Lucknow: The Uttar Pradesh government's recently announced Global Capability Centers (GCC) Policy 2024 has drawn both optimism and skepticism from business circles. While the policy ambitiously aims to transform the state into an investment destination, its heavy focus on attracting multinational corporations has left many questioning its accessibility for smaller, local businesses.  

Central to the policy is the targeting of Fortune 500 companies and major foreign direct investment, with Noida, Lucknow, Kanpur, and Varanasi identified as key development zones. The government projects this initiative will create 200,000 jobs within five years and contribute significantly to the state's economic growth targets.  

However, the financial thresholds for participation have raised eyebrows. To establish a basic GCC operation, companies must invest between 15-20 crore rupees depending on location, while advanced centers require 50-75 crore rupees along with commitments to employ 1,000 workers. These substantial requirements appear tailored for large corporations rather than medium-sized enterprises or startups.  

The incentive package, while generous for qualifying firms, further highlights this focus. Benefits include significant land cost subsidies, complete stamp duty exemptions, and various operational subsidies that could total up to 80 crore rupees for major investors. Special additional incentives are reserved exclusively for Fortune Global 500 or India 500 companies.  

Commerce Department officials maintain that the policy strikes a necessary balance, arguing that attracting major international players will ultimately benefit the entire state economy through job creation and infrastructure development. However, local business associations have expressed concerns that the current framework may leave smaller enterprises struggling to compete in the newly envisioned economic landscape.  

As implementation begins, observers will be watching closely to see whether the policy delivers on its promises of widespread economic transformation or primarily serves to benefit large corporate interests.