500 Indian GCCs plateau while govt eyes tier-II city growth

India's rapidly expanding network of Global Capability Centres (GCCs) has reached a critical inflection point, with a new report warning that hundreds of these centres are plateauing just as the government outlines an ambitious vision to transform them into global innovation leaders. Finance Minister Nirmala Sitharaman, speaking at the CII GCC Business Summit on July 9, 2026, said the country now hosts over 2,100 GCCs employing 2.3 million professionals and generating roughly $100 billion in annual revenue.

However, a report released by UnearthIQ and Embark estimates that approximately 500 of these centres are not realizing their full potential and have begun to plateau. The analysis suggests that around 30 GCCs established after 2020 and an estimated 360-370 set up before that year are facing significant challenges. These include being viewed primarily as cost centres, slowing business impact despite workforce growth, and limited progress in adopting artificial intelligence beyond pilot projects.

The report's authors argue that structural issues, such as limited leadership autonomy, execution-focused mandates, and underinvestment in AI, are preventing many GCCs from taking on...