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\n\tJapanese companies are rapidly expanding their Global Capability Centres (GCCs) in India, making Japan the largest contributor to the country’s GCC ecosystem among Asia-Pacific nations, according to a Deloitte India report released on Friday.
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\n\tThe report, India’s Strategic GCC Play for Japanese Enterprises, said that over 100 companies from Japan now operate GCCs in India, accounting for around 5-6 per cent of India’s overall GCC ecosystem.<\/p>\n
\n\tAnnouncing the findings, Deloitte India said Japanese enterprises are accelerating their India expansion to support innovation-led and capability-driven growth.<\/p>\n
\n\t“With over 100 centres already established, Japan has emerged as the largest contributor to India’s GCC ecosystem in the Asia Pacific (APAC) region. These centres are rapidly evolving into strategic hubs for engineering, digital transformation and product innovation, spanning areas such as AI, embedded systems, cloud, advanced analytics and digital manufacturing,” the press release said.<\/p>\n
\n\tAccording to the report, Japanese GCCs have evolved beyond traditional support functions into centres handling high-value work across automotive engineering, embedded systems, artificial intelligence, cloud technologies, fintech and digital manufacturing.<\/p>\n
\n\tThe sectoral distribution of Japanese GCCs in India is led by technology, which accounts for 20 per cent of centres, followed by industrials at 15 per cent, while automotive and healthcare each account for 11 per cent.<\/p>\n
\n\tCommenting on the trend, Rohan Lobo, Partner and GCC Industry Leader at Deloitte India, said, “India and Japan are entering a new phase of economic collaboration anchored in innovation, technology and long-term value creation. As Japanese enterprises expand their global capability networks, India is emerging as a strategic hub for Japan that combines scale, engineering talent and digital expertise.”<\/p>\n
\n\tThe report estimates that India’s GCC sector could generate a net economic impact of USD 470-600 billion by FY2030, contribute between 2.2 and 2.8 per cent to the country’s GDP and support employment generation of 20-25 million people, including 4-5 million direct jobs.<\/p>\n
\n\tIt noted that India’s expanding STEM talent base, digital infrastructure and innovation ecosystem are increasingly addressing Japan’s demographic and digital transformation challenges.<\/p>\n
\n\tKeerthi Kumar, Partner at Deloitte India, said, “Japanese GCCs in India reflect a strong sectoral focus on engineering-led industries, with technology (20%), industrials (15%) and automotive and healthcare (11% each) forming the core of the footprint.”<\/p>\n
\n\tHe added that “Japanese companies are tapping into the Indian engineering ecosystem” and that “India is expected to benefit from world-renowned Japanese engineering practices.”<\/p>\n
\n\tThe report also highlighted a geographical shift in GCC expansion beyond traditional metro cities.<\/p>\n
\n\t“The next phase of GCC growth is increasingly extending as cities such as Ahmedabad, Jaipur, Coimbatore, Kochi and Indore are gaining traction. Cost competitiveness, specialised talent pools and supportive state policies are emerging as key enablers of this expansion,” the press release said.<\/p>\n
\n\tAccording to Deloitte, stronger India-Japan economic ties are further supporting this momentum.<\/p>\n