Post on Medial

Adidas to build its maiden GCC in India 🙏🙏 Thanks to Tamil Nadu govt! Don’t get it? Let’s dive in! .. Nike and Puma already have global captive capability centres in India, employing thousands of folks in decent or high-paying roles. And now, Adidas has come in, joining over 1.7k companies which have built GCC presence in India. And for this, Adidas has picked Chennai, with space for 700+ employees to start with. .. But, why did I mention Tamil Nadu Govt for this? -> Because, months ago, presenting its budget for FY25, CM Stalin’s Tamil Nadu Govt unveiled a new policy. -> It announced a payroll subsidy scheme for GCCs to set up in the State and create jobs there. Let’s learn more about this. .. As of 2018, India had some 750 or so global capability centres (GCCs). Today, that’s already between 1.6-1.9k mark, depending which source you pick. And, Bangalore, Hyderabad, Gurgaon, Noida and Pune lead the show (not in that order). And every other day, we keep hearing about new massive GCCs, like the massive one from Boeing which was inaugurated by PM Modi himself in January. .. When global companies began building GCCs in India almost two decades back, Chennai was one of the hottest destinations. Somehow, Chennai isn’t that today. And that is why, Tamil Nadu Govt stepped in. .. So, what does its policy say? -> A payroll subsidy of 30% in the 1st year, 20% in the 2nd year and 10% in the 3rd year for jobs with pay above Rs 1L/month -> This will categorically lead to the creation of high-paying jobs, and that too in a State which has one of the highest numbers of engineering colleges in India That’s bound to be a big positive 🙏🙏 .. This policy was a declaration of war. I mean, while states have been going all out to compete for manufacturing investments, Tamil Nadu, with this policy stormed up the services sector too. And the Adidas event only validates that. Hope this triggers a domino effect, with other states emulating Tamil Nadu's approach to attract GCCs. This could lead to a more competitive and dynamic environment for attracting foreign investment in the services sector. What do you think?