
hub for global financial institutions, specializing in areas like process
automation, cybersecurity, and data analytics, while also managing key
business functions like regulatory compliance and risk analysis.

Healthcare & Life Sciences: 31% of Healthcare GCCs (75+) leverage

Bengaluru's digital solutions to expedite processes like drug discovery and
clinical trials, enhancing global healthcare impact through AI/ML and data
analytics.

Manufacturing: Bengaluru's advanced ecosystem, featuring IoT, AI, and

robotics, attracts 27% of India’s Manufacturing GCCs (50+). Its R&D centres
and innovation hubs drive continuous improvement and cutting-edge
solutions integration.

Dynamic and cosmopolitan culture: Bengaluru’s culture is truly cosmopolitan,

inclusive, and globally connected

Bengaluru has been consistently ranked as the Most Dynamic City and is
projected to be the fastest growing city in the world for the next 15 years, with
its GDP growing at a CAGR of 8.5%.

Bengaluru is India’s most millennial-friendly city with excellent

employability & education prospects. The city also has the highest number
of female employable talent.
10
 The city is home to a strong diplomatic and international trade community
with over 15+ Consulate General offices and trade bodies. This thriving and
ever-growing community is instrumental in building people-to-people
cross-border connectivity between Bengaluru and innovation hubs across
the world.

The Government of Karnataka’s Global Innovation Alliance (GIA) Program

has enabled over 60 joint projects with 30+ countries across the world over
the last five years. These projects have enabled greater integration between
key source markets for GCCs in Europe and the United States, and
Karnataka.

Fastest growing commercial real estate: Over the past decade, Bengaluru has
surged to become India's largest and most crucial commercial real estate
market, outpacing its regional counterparts.

Bengaluru boasts more than

two-fold increase in office stock, Bengaluru at the forefront
rising from 100 million square feet of GCC Industry
(sq. ft.) in 2013 to over 223 million sq.
Bengaluru has cemented its status as
ft. in Q2 2024, holding the highest the undisputed leader for global
share among the top nine Indian capability centres (GCCs). In recent
cities . years, the city's GCC landscape has
diversified beyond its technology and
BFSI roots, welcoming niche and
With an average annual absorption
specialised firms from retail,
of about 15-16 million sq. ft., aerospace, and life sciences sectors,
Bengaluru has also been the further solidifying its position as a
front-runner in commercial multifaceted commercial hub.
absorption since the last few years,
as compared with the top nine
cities of the country. 41% share of Bengaluru in
India’s GCC leasing

This office stock is further expected Top sectors leading

to increase by 1.5 times till 2030 GCC leasing
activity in the city Technology Engg. & Manuf.

ORR
(outer ring road)
Top micromarkets for
PBD-W
(Peripheral Business
GCC leasing in the city
District-West)

11
2.2.1 Bengaluru and beyond
Bengaluru has the highest concentration of GCCs with over 875 GCC
units in the city and is a vital hub for global business operations. While
Bengaluru will continue to be the hub for new GCCs, the Government of
Karnataka is committed to promoting equitable growth across the State
through its ‘Beyond Bengaluru' initiative. The goal is to replicate the
efficiency and success of Bengaluru in other parts of the state,
catalysing the growth of similar ecosystems in cities beyond the capital.

The policy will focus on incentivizing GCCs to set up operations in these

cities. It also aims to showcase the offerings and capabilities of these
cities, including Mangaluru, Mysuru, and Hubballi-Dharwad-Belagavi,
Kalaburagi, Tumakuru and Shivamogga. These cities already have a
solid foundation for growth, with a significant presence of startups,
academic institutions, and multinational corporations. The State
government is committed to developing these clusters and ensuring
that every region of Karnataka flourishes.

The Beyond Bengaluru Cluster Seed Fund initiative is aimed at providing

funding support for early-stage startups in Mysuru, Mangaluru, and
Hubballi-Dharwad-Belagavi clusters. This demonstrates the
government's commitment to fostering innovation and
entrepreneurship Beyond Bengaluru.

Overall, the Beyond Bengaluru initiative is a strategic move to promote

balanced regional development and create a conducive environment
for industries to thrive in cities beyond the capital. This policy will be a key
driver in attracting investments and generating employment in these
clusters, contributing to the state's overall economic growth and
development.

12
2.2.1.1 Mysuru: A Blend of Heritage and Emerging Business Hub
Mysuru, known for its rich cultural heritage and renowned academic institutions,
is rapidly emerging as a significant cluster of Cyber security, also witnessing
remarkable growth in the Semiconductor and IT/ITeS, sectors. The city's mix of
historical significance and modern infrastructure makes it a prime location for
businesses across various sectors.

Industry Profile

• Mysuru has a diverse industrial base, including electronics, automobiles,

and engineering.
• Leading global and domestic companies in technology, engineering, and
consulting operate here, significantly strengthening the city's business
ecosystem and driving economic growth. The presence of industry
associations strengthens Mysuru’s vibrant business landscape.

Infrastructure and Connectivity

• Mysuru offers plug-and-play spaces and several co-working spaces,

fostering innovation.
• The upcoming Global Technology Centre will further enhance the city's
capabilities.
• Strategically located 143 km from Bengaluru, Mysuru is less than a
two-hour drive from the capital city
• The airport is scheduled for upgrades, enabling international
connectivity in the near future.
• Mysuru has direct train services to major cities such as Bengaluru,
Chennai, Hyderabad, Mumbai, and Kochi, ensuring excellent connectivity.

Social Infrastructure

• Mysuru is home to 18 engineering colleges, producing 40,000 graduates

annually.
• A talent pool of 30,000 IT professionals and 25,000 BPM experts is
available, providing skilled manpower for businesses.
• The city is home to reputable schools, including Kendriya Vidyalaya and
several international schools.
• Excellent healthcare facilities including multiple multi-speciality and
super speciality centres.
• The city's diverse residential options cater to a wide range of housing
needs and preferences.

13
2.2.1.2 Mangaluru: Emerging Fintech and Industrial Hub
Mangaluru, known for its maritime history and thriving industrial base, is quickly
transforming into a leading fintech cluster. The city’s robust infrastructure and
focus on digital transformation have made it a key destination for GCCs.

Industry Profile

• Beyond fintech, Mangaluru excels in chemicals, petrochemicals,

machinery, and electronics.
• Numerous big and small companies including a home-grown tech giant
of India, have a strong presence, contributing to the city’s growing
reputation as a business hub.

Infrastructure and Connectivity

• Mangaluru is well-connected, with three National Highways passing

through the city, ensuring seamless road connectivity.
• Bajpe Airport is just 10 km from the city and is set to expand its
international reach.
• Mangaluru’s rail connectivity is excellent, with direct services via
Southern Railway, Konkan Railway, and Southwest Railway.

Social Infrastructure

• Mangaluru hosts 20 engineering colleges and 15 medical colleges

supporting a student population of 60,000.
• A diverse workforce makes it an attractive destination for companies
seeking skilled talent.
• The city boasts a diverse selection of shopping malls, each featuring a
wide array of retail stores, dining options, and entertainment facilities to
cater to different tastes and preferences.
• Healthcare is well-supported with top hospitals offering advanced
medical care and world class facilities. and
• Mangaluru offers various housing options with excellent amenities,
catering to all needs.

2.2.1.3 Hubballi-Dharwad-Belagavi (HDB) Cluster: A Growing MSME

and Startup Hub
The Hubballi-Dharwad-Belagavi (HDB) cluster is a rapidly expanding industrial
and economic region in Karnataka, with a diverse range of industries and strong
connectivity.

14
 Industry Profile

• The second-largest industrial cluster in Karnataka after Bengaluru, HDB is

a centre for industries like automobile, SaaS, AVGC, edtech, agritech, and
electric vehicles (EVs).
• 100,000+ SMEs and anchor industries contribute to its growth, with
companies from diverse sectors having their presence.

Infrastructure and Connectivity

• HDB boasts robust road connectivity through major highways like NH4,
NH4A, and NH63, linking it to key cities such as Mumbai, Chennai, and
Bengaluru.
• The cluster is well-served by rail with connections to cities such as Delhi,
Chennai, and Mumbai.
• Airports in Hubballi and Belagavi provide access to major cities, including
Bengaluru, Mumbai, and Delhi, enhancing the region’s accessibility.

Social Infrastructure

• The HDB cluster is home to prestigious institutions like IIT Dharwad, IIIT
Dharwad and Visvesvaraya Technological University, fostering talent
across various sectors.
• The region hosts 30 engineering colleges and 20 MBA colleges, producing
a skilled workforce of 35,000+ students annually.
• The cluster features strong social infrastructure, including educational
institutions, shopping malls, healthcare facilities, residential
communities, and diverse dining options, ensuring a well-rounded
lifestyle for its residents.

