During an industry event, Nageswaran highlighted that India is home to over 2,000 GCCs, employing approximately 2 million individuals and contributing nearly 2% to the nation’s GDP.
“India’s GCCs represent a significant but understated success for the Indian economy. They are currently impossible to overlook,” he remarked, noting that India houses nearly half of the world’s GCCs.
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The CEA revealed that more than 1,200 of these centres actively engage in artificial intelligence and machine learning, establishing India as the world’s second-largest hub for enterprise AI, from which products are distributed globally.
In addressing concerns about AI’s impact on jobs, Nageswaran remarked that positions focused on low-skill responsibilities face escalating risks as AI technologies advance.
“If AI can write code, are Indian professionals in jeopardy?” he questioned, stating that “part of the traditional model is at risk” since centres reliant primarily on low-skill work may be threatened.
Conversely, he noted that AI would also generate fresh opportunities, emphasizing that “AI does not build, deploy, or govern itself. Human involvement is essential for designing, deploying, and managing these systems, and these roles are on the rise.”
Discussing the government’s role in boosting the sector, Nageswaran mentioned that the Union Budget has established tax clarity for data centres, streamlined transfer pricing safe harbour regulations, and facilitated quicker approvals.
However, he emphasized that policy support by itself is not enough.
“To be straightforward, there are limits to what the government can accomplish. The government can lay the groundwork, but it cannot operate the aircraft. Transitioning from intent to capability must be undertaken by companies,” he asserted.
The CEA also raised concerns regarding employability, noting that while India produces a vast number of graduates yearly, fewer than half are prepared for the workforce from day one.
Cautioning against complacency, Nageswaran remarked that India’s competitive edge has been cultivated over time but might diminish if industries and institutions do not evolve.
“Success can lead to complacency,” he warned, indicating that talent is already limited in certain skills and that “indispensability is not a position India can maintain indefinitely.”
