How do state GCC policies work?
Central rules on foreign investment, FEMA and company law apply in every state. In most sectors you can hold 100% of an Indian company under the automatic route wherever you locate. State GCC policies sit on top, offering support that depends on where you set up and how big the centre is.
Incentive schemes are amended, capped, often front-loaded on early applicants, and can require pre-approval before you spend. Never plan on “you will receive X%” until a Chartered Accountant or Company Secretary has read the current notified policy and your eligibility. This page deliberately gives no rupee amounts or percentages, because those figures vary from state to state and are often subject to a case to case approval process.
Which states have GCC policies?
The table records what has been reported, not what has been notified or what you would receive.
| State | Policy as reported | Kinds of support reported | What to check |
|---|---|---|---|
| Karnataka | GCC Policy 2024-29, reported launched 25 October 2024 | Focus on locations beyond Bengaluru; rental, R&D infrastructure, employee-related, internet-cost and electricity-duty support | Notified policy text and amounts |
| Andhra Pradesh | IT and GCC Policy 4.0, 2024-29; cabinet approval reported December 2024 | Rental support, recruitment and employee incentives, power incentives, early-bird rent exemption in government buildings, skills credit; tiered by city | Operational guidelines, which set the amounts |
| Gujarat | GCC Policy 2025-30, reported launched 11 February 2025 at GIFT City | Capital and operating expenditure support, hiring support, interest subsidy, electricity-duty reimbursement | Notified policy text |
| Maharashtra | GCC Policy 2025, reported introduced 29 November 2025 with five-year validity | Size-banded support: capital subsidy, rental, payroll, interest, power tariff, electricity duty and R&D | Dates and terms, as sources differ |
| Tamil Nadu | Industrial policy applies; no standalone GCC policy | Payroll-linked support announced in the 2024-25 Budget and fast-track approvals reported | Eligibility under the industrial policy |
| Telangana | Industrial policy in place; standalone GCC policy close to being finalised | Reported focus on frontier technology and locations beyond Hyderabad | Notified text once released |
| Kerala | GCC Policy 2025-2030, draft with public feedback deadline 10 May 2026 | Not confirmed | Whether the policy has since been finalised |
| Uttar Pradesh, Madhya Pradesh, Odisha | Reported by a single year-end review as 2024, 2025 and 2025 policies respectively | Capital subsidy and land, rent or tax reimbursement reported | Each state’s notified policy and terms |
Karnataka, Andhra Pradesh, Gujarat and Maharashtra have the most detailed reporting. The 2026 Nasscom-Zinnov report lists Bengaluru, Hyderabad, the National Capital Region, Pune, Chennai and Mumbai as the largest hubs by unit count.
How should you use incentives when choosing a location?
Use them to compare shortlisted locations, not to choose one. A sensible sequence:
- Shortlist cities on talent supply, leadership access and operating cost.
- Read the current notified policy for each shortlisted state, not a summary.
- Check the size band, eligibility conditions and whether spend must be pre-approved.
- Check whether support is a one-time grant, a reimbursement or a recurring benefit, and what happens if you miss a condition.
- Have a practising CA or CS confirm how the incentive interacts with your entity structure and reporting.
Compare these findings with your choice of captive or build-operate-transfer model, because the model decides which entity would claim the support.
What else varies by state?
Stamp duty on the memorandum and articles of association is a state subject, and the formula differs by state and authorised capital. Professional tax and Shops and Establishment registrations are also state-specific. These affect cost and set-up steps whichever policy you pursue. See incorporation and registrations for how ProLead handles them.
Where ProLead fits
ProLead Business Consulting lists government grants and incentives among its market entry services and supports 40+ GCC and GDC clients. It has a presence across Bangalore, Hyderabad, Mumbai, Delhi, Cochin and Amritsar.
For the overall approach, start at the GCC set-up overview or book a free consultation.
Note: Rules and forms change often. This page is general information, not legal or tax advice. Check the current position with a practising Chartered Accountant or Company Secretary before you act.
Frequently asked questions
Which Indian state has the best GCC incentives?
Do GCC state incentives apply automatically?
Does Telangana have a GCC policy?
Does Tamil Nadu have a GCC policy?
Sources
General information only, not legal or tax advice. Rules and forms change, so confirm the current position with a practising Chartered Accountant or Company Secretary before you act. See our disclaimer.