2.2.1.4 Tumakuru: Strategic Industrial Gateway for Food

Processing and Manufacturing
Tumakuru is a key industrial cluster located just 70 km from Bengaluru, making it
a crucial gateway to North Karnataka and an integral part of the
Chennai-Mumbai Industrial Corridor. Its strategic location near the state capital
allows for seamless access to Bengaluru’s resources and business
opportunities.

Industry Profile

• Tumakuru is home to seven industrial areas and hosts India’s first mega
food park, a significant milestone in the country's food processing sector.
• It is designated as a National Investment and Manufacturing Zone
(NIMZ), positioning it as a key destination for industrial development and
investments.
• The industrial base in Tumakuru includes aerospace, agriculture and
food processing, electronics, machine tools, textiles, and energy sectors,
fostering a diverse and resilient economy.

15
Infrastructure and Connectivity

• Tumakuru benefits from excellent connectivity, with NH 48 passing

through the city, linking it directly to Bengaluru and Mangaluru.
• Proximity to Kempegowda International Airport (85 km away) ensures
access to major domestic and international destinations.
• Rail connections further enhance the region’s accessibility, with direct
links to major cities like Bengaluru and Hubballi.

Social Infrastructure

• Tumakuru has a strong educational foundation with 19 engineering

colleges and 8 MBA colleges, ensuring a steady stream of skilled
professionals.
• Tumakuru’s educational ecosystem focuses on developing expertise
across key industries such as engineering, electronics, machine tools,
and energy.
• The cluster also features robust social infrastructure, including
multi-specialty hospitals and medical colleges, along with a variety of
residential options and excellent lifestyle amenities for shopping and
dining.

2.2.1.5 Shivamogga: Potential Spacetech and Industrial

Cluster
Shivamogga cluster, including the districts of Shivamogga, Davanagere,
Chikkamagaluru, and Hassan, is strategically positioned to foster the growth of
diverse industries. It leverages its regional advantages, including connectivity
and industrial infrastructure, to support economic development.

Industry Profile

• Davanagere holds significant potential as a global hub for

agro-processing, nutraceuticals, textiles, and aerospace industries.
• Hassan is notable for hosting ISRO's master control facilities and is
recognized as an industrial growth centre, featuring six developed
industrial areas and four SEZs.
• Shivamogga hosts key industry players in different sectors.

Infrastructure and Connectivity

• Shivamogga district is well-connected by 221 km of National Highways

and 980 km of State Highways.
• It maintains strong road links to Bengaluru, Udupi, and Mangaluru.
• The newly inaugurated Shivamogga Airport connects the region to
Bengaluru and is expected to expand its routes to improve accessibility.

16
Social Infrastructure

• The educational infrastructure in the cluster is strong, with 12 engineering

colleges and 3 MBA colleges, ensuring a skilled workforce for industries
such as manufacturing, construction, mining, agriculture, and forestry.
• Shivamogga is a prime tourism attraction known for its breathtaking
waterfalls, lush rainforests, adventure activities, and cultural heritage
sites that captivate visitors from around the world.
• The cluster is also equipped with multi-specialty and super-specialty
hospitals, prestigious international schools, and a range of hotels,
including large hotel chains, providing comprehensive services and
amenities for residents and visitors alike.

2.2.1.6 Kalaburagi: Cement and Emerging Startup Hub

Kalaburagi, also known as Gulbarga, is a growing industrial cluster that includes
the districts of Bidar, Vijayapur, Yadgir, Raichur, Koppal, Vijayanagar, and Ballari.
The region benefits from its strategic location and strong industrial foundation.

Industry Profile

• Kalaburagi is known for its strong presence in the cement industry, with
major players driving the sector.
• The region also thrives in agro-food processing, textiles, and
manufacturing, with a focus on sugar, petrochemicals, thermal power,
and steel.
• Kalaburagi is home to 250+ startups, signalling its growing role as a hub
for innovation and entrepreneurship

Infrastructure and Connectivity

• Kalaburagi benefits from 1,251 km of State Highways, with key routes such
as SH-218 passing through.
• The region has a well-developed railway network connecting it to cities
like Bengaluru, Hyderabad, Mumbai, and Ahmedabad.
• The Kalaburagi Greenfield Airport, operational since 2019, has enhanced
the region’s connectivity for both business and tourism.

Social Infrastructure

• Kalaburagi's educational infrastructure is robust, with institutions like

Kalaburagi University and Central University of Karnataka.
• The region supports 19 engineering colleges, contributing to a skilled
talent pool that caters to the industrial needs of the region.
• It also offers excellent social and lifestyle amenities with growing
infrastructure and other development initiatives.

17
2.2.2 Key initiatives of Government of Karnataka
2.2.2.1 Futuristic Policies

Karnataka has demonstrated significant proactiveness in bringing forth a

range of innovative policies aimed at addressing contemporary challenges
and fostering growth across various sectors.

Karnataka IT Policy 2020-2025: This policy aims to

reinforce Karnataka's position as a global IT leader by
driving innovation, supporting startups, and
enhancing digital inclusivity. It includes infrastructure
development, skill gap training, and initiatives to
integrate technology across sectors like education
and healthcare. The policy targets a 30% share of
India’s US$1 trillion digital economy and aims to create
over 60 lakh jobs while boosting IT penetration and
innovation throughout the state.

Karnataka Engineering Research and Development

(ER&D) Policy 2021-2026: The ER&D policy is designed
to transform Karnataka into a global hub for
engineering R&D, aiming for a 45% contribution to
India's ER&D sector within five years. It seeks to
generate 50,000 additional jobs and foster
collaboration between academia and industry
through various incentives. Key focus areas include
aerospace, defence, software products, automotive,
biotechnology, and semiconductors.

Karnataka Startup Policy 2022-2027: This policy

positions Karnataka as a leader for startups, targeting
the growth of 25,000 startups by 2027. It aims to
attract investments, create jobs, and foster a culture
of innovation and entrepreneurship across the state,
especially in emerging hubs Beyond Bengaluru. A
venture capital fund of INR 100 crore (KITVEN Fund 5) is
allocated to support deep tech startups in AI, ML, EVs,
MedTech, robotics, drones, and other disruptive
technologies.

18
Karnataka Electronic System Design and
Manufacturing (ESDM) Policy; and Special Incentives
Scheme for ESDM 2020-25: Karnataka’s ESDM policy is
tailored to support the Electronics System Design and
Manufacturing sector, positioning the state as a
global hub in the sector. Focused on attracting
investment, the policy promotes the development of a
robust ecosystem for electronics design and
manufacturing through incentives for both domestic
and foreign companies.

The Special Incentive scheme for ESDM was announced in 2020, to provide
additional fiscal interventions on top of the existing ESDM Policy.

Karnataka Data Centre Policy 2022-2027 : This policy

aims to promote the establishment and expansion of
data centres to support the growing demand for
digital services and cloud computing in the state. This
also aims to leverage Bengaluru’s position as the top
5 leading destinations for data centres in India. The
key features include case to case incentives, capital
subsidy and a clear focus on setting up of data
centres outside Bengaluru. The state targets
attracting INR 10,000 crore in data centre investments
by 2025.

Karnataka Cybersecurity Policy 2024-2029: With a

budget exceeding INR 100 crore, this policy
emphasizes education, skill-building, and industry
partnerships to combat online threats. The policy
includes R&D grants and an internship program to
train students in cybersecurity, with the goal of
making Karnataka the country's leading cybersecurity
hub and fostering a thriving industry and startup
ecosystem.

Karnataka AVGC-XR Policy 2024-2029: The AVGC-XR

Policy 3.0 by the Government of Karnataka is a
forward-thinking initiative designed to strengthen the
state's position in the Animation, Visual Effects,
Gaming, Comics, and Extended Reality sectors. This
policy focuses on key areas such as skill development,
infrastructure, support for startups and MSMEs, global
market access, financial support, and the creation of
multiplatform AVGC-XR products. By offering strategic
incentives, the policy aims to foster innovation, job
creation, and sustainable growth, solidifying
Karnataka’s role in the AVGC-XR industry

19
Karnataka Biotechnology Policy 2024-2029: The
biotechnology policy is designed to position
Karnataka as a global leader in biotechnology,
targeting a US$100 billion bioeconomy by 2030. It aims
to create 30,000 high-quality jobs and establish 300
biotech companies, including 50 innovative firms. The
policy focuses on developing High-Tech Biotech
Clusters and a Bio Foundry, emphasizing
bio-agriculture, medical devices, and AI applications
in biotechnology. It also aims to train 20,000
individuals in specialized biotech skills through
partnerships with over 200 institutions..

2.2.2.2 Centres of Excellence (CoE)

The Government of Karnataka has established 19 Centers of Excellence (CoEs)

(14 operational and 5 upcoming) that are pivotal in advancing emerging
technologies. These CoEs are strategically affiliated with prestigious academic
institutions and industry associations, positioning them at the forefront of
cutting-edge research and innovation.

They play a crucial role in driving technological advancement and supporting

the state's startup ecosystem.

