CEA urges industry investment in GCCs for AI

Chief Economic Adviser V. Anantha Nageswaran addressed the CII GCC Summit on July 9, 2026, stating that the India — India has fulfilled its role by announcing Budget measures to support Global Capability Centres (GCCs), including simplifying the transfer pricing safe harbour regime and launching a national framework to encourage GCC expansion beyond major metros into tier-II and tier-III cities. He urged industry to invest in skilling, capability development, and innovation to address challenges posed by artificial intelligence, noting that AI will displace routine tasks and that business models based solely on low-cost execution face risks. Nageswaran emphasized that government policy alone cannot secure India's leadership; firms and people must drive the shift from cost to capability. He identified skilling as a major challenge, with many graduates not industry-ready, and cautioned against complacency as competing countries strengthen capabilities.