The GCC Policy 2025 launched by the Government of Madhya Pradesh aims to position the state as a competitive destination for Global Capability Centers (GCCs). Focused on financial support, infrastructure development, and workforce readiness, the policy offers a strong platform for companies planning expansion.
Cities like Indore are at the center of this growth, offering a skilled talent pool, modern infrastructure, and proactive government support. Through a range of targeted incentives, the policy reduces operational costs and promotes sustainable, long-term investment.
This article outlines the 10 key incentives available under the MP GCC Policy 2025 for companies setting up or scaling their operations in the state.
Key Incentives Offered Under the MP GCC Policy 2025
Capital Expenditure (CAPEX) Support
Setting up a Global Capability Center often requires a significant upfront investment. To ease this burden, the MP GCC Policy 2025 offers Capital Expenditure (CAPEX) support to eligible companies. The policy aims to reduce the initial financial strain and encourage businesses to establish long-term operations in Madhya Pradesh.
Key highlights of the CAPEX support include:
- Eligible expenses: Construction of office spaces, interior fit-outs, purchase of IT equipment, and investment in other setup infrastructure.
- Purpose: To lower capital investment costs and make cities like Indore, Bhopal, and Jabalpur attractive destinations for new GCCs.
- Implementation: The reimbursement percentage, maximum limit, and eligibility conditions are defined by the state’s IT department, based on factors like project size, investment amount, and location.
Operational Expenditure (OPEX) Support
Beyond setup costs, running a GCC involves significant ongoing expenses. To support businesses during their initial years of operation, the MP GCC Policy 2025 provides Operational Expenditure (OPEX) support. This incentive is designed to ease day-to-day financial pressures and help companies stabilize operations faster.
Key highlights of the OPEX support include:
- Eligible expenses: Rental costs, utility bills, maintenance charges, and other recurring operational expenses.
- Purpose: To reduce the burden of operational costs in the critical early stages of a project, encouraging higher success and retention rates.
- Implementation: The level of support is linked to employment numbers, investment commitments, and the location of the GCC (with additional advantages for Tier-2 and Tier-3 cities).
Performance Linked Incentives (PLI)
To encourage consistent growth and job creation, the MP GCC Policy 2025 offers Performance Linked Incentives (PLI). This incentive is awarded based on the company’s achievement of specific operational targets such as investment milestones, employment numbers, and skill development initiatives.
The idea behind PLI is to reward companies that not only set up operations but also actively scale and contribute to the state’s economic development.
Key highlights of the PLI support include:
- Eligibility: Companies must meet predefined performance benchmarks related to investment and local employment.
- Purpose: To promote sustainable expansion rather than one-time setup activities.
- Implementation: Incentive amounts are calculated based on actual verified performance, with higher rewards for companies investing in Tier-2 and Tier-3 locations.
Employment Generation Subsidy
Recognizing the importance of job creation, the Policy offers a dedicated Employment Generation Subsidy. This incentive is aimed at encouraging GCCs to hire local talent and contribute to building a skilled workforce within the state.
Companies that generate employment at scale, especially in high-skill categories, stand to receive financial benefits under this subsidy scheme.
Key highlights of the Employment Generation Subsidy include:
- Eligibility: Applicable to companies hiring a minimum number of local employees, as specified by the state guidelines.
- Purpose: To promote local job creation, skill development, and reduce regional disparities.
- Implementation: Subsidy amounts are determined based on the number of jobs created, the skill level of the roles, and the location of the GCC.
Skill Development and Training Incentives
Building a strong, future-ready workforce is a key goal of the MP GCC Policy 2025. To support this, the policy offers Skill Development and Training Incentives to companies that invest in employee upskilling programs.
The state encourages companies to train newly hired employees in technical, managerial, and soft skills that align with GCC operations.
Key highlights of the Skill Development and Training Incentives include:
- Eligibility: Companies conducting approved training programs for newly hired or existing employees.
- Purpose: To strengthen the quality of the local workforce and align employee skills with global operational standards.
- Implementation: Financial support is offered to partially cover training costs, with preference given to programs focused on emerging technologies and leadership development.