These CoEs are dedicated to incubating and mentoring startups, providing

them with essential funding and resources. Beyond their support for startups,
these centers engage in deep collaborative research with industry partners,
enhancing their ability to deliver innovative solutions.

By fostering a synergy between academia, industry, and startups, the CoEs

contribute significantly to Karnataka’s growth as a hub for technological
excellence and entrepreneurial activity.

Table 1: Centres of Excellence established by Government of Karnataka

# Name of the CoE Enabling Partners Focus areas

Indian Institute of
1 CySecK Science (IISc) Cybersecurity
Bengaluru

Indian Institute of Robotics, Autonomous

2 ARTPARK Science (IISc) system, Artificial
Bengaluru Intelligence

20
 Health-tech, Industry 4.0,
Internet of Things Smart city mobility, Energy
3 (IoT) nasscom
and agriculture

Ethical Policy, Framework

for ethical software,
Centre for Internet
Security for ethical IoT,
4 of Ethical Things IIIT-Bengaluru
Privacy for ethical IoT
(CIET)
Testbeds

Mentorship for Startups,

Machine Intelligence
Research projects, PhD
5 and Robotics IIIT-Bengaluru
Programs, Skill
(MINRO)
development

Animation, Visual Animations, Visual Effects,

6 Effects, Gaming and ABAI Gaming, Comics and
Comics (AVGC) extended reality

Develop High-End
Technologies, Facilitate
Centre for Cellular
Scientific Technologies
7 Agri Innovation and Molecular
and Expertise, Provide
Platforms (C-CAMP)
Education/Training,
Promote Entrepreneurship

Smart Water, Home and

Efficiency Software Technology Office Automation, Smart
8
Augmentation Parks of India (STPI) Manufacturing, Smart
Energy

Semiconductor Indian Electronics Chip design and

9 Fabless Accelerator and Semiconductor Manufacturing, Fabless
Lab (SFAL) Association (IESA) Startups

Quantum Communication,
Indian Institute of
Quantum Research Quantum Materials,
10 Science (IISc)
Park, IISc Quantum Imaging,
Bengaluru
Quantum Computing

R&D in 5G and Wired

Indian Institute of
Wired and Wireless Broadband Technologies,
11 Science (IISc)
Technology Encourage Standardization,
Bengaluru
Support Telecom Startups

Design Awareness and

Capabilities, Training
Indian Institute of
Trainers, Awareness and
12 Design Science (IISc)
Training in Design and
Bengaluru
Prototyping, Industry 4.0
Technologies

Advanced Research Labs,

Nitte University
Innovation and Startups
Centre for Science
13 Marine Tech Hub, Skill Development in
Education and
Aqua-Marine Biotechnology,
Research
Outreach Activities

21
 Research and development
in cutting-edge life science
innovation, focused on
Institute of
Bangalore Bio- healthcare
14 Bioinformatic
innovation Centre (BBC) (Med tech & Pharma), Food
and Applied
& Nutrition, Agriculture
Biotechnology
Biotechnology,
Environmental and Industrial
biotechnology.

Upcoming CoEs

MedTech and Support Entrepreneurs and Small Manufacturers, Focus

15
Health-Tech on Medical and Industrial Electronics

Skilling, Capacity Building, Research, Intellectual

16 Space Tech Property Creation, Prototyping, Policy Facilitation,
Market Access, Mentoring

Automotive Electronics Hub, Focus on EV and ADAS

17 Automotive Solutions, Support for Startups and MSMEs

Incubating startups in fintech space, operationalising a

18 Fintech sand box; high-quality online certification courses.

Hub for professional and amateur gamers, offering

state-of-the-art equipment, training, and resources.
19 Gaming
The CoE will also have a dedicated space for Global
in-house centres lab (GIC Lab) for large gaming
companies.

Structured acceleration program for startups,

20 Artificial Intelligence Collection and Curation of Datasets, Responsible
AI Development, Annual AI Conference, Skilling and
workforce development

Drive innovation across Climate Tech, Space Tech,

21 Deeptech
Quantum Computing, and Artificial Intelligence

22
2.2.2.3 Nipuna Karnataka Initiative

Nipuna Karnataka is a strategic initiative by the Government of Karnataka

aimed at enhancing skill development across the state to meet the evolving
demands of various industries. This program focuses on equipping the local
workforce with advanced skills relevant in emerging technologies like AI, ML,
Blockchain etc, ensuring a steady supply of skilled professionals to support
GCCs and other key industries. By aligning with industry standards and
collaborating with educational institutions, Nipuna Karnataka seeks to foster a
highly competent and job-ready workforce, contributing to the overall
economic growth and industrial advancement of Karnataka.

The initiative will be financed through a combination of sources to ensure its

sustainability and impact. The State Government has allocated INR 100 crore
initially to support this initiative which will be scaled up as an annual
contribution over subsequent years. Additionally, industry partners will
contribute through direct investments, CSR funds, and in-kind support,
including training facilities, equipment, and trainers. To further strengthen the
program, efforts are being made to secure additional funding from central
government skill development schemes. This diversified funding strategy aims
to create a robust ecosystem for skill development in Karnataka.

2.2.2.4 Innoverse: A Visionary Innovation Campus

Innoverse is an ambitious initiative aimed at establishing a state-of-the-art

innovation campus dedicated to deep tech innovations. Its primary goal is to
enhance Karnataka’s reputation as a global leader in emerging technologies
by fostering a conducive environment for research, development, and
commercialization of groundbreaking ideas.

Innoverse will be a catalyst for deep tech innovation, providing a platform for
startups, academic institutions, government, corporations, global partners, and
research organizations to collaborate and thrive. Startups will gain access to
critical resources for testing, commercialization, and market entry, while
academic institutions can leverage research, internship, and placement
opportunities. The initiative will position Karnataka as a global leader in deep
tech, boosting employment, GDP growth, and foreign direct investment.
Corporations will find opportunities for innovation space, investment, and
collaboration on specialized tech solutions. Global partners and research
organizations will benefit from joint research initiatives and a platform for
global networking, pushing the boundaries of technology.

Innoverse will be rolled out in phases, focusing initially on Climate Tech, Space
Tech, Quantum Computing, and Artificial Intelligence. Subsequent phases will
expand into other emerging technologies and establish centres in locations
Beyond Bengaluru. Innoverse envisions transforming Karnataka into a leading
hub for deep tech innovation, fostering collaboration, nurturing talent, and
driving technological advancements across diverse sectors.

23
2.2.2.5 Karnataka Digital Economy Mission (KDEM)

The Karnataka Digital Economy Mission (KDEM) is a pivotal organization

functioning as the knowledge bridge between the Government of Karnataka
and the industry ecosystem to accelerate the growth in specific sectors. The
focus areas include Beyond Bengaluru, ESDM, Software products and services,
innovation & startups, and talent accelerator. Established as a Section 8
organization, KDEM plays a significant role in supporting Karnataka’s
technological landscape by driving investment, identifying emerging
technology opportunities, providing strategic feedback on policy, and crafting
roadmaps to position Karnataka as a leader in the digital economy.

2.2.2.6 Global Innovation Alliance (GIA)

The Global Innovation Alliance (GIA) is an initiative of the Department started in

2017. The platform builds technology engagements and collaborative
partnerships with leading countries in the field of innovation. The platform has
three types of projects:

• Government to Government (G2G) Engagement: Facilitates high-level

engagement with foreign diplomats, leading to the identification of
mutual collaboration areas between Karnataka and GIA partner
countries, formalized through Joint Declarations of Intent (JDI) or
Memoranda of Understanding (MoUs).

• Institution to Institution (I2I) Engagement: Supports institution to

institution level partnerships between stakeholders in Karnataka’s
innovation ecosystem and counterparts in GIA country.

• Market Access for Startups: Executes reciprocal soft-landing programs

between startups in Karnataka and GIA Partner countries

2.3 Future of GCCs in Karnataka

Industry estimates indicate that Karnataka has the potential to expand its
position as a premier GCC hub, potentially accommodating over 15% of Forbes
2000 enterprises. By the year 2030, Karnataka could be home to around 330 of
the Forbes 2000 enterprises . This trend is driven by India’s increasing
prominence as the global GCC hub. Furthermore, as the competition for talent
remains intense, GCCs must invest in cultivating a positive work culture and
enhancing the overall value proposition for their employees. With a potential
CAGR of 10%, estimates suggest that the employment generation capacity of
GCCs from Forbes 2000 enterprises could nearly double by 2030.

24
25
KARNATAKA GCC POLICY
OVERVIEW
3.1 Karnataka’s Goal 2030 for the
GCC Ecosystem

By 2030, Karnataka's goal for its Global Capability Centre (GCC) ecosystem is
to be a leader in inclusivity, diversity, and sustainability, reflecting the most
dynamic global trends. The state will champion:

Workforce Empowerment and Equity:

Fostering a culture that supports lifelong learning, upskilling, and
reskilling to maintain a competitive edge in innovation, while
providing targeted mentorship programs to enhance women's
roles in the workforce and offering robust support for specially
abled employees.

