Artificial Intelligence Drives India’s GCCs to Lead Global Innovation and Patent Growth

India’s global capability centres (GCCs) are increasingly becoming pivotal innovation and intellectual property hubs for multinational corporations, driven by the accelerating adoption of artificial intelligence (AI). Executives from leading companies such as Daimler Truck, Kimberly-Clark, and Publicis Groupe’s Epsilon have emphasized AI’s role in enabling Indian tech centres to move beyond routine operations toward creating proprietary technologies and filing patents.

At a recent Reuters summit, Radhakrishnan Kodakkal, head of the Daimler Truck Innovation Center India, noted that the contribution of India-based GCCs to intellectual property creation is expanding, with AI expected to further accelerate this trend. This evolution marks a significant shift from the traditional perception of Indian GCCs as primarily low-cost back-office units.

Over the past decade, India’s GCC ecosystem has matured into a strategic innovation base for global enterprises. The rise of generative AI and automation tools has prompted questions about the future roles of these centres, especially as coding, analytics, and routine processes become increasingly automated. Despite these concerns, multinational corporations continue to deepen investments in India, attracted by the country’s large pool of AI-skilled talent, engineering expertise, and cost advantages.

According to a joint report by Nasscom and consultancy Zinnov, Indian GCCs generated nearly $98.4 billion in revenue during the last fiscal year, surpassing industry projections years ahead of schedule. Additionally, a Nasscom report revealed that patent filings in India rose by more than 11% in fiscal 2024, exceeding 90,000 applications. Multinational corporations accounted for nearly half of these filings, underscoring their growing role in India’s intellectual property landscape.

Industry leaders, however, caution that the actual contribution of Indian GCCs to patent generation may be underrepresented. Many patents developed in India are filed through parent companies headquartered in the United States or Europe, which can obscure the extent of innovation originating from Indian centres.

Executives also highlighted regulatory and procedural challenges associated with patent filings in India. Deena Dayalan, global head of digital operations and cloud transformation at Kimberly-Clark, explained that due to delays and complexities in India’s patent system, the company currently prefers filing patents through the United States.

Legal experts corroborate these concerns, citing staffing shortages, application backlogs, and extended approval timelines as factors slowing India’s patent processing ecosystem. Nonetheless, recent digitisation initiatives and the introduction of virtual hearings have improved filing accessibility and efficiency.

As AI adoption intensifies, companies anticipate Indian GCCs will play an increasingly significant role in developing proprietary technologies, software platforms, and innovation-driven business solutions. Executives agree that the robust engineering and digital foundations established by these centres uniquely position India to capture a larger share of global high-value research and product development work in the coming years.

This transformation aligns with broader industry trends, including Hyundai Motor India’s recent announcement to raise car prices amid rising costs and Volvo’s approval to continue selling connected vehicles in the US despite scrutiny over Chinese ownership. Additionally, Gillette India’s leadership reshuffle, bringing a former Walmart India chief onto its board, reflects ongoing strategic shifts within multinational corporations operating in India.

In summary, India’s GCCs are rapidly transitioning into global innovation engines, with AI serving as a catalyst for enhanced intellectual property creation and strategic technological advancements. While regulatory hurdles remain, the overall trajectory signals a strengthening role for India in the global innovation ecosystem.