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Thursday, March 26, 2026 6:25 PM

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India’s GCCs Rapidly Rise to Global Leadership Roles, Driven by AI and Strategic Expansion

India’s Global Capability Centres (GCCs) are increasingly stepping into influential global roles, reflecting a significant shift in how multinational companies leverage their India operations. According to insights from ANSR and Deloitte India, nearly 20% of GCCs now hold strategic authority—up sharply from just 5% a decade ago. The number of global leadership positions based in India has surged dramatically, rising from just 115 in 2015 to over 6,500 today. This figure is projected to reach 30,000 by 2030, with artificial intelligence expected to further accelerate this trend. Major global corporations are already entrusting their India centres with critical functions. Walmart oversees its global retail technology operations from Bengaluru and Chennai, while Target manages key aspects of its digital commerce and supply chain from Bengaluru. Similarly, Microsoft develops core components of Azure in India, and Amazon builds technologies for Alexa and Prime Video within the country. A study by Ernst & Young highlights that 45% of GCCs in India now participate in global decision-making. However, the transformation remains uneven. Around 40–45% of centres still focus on back-office and IT support, while another 35–40% contribute to engineering and product development but lack control over pricing, market entry, or customer engagement. Industry experts point out that while technical capabilities are strong, true strategic ownership is still limited. Many GCC leaders do not yet have full authority over budgets or product direction, keeping them more aligned with execution than decision-making. That said, newer GCCs are being established with clearly defined strategic mandates from the outset—such as leading cloud transformations or global AI deployments—allowing them to mature faster. These account for 30–35% of new centres today, a significant rise from under 10% a decade ago. Companies like Samsung are already empowering their India teams with ownership of product lines and innovation. Similarly, Alstom and Wabtec have assigned product responsibilities for local markets to their India operations. Meanwhile, the engineering depth in India has made centres of Google and Microsoft increasingly indispensable. Despite this momentum, experts caution that not all business decisions will shift to India. Strategic choices tied closely to local markets—such as retail merchandising or financial services decisions—are likely to remain near headquarters. However, the growing role of AI is reshaping this dynamic. As much of the development and deployment of AI systems happens in India, influence is gradually shifting closer to where the work is executed. The next phase of evolution for GCCs will depend on whether global headquarters are willing to extend greater decision-making power alongside this technological leadership. Source: Economic Times  

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Flipkart Announces 105% Bonus Payout for Employees Following Strong 2025 Performance

E-commerce giant Flipkart has declared a 105% bonus payout for eligible employees for the year 2025, reflecting the company’s robust growth and steady progress toward profitability. According to an internal communication accessed by PTI, employees up to the Senior Director level will receive their bonus payouts in March. Meanwhile, those at the Vice President and Senior Vice President levels will have their bonuses disbursed after the completion of the annual performance review cycle. In an email to staff, Chief Human Resources Officer Seema Nair highlighted that the company’s performance multiplier is driven by achievements across key business, financial, operational, and people-focused metrics. She emphasized that Flipkart has continued to build momentum while moving closer to sustainable profitability. Backed by Walmart, the company has also made notable progress in strengthening its core business segments while expanding new growth avenues. The bonus announcement aims to acknowledge the contributions of employees across all levels of the organization. Flipkart has not issued an official public statement in response to media queries regarding the development. Source: PTI

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LPG Shortage Triggers Workforce Migration Concerns in Auto Component Sector: ACMA

India’s auto component industry is facing a potential workforce challenge as shortages of LPG cylinders begin to push workers to return to their native places, according to the Automotive Component Manufacturers Association of India. The industry body warned that while the current situation is not as severe as the disruptions seen during the COVID-19 pandemic, it could worsen if fuel supply issues persist. ACMA Director General Vinnie Mehta noted that many workers had shifted to LPG-based cooking after restrictions on wood usage due to air pollution concerns. However, the ongoing shortage is now making it difficult for them to manage daily cooking needs. The situation is further compounded by the shutdown of several factory canteens, leaving workers with limited alternatives and prompting some to migrate back home. This trend could disrupt manufacturing operations if it intensifies. ACMA, which represents over 1,000 manufacturers and accounts for more than 90% of the organised auto component sector’s turnover, highlighted the broader economic implications. In FY25, the industry recorded a turnover of USD 80.2 billion, including exports worth USD 22.9 billion and a trade surplus of USD 500 million. The shortage is partly attributed to supply disruptions linked to the US-Israeli war on Iran, prompting the government to prioritise domestic LPG consumption. In response, the Ministry of Petroleum and Natural Gas has set up a panel to review industry concerns. The auto component sector has urged the government to ensure uninterrupted supply of LPG or piped natural gas (PNG) for MSME units, particularly in foundry and forging segments, or to provide a transition window for alternative fuels. Industry leaders emphasised that continued support is critical to maintaining production levels, sustaining exports, and preserving India’s position in global automotive supply chains. Source: PTI

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DGCA Grants Temporary Flight Duty Relaxations to Air India Amid Middle East Airspace Restrictions