Flexible and Adaptive Work Models:

Embracing remote and hybrid work arrangements to ensure a
resilient and adaptable business environment that prioritizes
employee well-being and work-life balance.

Sustainable and Ethical Business Practices:

Leading by example in green initiatives, adherence to ESG
norms, and digital transformation, to promote ethical
governance and environmental stewardship.

This comprehensive approach aims to create a GCC ecosystem that is not

only market-leading but also a nurturing ground for a diverse and
future-ready workforce, positioning Karnataka as a pioneering and
responsible hub in the global business community.

The Karnataka GCC Policy has been developed using a combination of deep
industry research and expansive stakeholder discussions. During these
discussions and research, the future of GCCs were understood and the
objectives, incentives and action plan for the Policy is structured using those
inputs.

26
3.2 Objectives of the
Policy
Create an investor-friendly
business environment for GCCs
to establish and expand their
Provide platforms
operations in Karnataka.
that enable GCCs
to collaborate
seamlessly with
Karnataka’s Position
vibrant local Karnataka as a
innovation global leader in
ecosystem. Artificial
Intelligence (AI)
with the most
comprehensive
Foster a research AI R&D
and development ecosystem
driven tailored for GCCs.
environment
focused on
emerging
technologies and
deep-tech,
making Karnataka
a hub for
cutting-edge
innovation.

3.3 Targets

To attract establishment of 500 new

GCCs in Karnataka achieving a
total number of 1,000 GCCs in
Karnataka by 2029

To support creation of 3.5 lakh new

jobs in Karnataka by 2029

To generate economic output of

US$50 billion in Karnataka through
the GCCs being established by 2029

27
3.4 Marquee announcements

1. Global Innovation Districts

Government will establish three new technology parks (Global Innovation

Districts) – including one park in Bengaluru and two in Beyond Bengaluru
clusters.

These Global Innovation Districts will be strategically located to enhance

connectivity and offer state-of-the-art infrastructure, including high-speed
internet reliable power supply and aim to adhere to global sustainability
norms.

They will foster a collaborative business ecosystem, uniting startups, tech

leaders, and academic institutions, and will be supported by a skilled talent
pool from nearby universities.

Investors will benefit from streamlined regulatory support, and a focus on

research and development.

Each Global Innovation District will have a coordination office to support

GCCs and other companies to engage with the Government on all issues.

Companies establishing their GCCs as Anchor Investors in the Global

Innovation Districts in Beyond Bengaluru areas would be given a special
package of incentives.

Mega Projects: Government will consider a customized package of

incentives for Mega projects. This will be a tailor-made package of
incentives on a case-to-case basis as considered by the Government:

• New GCCs being established which will lead to creation of more than
5,000 new jobs in Bengaluru.
• New GCCs being established which will lead to creation of more than
1,000 new jobs Beyond Bengaluru
• GCCs establishing dedicated campuses in Beyond Bengaluru areas will
also be considered for customized package on case-to-case basis.

28
2. Supporting the AI ecosystem in Karnataka

Government will provide dedicated support to encourage research and

development of artificial intelligence and its applications through GCCs in
Karnataka

Government will establish a new Centre of Excellence (CoE) for Artificial

Intelligence (AI) in Bengaluru on the triple helix model. This CoE will work on
a hub and spoke model with multiple academic institutions of excellence
across the State (especially Beyond Bengaluru) to create compute
capacity, curated datasets, responsible/ethical AI principles, startup
acceleration facilities and other support needed to build the AI ecosystem.

Government will establish an AI Skilling Council with industry participation

with a focus to drive curriculum development and delivery focused on AI.
The cost of creation of the curriculum will be borne by the Government and
delivered through institutions of higher education across the State.

The Government already has a working group on AI under the Karnataka

Skill Advisory Council, whose recommendations have been incorporated
into the Nipuna Karnataka Initiative.

The Government is also announcing an Innovation Fund with an allocation

of INR 100 crore – to support joint research between GCCs and academia,
and innovation challenges.

3. Expanding the GCC ecosystem to Bengaluru and Beyond

Each of the Policy Pillars of the Karnataka GCC Policy has a dedicated
Beyond Bengaluru Package

All incentives in Pillar 3: Infrastructure and Incentives are applicable only in

Beyond Bengaluru areas

Government is also going to support creation of world class infrastructure

including airports, road connectivity and telecom in the Beyond Bengaluru
clusters namely:
• Hubballi-Dharwad-Belagavi • Kalaburagi
• Mysuru • Tumakuru
• Mangaluru • Shivamogga
The Government will actively support the establishment of Nano GCCs in the
Beyond Bengaluru areas, positioning them as strategic centres with flexible
operations and staffing ranging from 5 to 50 employees. These Nano GCCs
will benefit from a range of incentives without being subject to minimum
employment or investment thresholds, making it easier for companies to set
up and scale operations with agility and minimal risk. This initiative aims to
unlock new growth opportunities and drive regional development, offering a
business-friendly environment tailored to the needs of emerging and niche
players.

Karnataka Digital Economy Mission (KDEM) will provide dedicated support to

GCCs for expansion and new establishment in Beyond Bengaluru areas.

29
4. Establishment of a dedicated unit for supporting GCCs

Establishment of the unit: The Government will set up a dedicated unit

within the Department of Electronics, IT, Bt, and S&T to offer dedicated
support for GCCs establishing operations in Karnataka. Managed by
professionals with extensive experience in industry engagement, corporate
affairs, partnership building, and alliance management, the unit will act as a
key facilitator for GCCs.

Dedicated Single Point of Contact (SPOC): Each GCC will be assigned a

SPOC from this unit who will manage all interactions from initiation to
resolution. These SPOCs will bring specialized expertise tailored to the
specific needs of companies, considering their country of origin and
industry sector, providing customized and knowledgeable support.

Coordination Hub: The unit will serve as the primary coordination hub
between GCCs and various State government departments, ensuring
smooth operations for both new and existing GCCs in Karnataka.

Commercial Real Estate Portal: The unit will develop and manage a live
digital portal in collaboration with real estate partners, offering GCCs a
one-stop platform to explore listings of available commercial spaces
across Karnataka, simplifying the search for ideal locations.

Policy and Regulatory Guidance: The unit will provide GCCs with
comprehensive guidance on policies, regulations, and compliance, keeping
companies well-informed about all legal and administrative requirements.
This will also facilitate discussions with CXOs and industry leaders, making
policy recommendations to the Government of India on matters such as
transfer pricing, import/export regulations, and taxation.

Local Ecosystem Collaboration: The unit will connect GCCs with local
educational institutions, Centres of Excellence, startups, and incubators,
fostering talent recruitment, developing industry-specific skilling programs,
promoting collaborative research, and driving open innovation.

Fast-Track Approvals: All necessary operational approvals for setting up

GCCs will be processed within 45 days, ensuring a streamlined setup
process that minimizes delays and enhances investor confidence in
Karnataka’s business-friendly environment. The Government of Karnataka
through the Commerce & Industries Department has also established a
state-of-the-art single window system for investments in collaboration with
Microsoft, which will aim to have the entire approval process online.

Support for GCC Employees: The unit will also assist GCC employees by
providing information on local social infrastructure, including schools, clubs,
and expat communities, enhancing the overall living experience for talent
relocating to Karnataka.

30
 Global Outreach Initiative: The Government of Karnataka is committed to
elevating the State's position as a premier global business hub by
earmarking a substantial marketing budget for a robust Global Outreach
Initiative.

• This initiative will encompass strategic participation in high-profile

international roadshows, trade delegations, and leading technology
and trade conferences. The objective is to proactively showcase
Karnataka's burgeoning GCC ecosystem, highlighting its competitive
advantages such as a skilled talent pool, cutting-edge infrastructure,
and a supportive regulatory environment.

• This concerted effort aims to attract top-tier global businesses and

foster international collaborations, thereby reinforcing Karnataka's
status as a dynamic and attractive destination for GCCs.

• The government will further come up with a comprehensive strategy to

effectively implement this outreach, ensuring targeted engagement
with key global markets and industries

• Additionally, the government will establish robust marketing and

distribution channels, leveraging digital media, social media platforms,
and podcasts to effectively communicate Karnataka's strengths and
opportunities to a global audience.

5.Engineering Research and Development as a focus sub-sector

ER&D is a crucial sub-sector for GCCs in India, contributing more than US$34
billion to the market size of GCCs in the country. The Policy will focus on this
segment since Karnataka is already the leader in ER&D.

• Policy will facilitate Engineering R&D entities to adopt leading practices

and gain marketing opportunities.

• Foster new innovative Engineering R&D ecosystems and infuse capital

via Industry-Government collaborative channels.

• Promote IP Creation, Registration and Retention in Karnataka

• Create strong linkages between Industry and Academia to accelerate

development of innovative Engineering R&D products, solutions, and
services.

