Coimbatore Could Host Nearly 200 GCCs by 2032, Says EY-CII Report

Coimbatore could increase its number of Global Capability Centres (GCCs) from more than 75 currently to nearly 200 by 2032, driven by its engineering talent, industrial ecosystem and growing innovation capabilities, according to a report released on Wednesday.

A joint report by EY and the Confederation of Indian Industry (CII) said the city could attract around 125 additional GCCs over the next six years by building on its existing strengths, including workforce stability, a large technology talent pool and a strong industrial base.

Coimbatore has a population of around 3.8 million and a technology workforce of more than 300,000 professionals. The city is also home to 137 engineering colleges and produces more than 30,000 STEM graduates each year, the report said.

To support the expansion, the report proposed a five-pillar “5R Growth Framework”. The framework focuses on attracting companies seeking alternatives to established metropolitan hubs, building on successful GCC operations already present in the city, encouraging regional businesses to establish capability centres, developing specialised engineering and innovation capabilities, and helping existing GCCs expand their operations.

Manoj Marwah, Partner and GCC Markets Leader at EY India, said Coimbatore had moved beyond the traditional perception of a tier-two city and had demonstrated its ability to support large-scale global capability operations.

He pointed to GCCs in the city that have expanded to more than 1,000 employees as evidence of Coimbatore’s capacity to handle increasingly complex and large-scale global mandates.

V Noushad, Chairman of the CII Coimbatore Zone and Managing Director of Walkaroo International Pvt Ltd, said multinational companies were increasingly looking beyond traditional metropolitan centres in search of talent, resilience and specialised capabilities.

He said Coimbatore was positioned to play a larger role in India’s expanding GCC ecosystem and described the proposed framework as a roadmap for developing a globally competitive business environment.

The report identified several other factors that could support the city’s growth as a GCC destination, including relatively lower employee attrition, established educational institutions, competitive office rental costs and supportive state government policies.

With its combination of engineering talent, industrial expertise and an expanding technology ecosystem, Coimbatore is being positioned as a potential next-stage destination for companies looking to establish or expand global capability operations in India.