Summary: This blog provides an overview of Tamil Nadu’s GCC policy, which is aimed at attracting major corporations to establish their Global Capability Centres (GCCs) and supporting the state’s goal of becoming a trillion-dollar economy.
Introduction: Tamil Nadu’s Rise in the GCC Landscape
Tamil Nadu is undergoing an economic identity revolution, as it shifts from its traditional manufacturing base and seeks to emerge as a hub for innovation, research, and development. At the heart of this transformation lies the rapid development of global capability centres (“GCCs”).
This GCC ecosystem is actively propelling Tamil Nadu’s ambition of becoming a USD 1-trillion economy by 2030.[1] Once considered back-office support units, GCCs have evolved into strategic engines of growth spearheading the global R&D initiatives.
Tamil Nadu: A Magnet for GCCs
Tamil Nadu’s vast talent pool of 500,000+ annual graduates, cost-effective operations, and strong infrastructure all make it highly attractive for GCCs. Chennai already hosts GCCs of certain large entities and is set to add 12–13 million sq. ft. of premium office space by 2026, which contribute to over 10 per cent of the India’s overall GCC presence.[2] Some of the other emerging hubs across the state are Coimbatore, Madurai, Tiruchirappalli, and Vellore. Coimbatore, for instance, has been ranked the top Tier-II city for GCCs, because of the availability of engineering graduates, quality of life, ease of doing business, etc. While Madurai is fast becoming a hub for technology firms, Tiruchirappalli and Vellore are also gaining traction, supported by reputed educational institutions that supply a steady stream of skilled graduates.[3]
Tamil Nadu’s Policy Framework for GCCs
Tamil Nadu’s well-structured and forward-thinking policy framework has helped it emerge as the frontrunner in creating a conducive environment for GCCs. The state’s approach goes beyond merely offering incentives to building a holistic ecosystem that nurtures innovation, talent, and ease of doing business.
Unlike the states of Maharashtra, Uttar Pradesh, or Karnataka, Tamil Nadu does not have a standalone GCC policy. Instead, it distinguishes itself through a dedicated scheme to promote GCCs, which is complemented by robust sector-specific policies, detailed subsequently.
Special Scheme to Promote GCCs in Tamil Nadu, 2024
On March 12, 2024, Tamil Nadu introduced a game-changing initiative. It formulated the Special Scheme to Promote GCCs (“Scheme”) under the Industries, Investment Promotion and Commerce Department, based on an announcement by the Honourable Minister for Finance and Human Resources Management in the 2024–2025 budget speech.[4]
This Scheme, designed to attract top-tier global players and high-value jobs, offers payroll subsidies of 30 per cent in the first year, 20 per cent in the second, and 10 per cent in the third. These apply specifically to high-paying positions with per-employee monthly payroll cost of INR 100,000 per month or more and are limited only to employees domiciled in Tamil Nadu, ensuring local talent benefits directly from global investments.
The Scheme, operational from April 1, 2024, to March 31, 2027, comes with clear eligibility criteria. The GCCs must be listed in the Forbes Global 2000 or Fortune 1000, provide direct employment to at least 200 people, and should not have previously availed structured assistance from the Industries, Investment Promotion, and Commerce Department. If not listed in the Forbes Global 2000 or Fortune 1000, the company can, in exceptional circumstances, be considered eligible by the Inter Departmental Committee (“IDC”) constituted under the Industrial Policy of 2021. This selective approach ensures that the incentives target high-impact projects that contribute meaningfully to the state’s economy.
Eligible GCCs must submit their project proposals to Guidance Tamil Nadu, the state’s nodal agency for investment promotion. After verification, the IDC reviews the proposals, and based on the IDC’s recommendations, the Commissioner of Investment Promotion and Facilitation sanctions the subsidy.
However, during its operational period, the Scheme’s subsidies are capped at 50 GCCs, making it highly competitive. This exclusive Scheme helps Tamil Nadu position itself as a future-ready hub that values scale, sustainability, and skill and promote GCCs with a focus on high-paying jobs, ensuring that economic benefits are widely distributed.