31
6. GCC Acceleration and Investment Council

The Government of Karnataka will establish a dedicated group comprising of

influential leaders from various GCCs. This will play a pivotal role in steering the
state's GCC initiatives, providing strategic guidance and insights that align with
global business trends and regional growth objectives.

• Diverse Leadership Composition: This Council will be composed of

global leaders, including CXOs from top-performing GCCs, international
trade experts, and thought leaders in business strategy and innovation.
This will ensure a rich diversity of perspectives and experiences to guide
the state's GCC initiatives.

• Inclusion of International Expertise: This Council will also include

members with a strong background in global markets and international
business relations, such as former diplomats, trade commissioners, and
experts from international economic organizations, to provide insights on
global trade dynamics and investment trends.

• Cross-Industry Representation: To capture the full spectrum of the GCC

landscape, the Council will have representatives from various industries
such as IT, finance, biotech, and manufacturing, ensuring that policies
and strategies are comprehensive and industry-specific.

The role of This group will include supporting the Government in areas such
as:

Strategic Policy Guidance: The Council will provide expert advice

on policy formulation and revisions, ensuring that Karnataka's
regulatory environment is conducive to GCC growth and aligned
with international best practices.

Investment Attraction and Global Networking: Leveraging the

extensive networks of its members, Council will work on
attracting foreign investment and fostering global partnerships,
positioning Karnataka as a top destination for GCCs.

Innovation and Digital Transformation: The Council will focus on

promoting the adoption of cutting-edge technologies and
innovative business models, driving digital transformation
across the GCC sector.

Talent Development and Industry-Academia Collaboration:

The Councilwill advise on initiatives to bridge skill gaps, including
the development of specialized training programs in
collaboration with educational institutions, to ensure a steady
pipeline of qualified professionals for the GCCs.

32
3.5 Key Pillars of the Policy

3.5.1 Talent

Talent is a key determinant for Global Capability Centres (GCCs) when

selecting a location, and Karnataka's talent ecosystem is a prime example
of its importance. The state boasts a rich and varied workforce, bolstered by
a strong social infrastructure that cultivates and maintains this talent.
Karnataka's strategic emphasis on tapping into India's vast talent pool is
clear, attracting global firms that leverage the local talent for its
affordability and wide-ranging skills. The policy's focus on talent reflects
Karnataka's advantage in this domain, making it a top destination for GCCs
in India. With a dynamic blend of technical and non-technical expertise, the
state's workforce is adept at fulfilling the diverse needs of multiple
industries. This synergy of skilled labour and a nurturing ecosystem
cements Karnataka's position as a premier hub for GCCs, driving sustained
growth and innovation.

To further strengthen the talent ecosystem the policy will offer the following:

• The Policy will incentivize GCCs for skilling local talent, including
technical and soft skill enhancement for graduates and diploma
holders. The development of future-oriented curricula will be
supported, with funding for training students and master faculties.

• Reimbursement will be provided to GCCs for internship stipends, with

an aim to provide internships to overall 1 lakh students during the
policy period.

• The policy will support joint research projects between academic

institutions and GCCs, funding project costs to encourage industrial
applications of academic research.

• Government will support GCCs by fostering partnerships with

prestigious educational institutions for leadership skill development
and providing financial incentives for creating global leadership
development programs.

• A matchmaking platform will be established to facilitate ongoing

interaction between academia and GCCs, fostering collaboration,
sharing opportunities, and addressing challenges.

• Recruitment assistance will be provided to GCCs setting up or

expanding operations in areas Beyond Bengaluru.

33
3.5.2 Local Ecosystem

Karnataka's ecosystem, cultivated over the past two decades, is its

greatest asset. It encompasses startups, incubators, accelerators,
multinational corporations, Global Capability Centres (GCCs), Centres of
Excellence (COEs), academic and research institutions. GCCs indicate that
47% of them would like to engage with startups for process improvement
and expedited market entry, highlighting Karnataka's appeal as an
innovation hub .

The State Government has established 18 COEs dedicated to emerging

technologies, aiming to bolster the technology ecosystem through
initiatives across industry, R&D/academia, government, and startup
ecosystem building. The Policy will enhance collaborations and
partnerships among these entities, enabling GCCs to drive and define
Karnataka's innovation trajectory with initiatives that foster synergy and
growth.

The policy will further promote collaborations and partnerships among

stakeholders, empowering GCCs to lead and shape the state's innovation
landscape, through the following initiatives:

• Government will fund capital expenditure for setting up new

Innovation labs and Centres of Excellence (CoEs), with higher
contribution for projects in Beyond Bengaluru area.

• Startups will be supported to use existing GCC labs and technology

spaces, with the government covering the costs incurred by
startups for using these facilities.

• Policy will support innovation challenges to promote solutions for

business and social issues.

• Policy will support establishment of 'GCC Immersive Hubs’ as a

public-private-partnership (PPP) model to showcase Karnataka's
R&D capabilities.

• Government will provide funding for hosting R&D events and

conferences in Karnataka to foster knowledge exchange and
collaboration.

• Cluster Anchor Groups will be formed to assist GCCs in setting up

operations in each of the six Beyond Bengaluru clusters, offering
local connections and facilitating matchmaking with academia
and industry players.

34
3.5.3 Incentives and infrastructure

The "Beyond Bengaluru" initiative is a strategic emphasis of the Government

of Karnataka's policy, aimed at replicating Bengaluru's success as a global
technology and innovation hub across the state's other regions. This
initiative seeks to promote equitable regional development and catalyse
economic growth throughout Karnataka. By extending the digital economy
beyond the state capital, the government is committed to fostering a
diverse and vibrant statewide tech ecosystem.

The strategy is designed to leverage the unique strengths of cities like

Mysuru, Mangaluru, Hubballi-Dharwad- Belagavi, Tumakuru, Kalaburagi
and Shivamogga, which already have a solid foundation for growth with
their mix of startups, academic institutions, and multinational corporations.
Through targeted incentives and support, the policy aims to attract Global
Capability Centres and other industries to these emerging cities, ensuring a
prosperous and balanced development across Karnataka. Under this Pillar,
the Policy includes the following incentives:

• The Government will provide rental reimbursement for GCCs setting

up in Beyond Bengaluru area.

• Setting up co-working spaces in Beyond Bengaluru area will be

promoted by reimbursing operational expenses.

• The Government will reimburse EPF contributions for new employees

in GCCs located in Beyond Bengaluru area for the first two years of
operation.

• The Policy will provide grants for strengthening R&D infrastructure in

Beyond Bengaluru area, focusing on especially AI.

• Reimbursement will be provided for internet expenses of GCCs

operating in Beyond Bengaluru area for the first three years.

• Government will provide support for Nano GCCs (with employees

between 5 and 50) in Beyond Bengaluru areas

• The Government will offer exemption from Electricity Duty for five
years and allow GCCs in Beyond Bengaluru areas to switch from
commercial to industrial power tariffs.

• The government will provide reimbursement on property tax for

GCCs operating in Beyond Bengaluru area.

35
3.5.4 Regulatory easing

This pillar is focused on easing and streamlining administrative processes

to create a conducive environment for the establishment and operation of
Global Capability Centres (GCCs) in the state. The Government of
Karnataka recognizes that existing approval processes and regulations
present significant challenges for companies. Therefore, the government
will implement the following measures:

• Establish a dedicated helpdesk to address the needs of GCCs,

provide expert guidance, and expedite processes.

• Reimburse quality certification fees for GCCs setting up operations

in Karnataka.

• Promote intellectual property creation by reimbursing statutory fees

for filing domestic patents.

• Ensure that applications for Right of Way permissions for cable

laying and tower erection are processed within 30 working days.

Through these initiatives, the Government of Karnataka aims to facilitate a

fast and efficient approval process for GCCs.

36
37
POLICY INCENTIVES
4.1 Pillar 1: Talent

4.1.1 Skilling initiatives

Incentive Eligibility
Criteria

A. Skilling of local talent • Any new or

existing GCC
• Government of Karnataka (GoK) will support and in the State
promote various skilling initiatives for new recruits
within a year of their hiring.
• Government will reimburse 20% of the total expense
spend on the skilling initiative up to INR 36,000 per
graduate and INR 18,000 per diploma holder for up
to 100 employees or 15% of their total workforce-
whichever is less.
• A GCC can avail this incentive once annually.
• The skilling initiative can be on the following
categories:

a. Technical skilling initiatives for employees in

non-technical roles.
b. Soft skill enhancement initiatives for the
employees in tech and non-tech roles

B. Skilling Curriculum • Any state

government
• Government will fund the cost of developing universities /
industry oriented future skills courses, master faculty affiliated/
training and promote adoption of these courses in autonomous
State Government universities / affiliated colleges in colleges in
the State. the State.
• Each institution will receive a maximum of INR 10,000
per student for training/certification and INR 20,000
for each master faculty trained with a maximum
limit of INR 1 crore per institution.
• The academic institution should train a minimum of
100 students and 10 master faculty to be eligible. The
course thus developed should be industry approved
and the institutions can collaborate with GCCs for
the course development and approval.
• Karnataka Skill Advisory Committee will support
academia to choose the courses in consultation
with the industry.
• One academic institution can avail this once in the
policy period.

