What is the MP GCC Policy 2025?

What if the next tech revolution in India doesn’t come from Bangalore or Hyderabad—but from Indore, Bhopal, or Jabalpur?

Madhya Pradesh is stepping onto the global technology stage with an ambitious move: the MP GCC Policy 2025. At a time when India is expected to host 2,000+ Global Capability Centers (GCCs) by 2030, with the sector generating over $100 billion in value, MP is staking its claim as the next big destination for global R&D, analytics, and shared services hubs.

This isn’t just policy on paper. With cost advantages up to 30% lower than tier-1 cities, a rising pool of skilled tech talent, and rapidly improving infrastructure, MP is actively wooing global enterprises and high-growth startups to set up their backend brainpower in the heart of India.

But what exactly does the MP GCC Policy 2025 offer? Why are global companies starting to look beyond metros and into the emerging heartlands?

Let’s dive deep into how this policy aims to transform Madhya Pradesh into a thriving GCC powerhouse and what it means for businesses ready to scale.

Why Madhya Pradesh?

When people talk about tech hubs in India, Madhya Pradesh doesn’t usually top the list. But that’s about to change and fast.

Madhya Pradesh is uniquely positioned to become a game-changing GCC destination. Located right at the center of India, it offers unparalleled geographic access to the entire country. But more than location, it’s the cost-efficiency, expanding infrastructure, and talent potential that make it worth your attention.

Let’s break it down:

Lower Costs, Higher ROI

Setting up a GCC in Indore or Bhopal costs 25–30% less than in Bangalore or Pune. Real estate is significantly cheaper, attrition rates are lower, and operational expenses are more manageable—without compromising on output quality. For companies looking to stretch budgets without sacrificing excellence, that’s a serious advantage.

Untapped Talent Pool

MP produces over 60,000 engineering graduates annually, and many of them migrate due to a lack of local opportunities. The policy aims to reverse this brain drain by creating high-quality, high-paying jobs in-state. With the right skilling support, this workforce can fuel everything from software engineering to financial analytics and customer operations.

Infrastructure That’s Scaling Fast

Cities like Indore, which recently won the title of India’s cleanest city for the 7th time in a row, are also emerging as tech-forward hubs. The Super Corridor in Indore is being developed as a dedicated IT zone, equipped with fiber optic connectivity, business parks, and smart mobility.

On top of that, the state is aggressively investing in better roads, air connectivity, and logistics infrastructure. The result? Easier talent movement, faster decision-making, and smoother operations for businesses.

Strong Policy Support

The MP government isn’t just building roads and offering rebates—they’re creating a startup-friendly, GCC-specific ecosystem. Dedicated teams are being formed to help companies set up faster, train local talent, and create long-term partnerships with educational institutions. It’s a rare alignment of vision, policy, and execution.

Objectives of the MP GCC Policy 2025

At its core, the MP GCC Policy 2025 isn’t just about attracting companies—it’s about architecting a long-term digital transformation for the state. The government isn’t throwing around incentives blindly. There’s a clear, strategic blueprint behind this policy, focused on inclusive growth, job creation, and positioning Madhya Pradesh as a global tech partner.

Here’s what the policy is aiming to achieve:

Establish Madhya Pradesh as a Competitive GCC Hub

With metro cities like Bangalore and Gurgaon reaching saturation, the policy positions MP as a cost-effective, talent-rich, and scalable alternative. The state wants to become the go-to location for setting up shared service centers, R&D units, analytics hubs, and customer experience centers.

Create High-Value Employment

One of the standout goals is to generate thousands of white-collar tech jobs within MP. By encouraging GCCs to hire locally and invest in upskilling, the policy aims to retain homegrown talent that would otherwise migrate to bigger cities. This is not just job creation—it’s about career acceleration within the state.

Accelerate Skill Development and Industry Readiness

Through public-private partnerships, the government plans to introduce customized training programs, GCC-specific certifications, and college-to-corporate pipelines. The focus is on preparing graduates not just for jobs, but for leadership roles in global organizations.

Strengthen Digital and Physical Infrastructure

From plug-and-play office spaces to high-speed internet corridors, the policy prioritizes infrastructure that supports the always-on, tech-intensive needs of modern GCCs. The aim is to create urban work zones that can host global teams, securely and efficiently.

Drive Balanced Regional Development

The policy doesn’t just center around Indore or Bhopal. It’s designed to spread economic opportunities across tier-2 and tier-3 cities, bridging the urban-rural digital divide. This makes the policy socially inclusive and economically sustainable.

Key Features of the MP GCC Policy 2025

The MP GCC Policy 2025 is designed to remove friction, reduce costs, and accelerate growth—for companies and the state alike. It goes beyond typical incentive models by offering a comprehensive support structure that includes funding, infrastructure, talent, and governance.

Let’s unpack the most important features:

Financial Incentives That Actually Move the Needle

The policy offers generous capital and operational subsidies—especially attractive for companies expanding or setting up in tier-2/3 cities. Here’s what’s on the table:

• Capital Subsidy: Reimbursement of up to 25% of fixed capital investment (with ceilings based on city tier).
• Rental Subsidy: Up to ₹20 per sq. ft. per month for office space in select zones.
• Employment-Linked Incentives: For every local hire, companies may receive up to ₹1.5 lakh per employee over 5 years, depending on job role and salary slab.
• Interest Subsidy: Soft loans or partial interest reimbursements for infrastructure investments.