India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has granted temporary relief in flight duty regulations to Air India as the airline faces operational challenges due to ongoing tensions in the Middle East that have restricted access to key airspaces. According to sources, the relaxation in Flight Duty Time Limitations (FDTL) norms will remain in effect until April 30. The move comes as Air India’s long-haul flights are being forced to take longer alternative routes to reach destinations in Europe and North America because of restrictions in the airspaces of Iran and Iraq. To bypass these restricted zones, Air India aircraft are now flying via Oman, southern parts of Saudi Arabia and Egypt, increasing overall flying time. Some ultra-long-haul flights are also making technical halts in Rome before continuing to their final destinations. Under the temporary relaxation for long-haul flights operated by two pilots, the DGCA has increased the permitted Flight Time (FT) by 1 hour and 30 minutes, raising it to 11 hours and 30 minutes. The Flight Duty Period (FDP) has also been extended by 1 hour and 45 minutes, allowing a maximum of 11 hours and 45 minutes. However, sources have alleged that the airline may be stretching these limits. In one instance, pilots operating flights to Jeddah were reportedly scheduled for a duty period of 11 hours and 55 minutes—about 10 minutes beyond the permitted extension. The regulator has also temporarily relaxed the mandatory 30-minute buffer required during roster planning. Normally, the maximum Flight Time and Flight Duty Period for a single landing are 10 hours and 13 hours, respectively. Flight Time refers to the duration from the moment an aircraft begins moving for take-off until it comes to a complete stop after landing. The Flight Duty Period, on the other hand, starts when a crew member reports for duty and ends when the aircraft’s engines are switched off after the final flight of the duty cycle. Officials from Air India and the DGCA have not yet issued formal comments regarding the relaxations. It remains unclear whether similar exemptions have been granted to other Indian carriers such as IndiGo for their long-haul services. The adjustments come as airlines worldwide grapple with disruptions triggered by the escalating conflict involving the United States, Israel and Iran, which erupted on February 28 and has led to widespread airspace restrictions across the Middle East. Source: PTI

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Tilaknagar Industries Names Ina Bajwa as Chief People Officer

Tilaknagar Industries has appointed Ina Bajwa as its new Chief People Officer, the company announced on Tuesday. In her new role, Bajwa will report directly to Chairman and Managing Director Amit Dahanukar and will operate from the company’s head office in Mumbai. According to the company’s statement, Ameya Deshpande, who had been handling the human resources function on an interim basis, will now return to focusing fully on his primary responsibilities, including corporate strategy, mergers and acquisitions, and investor relations. Bajwa brings more than 22 years of experience in human resources across multiple industries such as retail, e-commerce, technology, banking, consulting, and infrastructure, working with both Indian and global organisations. Before joining Tilaknagar Industries, she served as Group Head – Talent & Engagement for the Middle East at Landmark Group, where she led CEO and executive succession planning along with talent strategy across several retail brands. Earlier in her career, Bajwa held leadership positions including Chief Human Resources Officer at Tata 1mg and Chief Talent Officer at Tata Digital. She also worked in senior HR roles at Tata Communications, and previously held positions at HSBC and Essar Group. Commenting on the appointment, Dahanukar said Bajwa’s expertise in building high-performing teams and driving large-scale people transformation initiatives will support the company’s efforts to strengthen its talent base and develop a future-ready organisation. Bajwa holds a Post Graduate Diploma in Management (Human Resources) from KJ Somaiya Institute of Management and a bachelor’s degree in Communications and Economics from Panjab University. Source: Economic Times

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Vedanta Targets 35% Women Representation Across Workforce

Vedanta Ltd is aiming to raise women’s representation across all levels of its organisation to 35%, up from the current 23%, as part of its broader push toward workplace diversity. The company has also launched a nationwide campaign titled #HerAtTheCore along with a LinkedIn-driven hiring initiative to encourage women to pursue careers in sectors such as mining, metals, oil and gas, power, and technology. Citing data from the Annual Survey of Industries, Vedanta noted that women accounted for around 18% of direct employment across industries in 2023–24. However, in core sectors like mining and metals, women make up only about 6% of the workforce. Through the campaign, the company aims to highlight India’s rapidly evolving industrial landscape, driven by the global energy transition, the growth of EV supply chains, and advances in manufacturing and technology. According to Vedanta, sectors such as metals, minerals, oil and gas, and power will play a critical role in this transformation. Despite their importance, these industries continue to have low female participation. Vedanta said greater inclusion is essential for India to fully harness its talent pool and achieve its economic growth ambitions. Commenting on the initiative, Priya Agarwal Hebbar, Non-Executive Director at Vedanta Ltd and Chairperson of Hindustan Zinc Limited, said the company plans not only to increase representation but also to redesign workplace systems and provide support frameworks that help women thrive in core industries. She added that the #HerAtTheCore initiative is both a celebration of women in the workforce and a call for greater participation in sectors shaping India’s industrial future. Source: PTI  

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Samsung Electronics to Transition to AI-Driven Autonomous Factories by 2030

