Emerging cities in India are increasingly becoming important growth centers for global capability centers (GCCs), with a 42% increase in job openings compared to 19% growth in metro cities. This growth is attributed to better infrastructure, supportive government policies, and the rising influence of artificial intelligence (AI). A recent report titled “Emerging Cities: India’s Next Frontier for GCC Expansion Report 2026” by ANSR highlights this shift.
The report identifies six key factors driving this transformation, including a shift in talent distribution, rapid infrastructure development, favorable policy environments, and increased adoption of AI technologies. These emerging cities are seeing substantial investments in transport and business infrastructure, supported by initiatives like budget allocations, Special Economic Zone (SEZ) expansions, and metro rail and airport modernization projects.
Furthermore, the Union Budget 2025 has played a crucial role in accelerating this transition by introducing a national guidance framework to create GCC-ready ecosystems in Tier-2 cities. Artificial intelligence is also bridging the capability gap between Tier-1 and Tier-2 locations, allowing companies to establish high-value operations across a wider geographic network. This shift enables enterprises to develop distributed delivery models while maintaining operational capabilities.
ANSR, a specialist in establishing and expanding GCCs, evaluated 14 emerging locations in India based on talent attractiveness, infrastructure readiness, business environment, and quality of life. Currently, India hosts over 1,900 GCCs employing more than 2.1 million professionals and contributing over 1.5% to the country’s GDP. Smitha Hemmigae, Managing Director at ANSR, emphasized that emerging cities are no longer just alternatives to Tier-I metros but strategic complements within a more resilient and diversified operational framework.