38
 Incentive Eligibility Criteria

C. Global Leadership development • Any new or existing

GCC in the State
• The Karnataka government will support GCCs by
fostering partnerships with prestigious educational
institutions for leadership skill development and
providing financial incentives, such as partial funding
or matching grants, to encourage investment in the
growth of high-potential employees.
• Additionally, the GoK will partner with educational
institutions to support advanced Master’s and
certification programs in cross-cutting and
interdisciplinary areas, including sustainability,
organizational behavior, global business strategy,
and ethical leadership, to ensure that leaders are
well-versed in the diverse competencies required for
future business success.
• Initiatives like international exchange programs,
mentorship from industry experts, leadership
recognition awards, and access to continuous
learning platforms will be promoted to cultivate a
global mindset among leaders, enhance
cross-cultural management skills, and establish
Karnataka as a hub for global leadership excellence
in GCCs.

4.1.2 Internship

Incentive Eligibility Criteria

• GoK will reimburse 50% of the internship stipend for • Any new or existing
interns, for a period of maximum 3 months, up to INR GCC in the State,
5,000 per month per intern, for maximum of 20,000 hiring interns from
interns per year and 1,00,000 interns over policy State Government
period. universities / affiliated
• Government will collaborate with industry colleges (students
associations to facilitate these internships between should be enrolled in
academia and industry. these institutions)
• Maximum number of interns a GCC can avail this
incentive for per year is up to 15% of their total
workforce, with a maximum limit of 100 interns.
• The entities should aim to offer equitable
opportunities to women candidates and consider
providing maximum number of interns a full-time
employment.

39
4.1.3 Joint Research

Incentive Eligibility Criteria

• Government will fund Applied Research in Academic • State Government

Program to support industrial application of universities / affiliated
Academic Research. colleges in the State
• GoK will fund 50% of the approved budget, up to INR 1 • Participating GCC:
Crore. Any new or existing
• The participating GCC should fund a minimum of 25% GCC in the State.
of the approved project cost, with the remainder
being funded by the academic institution.
• One entity can avail this once in the policy period.
• Government will fund up to five (5) such projects
annually

4.1.4 Common platform for collaboration

Government will support the setting up of a matchmaking platform for GCCs and academia
in collaboration with industry associations:

1. This platform will ensure the constant interaction between the industry and
academia
2. Brainstorm collaborative activities and initiatives
3. Share challenges and opportunities

40
Beyond Bengaluru – Special Package

Following incentives are special package for Beyond Bengaluru.

4.1.5 Recruitment Assistance

Incentive Eligibility Criteria

• GoK will provide recruitment assistance to GCCs • Any new GCCs

setting up or expanding operations in Beyond establishing presence
Bengaluru area. and existing GCCs
• Only one application per entity will be allowed during expanding to Beyond
the policy period. Bengaluru area with
• The entity should submit their application within a minimum of 100
year of the date of commencement of business. Only employees
the recruitment done during this period will be eligible
for this incentive.

Incentive slabs as per employment generated

No. of employees newly recruited Percentage of assistance Capping (INR)

100-250 10% INR 35 lakh

>250-400 20% INR 1.2 crore

>500-700 30% INR 3 crore

>700-1000 50% INR 7 crore

=>1000 Customized package on a case-to-case basis

Incentives are as per table above where:

• No. of employees recruited: new unique employment created by the GCC

• Percentage of assistance: Maximum percentage of the recruitment cost as a portion of
total recruitment cost of the GCC
• Capping: Maximum amount of incentive available.

41
4.2 Pillar 2: Local Ecosystem

Karnataka’s multi-faceted and mature ecosystem is one of its greatest

strengths. The Policy aims to create a dynamic environment for the
establishment and growth of Global Capability Centres (GCCs), leveraging the
state's existing capabilities in innovation, research, and technology to build a
synergistic ecosystem for all stakeholders.

This pillar emphasizes fostering collaboration and development among

stakeholders, including Centres of Excellence, Technology Business Incubators,
startups, and accelerators. By offering diverse opportunities and promoting
joint initiatives, the government seeks to create mutually beneficial outcomes.
This collaborative approach aims to address both local and global challenges
effectively. By leveraging Karnataka's strong foundation in technology and
innovation, the government provides targeted support to enhance research
and development, driving sustainable growth and innovation.

4.2.1 Establishing Innovation Labs / CoEs

The Government will support and facilitate collaborations between Centres of

Excellence (CoEs), startups, startup incubators and accelerators; and GCCs in
various capacities.

Incentive Eligibility Criteria

• Government will fund up to 40% of the total capital • Any new or existing
expenditure with a maximum limit of INR 5 crore for GCCs in the State
Bengaluru Urban area. (other than in Beyond
• GCCs will contribute the remaining capital Bengaluru area)
expenditure. This will include expenses related to
specialized equipment, proprietary technology, and
any additional customization required for their
specific needs.
• Government will support maximum two such projects
each year in Bengaluru Urban District during the
policy period.
• An entity can avail this once during the policy period.

42
4.2.2 Utilization of GCC labs and technology

Incentive Eligibility Criteria

• To encourage utilization of existing facilities, the • Labs and innovation

Government shall reimburse the costs incurred by spaces owned or
startups for using the lab or space of the GCCs. operated by any GCC
• 100% reimbursement of the costs incurred for using • Startup: Any startup
the facilities for any utilization period exceeding registered in
6 months. Karnataka
• Government will support maximum of 5 GCCs per
year for providing the facilities to minimum 4 Startup
each, with a maximum limit of INR 40 lakh per GCC.
• This will not be applicable for the innovation labs
mentioned in 4.2.1 above.

4.2.3 Innovation challenges

Incentive Eligibility Criteria

• Government will promote and support innovation • Any new or existing

challenges in the State. This program enables GCCs GCC in the State.
the access to government departments to
implement innovative solutions to public service
challenge / societal problems.
• This can be run in collaboration with Government
through the Karnataka Grand Challenges initiatives
or in collaboration with other ecosystem stakeholders
or independently by the GCC.
• Government will fund five challenges every year with
a maximum limit of INR 1.5 crore for the deployment
of a solution.

4.2.4 Establish 'GCC Immersive Hubs’ in Karnataka

Incentive Eligibility Criteria

• GoK will support setting up of 'GCC Immersive Hubs’ • Any registered entity
to demonstrate innovation and R&D being in the state/ industry
undertaken in the State, on Public-Private Partnership associations
(PPP) mode.
• GoK will fund 50% of the total cost upto 1 Crore for
setting up of these hubs.
• An entity can either utilize their existing space or
establish a new space for the Immersive Hub.

43
4.2.5 Host Events and conferences

Incentive Eligibility Criteria

• GoK will provide funding equivalent to one-third of • Any new or existing

the cost up to INR 25 lakh for hosting events/ GCC or industry
conferences (up to 2 per year) in Karnataka. associations in the
State

Beyond Bengaluru – Special Package

Following incentives are a special package for Beyond Bengaluru area.

4.2.6 Establishing Innovation Labs / CoEs – Beyond Bengaluru

Incentive Eligibility Criteria

• Government will fund upto 75% of the total Capital • Any new/ existing
expenditure up to INR Three crore for Beyond GCCs in the state
Bengaluru Urban District area. • Any GoK funded CoEs
• GCCs/CoE will contribute the remaining capital • The setup should be
expenditure. This will include expenses related to in the Beyond
specialized equipment, proprietary technology, and Bengaluru areas.
any additional customization required for their
specific needs.
• Government will support two such projects in the
Beyond Bengaluru area every year during the policy
period. An entity can avail this once during the policy
period.

4.2.7 Beyond Bengaluru Cluster Anchor Groups

Government will form Cluster Anchor Groups and support the matchmaking for GCCs
planning to setup each of the six Beyond Bengaluru clusters. The Cluster Anchor Groups will
have representatives of different stakeholder groups and Government. The role of these
Groups will be:

• To provide GCCs with essential local connections and support within the specific
region.

• To aid GCCs in understanding the offerings, opportunities, and challenges of the

region more effectively.

• To facilitate connections with academia and other key players in the local
ecosystem.

44
4.3 Pillar 3: Infrastructure and Incentives

The Infrastructure and Incentives pillar focuses on driving balanced economic

development across Karnataka, particularly in Beyond Bengaluru areas.
Through strategic interventions, the Government aims to attract significant
investments to these regions, fostering equitable growth throughout the State.
This pillar will facilitate the holistic development of Karnataka, ensuring that
emerging areas benefit from the state's robust technological and
infrastructural advancements. Through these efforts, the government aims to
create a conducive environment for businesses and innovation hubs.

