JAMMU, October 8, 2026 – In an insightful editorial piece authored ahead of the upcoming J&K Global Capability Centre (GCC) Summit, Shailendra Kumar, Financial Commissioner and Additional Chief Secretary of the Finance Department, outlines a compelling economic case for multinational corporations to establish GCCs in Jammu and Kashmir.
Titled “The Arithmetic of a Capability Centre,” the op-ed highlights how the economic dynamics of running a GCC are overwhelmingly driven by people—with salaries, pensions, and social benefits forming the largest chunk of the costs. Kumar argues that this very dynamic should dictate how the Union Territory competes for these high-value investments against established tech hubs.
Acknowledging the fierce competition among states—noting that at least eight states, from Karnataka to Haryana, have dedicated GCC policies—the Financial Commissioner asserts that J&K cannot simply replicate the thresholds designed for mature clusters. Instead, it must offer realistic targets for first-time entrants. The administration has drafted a dedicated J&K GCC Policy, which will be prominently showcased to prospective multinationals during the upcoming summit.
Kumar outlines five key rules that should govern J&K’s support for the sector. The primary focus is on an “outcome-linked support” strategy over traditional capital subsidies. He points out that the cost of outcome-linked support only rises when jobs are actively created, thus binding the exchequer’s exposure to actual success.
Another structural advantage for Jammu & Kashmir highlighted in the piece is high employee retention. Citing an illustrative example of a center with 500 professionals, Kumar illustrates how a lower attrition rate dramatically reduces the recurring costs associated with recruitment, training, and lost productivity, thereby offering long-term stability to multinationals.
Furthermore, the economic returns of a GCC are substantial for the local economy. An average center of 500 professionals paying an illustrative ₹50 crore in salaries annually leads to significant localized spending, generating GST, lease stamp duties, and a parallel ecosystem of indirect jobs in transport, facilities, and hospitality. “For a Union Territory working to strengthen its own revenue base, a sector whose spending stays local is fiscally attractive,” Kumar notes.
Through these targeted policy frameworks and structural advantages, Jammu and Kashmir aims to position itself as a viable and highly competitive destination for Global Capability Centres in the near future.
Published by True Roots Media Network