Upcoming GCC policy will prioritise regions beyond Bengaluru: Darshan H.V.

Global Compatibility Centres (GCCs) have played a vital role as innovation creators and a source of economic growth, and Karnataka stands at the forefront, says Darshan H.V., Director of Electronics, IT/BT, and the Managing Director of the Karnataka Innovation and Technology Society, Department of Electronics, IT, BT and S&T.

During his keynote at Nasscom’s annual GCC Conclave, Darshan said Karnataka is looking to encourage decentralisation and expansion of GCCs  to Tier-II cities like Mysuru, Mangaluru, Kalaburagi, and Tumkuru. He said more than 45 companies have established operations in these cities, with significant support from the Karnataka Digital Economy Vision.

The upcoming GCC policy will prioritise these beyond-Bengaluru regions, he said. “We have had six stakeholder interactions so far, and the draft will be ready by the end of June. We encourage companies to look beyond Bengaluru and expand within the state,” he said in a concluding note.

Darshan also commended Nasscom as a strong bridge between the industry, the department, and academia. “In today’s scenario, where VCs are going up, we must illustrate the role played GCCs, many of which have transitioned from offshore operations to innovation hubs,” he said.

“The size of GCCs in India is close to $46 billion today and is expected to grow to around $100 billion by 2030,” he said.

Darshan also underscored Karnataka’s appeal as a premier destination for capital and IT centres, noting that nearly 50% of India’s 1,580 GCCs are based in the state. This, he attributed to the robust talent pool and innovative environment within the state.

“Karnataka has positioned itself as the most innovative state due to its affordability, innovation, and growth. We have an ever-expanding talent pool, an extensive educational infrastructure with 52 top universities, 243 engineering colleges, and 1,777 industrial training institutes. These institutions play a crucial role in nurturing talent across various areas,” he said.

Addressing the collaboration with the Karnataka Skill Council on Emerging Technologies, Darshan mentioned, “We are planning at least 10 years ahead, focusing on the niche skills that companies, MNCs, and industrial ecosystems will need.”

Karnataka, especially Bengaluru, is known as a technology and innovation centre in India. With institutions like the Indian Institute of Science, International Institute of Information Technology Bangalore, and Indian Institute of Management Bangalore, the city continues to be a hub of innovation. Government efforts are matched by private sector investments, establishing generation centres in sync with the state’s ecosystem, he added.

Darshan said Bengaluru ranked eighth among global ecosystems for the third consecutive year as per the StartupBlink report and attracted more than 40% of total VC funding in 2023. Despite a challenging year, this ecosystem’s remarkable resilience demonstrates its strength. The Karnataka government has focused on offering incentives and streamlined processes for setting up and operating businesses. “Our policies are industry-driven, and we have dedicated teams for start-ups and GCC engagements,” he added.

“By 2030, we aim to account for more than 55% of India’s GCC market,” Darshan said addressing the audience.