Madhya Pradesh GCC Policy 2025

• 17 Feb 2025

Why in News? 

Madhya Pradesh has introduced the country’s first dedicated Global Capability Centre (GCC) policy, aiming to establish the state as a leading hub for global innovation and collaboration.

Key Points

• Madhya Pradesh GCC Policy 2025:  
  • The Madhya Pradesh GCC Policy 2025 integrates incentives for capital expenditure, payroll, upskilling, and research and development. 
  • A dedicated nodal agency, the Madhya Pradesh State Electronics Development Corporation Limited (MPSeDC), will oversee policy implementation. 
• Target Sectors and Strategic Focus: 
  • The policy targets key sectors, including IT, finance, engineering, human resources, and emerging technologies. 
  • Special emphasis is placed on artificial intelligence (AI) and cybersecurity to drive digital transformation. 
• Decentralizing Business Hubs: 
  • This is India’s first dedicated framework for fostering GCC growth in tier-2 cities. 
  • The initiative aims to shift business hubs beyond traditional metro cities, promoting regional economic development. 
  • The policy seeks to attract over 50 GCCs, generating more than 37,000 direct jobs. 
  • It aims to position Madhya Pradesh as a center of excellence for IT/ITeS, advanced analytics, R&D, and digital transformation. 
• Foreign Investments and Industrial Ecosystem: 
  • The policy facilitates foreign investments and infrastructure development across multiple industries. 
  • The policy was unveiled ahead of the biennial Global Investors' Summit in Bhopal. 
• Infrastructure: 
  • Madhya Pradesh houses over five Special Economic Zones (SEZs), 15+ IT parks, and 150+ Electronics System Design and Manufacturing (ESDM) units. 
  • Key IT hubs include Indore, Bhopal, and Jabalpur, with upcoming projects like Knowledge City and Electronics Manufacturing Cluster 2.0. 
  • Ranked 4th in the Ease of Doing Business Rankings (2023), Madhya Pradesh ensures streamlined regulatory processes and investor-friendly policies. 
• Policy Implementation and Governance: 
  • The MPSeDC serves as the nodal agency for policy execution. 
  • A dedicated Policy Implementation Unit (PIU) will manage project approvals, incentive allocation, and compliance monitoring. 
  • By fostering innovation and attracting global tech centers, Madhya Pradesh contributes to India’s vision of a USD 110 billion GCC market by 2030. 

Global Capability Centers (GCCs) 

• About: 
  • Global Capability Centers (GCCs), also known as Global In-House Centers (GICs), are strategic outposts established by multinational corporations (MNCs) in countries around the world. 
  • Operating as internal entities within the global corporate framework, these centres offer specialised capabilities including IT services, research and development, customer support, and various other business functions. 
• Examples of GCCs: 
  • General Electric (GE) has a large GCC in Bangalore, focused on R&D and engineering for its aviation and healthcare businesses. 
  • Nestle has established a GCC in Lausanne, Switzerland, dedicated to product development and innovation for its food and beverage brands.