Tech systems working well in defence, aerospace: Economic Survey-OxBig News Network

The Economic Survey lauded the development of technology in aerospace, defence and semi-conductors and projected these as growth sectors of the future.

The survey mentioned how global capability centres (GCCs) had grown in the country, saying “leading organisations are centralising their technology ecosystems in India”.

“This is particularly evident in sectors like aerospace, defence and semiconductors, where companies are advancing their engineering efforts to focus on next-generation platforms, products and technologies,” it said.

The GCCs are specialised units established by multinational corporations to centralise and execute critical business functions. These centres have evolved from traditional back-office operations to strategic hubs for innovation, technological development and operational efficiency.

The survey said the GCCs had been influencing global business dynamics. Their number in India had grown from 1,430 in fiscal year ending 2019 to over 1,700 in fiscal year ending 2024. The GCCs employed nearly 19 lakh professionals. Over the past five years, India had remained at the forefront of the global GCC expansion strategy, with more than 400 new GCCs and around 1,100 new units having established, the survey said.

“These GCCs are fundamentally altering the technology landscape. Over the last five years, the setup rate of engineering research and development GCCs has grown 1.3 times faster than the overall GCC setup, highlighting a continued shift towards high value-added work,” it said.

India had established itself as a prominent player in leveraging its vast talent pool, which accounted for 28 per cent of the global (science, technology, engineering, mathematics) workforce and 23 per cent of the global software engineering talent, the survey said, adding “The GCC ecosystem in India has matured significantly, advancing into high-end engineering roles.”

The survey said the GCCs were expanding rapidly and were expected to grow to over 30,000 by 2030, supported by robust training programmes to develop leadership.

“Strategic technology partnerships provide opportunities for enhanced cooperation in key areas like space, semiconductors, quantum technologies and advanced telecommunications,” it added.