These are not token amounts—they can have a significant impact on your P&L, especially in the early years.

Plug-and-Play Infrastructure Support

Recognizing that speed-to-launch matters, the government is investing in:

• Ready-to-occupy office spaces in IT parks and SEZs.
• High-speed fiber connectivity via dedicated digital corridors.
• Simplified access to greenfield land parcels in urban clusters like Indore, Bhopal, and Gwalior.
• Co-working ecosystems supported by state partnerships to ease entry for startups and smaller GCCs.

These facilities are backed by urban planning upgrades, with better road, power, and transport integration.

Skill Development & Academic Partnerships

MP’s GCC policy isn’t just focused on attracting companies—it’s equally invested in preparing its youth to thrive in GCCs. Key initiatives include:

• Collaboration with top IT training providers to create industry-aligned certification courses.
• Integration of GCC-specific curriculum in technical universities and colleges.
• Internship and apprenticeship programs co-created with participating companies.

The aim? To create a workforce that’s deployment-ready from Day 1.

Ease of Doing Business: Simplified & Streamlined

To eliminate red tape, the policy introduces:

• Single Window Clearance for all approvals.
• A dedicated GCC Facilitation Cell for handholding investors and resolving issues in real time.
• Time-bound permissions for land allotments, power connections, and environmental clearances.
• Digitized compliance for faster onboarding and expansion.

This commitment to speed, transparency, and support reduces setup timelines and boosts investor confidence.

Who Can Benefit from the MP GCC Policy 2025?

The beauty of the MP GCC Policy 2025 lies in its versatility. Whether you’re a global enterprise exploring India for cost-effective expansion or a fast-growing startup looking for operational leverage, this policy creates a level playing field for all kinds of tech-driven businesses.

Here’s a look at who stands to gain the most:

Global Enterprises Setting Up Captive Centers

Multinational companies in BFSI, healthcare, retail, and manufacturing verticals, already running GCCs in Bangalore or Hyderabad, can expand into Madhya Pradesh to unlock cost savings without compromising on quality. MP’s rising infrastructure and talent supply make it an ideal location for:

• Shared service centers
• R&D and innovation hubs
• Customer experience centers
• Enterprise tech support operations

With employment-linked subsidies and rental reimbursements, the math just makes sense.

Tech Startups & Scaleups Seeking Operational Efficiency

Startups in fintech, healthtech, edtech, or AI domains can tap into MP’s low-cost base to scale backend engineering, analytics, QA, or support teams. For early-stage founders, the policy offers:

• Lower burn rates
• Ready talent at scale
• High-quality infrastructure with startup-friendly terms

You don’t have to compete with unicorns for office space or developers anymore.

Outsourcing Firms & IT Services Companies

BPOs, IT services firms, and managed services providers can leverage MP’s growing digital ecosystem and policy support to establish satellite centers or distributed delivery models. With the rise of hybrid work, setting up in Indore or Bhopal can drastically reduce overheads while ensuring SLA-driven operations.

Educational Institutions & Skilling Platforms

The policy encourages partnerships between academia and industry. That means EdTech platforms, vocational training providers, and skill-tech startups have new ground to cover—by co-creating programs that feed directly into the GCC job market.

Young Professionals & Returning Migrants

And it’s not just companies. For professionals tired of the grind in expensive metros, this policy could be their ticket home. It enables well-paying, future-forward jobs in tech and business roles—without leaving Madhya Pradesh.

Final Thoughts

The MP GCC Policy 2025 isn’t just another state-level incentive document—it’s a forward-looking playbook aimed at reshaping Madhya Pradesh into a national contender for high-value, knowledge-driven industries.

At a time when global companies are reassessing their India footprint—balancing cost, talent, and sustainability—MP offers a rare mix of all three. With policy-level clarity, rapid infrastructure expansion, and access to untapped talent, it’s not just affordable, it’s strategically smart.

If you’re a CXO, investor, or founder looking to expand operations, lower costs, or de-risk your GCC strategy from metro burnout, now is the time to explore Madhya Pradesh. The early you move, the more you gain—in incentives, talent access, and market visibility.

FAQs 

What types of companies are eligible under the policy?

Primarily IT/ITES, software development, BPO/KPO, AI/ML, analytics, and R&D-focused enterprises setting up Global Capability Centers in MP. Startups and mid-sized firms are also eligible.

How long will the policy benefits be active?

The current benefits are structured to run through 2025, but companies that register during the window will receive incentives for up to 5 years from the date of approval.

Which cities in MP are targeted for GCC development?

Indore, Bhopal, Gwalior, and Jabalpur are key focus areas. However, tier-3 cities may also receive special incentives to promote distributed development.

Are the employment-linked incentives applicable to remote workers or only in-office staff?

In most cases, the policy encourages local employment with physical office presence, but hybrid setups with a registered center in MP may still qualify. It’s best to consult the state’s IT department for case-specific clarification.

What is the process for applying under the GCC policy?

Companies must apply via the Single Window System on MP’s investment portal. A dedicated GCC facilitation cell assists with approvals, site selection, and compliance.