Sector Specific Policies
The Tamil Nadu Industrial Policy 2021[5] sets the foundation by providing a wide array of benefits, including land cost subsidies, tax exemptions, intellectual property incentives, and support for quality certifications. It also provides for various initiatives to create enabling ecosystems and to focus on R&D and innovation such as establishing industrial innovation centres and skill development centres to provide training across various sectors, as a part of the “Tamil Nadu Investment Promotion Program”. These measures significantly reduce operational costs and encourage companies to invest in long-term growth. Guidance Tamil Nadu is currently working on formulating a comprehensive industrial policy to support both traditional and emerging investments beyond manufacturing, emphasising on balanced growth beyond Chennai, inclusivity, and sustainability, while offering attractive incentives for advanced manufacturing, R&D and innovation hubs.[6]
Complementing this, the Tamil Nadu R&D Policy of 2022[7] has fostered knowledge infrastructure by creating innovation clusters, a hi-tech corridor, a knowledge city, and research parks. It provides for “Industries 4.0”, a dedicated platform to help GCCs connect with researchers and scientists to find solutions for the industrial platforms. Through this policy, Tamil Nadu expects to host regular outreach programmes to engage new and existing R&D centres and GCCs, showcasing best practices and achievements at flagship events, with a special emphasis on Tier-2 and Tier-3 cities. This policy focuses on fostering innovation through capital subsidies, incentives for innovation labs, license cost support, and assistance for product testing and prototyping.
Similarly, the Tamil Nadu Fintech Policy 2021[8] provides for the establishment of a “FinTech Cell” under Guidance Tamil Nadu to support the fintech sector by engaging in activities such as promotion, facilitation, and advisory. It aims to make Chennai a fintech hub and has established a “FinTech Registry” to facilitate discussions between the fintech players to encourage development in the sector. The policy also provides various sector-boosting initiatives, such as skill development programmes, operating expense support, fintech accelerator kits, marketing assistance, tax reimbursement, and employment support to ensure that fintech innovators have the resources they need to thrive.
Beyond sector-specific policies, Tamil Nadu has invested heavily in talent development. Initiatives such as Naan Mudhalvan, the Tamil Nadu Skill Development Corporation (TNSDC), and specialised programmes like the “Coimbatore Textile and Apparel Skill Development Programme” and “ITI Skill Enhancement Program” ensure a steady pipeline of industry-ready professionals. To simplify operations further, the state offers a single-window clearance system managed by Guidance Tamil Nadu to streamline regulatory processes and enhance ease of doing business, which is a critical advantage for global enterprises.
Future Outlook: Tamil Nadu’s Vision for GCCs by 2030
Tamil Nadu’s vision for GCCs by 2030 is ambitious and transformative. The state aims to host over 460 GCCs,[9] employing more than 1,500,000 professionals.[10] It is actively promoting expansion into sectors like semiconductors, clean energy systems, biotechnology, precision medicine, genomics, and electric vehicles and components, powering higher levels of research and development in advanced technologies.
Further, Tamil Nadu’s comprehensive policy framework serves as the cornerstone for sustained GCC growth. By combining targeted incentives, streamlined regulatory processes, and sector-specific support with robust skilling initiatives, the state ensures that global enterprises have both the infrastructure and talent to thrive.
[1] Tamil Nadu Vision USD 1 Trillion, Government of Tamil Nadu (accessible here).
[2] Reimagining Tamil Nadu, A Business Standard Report form the Tamil Nadu Round Table, 2025 (accessible here).
[3] GCC Playbook for Tamil Nadu, 2025, NASSCOM (accessible here).
[4] Special Scheme to Promote GCCs in Tamil Nadu 2024 (accessible here).
[5] Tamil Nadu Industrial Policy 2021 (accessible here).
[6] Policy Note (2025-2026), Industries, Investment Promotion and Commerce Department, Government of Tamil Nadu (accessible here)
[7] Tamil Nadu R&D Policy of 2022 (accessible here).
[8] Tamil Nadu Fintech Policy 2021 (accessible here).
[9] Reimagining Tamil Nadu, A Business Standard Report form the Tamil Nadu Round Table, 2025 (accessible here).
[10] GCC Playbook for Tamil Nadu, 2025, NASSCOM (accessible here).