All the incentives under this pillar, excluding 4.3.4 and 4.3.6 A, are only
applicable to the GCCs setting up their centres in the Beyond Bengaluru areas.

4.3.1 Rental Assistance

Incentive Eligibility Criteria

• To facilitate affordable office spaces, GCCs • All new GCCs being

establishing or expanding operations to Beyond setup with 100+
Bengaluru area will receive government employees in Beyond
reimbursement on their rent expenses. Bengaluru area
• This reimbursement covers rent during the first year
of operations.
• Category 1: GCCs setting up with 100+ employees

a. Reimbursement of up to 50% of their rent

expenses up to INR 50 lakh.
b. Government will provide this incentive to a
maximum of 10 GCCs annually.

• Category 2: GCCs setting up with 500+ employees

c. Reimbursement of up to 50% of their rent

expenses up to INR 2 crore.
d. Government will provide this incentive to a
maximum of 6 GCCs annually.

45
4.3.2 Co-working Spaces

Incentive Eligibility Criteria

• Government will support co-working spaces being • Co-working spaces

established in the Beyond Bengaluru area. being setup in
• Government will reimburse the operating entity for Beyond Bengaluru
three years from the date of operations. area.

a. Year 1: up to a maximum of 75% of vacant seat

costs
b. Year 2: up to a maximum of 50% of vacant seat
costs
c. Year 3: up to a maximum of 25% of vacant seat
costs

• Government will support up to 30 new co-working

spaces across the 6 Beyond Bengaluru Clusters, with
priority for Mysuru, Mangaluru and HBD Cluster.
• Reimbursement will be for a maximum of INR6,000
per seat up to a maximum limit of INR 2.16 crore per
applicant (across the three years)
• For large co-working spaces with more than 200
seats, additional incentives will be provided on
case-to-case basis.

4.3.3 EPF Contribution Reimbursement

Incentive Eligibility Criteria

• The government will reimburse the GCCs' • Any new GCC being
contribution to the EPF for new employments for the setup with 100+
first two years from the date of commencement employees in Beyond
• This will be up to a maximum of INR 3,000 per month Bengaluru area
per employee, subject to the condition that the
employment is for a continuous period of two (2)
years.
• Each GCC will be able to avail this incentive for up to
30% of their workforce with a maximum limit of 250
employees.
• The Government will support up to 25 GCCs for this
incentive annually.

46
4.3.4 Strengthening R&D Infrastructuret

Incentive Eligibility Criteria

• GoK will support the development and strengthening • Any new or existing
of R&D infrastructure in the Beyond Bengaluru areas. GCCs in the state with
• To facilitate this, GoK will provide grants of up to 40% 100+ employees
of the approved budget or INR 50 crore, whichever is
lower
• These grants will be focused on setting up testing
and prototyping facilities for emerging technologies,
with 30% of the total allocation dedicated to AI and
related facilities.
• The grant may be provided in the form of land,
building, or financial assistance.
• The grant will be provided to a maximum of three
GCCs in the policy period located in different regions
Beyond Bengaluru.

4.3.5 Supporting Telecom Infrastructure development

Incentive Eligibility Criteria

Government will reimburse up to 25% of the internet New GCCs being setup
expenses upto 12 lakh per year for the first three years of with 100+ employees in
GCC operations. Beyond Bengaluru area.

4.3.6 Other Incentives

Incentive Eligibility Criteria

A. Power related incentives

• GoK will offer a 100% reimbursement of Electricity • Any new GCC setting
Duty for 5 years to GCCs establishing or expanding up in the State (this
operations in Beyond Bengaluru areas. incentive is
• Additionally, GCCs will have the option to switch from applicable for GCCs
Commercial to Industrial power tariffs, which may setting up in
provide further cost savings. Bengaluru Urban
• This is applicable to all GCCs Setting up or expanding District also)
to Beyond Bengaluru area.

B. Property Tax

• GoK will provide a reimbursement of 30% of the • Any new GCC being
property tax incurred by GCCs for a period of three setup with 100+
years from the commencement of their operations. employees in Beyond
Bengaluru area

47
4.4 Pillar 4: Regulatory easing

This pillar is designed to simplify and streamline the regulatory framework for
GCCs in Karnataka. Recognizing the need to reduce bureaucratic hurdles and
create a business-friendly environment, this pillar focuses on providing robust
support and guidance to GCCs throughout their establishment and operational
phases. By addressing common regulatory challenges, the Government of
Karnataka aims to enhance the ease of doing business, making the state an
attractive destination for GCC investments.

More than incentives, the pillar focus on facilitating and handholding the
entities, portraying the state’s commitment towards serving the companies.

4.4.1 GCC Incentive Clinic

• GoK shall create a dedicated platform/ a operational helpdesk where

GCCs can share their needs/ requirement/ pain points /ask questions,
etc. which can ultimately Fastrack the processes and rule out
complexities.
• Every fortnight, an open video conference (VC) session can be held. This
one-hour call will be designed to assist individuals/entities interested in
establishing GCCs in Karnataka.
• Participants can log into the session through a structured mechanism,
providing them with an opportunity to interact with a panel of experts
who can assist in providing support and guidance.
• The panel shall consist of strategy consultants, representatives from real
estate service providers, Government officials, tax and legal experts.

4.4.2 Quality Certification Financial assistance

Incentive Eligibility Criteria

• Gok will provide a 50% reimbursement of quality • Any new or existing

certification fees, up to a maximum of INR 6 lakh, for GCCs in Bengaluru
GCCs setting up operations in the State. Urban District
• Each GCC can claim this benefit for up to three
certifications (one each year) within the policy
period.

48
4.4.3 Intellectual Property Incentive

Incentive Eligibility Criteria

• GCCs will receive a reimbursement of 50% of the • Any new or existing

statutory fees for filing patents, with a maximum GCCs in Bengaluru
reimbursement of INR 2 lakh for domestic patents. Urban District
• This incentive can be claimed up to five times during
the policy period
• Each GCC is eligible to use this benefit once per year.
• The reimbursement is applicable only to approved
patents.

4.4.4 Regulatory approval for connectivity

Applications for permission for Right of Way for laying of cables and for erection
of towers and antennae would be approved within 30 working days.

Beyond Bengaluru - Special Package

Following incentives are a special package for Beyond Bengaluru area.

4.4.5 Quality Certification Financial assistance

Incentive Eligibility Criteria

• GoK will provide an 80% reimbursement of quality • Any new or existing

certification fees, with a maximum limit of INR 8 lakh, GCC in Beyond
for GCCs operating in Beyond Bengaluru area. Bengaluru area
• Each GCC can claim this reimbursement for up to
three certifications (one each year) during the policy
period.

49
4.4.6 Intellectual Property Incentive

Incentive Eligibility Criteria

• GoK will provide 50% reimbursement of the statutory • Any new or existing
fees for patent filings to GCCs, up to INR 3 lakh for GCC in Beyond
domestic patents. Bengaluru area
• This incentive can be claimed up to five times during
the policy period
• Each GCC is eligible to use this benefit once per year.
• The reimbursement is applicable only to approved
patents.

50
51
SUMMARY OF THE
INCENTIVES
No. Incentive Description

For any new or existing GCCs in the state

Reimbursement of 50% of internship

1 Internship
stipend upto INR 5,000/month for
INR 20,000 interns/year.

Government reimburses 20% of

2 Skilling of Local Talent
skilling expenses up to INR 36,000 per
graduate and INR 18,000 per
diploma holder

Global Leadership Financial assistance and

3
Development matchmaking support for leadership
skill development of high potential
employees.

4 Common Platform Setting up a matchmaking platform

for Collaboration for industry-academia
collaboration.

5 Utilization of GCC Labs 100% reimbursement of the cost

and Technology incurred by startups, for using
GCC facilities, capped at
₹40 lakh per GCC.

6 Establishing Innovation Funding up to 40% of capital

Labs/CoEs expenditure upto INR 5 crore in
Bengaluru Urban District.

7 Innovation Challenges Government funding for GCCs to

address public service challenges
through innovative solution, capped
at INR 1.5 crore for the deployment
of a solution.

8 Host Events and Funding one-third of hosting costs

Conferences up to INR 25 lakh for events in the
state.

52
 Intellectual Property 50% reimbursement of domestic patent filing
9
Incentive fees, upto INR 2 lakh.

Quality Certification
10 Financial 50% reimbursement of certification fees up to
Assistanceming INR 6 lakh.

Applications for permission for Right of Way for laying

Approval for
11 of cables and for erection of towers and antennae
Connectivity
would be approved within 30 working days.

