Over 100 Japanese GCCs Now Operate in India. Here’s Why

Japan’s ageing population is creating new opportunities for India’s technology and engineering workforce across the country.

Advertisement

According to Deloitte’s report, India’s Strategic GCC Play for Japanese Enterprises, more Japanese companies are setting up Global Capability Centres (GCCs) in India to address talent shortages, support digital transformation and strengthen their engineering capabilities.

Japan is currently the largest contributor of GCCs from the Asia-Pacific region in India, with more than 100 Japanese companies operating GCCs across the country.

These centres are no longer limited to support functions and are increasingly handling high-value work in areas such as electric vehicles, embedded systems, artificial intelligence, cloud technologies and digital manufacturing.

India’s STEM Talent Becomes a Key Advantage

Advertisement

The report highlights that Japan’s demographic profile is driving this shift. Nearly 30% of Japan’s population is aged 65 years or above, while more than 36% is over the age of 60, creating growing pressure on the country’s skilled workforce.

Also Read: The Capgemini Creche Incident is Bigger Than One Company

India, on the other hand, produces around 2.5 million STEM graduates every year, making it one of the world’s largest sources of engineering and technology talent.

This strong talent pipeline is encouraging Japanese companies to expand their long-term operations in India.

India-Japan Partnership Expected to Create More Jobs

Advertisement

The report also points to a growing partnership between the two countries through the India-Japan Action Plan for Human Resource Exchange and Cooperation.

The initiative aims to facilitate the movement of more than 500,000 people by 2030, including around 50,000 skilled Indian professionals who are expected to work in Japan. It also seeks to strengthen collaboration in education, research, and language training.

Also Read: HCLTech Wins USD 1.14 Billion AI Deal, May Boost Tech Jobs

Deloitte estimates that India’s GCC sector could contribute between $470 billion and $600 billion to the economy by 2030 while creating up to five million direct jobs.

The report suggests that Japan’s workforce challenges are accelerating investments in India, positioning the country as a strategic technology and engineering partner rather than only an outsourcing destination.

Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.

Advertisement