UP Government Unveils Global Capability Centres Policy to Attract Global Investment and Transform State into a Services Hub

By Editor in Chief On May 8, 2025

The policy, aimed at fostering a robust ecosystem for IT and allied services, is designed to help the state achieve its ambitious target of becoming a $1 trillion economy, officials confirmed.

The newly approved policy seeks to position Uttar Pradesh as the next global service centre of India, by attracting investment from international corporations engaged in fields such as information technology, banking, healthcare, engineering, and emerging technologies like artificial intelligence, machine learning, and cloud computing.

UP’s Competitive Edge and Policy Highlights

He highlighted that multinational companies are increasingly turning to Uttar Pradesh to establish offshore development centres in a bid to access high-quality work at lower operational costs.

“Many software and IT firms are now investing in GCCs here, which are focusing on advanced technologies including AI, cybersecurity, robotic process automation, and engineering design,” Kumar stated. He emphasized that sectors such as automotive, electronics, and semiconductors are also showing strong interest in the state.

Currently, India hosts over 1,700 GCCs, and that number is expected to surge in the coming years. Leading global companies are already making their mark in Uttar Pradesh — for example, Microsoft recently began construction on a 10,000-seat development centre in Noida, and MAQ Software has launched a 3,000-seat engineering hub. The government aims to replicate this success in cities like Varanasi, Kanpur, and Prayagraj, in addition to the NCR and Noida regions.

Incentives Galore: What the GCC Policy Offers

The GCC Policy comes with a comprehensive suite of incentives and support mechanisms aimed at encouraging large-scale investment:

Operational Subsidy: 20% subsidy on costs related to rent, electricity, bandwidth, and data services. A total financial assistance of up to ₹180 crore can be availed.
Payroll Subsidy: Reimbursement of up to ₹1.8 lakh per annum for employees residing in Uttar Pradesh.
Fresher and Internship Support: Firms hiring fresh graduates can claim assistance of up to ₹20,000, while interns can fetch ₹5,000 per month in subsidies.
Inclusive Provisions: Special benefits and subsidies under EPF, training programs, and R&D grants are reserved for socially backward classes.
Additional Benefits: Exemptions in land and stamp duty, subsidies on capital investment and interest, and reimbursement of SGST are part of the package.

Officials anticipate that the policy will significantly boost high-paying employment opportunities across the state, particularly in Tier 2 and Tier 3 cities.

Key Administrative Decision: New Transfer Policy for Government Officers

In another important move, the Cabinet approved the Annual Transfer Policy for the 2025–26 fiscal year. According to Finance Minister Suresh Khanna, the provisions largely mirror the previous year’s framework, with a few critical updates.

Under the new guidelines:

Officers in Groups A and B who have served more than three years in a district or seven years in a division will be transferred.
Transfers will be capped at 20% of the total cadre strength in Groups A and B, and 10% in Group C.
Transfers for Group B will be conducted through a merit-based online system.
Special consideration will be given to parents of physically or completely disabled children, ensuring postings in locations with proper healthcare and caregiving facilities.

Tackling Urban Traffic: New Rules for Parking Space Management

In response to rising congestion and haphazard vehicle parking in urban areas, the Cabinet has approved the UP Municipal Corporation (Construction, Maintenance, and Operation of Parking Space) Rules 2025.

Urban Development and Energy Minister A. K. Sharma stated that the exponential increase in private vehicles has intensified pressure on both roadways and available parking infrastructure.

The new rules aim to:

Standardize parking regulations across all municipal corporations in Uttar Pradesh.
Encourage the development and management of organized parking zones.
Boost revenue generation for urban local bodies while minimizing traffic disruption caused by unregulated parking.

Sharma emphasized that the implementation of these rules will not only streamline urban mobility but also create new revenue streams for municipalities across the state.

These measures reflect Uttar Pradesh’s broader push for economic modernization, investor confidence, and urban planning reform, while ensuring inclusive growth and administrative efficiency across sectors.

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In a decisive push toward making Uttar Pradesh a key destination for global investors and a prominent services hub, the state Cabinet on Tuesday approved the Global Capability Centres (GCC) Policy. The policy, aimed at fostering a robust ecosystem for IT and allied services, is designed to help the state achieve its ambitious target of becoming a $1 trillion economy, officials confirmed.