Building India’s tech workforce: Uttar Pradesh’s GCC Commitment

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Key Incentives Under Uttar Pradesh GCC Policy 2024 

Well known for its strategic geographical location, Uttar Pradesh now aims to position itself as a highly competitive hub for companies looking to establish or expand their GCC operations through this policy. In this alert, we have provided a brief overview of the benefit and incentives that Uttar Pradesh is offering for setting-up a GCC in the state. The incentive framework is structured around following defined project categories, determined by specific minimum investment and employment criteria:​

FISCAL INCENTIVES

1. Capital and Infrastructure Support

Land Subsidy:

To encourage the establishment of GCCs across various regions of the state, the policy offers substantial land subsidy support. This subsidy is applicable on land specifically allotted by the Government.

The percentage of subsidy varies by region:

• 30 percent  in GB Nagar & Ghaziabad
• 40 percent in Paschimanchal & Madhyanchal (excluding GB Nagar & Ghaziabad)
• 50 percent in Poorvanchal & Bundelkhan
  

Stamp Duty:

To further reduce the cost burden associated with land and infrastructure acquisition, the policy provides 100 percent reimbursement or exemption of stamp duty on the purchase or lease of land and buildings for setting up GCCs.

Capital Subsidy:

The policy extends significant capital expenditure support for GCC set-up. The Eligible GCCs can avail financial assistance of 25 percent of the capital expenditure, up to a maximum of:

• INR 100 Million (~EUR 1.00 Million) for Level-1 GCCs, and
• INR 250 Million (~EUR 2.50 Million) for Advanced GCCs
  

Interest Subsidy:

To ease the financial burden, the policy provides a 5 percent interest subsidy on term loans availed for the construction of facilities and procurement of plant & machinery. This support is available for a period of 5 years, with eligible companies receiving up to INR 10 Million (~EUR 0.10 Million) per annum as interest assistance.

2. Operational Expenditure (OPEX) support:

The policy also eases operational costs by offering 20 percent support on eligible operational expenditure like lease rentals, internet, cloud services and power for a period of 5 years. The maximum annual OPEX support available under this provision is: 

• Up to INR 400 Million (~EUR 4.00 Million) for Level-1 GCCs
  
• Up to INR 800 Million (~EUR 8.00 Million) for Advanced GCC
  

3. Employment Incentive Support

Payroll Subsidy:

To promote local employment, the policy offers a Payroll Subsidy to GCCs based on the location of operations and the domicile status of employees. The subsidy is as follows:

For GCCs located in GB Nagar & Ghaziabad:

• Up to INR 100 Million (~EUR 1.00 Million) for Level-1 GCCs (over 3 years)
• Up to INR 200 Million (~EUR 2.00 Million) for Advanced GCCs (over 3 years)

For GCCs located in all other districts:

• Up to INR 120 Million (~EUR 1.20 Million) for Level-1 GCCs (over 4 years)
• Up to INR 250 Million (~EUR 2.50 Million) for Advanced GCCs (over 4 years)​

Recruitment Subsidy:
To encourage the hiring of local talent and enhance employment opportunities within the state, the policy offers a Recruitment Subsidy for onboarding freshers with Uttar Pradesh domicile. The eligible GCC will receive INR 20,000 per fresher upto a maximum of INR 50 Million (~Euro 0.50 Million).

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EPF Reimbursement:

To strengthen job security, the policy provides 100 percent EPF reimbursement for Uttar Pradesh domiciled employees. The eligible unit will receive a reimbursement of up to INR 2,000/employee/month to a maximum of INR 10 Million (~Euro 0.10 Million) per annum for a period of 3 years. 

4. Talent Development and Skilling Support

Internship opportunity:

The policy offers financial support to companies engaging student interns by providing a 50 percent cost reimbursement, capped at INR 5,000 per student per month, for up to 50 interns annually, for a period of 3 years.

Skill Development subsidy:

To upskill the workforce, the policy offers a Skill Development Subsidy that covers training expenses for employees for a period of 3 years. Eligible units will receive 50 percent cost reimbursement or INR 50,000 per employee (Up to INR 5 Million (~Euro 0.50 Million) per annum for maximum 500 employees)

5. R&D Support

Centres of Excellence (CoE) Grant:

Financial assistance to be provided for the establishment of CoEs in line with the Industrial Investment and Employment Promotion Policy (IIEPP) 2022.

Startup Collaboration:

Units collaborating with startups in ideating/ running Proof-of-Concepts are eligible for 50 percent cost support, subject to a maximum of INR 5 Million (~Euro 0.50 Million) annually over a 5-year period.

IPR Subsidy:

Companies may avail 100 Percent reimbursement of patent filing fees, twice during the policy term, subject to maximum of INR 0.5 Million (~Euro 0.05 Million) for domestic and INR 1 Million (~Euro 0.01 Million) for international patents

6. Case-to-Case incentives

Customized incentive package duly approved by the Cabinet for high-investment or high-employment projects with more than INR 2500 Million (~Euro 25 Million) investment, 1500 jobs and INR 500 Million (~Euro 5 Million) FDI or a company listed in Global Fortune 500 and Fortune India 500 company employing minimum 1000 personnel. 

NON-FISCAL INCENTIVES 

Regulatory Relaxations:

Includes self-certification under key labour laws, reduced inspection frequency (once in 5 years), exemption from pollution control approvals (up to 25 KVA DG sets), and permission for 24x7 operations including employment of women in all shifts.

Technical Support Group (TSG):​

A dedicated body under the Department of IT & Electronics to facilitate policy support, coordinate with departments, and assist with compliance and investor queries.

Real Estate & Talent Linkages:

A live portal (in development) will help investors identify ready-to-use commercial spaces. The state will also facilitate partnerships with educational institutions and CoEs for hiring and training skilled talent. 

Our Comments 

The Uttar Pradesh GCC Policy 2024 demonstrates the state's commitment in becoming a major hub for Global Capability Centers in India. By focusing on infrastructure, skilled talent, and targeted incentives, the policy creates a favorable environment for global firms exploring new GCC destinations. Investors should evaluate this policy as a strategic opportunity aligned with long-term GCC expansion goals.​