Manufacturing GCCs Emerge as India’s New Office Demand Engine
India’s Global Capability Centre landscape is entering a new phase.
For years, the country’s GCC growth story was led primarily by technology and banking, financial services and insurance companies. That base remains important, but it is no longer the whole story. Manufacturing companies are now emerging as one of the fastest-growing GCC occupier segments, as multinational corporations move a wider range of engineering, product development, research, artificial intelligence and innovation functions to India.
This shift is significant because it changes both the role of India within global corporate networks and the nature of demand within the country’s office market.
India is no longer being viewed only as a location for cost-efficient back-office support. It is increasingly becoming a centre for product ownership, advanced engineering, research and development, digital transformation and innovation.
GCC Leasing Reaches 15.8 Million Sq. Ft. in H1 2026
Global Capability Centres leased approximately 15.8 million sq. ft. of office space between January and June 2026, according to JLL India data cited in the report.
This represented 41.7% of total office leasing across India’s seven largest office markets, making GCCs the single biggest source of demand for Grade A office space during the period.
GCC leasing also increased 14.2% year-on-year, even as overall office leasing activity moderated. The numbers highlight the resilience of the GCC segment and its growing importance to India’s commercial real estate market.
The fact that GCCs accounted for more than two-fifths of leasing across the top seven cities demonstrates how central they have become to office demand.
Manufacturing Joins Technology and BFSI at the Forefront
Manufacturing companies were among the fastest-growing GCC occupiers during the first half of 2026, alongside technology and BFSI firms.
The GCC ecosystem also witnessed new participation from companies in sectors such as:
Retail
Logistics
Infrastructure
Aerospace
This broader sectoral participation shows that the GCC model is expanding beyond its traditional base and becoming relevant to a much wider range of industries.
For the office market, this diversification is especially important. It reduces dependence on technology services companies and creates a broader, more stable foundation for future demand.
From Back-Office Support to Product Ownership
The biggest change is not simply that more manufacturing companies are opening offices in India.
It is the kind of work being carried out within these centres.
Multinational manufacturers are increasingly using their India GCCs for high-value functions such as:
Product engineering
Research and development
Artificial intelligence
Data science
Digital engineering
Analytics platform development
Innovation
Product ownership
This marks a fundamental evolution in India’s position within global manufacturing value chains. Rather than supporting operations from the sidelines, Indian teams are increasingly contributing directly to product design, technology development and long-term business strategy.
According to JLL India CEO Radha Dhir, GCCs are using India’s capabilities in AI, data science and digital engineering to build products, create analytics platforms and drive innovation, with particularly strong expansion coming from BFSI and manufacturing companies.
Why Manufacturing GCCs Are Growing in India
India offers several structural advantages that make it an attractive destination for manufacturing-led GCC expansion.
These include:
A deep engineering talent pool
Strong capabilities in software and digital engineering
Expertise in artificial intelligence and data science
Competitive operating costs
A mature Grade A office market
Established technology and innovation ecosystems
These advantages enable global manufacturers to combine traditional engineering knowledge with digital capabilities, an increasingly important requirement as factories, supply chains and products become more connected and technology-driven.
India’s mature office market also allows global companies to access large, modern campuses capable of supporting multidisciplinary teams across engineering, technology, design, analytics and research.
Larger and Better Office Campuses Come Into Focus
As manufacturing GCCs take on more sophisticated responsibilities, their real estate requirements are also evolving.
These occupiers are increasingly seeking high-quality, large-format office campuses in established technology hubs. Such workplaces must support collaboration between engineering, software, analytics, research and product teams.
This may translate into stronger demand for office developments offering:
Large contiguous floor plates
Flexible expansion options
Advanced digital infrastructure
Reliable power and connectivity
Collaboration and innovation spaces
Sustainability certifications
Employee amenities
Access to skilled talent
Strong transport connectivity
Unlike conventional support offices, next-generation GCCs often function as integrated innovation centres. Their workplace requirements therefore extend beyond basic office capacity.
GCC Demand Remains Resilient Despite a Softer Market
The strength of GCC leasing becomes even more notable when viewed against the broader office market.
Total gross leasing across India’s top office markets declined 3.9% year-on-year to 37.9 million sq. ft. during the first half of 2026. The slowdown was attributed to geopolitical uncertainty and AI-led portfolio optimisation by global companies.
Despite this, GCC demand remained strong enough to help keep office vacancy at a five-year low of 14.5%.