A dedicated platform/ a operational helpdesk

12 GCC Incentive Clinic where GCCs can share their needs/ requirement/
pain points /ask questions, etc, will be setup.

Strengthening R&D Grants up to 40% or INR 50 crore for developing

13
Infrastructure R&D facilities.

For any new or existing GCCs in the Beyond Bengaluru area

Establishing Innovation Funding up to 75% of capital expenditure upto

1
Labs/CoEs INR 3 crore in Beyond Bengaluru clusters.

Government will form Cluster Anchor Groups and

2 Cluster Anchor Groups support the matchmaking for GCCs planning to setup
each of the six Beyond Bengaluru clusters

3 Property Tax Reimbursement of 30% property tax for 3 years.

Intellectual Property 50% reimbursement of patent filing fees, max

4
Incentive INR 3 lakh.

Quality Certification 80% reimbursement of certification fees up to

5
Financial Assistance INR 8 lakh.

For any new or existing GCCs in the Beyond Bengaluru area

with minimum 100 employees

Reimbursement of recruitment costs based on the

1 Recruitment assistance number of new hires, capped at 50% of the total
expenses, up to a maximum of INR 7 crore.

Reimbursement of rent expenses based on the

2 Rental Assistance
number of employees, capped at 50% upto INR 2 crore

53
 For any new GCCs in the Beyond Bengaluru area with
minimum 100 employees

1 EPF Contribution Reimbursement of EPF contributions for new

Reimbursement employments upto INR 3000 per employee per
month, for 2 years.

2 Supporting Telecom Reimbursement of 25% of internet expenses

Infrastructure upto 12 Lakh for three years.
Development

3 Power related 100% reimbursement of electricity duty and option to

incentive switch from Commercial to Industrial power tariffs

For Academic Institutions

Funds for developing industry-oriented courses;

1 Skilling Curriculum INR 10,000 per student and INR 20,000 per faculty
trained, with a cap upto INR 1 crore per institution.

Funding 50% of approved research budgets, upto

2 Joint Research INR 75 lakh and up to INR 1 crore for projects with
two institutions.

For Real Estate entities

Reimbursement for vacant seat costs in co-working

1 Co-working Spaces spaces for three years based on the number of
vacant seats.

For any registered entity in the state, Or Industry Associations

Fund for setting up of 'GCC Immersive Hubs’ to

Establishing 'GCC
1 demonstrate innovation and R&D being undertaken in
Immersive Hubs’
the State, on Public-Private Partnership (PPP) mode.

54
55
DEFINITIONS
Bengaluru Urban District: Bengaluru Urban District comprises of
five taluks, namely Bengaluru North, Bengaluru North (Addl.),
Bengaluru South, Bengaluru East and Anekal.

Beyond Bengaluru: Any region beyond Bengaluru Urban District.

Used to describe cities/areas in Karnataka outside Zone 3 (as
per the prevailing Karnataka Industrial Policy).

Capital Expenditure: Commonly known as Capex, are funds

used by an entity to acquire, upgrade, and maintain physical
assets such as property, buildings, an industrial plant,
technology, or equipment.

Emerging Technologies: Emerging technologies are modern

technologies whose development or practical applications, or
both are still largely inherent, such that they are emerging into
eminence from a background of nonexistence or ambiguity. Few
of the emerging technologies include Artificial Intelligence,
Cyber Security, Block chain, Advanced data analytics,
Biotechnology.

Entity: Private Limited Entity (as per the Companies Act 2013), a
Registered Partnership Firm (under the Partnership Act, 1932) or
Limited Liability Partnership (under the Limited Liability
Partnership Act, 2008).

Global Capability Centre (GCC): Global Capability Centres

(GCCs) are fully owned, integrated hubs established by
multinational corporations that are headquartered outside
India, to leverage global talent, build intellectual property, and
enhance operational efficiency. These centres serve the parent
organization, managing a range of global functions like research
and development, IT services, business process outsourcing, and
more, ultimately driving innovation, reducing costs, value
addition, and expanding the corporation's global impact.

Innovation Labs: Innovation Labs are spaces to foster open

innovation. They provide market insights, develop industry
expertise, in collaboration with other stakeholders.

56
Karnataka Digital Economy Mission (KDEM): KDEM is a Section 8 Company
(not-for profit) with equity participation by both Industry and Government of
Karnataka (Department of Electronics, IT, Bt and S&T). KDEM has been setup to
promote Digital Industry growth and attract investments by providing
hand-holding services and suggesting policy initiatives to be taken up by the
State.

Operating Expenditure (OpEx): An operating/ operational expenditure/

expense, or OpEx is an ongoing cost for running a product, business, or system.

Reimbursement: Compensation given by the State/ public body/ organization

for a defined expense by giving them an amount equal to what was agreed
upon.

Research & Development : R&D activities can be defined as any systematic

and creative work undertaken to increase the stock of knowledge and use of
this knowledge to devise new applications. R&D activities include one or more of
the categories of research such as basic research, applied research and
experimental development. (UNESCO manual 1984 and Frascati manual, OECD,
2015). The term R&D thus covers three activities: basic research, applied
research and experimental development. The basic criterion for distinguishing
R&D from related activities is the presence in R&D of an appreciable element of
novelty and the resolution of scientific and/or technological uncertainty, i.e.
when the solution to a problem is not readily apparent to someone familiar with
the basic stock of common knowledge and techniques for the area
concerned.

Startup : As defined by the Government of Karnataka in the Karnataka Startup

Policy

Subsidy : Subsidy is a sum of money granted by the state or a public body to

help an industry or business to keep the price of a commodity or service low.

Anchor Investors : An Anchor Investor is a large, well-known business that

occupies a significant amount of space in a commercial real estate property or
industrial park or technology park. Anchor investors would often be the first
tenant to sign a lease agreement and are crucial to the success of the property.

The key characteristics defining anchor investors includes:

• Size: They are typically the largest investor by square footage/area.

• Prestige: They will typically be GCCs/MNCs with enough prestige and
popularity to attract other industries.
• Long-term leases: They tend to be willing to sign long-term leases
(where applicable)
• Strategic location: They view the location as strategically important.

57
58
59
ABBREVIATIONS
Abbreviation Expansion

AI Artificial Intelligence

AVGC Animation, Visual Effects,

Gaming, and Comics
BFSI Banking Financial Services
and Insurance
CoE Centre of Excellence

CAPEX Capital Expenditure

Cr Crore (in Indian Rupees

Denomination)
GCC Global Capability centres

GoK Government of Karnataka

IIIT International Institute of

Information Technology
IIT Indian Institute of Information
Technology
KDEM Karnataka Digital Economy
Mission
MNC Multi-National Corporation

OPEX Operational Expenditure

R&D Research and Development

TBI Technology Business Incubator

60
SOURCES
“A ready reckoner to help you set up a Global Capability Centre in
India,” GCC Guide 2023, September 2023, JLL, 2023.

“GCC location Landscape in India,” GCC quarterly landscape report,

Q4’23, March 2024, ANSR, 2024.

“India GCC Landscape Report”, September 2024, NASSCOM and

Zinnov

“Vision 2030: GCC trend analysis,” Future of GCCs in India a vision

2030, June 2023, EY, 2023

“Foreign Direct Investment (FDI),” IBEF Website,

ibef.org/economy/foreign-direct-investment

STPI Data

NIRYAT Database

Karnataka Bioeconomy Report 2024, Karnataka Innovation and

Technology Society

Invest India, Government of India,

https://www.investindia.gov.in/state/karnataka, accessed on 15
September 2024

Karnataka Aerospace and Defence Brochure, Invest Karnataka,

https://investkarnataka.co.in/wp-content/uploads/2023/02/8Feb_A
D_Brochure_V7_print.pdf, accessed 15 September 2024

3One4 Capital

“The top 50 AI Cities,” TIDE Framework, December 2021, Harvard

Business Review 2021

Karnataka Economic Survey 2023-2024; “Karnataka Horizon:

Navigating real estate excellence in South,”, July 2024, CBRE

Bengaluru Innovation Report 2024, Government of Karnataka.

“Karnataka Leading the Way for GCCs,” Karnataka GCC Landscape

Report, July 2024, ANSR-KDEM, 2024

“Karnataka Horizon: Navigating Real Estate Excellence in the South,”

July 2024, CBRE Research

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“India GCC Landscape Report”, September 2024, NASSCOM and
Zinnov

“Karnataka Leading the Way for GCCs,” Karnataka GCC Landscape

Report, July 2024, ANSR-KDEM, 2024

“What's the right mix of elements to catalyse true value?” EY GCC

Pulse survey 2023, September 2023, EY 2023

“R&D Expenditure Ecosystem; Current Status and Way Forward,” July

2019, government of India, 2019,
psa.gov.in/article/rd-expenditure-ecosystem-report-and-actions-t
aken/3589.

“Karnataka Startup Policy 2022-2027,”

itbtst.karnataka.gov.in/storage/pdf-files/Startup_Policy_2022-27-K
an_Eng.pdf.

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Managing Director

Karnataka Innovation and Technology Society

BMTC Building 4th Floor
(TTMC 'B' Block-above Bus Stand) Shanti Nagar,
Bengaluru - 560027, India

[email protected]
[email protected]
[email protected]

eitbt.karnataka.gov.in