Karnataka made waves in the Indian economic landscape by launching a groundbreaking GCC policy. This initiative is a first-of-its-kind in the country, setting a benchmark for other states to follow while tailoring GCC strategies to fit the state’s ecosystem.
Beyond Bengaluru: Inclusive Economy
At the heart of this transformative policy lies the “Beyond Bengaluru” vision. While Bengaluru remains a bustling tech hub, the initiative tactfully cultivates an investor-friendly environment in tier II and III cities like Mangaluru, Mysuru, Hubballi-Dharwad-Belagavi, Kalaburagi, Tumakuru, and Shivamogga. There are additional incentives given to quantify the early mover advantage MNCs get for expanding to these clusters.
A standout element of the policy is the Beyond Bengaluru Cluster Seed Fund, designed to offer essential financial backing for early-stage startups in strategic locations. Plus, an impressive₹100 crore innovation fund has been allocated to promote collaboration between GCCs and academic institutions, laying a strong foundation for various sectors such as IT, R&D, cybersecurity, and biotech
Innovation Districts and Centers of Excellence
The initiative introduces Global Innovation Districts, a total of three new technology parks, 1 in Bengaluru and 2 in rest of the state. There are detailed incentives laid out for investor to setup in these districts.
The resource component is taken care by 21 Centers of Excellence (CoEs), with 14 already operational and seven more in the works. These CoEs, in partnership with esteemed institutions like Nasscom, IIIT, and IISc, are set to spearhead advancements in technology, a vital component of the GCC ecosystem.
Sweetening the Deal: Incentives for GCCs
Karnataka is rolling out the red carpet for GCCs with a variety of incentives aimed at Anchor Investors, including:
- Internship Support: 50% reimbursement of internship stipends
- Skilling Reimbursement: 20% back on skilling expenses for graduates and diploma holders
- Global Leadership Development: Financial help for leadership training.
- Collaboration Platform: A matchmaking service for industry-academia partnerships.
- GCC Facilities: 100% reimbursement for startups that use GCC labs, capped at ₹40 lakh.
- Innovation Labs Funding: Up to 40% funding for establishing innovation labs.
- Innovation Challenges: Up to ₹1.5 crore in government funding for GCCs tackling public service issues.
- Event Hosting Support: One-third reimbursement of event hosting costs (up to ₹25 lakh).
- Intellectual Property Incentives: 50% reimbursement of patent filing fees, depending on location.
- Quality Certification Assistance: Up to 50% reimbursement for certification fees.
- Fast-Tracked Connectivity Approvals: Swift approvals for communication infrastructure.
- GCC Incentive Clinic: A dedicated helpdesk for GCCs.
Additional Support for GCCs Beyond Bengaluru
For those venturing outside the capital, the incentives become even more generous:
- Rental Assistance: 50% reimbursement of rent, capped at ₹2 crore.
- R&D Infrastructure Grants: Up to 40% or ₹50 crore for larger setups.
- EPF Contribution Reimbursement: Reimbursement of EPF contributions for new hires, capped at₹3,000 per employee per month for two years.
- Telecom Infrastructure Support: 25% reimbursement of internet expenses for three years.
Support for other entities
- Academic Institutes that develop industry-oriented courses get INR 10,000 per student funded
- Joint Research - Funding 50% of approved research budgets, up to INR 75 lakh and up to INR 1crore for projects with two institutions.
- Real Estate entities that establish co-working space in beyond Bengaluru clusters can reimburse operational costs on vacant seats
- Industry associations get support for setting up 'GCC Immersive Hubs’ to demonstrate innovation and R&D being undertaken in the State, on Public-Private Partnership (PPP) mode.