National Framework For GCCs To Promote Growth In Tier-II Cities

Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students

Bengaluru: Union Budget 2025 proposes to improve penetration of Indian IT industry in the smaller cities as the Finance Minister, Nirmala Sitharaman said the country will set up a National Framework for GCC (Global Capability Centres) in coming days.

“A national framework will be formulated as guidance to states for promoting Global Capability Centres in emerging tier 2 cities. This will suggest measures for enhancing availability of talent and infrastructure, building-byelaw reforms, and mechanisms for collaboration with industry,” the FM said announcing the budget proposals on Saturday.

India has seen growing interest among foreign firms to set up technology captives (known as GCC in industry parlance) on the back of huge technology talent and cost advantage. The country housed around 1,700 GCCs in FY24, generating $64.6 billion in exports. The segment has also emerged as one of the major employers of Indian technology talent by employing over1.9 million people, according to a Nasscom-Zinnov report.

Similarly, for boosting research in the field of emerging technologies such as artificial intelligence (AI), machine learning (ML), data analytics among other, the budget proposes to create a fund of funds in the deeptech research space.

Especially, AI is at the focus of the government as the US and China take the lead in this new space. The FM announced that a Centre of Excellence for AI will be set up. “I had announced three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. Now a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of Rs 500 crore,” the FM said. In order to match the capacity building in the tech talent space, the budget proposes to create more seats at IITs.

“Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students,” the budget document reads.

Moreover, broadband facility will be provided to schools in hinterland under the BharatNet programme. The government plans to leverage the BharatNet project to boost high-speed internet connectivity across schools in India ensuring that students, even in the most remote areas, can benefit from digital education.

Similarly, the proposals with respect to electronics manufacturing, &related sectors are likely to boost technology spending in the country.

“The proposal to explore a Deeptech Fund of Funds and offer 10,000 fellowships for tech research at IITs and IISc under the PM Research Fellowship Scheme will accelerate deep-tech innovation and R&D, fostering a strong technology-driven ecosystem. Additionally, initiatives like the Rs 500 crore Centre of Excellence in AI for education will strengthen India’s leadership in artificial intelligence and skill development,” Pratik Kakadia, Founder & MD at Sahana System said.