Hyderabad’s GCC Boom Gains Sharper Edge With Sectoral Diversification, AI Push
The state government’s policy and city infrastructure are making Hyderabad more competitive.
Hyderabad: Hyderabad is fast emerging as India’s most dynamic Global Capability Centre (GCC) destination, powered by sectoral diversification, a strong talent base, AI-led policy support, digital infrastructure, faster approvals and a planned push to expand growth beyond the city’s core IT belt.
The city has attracted 197 GCCs since 2024, while the state government is now aiming to turn this momentum into a broader investment wave across technology, life sciences, semiconductors, banking, defence and other sunrise sectors.
Officials attribute the momentum to skilled manpower, lower operating costs, proactive government action and a stronger infrastructure base. According to official data, GCCs in core software and technology account for roughly 28 per cent of incoming GCC investments.
At the recent Nasscom GCC Summit 2026 in Mumbai, the state government projected its next phase of growth through a planned urban and industrial strategy. According to IT and industries minister D Sridhar Babu, Telangana is targeting 100 additional GCCs this year, which could generate nearly one lakh specialised jobs. The state also wants to transform these centres from conventional back-office units into “global value centres.”
The state government’s policy and city infrastructure are making Hyderabad more competitive.
The government has linked GCC expansion to Bharat Future City, AI City, Metro Rail expansion, a new airport, the Regional Ring Road, Musi rejuvenation and Young India Skills University. It has also outlined a dedicated GCC policy for “Beyond CURE” areas, aiming to extend future growth corridors towards Nizamabad, Karimnagar and Warangal and spread investments beyond the core Hyderabad zone.
Officials also point to the strong sectoral spread. Hyderabad is now attracting GCC investments in technology, banking, life sciences, semiconductors, defence, FMCG, space technology and hospitality. The state government claims that Hyderabad has outpaced Bengaluru in attracting new GCCs over the past two years, helped by its digital and physical infrastructure and strong emphasis on AI.
The broader message from the state government is that GCCs are now being viewed as long-term anchor investments, rather than merely as office setups. With Hyderabad already hosting close to 450 operational GCCs, primarily in and around the city, the government’s pitch is that the next phase will focus on higher-value work, deeper R&D and more widely dispersed growth across Telangana.