Rental Subsidy
For companies operating from leased premises, the GCC Policy offers a Rental Subsidy to help ease operational expenses. This incentive is especially beneficial for startups, mid-sized firms, and companies setting up quickly in plug-and-play facilities.
By reducing rental costs, the policy makes it easier for businesses to establish a presence without heavy upfront commitments on infrastructure.
Key highlights of the Rental Subsidy include:
- Eligibility: Companies operating from approved leased office spaces within Madhya Pradesh.
- Purpose: To lower early operational costs and promote quicker setup, particularly in IT parks and designated growth zones.
- Implementation: Financial reimbursement is provided on a portion of the monthly rent, subject to predefined limits and timeframes.
Power Tariff Subsidy
Operational efficiency often depends on managing recurring utility costs. To support this, the MP GCC Policy 2025 offers a Power Tariff Subsidy to eligible companies. This incentive is aimed at reducing electricity expenses, making long-term operations more affordable for GCCs.
It provides direct financial relief, especially for centers with high energy consumption due to IT infrastructure and technology operations.
Key highlights of the Power Tariff Subsidy include:
- Eligibility: GCCs that obtain power connections through designated government agencies and operate within approved premises.
- Purpose: To minimize utility costs, improving operational sustainability and profitability.
- Implementation: Subsidies are provided as discounts or reimbursements on electricity charges. Additionally, companies may receive exemptions from electricity duty for a specified period.
Land Allotment at Preferential Rates
Securing the right land or office space is a critical step for setting up large-scale operations. Under the MP GCC Policy 2025, companies are offered Land Allotment at Preferential Rates in designated industrial and IT zones. This helps reduce the cost and complexity of acquiring property for new facilities.
The policy aims to make land acquisition smoother, faster, and more affordable for companies planning long-term investments.
Key highlights of the Land Allotment support include:
- Eligibility: GCCs setting up operations within notified industrial parks, IT parks, or special economic zones (SEZs).
- Purpose: To ease infrastructure setup and attract major global and domestic players to cities like Indore, Bhopal, and Jabalpur.
- Implementation: Land is offered at concessional rates based on employment, investment size, and strategic importance of the project.
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Stamp Duty and Registration Fee Reimbursement
To further reduce the initial setup costs, the Policy offers Stamp Duty and Registration Fee Reimbursement for eligible companies. This incentive directly lowers the financial burden associated with acquiring property or signing long-term lease agreements.
It ensures that companies can invest more into operations and workforce rather than administrative costs.
Key highlights of the Stamp Duty and Registration Fee Reimbursement include:
- Eligibility: Companies purchasing or leasing land, office spaces, or facilities for setting up approved GCC operations.
- Purpose: To make property transactions more affordable and encourage faster project execution.
- Implementation: Reimbursement covers a significant portion of the stamp duty and registration charges, subject to guidelines defined by the state.
Interest Subsidy on Loans
To assist companies with financing their infrastructure and technology investments, the MP GCC Policy 2025 offers an Interest Subsidy on Loans. This incentive is aimed at reducing the effective cost of borrowing, making it easier for businesses to fund their expansion and setup activities.
It provides financial relief by partially offsetting the interest burden on eligible loans.
Key highlights of the Interest Subsidy include:
- Eligibility: Companies availing term loans for capital expenditure related to approved GCC projects.
- Purpose: To encourage investment in high-quality infrastructure, technology upgrades, and operational facilities.
- Implementation: A percentage of the interest paid on eligible loans is reimbursed, with terms defined by the state’s financial guidelines.
Final Thoughts on the MP GCC Policy 2025
The MP GCC Policy 2025 reflects Madhya Pradesh’s commitment to becoming a leading destination for Global Capability Centers. By offering a comprehensive range of incentives — from capital and operational support to employment subsidies and land benefits — the state provides a strong foundation for companies aiming to expand sustainably.
Cities like Indore are already demonstrating the success of this approach, with growing interest from IT, BFSI, and R&D sectors. For companies considering new locations for their global operations, Madhya Pradesh offers a balanced mix of cost advantages, skilled talent, and proactive governance.
Understanding and leveraging these incentives can significantly reduce setup costs and accelerate growth. Businesses that move early are well-positioned to benefit from the full potential of this progressive policy framework.