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flag India’s GCCs face heavy regulatory burdens, prompting Karnataka to decriminalize some labor violations to support innovation.

flag India hosts over 55% of the world’s Global Capability Centres (GCCs), a key hub for AI, cybersecurity, and digital innovation, but these centers face a complex regulatory burden with over 2,000 annual filings and more than 500 legal obligations across 18 regulatory bodies. flag Labour laws pose the greatest risk, with 60 provisions allowing imprisonment. flag Karnataka has introduced a decriminalization bill to replace criminal penalties with fines for certain violations. flag Experts say proactive, automated compliance is critical for GCCs to innovate and scale without legal exposure.

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