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Karnataka Launches “KATALYST” to Establish 500 New Global Capability Centres (GCCs) by 2029.

National | Dated: 14 Aug 2025

In August 2025, ahead of the Bengaluru Tech Summit, the Karnataka government launched KATALYST, a dedicated Ease-of-Doing-Business cell aimed at accelerating the setup of Global Capability Centres (GCCs). This initiative forms a key part of the state’s GCC Policy 2024–2029, targeting the addition of 500 new GCCs by 2029.

🎯 Key Highlights:

  • - KATALYST serves as a single-window facilitation cell designed to streamline approvals, clearances, and investor assistance for GCCs. The programme was launched during a CEO Breakfast Meet attended by Chief Minister Siddaramaiah and over 200 industry leaders, marking a proactive step towards positioning Karnataka as a global GCC hub.
  • - Under the GCC Policy 2024–2029, Karnataka aims to double its existing GCC count to around 1,000 by 2029. This expansion is expected to generate 3.5 lakh (350,000) new jobs, contribute USD 50 billion to economic output, and maintain nearly 50% of India’s GCC market share. The state currently houses over 30% of India’s GCCs and employs 35% of the country’s GCC workforce.

💡 Other Important Facts:

  • (i) The policy focuses on both Bengaluru and “Beyond Bengaluru” clusters, with plans to set up three Global Innovation Districts — one in Bengaluru and two in other regions such as Mysuru, Mangaluru, Hubballi-Dharwad, Tumakuru, Kalaburagi, and Shivamogga. Special support will also be extended to smaller “nano GCCs” with 5–50 employees through flexible incentives and relaxed norms.
  • (ii) To attract GCCs, the state offers benefits like rent reimbursement up to ₹50 lakh for centres outside Bengaluru, electricity duty exemptions for five years, internship stipend reimbursements, and funding for applied R&D projects. The policy also includes establishing an AI Centre of Excellence, forming an AI Skilling Council, and launching a ₹100 crore Innovation Fund to boost industry–academia collaboration.
  • (iii) With KATALYST, Karnataka projects the GCC sector to grow at a compound annual growth rate of 12–14% over the next five years. By combining strategic incentives, regional development, and cutting-edge infrastructure, the state seeks to cement its leadership in India’s GCC landscape while driving substantial job creation and innovation.

📚 Test Your Knowledge:

Recently, which state government launched the “KATALYST” initiative to establish 500 new Global Capability Centres (GCCs) by 2029?

Correct Answer: Karnataka

🚀 Quick Recap:

About Karnataka

  • Chief minister: Siddaramaiah
  • Governor: Thawar Chand Gehlot