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MP GCC Policy 2025: Incentives, Subsidy & Financial Assessment

Introduction: MP GCC Policy 2025

Madhya Pradesh is steadily becoming a preferred destination for Global Capability Centres (GCCs) in India. To support this shift, the state government has introduced the MP GCC Policy 2025, a dedicated framework focused on investment support, employment creation, and long-term operational sustainability.

Unlike generic IT policies, this policy directly addresses the financial structure of GCCs. It offers capital subsidy, payroll support, and operational cost assistance, which together reduce both setup cost and recurring expenses.

At Finraja Consultancy Private Limited, we work as specialized subsidy consultants. Our role is not limited to advisory. Instead, we ensure that GCC investors structure projects correctly and realize incentives in full, without regulatory risk.

Understanding the MP GCC Policy 2025

The MP GCC Policy 2025 is designed for multinational companies setting up or expanding GCC operations in Madhya Pradesh. These centres typically deliver:

  • IT & digital services
  • Finance and accounting operations
  • Engineering, analytics, and R&D services
  • HR, legal, and global back-office support

Since GCCs are talent-intensive and cost-sensitive, the policy focuses on employment-linked and cost-reduction incentives, rather than one-time benefits.

As a result, the Global Capability Centre Policy MP directly improves long-term project viability.

GCC Policy Madhya Pradesh: Advantage for Investors

Compared to metro cities, Madhya Pradesh offers lower real estate cost, better workforce availability, and improving infrastructure. When these natural advantages combine with MP GCC Incentives 2025, the state becomes a strong alternative for GCC expansion.

Key reasons investors prefer Madhya Pradesh include:

  • Reduced setup and operating costs
  • Structured employment incentives
  • Capital subsidy for infrastructure creation
  • Stable policy support till 2025

Therefore, the MP GCC Subsidy Scheme is now actively considered during GCC location planning.

MP GCC Policy Eligibility Criteria

Eligibility is the foundation of incentive planning. Under the MP GCC Policy Eligibility Criteria, GCCs are categorized based on investment size and employment generation.

Minimum Investment & Employment Criteria

GCC Category

Minimum CAPEX Requirement

Minimum Employment

Level I GCC

₹15 crore

100 employees

Advanced GCC

₹50 crore

250 employees

These thresholds directly impact incentive limits and subsidy ceilings. Hence, accurate project structuring is critical.

This is where professional subsidy consultants add measurable value.

MP GCC Incentives 2025:Fiscal Incentive

The MP GCC Incentives 2025 are divided into fiscal and financial incentives, applicable across the project lifecycle.

Fiscal Incentives Available to GCCs

Incentive Head

Incentive Details

Rebate on Land

Up to 75%

Interest Assistance

6% subsidy up to ₹5 crore

Stamp Duty & Registration

100% reimbursement

Rental / Co-working Assistance

Up to ₹3–10 crore

Marketing Assistance

50% subsidy up to ₹2 lakh

Quality Certification

50% subsidy up to ₹6 lakh

These incentives reduce initial transaction and operating costs, making Madhya Pradesh more competitive for GCC investments.

Capital Subsidy under MP GCC Policy

One of the most valuable incentives is the Capital Subsidy under MP GCC Policy, which directly reduces upfront investment burden.

CAPEX Subsidy Structure

GCC Category

Subsidy Rate

Maximum Limit

Disbursement

Level I GCC

40% of ECI

Up to ₹15 crore

5 annual instalments

Advanced GCC

40% of ECI

Up to ₹30 crore

5 annual instalments

  • Land cost is excluded
  • Applicable only to fixed assets like buildings and machinery

From a financial perspective, this subsidy significantly improves IRR and payback period.

Employment Incentives MP GCC Policy

Employment is the policy’s core focus. Therefore, Employment Incentives MP GCC Policy offer substantial payroll support during early operational years.

Payroll Subsidy Structure

Year

Payroll Subsidy

Year 1

50%

Year 2

30%

Year 3

20%

Key conditions:

  • Salary must exceed ₹1 lakh per month
  • Coverage:
    • Up to 50 employees (Level I)
    • Up to 100 employees (Advanced)
  • Employees must work from Madhya Pradesh
  • EPF registration mandatory

This incentive directly offsets recurring manpower cost, which is the largest GCC expense.

Operational Cost Subsidy MP GCC & Other Supports

Beyond payroll and capital, the policy also supports operational sustainability.

Additional Financial Incentives

Incentive Type

Financial Support

Patent Assistance

₹5 lakh (domestic), ₹10 lakh (international)

Hosting / Co-hosting Events

Up to ₹25 lakh per year

Upskilling / Reskilling

₹50,000 per employee or 50% of cost

Internship Support

₹10,000 per intern

R&D Support

50% reimbursement up to ₹1 crore per year

These incentives strengthen innovation, skill development, and long-term growth.

GCC Setup Cost in Madhya Pradesh: Financial Assessment

Many investors ask about GCC Setup Cost in Madhya Pradesh. While costs vary by city and scale, incentives significantly reduce the effective project cost.

Financial Assessment

Particulars

Without Policy

With MP GCC Policy 2025

Capital Investment

₹20.00 Cr

₹20.00 Cr

Capital Subsidy

₹3–4 Cr

Payroll Cost (3 years)

₹30.00 Cr

₹30.00 Cr

Payroll Incentives

₹6–8 Cr

Other Operational Support

₹2–3 Cr

Effective Cost

₹50+ Cr

₹35–38 Cr

This shows how the MP GCC Subsidy Scheme materially improves project feasibility.

Why MP GCC Policy Consultancy Services Are Essential

Although incentives are defined, realization is not automatic. Many projects face delays or partial disbursement due to:

  • Incorrect eligibility interpretation
  • Poor documentation
  • Missed timelines
  • Weak financial structuring

Therefore, GCC investors increasingly rely on MP GCC Policy Consultancy Services rather than internal handling.

Conclusion

The MP GCC Policy 2025 is a powerful opportunity for global companies planning GCC operations in India. When used correctly, it delivers:

  • Significant capital cost reduction
  • Strong employment-linked financial support
  • Long-term operational sustainability

If you are planning to set up or expand a GCC in Madhya Pradesh, Finraja Consultancy Private Limited can help convert policy incentives into real financial gains, not just promises.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.

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