MeitY to study reforms and AI impact on GCCs
India's IT ministry, MeitY, is taking a closer look at why global capability centers (GCCs), basically the big tech and business hubs, aren't growing as much as expected or if the recent reforms have added momentum.
Secretary S Krishnan said they'll study whether recent labor and tax reforms are actually helping or if artificial intelligence (AI) might be holding things back.
He shared this update at a major industry summit in Delhi.
GCCs nearly 2% of GDP
GCCs now make up nearly 2% of India's GDP, with IT and related services still being the country's top export sector at about $250 billion a year.
Krishnan pointed out that since many countries are slow to adopt enterprise AI, Indian tech hubs could use this window to get ahead, if they play it smart.
To boost growth, India has also rolled out easier building rules, relaxed labor laws, and updated tax policies to make itself more attractive for these global centers.