With world functionality centres (GCCs) turning into a considerable engine of progress and employment within the nation, the federal government on Monday pledged to take a look at insurance policies to supply them a lift whereas urging them to participate within the newly launched Employment Linked Incentive Scheme.
Noting that over 1,800 GCCs function out of India, Anuradha Thakur, Secretary Division of Financial Affairs, mentioned there’s a want to check state-specific insurance policies to know how you can additional assist GCCs.
“GCCs are [concentrated] particularly states. We have to see what insurance policies they’d on bodily and digital infrastructure, regulatory coverage initiatives that helped GCCs develop,” she mentioned on the GCC Enterprise Summit organised by CII, including that these insurance policies can then be tweaked to assist their progress elsewhere.
Underlining that GCCs contribute about 1.8% to the nation’s gross worth added, she additional mentioned that there’s a must collectively work and profit from them and mentioned that they’re now increasing past metros into Tier 2 cities.
In the meantime, labour and employment secretary Vandana Gurnani urged GCCs to take part within the ELI scheme noting that there’s a big scope for employment of youth and ladies in these.
“We will companion with GCCs on the nationwide and state degree,” she mentioned, including that the scheme design and processes are quite simple. At current, about 30-35% of the workforce in GCCs in India is made up of ladies staff, she additional famous.
“Youth unemployment in India has dropped from 17.8% in 2017–18 to 10.2%, outperforming the worldwide common of 13.3%. GCCs have performed a key function on this progress and maintain even higher potential to drive inclusive job creation for the longer term,” she mentioned.
Underlining that the ELIs provide very substantive advantages for employers and staff, she mentioned that there’s worldwide expertise with nations like Singapore, Australia, Turkey and Germany additionally launching related schemes. “Not solely did they improve employment however they elevated sustained employment and led to an increase in wages,” she mentioned, including that from an employer’s perspective, the ELI scheme brings down the price of hiring.
Addressing the session, Sanjay Bahadur, Member (Revenue Tax), within the Central Board of Direct Taxes mentioned that GCCs are rising at a speedy tempo and are poised for sturdy progress over the subsequent 5 to 10 years. They contribute 2% of the GDP and make use of near 30 million to 35 million folks.
Given the advanced nature of providers that they supply, switch pricing is likely one of the areas the place points crop in within the taxation sphere, he mentioned. “There’s a matrix of worth addition in services supplied by GCCs. That is the place switch pricing points are available in,” he famous.
Bahadur famous that different points could possibly be a particular tax therapy for the GCC sector in addition to fast decision of disputes with some strategies within the advance pricing authority scheme.
