Telangana Plans New Policy to Facilitate Global Capability Centers

Rapid Summary

• Telangana plans to introduce a specialized policy for Global Capability Centres (GCCs) to attract more companies and streamline investor processes.
• Hyderabad added 27 new GCCs in the first six months of 2025, contributing to its status as a GCC hub with over 355 such centres, including operations from McDonald’s, Vanguard, Citizens Bank, Heineken, DAZN, and Dai-ichi.
• The city hosts firms that focus on cybersecurity, AI/ML research, machine learning, risk management, cloud computing and supply chain management.
• Favourable policies like single-window clearances and infrastructure developments have ranked Telangana among the top States in Ease of Doing Business ratings.
• A robust connectivity network including the planned Regional Ring Road (RRR) is expected to expand investment opportunities further.
• Telangana Chief Minister Revanth Reddy emphasized Hyderabad’s global competitiveness over local competition in attracting investments via strategies like “China Plus One.”
• Recent government efforts at events like WEF attracted ₹1.78 lakh crore worth of projects from meetings with 40 corporate leaders globally.
• IT industry body Nasscom recommends continued infrastructure growth and targeted efforts for Deeptech skills development aiming for more than 500 GCCs by 2030.

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Indian Opinion Analysis

The emergence of Hyderabad as a major hub for Global capability Centres reflects effective governance combined with strategic planning focused on global investors. Initiatives like streamlined single-window approvals exemplify progressive leadership aimed at fostering ease of doing business. Additionally, the proposed GCC-focused policy signifies a proactive approach likely to enhance investor confidence while attracting mid-market players alongside larger multinational corporations.

Telangana’s success appears rooted in critical infrastructure advancements such as ORR expansion plans while leveraging its legacy sectors-technology and pharmaceuticals-paired with competitive costs and skilled labor availability. The China Plus One strategy underscores India’s growing appeal as businesses seek alternatives amidst evolving geopolitical dynamics.

If executed efficiently beyond aspirations highlighted by Nasscom’s recommendations concerning skill-building programs or international outreach via roadshows etc., Hyderabad could entrench itself firmly within Asia-Pacific investment circuits long-term without overshadowing wider sector relevance needed bridging EV additional policy moves targeted elements too;