How India’s GCC boom could add up to $199 billion to the economy by 2030, Rohan Lobo of Deloitte explains

India’s Gulf engine is running at full capacity. After years of steady expansion, the country’s Global Capability Centers (GCC) are now driving artificial intelligence, product engineering and corporate innovation for the world’s largest companies. With a workforce of $2.16 million and the potential to reach a GVA of $199 billion by 2030, India is no longer just a delivery hub. It has become the center of strategic leadership for global companies.

In this interaction with Business Today, Rohan Lobo, Partner and Industry Lead, GCC, Deloitte South Asia, analyzes the forces driving this boom and what the next five to 10 years of the GCC story will look like.

Edited excerpts

BT: The GCC scene in India has expanded rapidly in the past few years. How do you see the overall growth trajectory of the sector over the next five to ten years, both in terms of size and strategic importance?

Lobo: The most surprising thing about India’s story with the GCC is how quickly it has evolved from breadth to strategic depth. Today the sector has a strong foundation, with a workforce of 2.16 million and more than 1,800 operational centers across the country. This base gives India a unique starting point for the next decade. By 2030, we expect the sector’s direct gross value added to grow to $154-199 billion, supported by a total economic impact that could reach $470-600 billion. But the real transformation will be in the type of work done here. The centers are increasingly taking on global missions, whether in digital transformation, product engineering or enterprise platforms. India is moving from being a delivery hub to the nerve center of innovation for multinational companies

BT: We have seen a boom in global companies setting up new centers and expanding existing centers in India. What is driving this renewed wave of investments in the GCC countries, and what sectors are leading this wave?

Lobo: The renewed momentum comes from global organizations’ confidence in India’s ability to deliver complex, enterprise-level work. The country’s deep talent pool, strong digital infrastructure and fixed cost advantage make it a natural choice for expansion. At the same time, the environment surrounding the GCC has matured. policy clarity, a stronger intellectual property framework, and a vibrant digital economy give companies the environment they need to build long-term capabilities. Sectors such as BFSI, Technology, FMCG, Automotive and Healthcare continue to expand their presence in the GCC. Many of these industries are now bringing analytics, AI, and R&D jobs to India because they can scale talent and innovation here

BT: How important is the contribution of the GCC sector to the Indian economy at present, and how do you see its role evolving in terms of exports, employment and innovation-led value creation?

Lobo: The GCC countries already play an important role in the Indian economy, contributing US$68 billion in gross direct value added and creating a broader economic impact of US$182 billion. The sector supports 2.16 million direct jobs and more than 10 million job opportunities across the broader ecosystem. Today, the Gulf Cooperation Council countries are working to build intellectual property, design products, and create digital platforms spread globally. As this transformation deepens, India’s exports will benefit from higher-value, innovation-led digital services. The GCC sector will become one of the main pillars of India’s knowledge economy.

BT: Earlier, the GCC countries were very focused on back office and IT support. What percentage of today’s centers are involved in high-value functions such as product engineering, data analytics, and AI-based innovation? How quickly will this mix change?

Lobo: The nature of work within the GCC in India has changed dramatically. A decade ago, most centers focused on IT and operational support. Today, nearly 90% have built-in engineering, R&D or digital innovation capabilities. We also see that more than 200 GCC countries host dedicated AI centers of excellence, which is an indication of how quickly organizations are scaling up advanced technologies from India. This shift represents an important shift. The GCC countries are no longer an extension of global teams; They are creators of products, platforms and solutions.

BT: Many GCC countries are now moving beyond Bengaluru, Hyderabad and Pune to tier II cities. What is driving this geographic shift, and how do you see regional distribution evolving in the coming years?

Lobo: India’s growth in the GCC is entering a new phase defined by geographical decentralization. While about 95% of the GCC is currently located in six tier 1 cities, tier 2/3 cities are quickly emerging as reliable alternatives. Between FY19 and FY2024, GCC’s presence in these cities grew by 1.4 times, with 6% of new centers launched in smaller hubs such as Ahmedabad, Coimbatore, Kochi, Indore, Jaipur, Nagpur, Bhubaneswar and Visakhapatnam. This shift was driven by four factors: expanding local talent pools, lowering real estate and living costs by up to 50%, improving infrastructure, and increasing state-level incentives.
Over the coming years, India’s GCC landscape will evolve into a multi-city network that balances efficiency, comprehensiveness and flexibility.

BT: Other emerging markets are also attracting global capacity centres. What helps India maintain its leadership, and what might threaten that advantage?

Lobo: The country produces some of the largest STEM talent pools in the world, has a highly developed digital backbone and hosts a mature innovation ecosystem. This gives organizations the confidence to build not only teams, but also the critical functions of the organization here. To maintain this advantage, India will need to continue enhancing next-generation skills, ensure regulatory flexibility and maintain cost competitiveness. Sustained investment in talent and innovation will be key to staying ahead

BT: Availability of talent remains the strongest moat in India. But as the GCC countries move into deep technology areas such as artificial intelligence, digital twins, and cybersecurity, do we face any skills gaps? How do organizations deal with them?

Lobo: India’s talent advantage is one of the strongest reasons for GCC countries to choose this market. However, as work shifts towards artificial intelligence, cybersecurity, digital twins and advanced engineering, the demand for specialized skills is increasing. Foundations are addressing this problem through structured upskilling programmes, partnerships with academia and startups, and expanding investments in internal innovation labs. Many GCC countries are also establishing centers of excellence focusing on AI, cloud and automation to build capabilities at scale. The focus now is on developing talent capable of driving global innovation, not just delivery

BT: By 2030, there are projections that the country could host more than 2,000 GCC workers employing several million people. What do you think the next phase of the GCC story will look like: more scale, more innovation, or more global decision-making from India?

Lobo: The next phase of India’s story in the GCC will be determined by size, complexity and strategic impact.
By 2030, the sector could generate up to $199 billion in direct gross value added and 20 to 25 million jobs, cementing its position as a key pillar of India’s knowledge-based economy. Most importantly, India’s GCC countries are evolving into agile, digitally-accelerated global enterprise hubs, driving AI-first, R&D, and sustainability-aligned innovation. In the future, we will see India not only as an engine of execution, but also as a strategic command center for global enterprises, where decisions, design and innovation originate.