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HomeEconomyBeyond Noida: UP’s GCC push targets Tier 2 & Tier 3 cities...

Beyond Noida: UP’s GCC push targets Tier 2 & Tier 3 cities as Yogi heads to Bengaluru for investors

With a target of 500 Global Capability Centres by 2028, Uttar Pradesh is wooing investors for emerging cities as the chief minister prepares a Bengaluru MNC outreach campaign.

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Lucknow: Uttar Pradesh is positioning itself as a major destination for Global Capability Centres (GCCs), with the Yogi Adityanath government now shifting its focus beyond Noida and Greater Noida to tier 2 and tier 3 cities such as Lucknow, Kanpur, Varanasi, Gorakhpur, Bareilly, Prayagraj and Agra. As part of this strategy, the chief minister is expected to visit Bengaluru next month to engage with leading investors and multinational companies interested in establishing GCC operations in the state.

Government officials say the state’s strategy is aimed at creating a distributed GCC ecosystem instead of concentrating investments solely in the NCR region. The focus is now on developing technology and business infrastructure across emerging urban centres, creating high-quality employment opportunities and accelerating regional economic development.

According to UP officials, the state currently hosts more than 100 GCCs, most of them based in Noida and Greater Noida. The state expects this number to grow significantly over the next few years and is working towards creating conditions that could support more than 500 GCCs by 2028.

As per UP Invest (the state government’s investment promotion and facilitation agency), the state currently offers more than one million square feet of ready-to-move-in office space, a large and growing skilled workforce, extensive digital infrastructure, and seamless connectivity across major economic centres. To facilitate this expansion, the government has set a target of unlocking nearly 20 million square feet of Grade A (category) office space while leveraging its large talent pool, digital infrastructure and improving connectivity network.

Explaining the significance of GCCs, a senior official in the department said multinational corporations directly manage these centres, earlier known as Global In-house Centres (GICs), to handle critical business functions such as information technology, finance, human resources, analytics, research and development (R&D), engineering and customer support. Traditionally, such facilities have been concentrated in metropolitan cities, allowing companies to maintain strategic oversight over key operations while leveraging skilled talent pools and modern infrastructure.

The official added that their department was working on four aspects of GCCs: Land availability, infrastructure development, investor support and talent creation.

According to him, “GCCs are important to catalyse the service sector. There are four important aspects—land and infrastructure, demand generation, financial support and skilled manpower. We are trying to support investors on all four fronts. Under the policy, companies can get up to 50 percent subsidy on land purchase and 25 percent support on capital investment.”

“Our business park policy is aligned with the GCC policy and we are also encouraging large developers who can attract multiple industries. Besides IT companies, we are focusing on manufacturing-linked GCCs because Uttar Pradesh is a major manufacturing hub, particularly in sectors such as textiles,” the official said.

Monitoring the investment in the state, Invest UP CEO Vijay Kiran Anand told ThePrint, “Our objective is to simplify the investment process and provide faster support to companies looking to establish operations in Uttar Pradesh. The incentive framework has been designed to benefit not only developed regions but also emerging cities across the state. With a strong policy ecosystem, improving infrastructure and a vast talent pool, Uttar Pradesh is well-positioned to emerge as a leading destination for Global Capability Centres in the coming years.”

Plan beyond Noida 

Officials acknowledge that Noida and Greater Noida continue to remain the backbone of Uttar Pradesh’s GCC ecosystem. Over the years, the region has evolved into one of India’s leading technology and business destinations, attracting major multinational investments.

Among the most notable investments is Microsoft’s largest R&D facility outside its headquarters, while LG has announced a Rs 1,000 crore investment for a Global Capability Centre focused on artificial intelligence, software development, and research activities.

While Noida remains the primary destination, the state government is actively promoting Lucknow as its next major technology and innovation centre. The proposed 20-acre AI City project is also expected to strengthen Lucknow’s position as a hub for emerging technologies, artificial intelligence and innovation-led enterprises.

Improved urban infrastructure, expanding connectivity and a growing skilled workforce are being projected as key strengths that could help attract technology companies looking for alternatives to saturated metropolitan markets.

Beyond Lucknow, the government is integrating cities such as Kanpur, Varanasi, Gorakhpur, Prayagraj, Agra and Meerut into its long-term GCC roadmap.

Officials believe this distributed growth model will enable companies to tap talent pools across multiple regions while benefiting from lower operating costs and reduced pressure on existing urban infrastructure.

The strategy is also expected to support balanced regional development by creating new centres of economic activity across Purvanchal, Bundelkhand and western Uttar Pradesh.

Investor-friendly GCC policy

The GCC policy was framed in 2024 but notified in 2025, which offers a broad range of incentives aimed at reducing setup costs and encouraging long-term investments. Under the policy, eligible companies can receive capital subsidies of up to 25 percent on investments. Operational expenditure assistance is available for expenses such as lease rentals, cloud services, bandwidth and power consumption.

The policy also provides land subsidies ranging from 30 to 50 percent, depending on location, along with full exemption or reimbursement of stamp duty charges.

To encourage large-scale employment generation, the government offers payroll linked incentives of up to Rs 1.8 lakh per employee annually for a period of three years. Additional benefits include Employee Provident Fund reimbursements and support for research and development activities.

Another senior official said the government has already approved implementation guidelines and standard operating procedures for the GCC policy, with Invest UP acting as the nodal agency for investor facilitation and approvals. GCCs have evolved far beyond traditional back-office operations. Modern centres now handle strategic functions including software engineering, product development, artificial intelligence, data analytics, finance, engineering design, customer experience management and advanced research, he added.

The upcoming Bengaluru outreach by CM Yogi Adityanath is expected to be a key step in attracting multinational corporations and positioning tier 2 and tier 3 cities as the next frontier of UP’s GCC expansion.

Speaking on condition of anonymity, a senior government functionary said that the chief minister is expected to hold a series of round table meetings with industry leaders and investors during his proposed Bengaluru visit. A dedicated session is also being planned with companies and investors interested in establishing GCCs in Uttar Pradesh.

(Edited by Viny Mishra)


Also read: There’s a problem with UP’s trillion-dollar economy dream


 

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