00:00I think GCCs follow where the talent is. So if we have the right talent that can either be trained, upscaled, re-scaled in tier 2 cities, I don't think it's going to be a challenge and it's at the imperative and it's for our benefit of inclusive growth to have tier 2 cities come up the curve because 90% of our GCCs are in tier 1 cities as we call it the big 6.
00:22But we at least have to expand to 5 or 6 cities more so that we reduce the load on the tier 1 city infrastructure as well as we parallelly develop the tier 2 cities infrastructure.
00:33So I think it's a given, it's not a choice. We will have to do it and definitely if we are aiming for a 5,000 GCC number as we have discussed in today's summit, there is no escape from bringing our tier 2 cities up to the curve.
00:46And what outcome you can expect from this business?
00:50See, I think there has been a lot of focus on what can we do to ease out the setup of these GCCs.
00:59What can we do to ease out the setup of these GCCs, whether it's from a regulatory tax perspective or from finding them the right talent and the infrastructure.
01:09So the expectation out of this GCC summit is to reiterate that there are massive policy changes and massive talent development that is required.
01:17A lot is being done by the government. I think it's more about how do we achieve at a successful implementation. That's the outcome.
01:26How do you think you are expecting to add in the Indian economy and how much job creation you have?
01:35Absolutely. So if you talk about the numbers now, about $65 billion of revenue comes from GCCs. We are looking at achieving a number of $120 billion in revenue in the next five years, which would mean that we are almost doubling the jobs that are there, at least creating 150 to 2000 jobs every year.
01:54So it's going to be a huge jump, both in terms of direct employment and indirect employment. So direct employment would be the employees that you have directly in GCCs, but there is other indirect employment also with housekeeping, transport, office support, etc.
02:09So that's another layer. So that's another layer of employment that's going to add to our economy. And the natural catalyst of having so many GCCs is an improved infrastructure because GCC operate in a backbone where there is massive infrastructure, both in terms of good office spaces, but also communities where people can live and work happily.
02:30Can you take on Indian economy?
02:32I think Indian economy is at a boom. GCCs will contribute a lot to achieve our 2047 Vixit Bharat objective and also our 2030 vision. So I think we are the powerhouse for the overall world.
02:47We as Deloitte are very, very bullish about GCC growth because there are a couple of reasons why. One is out of the Fortune 2000 companies, only 33% are in India.
02:5933% are in India. Still 67% have not come into India. Second, we see a lot of mid-market companies coming from overseas, right? And they are growing at 39% year on year.
03:09So there is a big potential between the $100 to $1 billion companies. Third is most of the GCCs are still from the US, UK. There are still many countries that remain untapped.
03:19So therefore, and fourth, we've got the best talent when it comes to AI, when it comes to STEM. Therefore, we have the right potential also to do GCC work across the world.
03:29So therefore, we are very bullish that this 5,000 is a very achievable number as well as the fact that the potential to grow between $470 to $600 billion from GCC is also a number that we think is very possible.
03:44Yes, very possible.
03:45What is the time frame from $1,500 now to $5,000?
03:48In the next 5 years. We believe in the next 5 years it is possible.
03:51What is your overall impact on employment and generation?
03:57So on employment right now, so the GCCs have about 2.1 million. Then you have indirect people, another 2 million and odd. And then there is an induced employment, which is about 5 million. So it's about 10 million, 9 to 10 million.
04:10We believe over the next 5 years that can grow to about 25 million. So across where about 5 million would be direct, another 5 million would be indirect, and then of course another 15 million would be induced.
04:22What framework can be kept in mind for the group?
04:28So two or three things. I think one is clearly the ease of doing business. That means a single window for all kinds of state and central government clearances so that GCCs can be set up easily.
04:41Second is any regulatory things, for example on tax and other things to ensure that the regulatory restrictions are removed so that the GCCs can be easily set up.
04:50And third is talent. So having really good talent both built at a college level as well as good trainings and certifications can ensure that India has the right talent.
05:01Because the new GCCs will not only do transactional work, but they will do heavy engineering work, more innovative work, which will come into India.
05:08Sir, CI, CI's growth projection for Indian economy is between 6.4 to 6.7%. And the report which was saying that Indian economy will be 10 trillion dollar economy in the next decade. What is your take on the Indian economy?
05:27I think we are fortunate that our economy is probably one of the strongest in the world, the strongest amongst all large economies.
05:36And we see that this number of 6 to 7% growth will continue for many years to come. I think there is still a lot more in the Indian economy. So we are very bullish about India.
05:46I think the trade talks are a negotiation. So obviously America would want to have access to a lot of goods and a lot of, you know, want to sell their goods in India. India wants to have same access.
06:02I think so this will continue. It's a negotiation. So it will go a little bit of up and down. But overall, I do think India and US have a very good relationship. And therefore, we should be able to get this trade agreement soon.
06:25Look, first of all, GCC's business will cross 100 billion dollars. And currently, 1.9 million people work in GCC's. And according to the next 4-5 years, we will generate a lot of employment in the next 4-5 years.
06:41Second is, more than half of global GCC's are placed in India. And this will grow. The US is the biggest contributor.
06:50The US is the biggest contributor to GCC's. And this is not only employment and investment.
06:55Our skill upgrades are happening in the technology of the Indian people. That is going to be a big needle mover.
07:04Sir, what do you see in the real estate?
07:08So now, you can see, this year, in the first half of the year, in the first half of the office leasing is 40% of GCC.
07:15So this is a big part of the commercial real estate office. And now, which has been in the growth of the office market in the past 2 years,
07:23GCC is one of the major contributors to that.
07:27So what do you see in the growth of the office space?
07:34If I start with the office, in the past few years, the office is not in the leasing in India and the world.
07:42This year, I thought it was a slowdown. It is not. We will still grow.
07:47In the past, you can see, 80 million square feet of office space was taken up last year.
07:53This year, there is a little more expected than this year.
07:56So in the commercial real estate, there will be a lot of activity going forward.
08:00And GCC will be one of the important parts.
08:02If you look at residential, there are already sales.
08:05You can see, in the past 3-4 years, the market is very good.
08:08Especially in high-end residential.
08:13But now, new supply is also coming in mid- and lower-end.
08:17So in residential, there will be activity in residential.
08:19No doubt, in residential market prices will go down to the market.
08:23But overall, there will be expansion of residential market.
08:25And then we see logistics and warehousing.
08:28And one thing that we see is that the expansion will be manufacturing.
08:33Because India is still in overall manufacturing.
08:35But we will see growth in industrial and industrial.