This contrast highlights the relative resilience of the segment.
While some global occupiers are reviewing office portfolios and optimising space, GCCs continue to expand because they are becoming increasingly central to global innovation, engineering and operating models.
2026 Could Match or Exceed Previous GCC Leasing Records
JLL expects GCC office leasing during 2026 to match or potentially surpass the previous year’s record levels.
This outlook is supported by ongoing discussions for new office transactions, fresh multinational entrants and expansion plans from companies already operating GCCs in India.
The pipeline suggests that the GCC market is not being driven only by a few large transactions. It is being supported by a combination of new market entry, consolidation and continued expansion.
What This Means for Commercial Real Estate
The rise of manufacturing-led GCCs could reshape commercial real estate demand in several ways.
1. A Broader Occupier Base
Office demand will become less dependent on traditional IT services and technology companies.
Manufacturing, aerospace, logistics, infrastructure and retail companies can create new sources of demand, improving sectoral diversification across office portfolios.
2. Greater Demand for Grade A Assets
High-value engineering and innovation functions require modern workplaces with reliable infrastructure, strong sustainability credentials and a high-quality employee environment.
This is likely to support continued demand for premium Grade A office developments.
3. Larger Campus Requirements
Manufacturing GCCs may bring together product, engineering, research, data and digital teams within the same location.
This can increase demand for large, scalable office campuses rather than smaller, fragmented workplaces.
4. Stronger Demand in Established Technology Hubs
Cities with mature talent ecosystems, technology clusters and established Grade A office stock are likely to remain key beneficiaries.
The availability of engineers, data scientists, software professionals and research talent will continue to influence location decisions.
5. Opportunities for Specialised Developments
Developers may increasingly create campuses designed around innovation, research and multidisciplinary collaboration.
Such projects could include labs, simulation environments, experience centres, product demonstration areas and specialised technology infrastructure alongside conventional offices.
The Link Between Manufacturing and Office Real Estate Is Deepening
Traditionally, manufacturing demand was primarily associated with factories, industrial land, logistics facilities and warehouses.
The expansion of manufacturing GCCs adds another dimension.
A multinational manufacturer investing in India may now require an integrated real estate footprint consisting of:
Manufacturing plants
Supplier facilities
Warehouses and logistics centres
Research and development centres
Engineering offices
Digital capability hubs
Corporate and regional offices
This creates opportunities across both industrial and commercial real estate.
In some cases, manufacturing GCCs may be located close to existing industrial clusters to support coordination with plants, suppliers and engineering teams. In others, they may choose major technology cities to access specialised digital talent.
The outcome could be stronger links between industrial corridors, urban technology hubs and commercial office districts.
A More Diversified Future for India’s Office Market
India’s office market has historically depended heavily on technology companies.
The rise of manufacturing GCCs can create a more diversified demand profile, supported by global companies across engineering-intensive and innovation-led industries.
Vinod Rohira, Managing Director and CEO of K Raheja Corp, noted that manufacturing is emerging alongside technology and BFSI as a key GCC occupier segment, with companies increasingly using their India centres for product ownership, engineering and innovation rather than conventional back-office activities.
This evolution can improve the long-term resilience of the office market by spreading demand across multiple industries and business functions.
India’s GCC Story Is Moving Up the Value Chain
The rise of manufacturing GCCs is ultimately part of a much larger transformation.
India is moving from being a delivery centre to becoming a global centre for decision-making, engineering, product development and innovation.
For multinational manufacturers, the country offers a rare combination of engineering talent, digital capabilities, cost competitiveness and mature real estate infrastructure.
For commercial real estate developers and investors, this creates an opportunity to build workplaces that support the next generation of global engineering and innovation teams.
For India, it represents deeper integration into global manufacturing and technology value chains.
Looking Ahead
Manufacturing is emerging as a new growth engine for India’s GCC office demand at a time when the overall office market is becoming more selective.
With GCCs accounting for 41.7% of office leasing across the top seven cities in the first half of 2026, the segment is already central to the country’s commercial real estate story.
As more multinational manufacturers move product engineering, research, AI and innovation functions to India, demand for high-quality, scalable and technology-enabled office campuses is expected to strengthen.
The next chapter of India’s manufacturing growth will not be written only on factory floors.
It will also be shaped inside engineering centres, research hubs, digital laboratories and Grade A office campuses where global products and technologies are increasingly being designed, developed and owned.
