The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has taken a decisive step to position the state as a premier destination for global business services. On Tuesday, the state cabinet gave its formal approval to the rules for executing the Uttar Pradesh Global Capability Centres (GCC) Policy-2024.
Invest UP to Lead Implementation as Nodal Agency
The cabinet designated Invest UP as the nodal agency responsible for the policy's execution. This move is designed to streamline the process for companies looking to set up GCCs in the state. Industrial Development Minister Nand Gopal Gupta ‘Nandi’ expressed confidence that the policy would bring significant benefits to Uttar Pradesh. He highlighted that standard operating procedures (SOPs) have been established to ensure its effective and smooth implementation.
Minister Nandi revealed encouraging early traction, stating, "Investment under GCCs in the state is continuously increasing, and in the current financial year, 21 companies have already started investing under this framework." The primary goal of the policy is to generate high-quality employment opportunities for the youth of the state.
What is a GCC and What Incentives Are Offered?
As per the newly cleared rules, a Global Capability Centre is defined as a captive unit established by either an Indian or a foreign company. These centres will perform strategic functions that are crucial to global operations, including:
- Information Technology (IT)
- Research and Development (R&D)
- Finance and Accounting
- Human Resources
- Design and Engineering
- Data Analytics and Knowledge Services
To attract these high-value units, the state government is rolling out a comprehensive package of financial incentives. Minister Nandi detailed that the benefits include:
- Subsidies on land acquisition
- Exemption or reimbursement of stamp duty
- Capital and interest subsidies
- Subsidies for operational expenditure, payroll, and recruitment
- Reimbursement of EPF contributions
- Incentives for talent development, skill enhancement, research, and innovation
- Special incentives evaluated on a case-by-case basis
Beyond financial support, GCC units will receive technical assistance, help with industry linkages, regulatory facilitation, and a promise of time-bound disposal of applications. A streamlined mechanism for approvals and disbursement of incentives has also been promised. Importantly, these state incentives will be in addition to any benefits available under existing schemes of the Government of India.
Legal Clarity and Long-Term Vision
In a significant provision aimed at providing legal certainty to investors, the rules state that in the event of any legal dispute, judicial jurisdiction will lie exclusively with courts located in Lucknow. This clause is expected to simplify the legal landscape for international companies.
Minister Nandi underscored the transformative potential of the policy. "This decision will help establish Uttar Pradesh as a global service hub," he said. He added that with effective implementation, the policy will catalyze an increase in high-skill-based investment, directly leading to the creation of new and lucrative employment opportunities for the state's young workforce.
The clearance of the implementation rules marks a concrete move from policy announcement to actionable framework, signaling Uttar Pradesh's serious intent to compete in the rapidly growing GCC market within India.
