Global Capability Centres (GCCs): The New Engine of the India-U.K. Economic Partnership
UPSC Relevance
Prelims: Indian Economy (Services Sector, Foreign Direct Investment - FDI, Global Capability Centres - GCCs, Free Trade Agreements - FTAs), Governance (Ministry of Electronics and Information Technology - MeitY).
Mains:
GS Paper 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Effects of liberalization on the economy.
Key Highlights from the News
A historical India-U.K. Free Trade Agreement (FTA) is likely to redefine the economic relationship between the two countries.
One of the most important areas of this collaboration is the rapidly growing Global Capability Centres (GCCs) in India.
There are currently over 1,500 GCCs in India, employing over 1.9 million people.
British companies now view India not just as a cost-effective 'back office,' but as a strategic partner for research, development, and cybersecurity.
The FTA will accelerate the growth of the GCC sector by reducing legal barriers, facilitating the movement of professionals, and coordinating digital and data governance standards.
The FTA will also help resolve practical challenges like double taxation and data localisation.
The central government, led by the Ministry of Electronics and Information Technology (MeitY), is preparing to formulate a national GCC framework.
States like Uttar Pradesh are also formulating their own policies to attract GCCs.
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