Tamil Nadu Eyes GCC Growth with Chennai’s Strong Leasing and Land Bank

Tamil Nadu is intensifying efforts to attract global capability centres (GCCs) as part of its investment promotion strategy, according to Industries Secretary Arun Roy. Speaking at the GCC Summit, Roy emphasized Chennai’s potential as a GCC hub, particularly for manufacturing and engineering firms. He noted that while Tamil Nadu leads in economic rankings, it lags behind Bengaluru, Delhi-NCR, Hyderabad, and Pune in GCC operations, adding, “We need to recognize and address this gap.”

Roy highlighted the state’s proactive measures, including offering incentives and subsidies to attract GCC investments. He assured that the government is open to refining its incentive packages based on industry feedback, underscoring Tamil Nadu’s commitment to becoming a competitive GCC destination.

A CBRE report released during the event revealed that Chennai ranked third in GCC leasing activity from 2022 to September 2024, following Bengaluru and Hyderabad. Engineering and manufacturing firms accounted for 33% of this activity. The report also projects that GCCs in Chennai will absorb up to 3.2 million sq ft in 2025, slightly surpassing the current year’s levels.

Tamil Nadu’s efforts to enhance its GCC landscape are expected to boost its economic growth and reinforce Chennai’s position as a critical player in the sector.