Japan has emerged as the largest contributor among Asia Pacific-headquartered companies with Global Capability Centres (GCCs) in India, with over 100 Japanese firms now operating such centres in the country, according to Deloitte’s report ‘India’s strategic GCC play for Japanese enterprises’.
Deloitte Report Highlights Japanese Dominance in India’s GCC Landscape
The report, released on July 3, 2026, underscores Japan’s leading role in the APAC region for establishing GCCs in India. These centres, also known as captive units, handle functions such as IT services, research and development, and business process outsourcing for their parent companies.
According to Deloitte, the number of Japanese GCCs in India has crossed the 100-mark, outpacing contributions from other APAC nations like China, South Korea, and Singapore. The report attributes this growth to India’s skilled talent pool, cost advantages, and favorable policy environment.
Key Drivers Behind Japanese GCC Expansion
Deloitte’s analysis points to several factors driving Japanese companies to set up GCCs in India. These include access to a large English-speaking workforce, expertise in emerging technologies such as artificial intelligence and automation, and a mature ecosystem for innovation.
“The Japanese firms are leveraging India’s GCC ecosystem to drive digital transformation and enhance global competitiveness,” said a Deloitte spokesperson. “India offers a unique combination of talent, scale, and cost efficiency that is hard to match.”
Impact on India-Japan Economic Ties
The trend is expected to strengthen economic ties between India and Japan, with both countries benefiting from increased collaboration. The report notes that Japanese GCCs in India are not only serving domestic needs but also acting as hubs for global operations, particularly in areas like automotive technology, electronics, and financial services.
Deloitte estimates that Japanese GCCs in India employ over 50,000 professionals, with significant potential for further growth as more firms explore captive operations. The report also highlights that these centres are increasingly moving beyond cost arbitrage to focus on innovation and high-value work.
Future Outlook
Looking ahead, Deloitte predicts that the number of Japanese GCCs in India could grow by 20% over the next two years, driven by digitalization and the need for specialized skills. The report recommends that Japanese companies continue to invest in talent development and local partnerships to maximize the benefits of their GCC presence in India.
