India’s emerging cities are rapidly becoming key hubs for global capability centres (GCCs), outpacing traditional metropolitan areas with a 42 percent increase in job openings compared to 19 percent growth in metros, according to a recent report by ANSR. This shift reflects a broader realignment as companies diversify their operations beyond crowded urban centres to tap into new talent pools and infrastructure.
The report highlights six main drivers behind this transformation: a redistribution of talent geography, significant improvements in infrastructure, a supportive policy environment, and the integration of artificial intelligence technologies. Government initiatives, particularly budget allocations toward transport, business infrastructure, metro rail expansions, Special Economic Zone (SEZ) development, and airport modernisation have directly contributed to this momentum.
Critical to this evolution is the Union Budget 2025’s introduction of a national guidance framework designed to foster GCC ecosystems in Tier-2 cities. This is described as the government’s first coordinated effort to promote GCC expansion outside major metros and encourage more distributed, resilient operations across the country.
Artificial intelligence has played a transformative role by narrowing the capability gap between Tier-1 and Tier-2 locations. AI enables enterprises to set up high-value services in emerging cities without losing operational efficiency, supporting new distributed delivery models across a wider geographic footprint.
ANSR’s analysis assessed 14 emerging cities—including GIFT City, Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Mangalore, Mysuru, Thiruvananthapuram, Navi Mumbai, Visakhapatnam, Bhopal, and Warangal—on talent availability, infrastructure readiness, regulatory climate, and quality of life metrics. The findings suggest these cities present attractive alternatives and complements to traditional metros for GCC investments.
India currently hosts over 1,900 GCCs, employing more than 2.1 million professionals and contributing over 1.5 percent to the national GDP. The report argues that emerging cities are not just fallback options but strategic elements within a more diversified operational strategy for global enterprises.
According to ANSR’s managing director, these emerging hubs represent a shift toward building distributed and resilient GCC ecosystems that align with evolving global business needs and workforce trends.