South Korean tech giant Samsung Electronics has announced plans to convert its domestic and overseas manufacturing facilities into AI-powered autonomous factories by 2030, marking a major step in its manufacturing innovation strategy. The company said it will deploy digital twin-based simulations across the entire production cycle — from raw material warehousing to final shipment. These virtual replicas of physical operations will enable real-time monitoring and optimisation. In addition, Samsung will introduce AI agents dedicated to quality control, production management and logistics, strengthening data-driven analysis and verification systems. According to the company, the transformation is expected to significantly enhance productivity and product quality. Broader AI applications will also extend to environmental health and safety management, helping improve workplace safety standards. Building on its AI capabilities developed in the mobile segment, Samsung plans to incorporate “agentic AI” — first introduced with the Galaxy S26 — into its manufacturing ecosystem. Agentic AI systems are designed to autonomously set objectives and execute plans to achieve specific goals without constant human intervention. The company is also working on gradually deploying humanoid manufacturing robots across production lines, with the aim of creating fully optimised smart factories. Lee Young-soo, a senior company official, said the next phase of manufacturing innovation will go beyond automation. “The future lies in autonomous production sites where AI understands on-site conditions and independently makes optimal decisions,” he said, adding that Samsung aims to position itself as a global leader in AI-powered manufacturing. Samsung is set to present its industrial AI roadmap and digital twin-driven factory vision at the Mobile World Congress 2026 (MWC) in Barcelona later this month. On the sidelines of the event, during the Samsung Mobile Business Summit (SMBS), the company will outline its governance framework designed to strengthen oversight as agentic AI adoption expands across industries. Separately, Samsung recently unveiled its flagship Galaxy S26 lineup at the Galaxy Unpacked 2026 in San Francisco. The series includes the Galaxy S26, Galaxy S26+, and Galaxy S26 Ultra, featuring 6.3-inch, 6.7-inch and 6.9-inch displays, respectively. The Ultra model also introduces a built-in privacy display alongside enhanced AI-powered features. Source: IANS

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AI to Transform, Not Terminate Jobs: Amazon CEO Andy Jassy

Artificial intelligence is poised to redefine the workplace rather than eliminate jobs, according to Andy Jassy, CEO of Amazon. Addressing widespread concerns about AI-driven unemployment, Jassy suggested that fears of large-scale job losses are likely exaggerated. In a recent media interaction, Jassy acknowledged that many roles which have depended heavily on human labour over the past two to three decades may require fewer workers in the future. However, he stressed that this shift does not mean employment opportunities will vanish altogether. Instead, the structure and skill requirements of jobs are expected to evolve. “I do believe that a lot of the jobs that we’ve thrown human beings at the last 20 or 30 years, you won’t need as many human beings doing those same jobs. But I also think there will be other jobs created. And that has always happened in every technology shift,” he said. Backing this perspective, a recent report by Morgan Stanley suggested that AI’s long-term impact on employment may be less disruptive than widely feared. While automation will affect certain roles, the report stated that most workers are unlikely to be permanently displaced. Instead, many are expected to transition into new or emerging roles — some of which do not yet exist. Morgan Stanley drew comparisons with major technological advancements over the past 150 years, including electricity, mechanised farming, computers and the internet. These innovations transformed industries and reshaped job requirements but did not eliminate the need for human labour. The report also referenced the introduction of spreadsheets in the 1980s as an example. While spreadsheets reduced demand for some clerical tasks, they enabled financial professionals to focus on more strategic and high-value responsibilities, ultimately creating new career pathways within the sector. Industry leaders and analysts therefore suggest that AI will reshape the workforce, demanding new skills and adaptability, rather than causing widespread unemployment. Source: IANS

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India Inc Likely to Grant 9.1% Average Salary Hike in 2026; GCCs Lead with 10.4% Growth: EY Report

Corporate India is projected to offer an average salary increment of 9.1% in 2026, with Global Capability Centres (GCCs) emerging as the frontrunners in pay growth, according to the latest Future of Pay report by EY India. GCCs are expected to record the highest average increments at 10.4%, fuelled by sustained global demand for digital and advanced technology expertise. The financial services sector is likely to follow closely with projected hikes of around 10%, while e-commerce firms may offer 9.9% increases. Life sciences and pharmaceutical companies are anticipated to roll out average hikes of 9.7%. The report also signals a moderation in workforce churn. Overall attrition declined to 16.4% in 2025 from 17.5% in 2024, reflecting a relatively stabilising employment environment. However, over 80% of employee exits continue to be voluntary, indicating that job switches are largely driven by better career prospects rather than downsizing. Among sectors, financial services reported the highest attrition at 24%. Professional services and hi-tech and IT segments also experienced elevated turnover levels. In contrast, GCCs demonstrated comparatively stronger retention, with attrition standing at 14.1%. Abhishek Sen, Partner and Leader – Total Rewards, HR Technology and Learning at EY India, noted that organisations are increasingly reassessing their talent investment strategies. He emphasised that compensation strategies are shifting beyond annual increments to focus on rewarding critical skills while maintaining long-term sustainability. A notable trend highlighted in the report is the transition towards skills-based pay models. Nearly half of the surveyed organisations are moving away from conventional role-based compensation structures to frameworks that prioritise specific capabilities. Professionals skilled in artificial intelligence, generative AI, machine learning, cybersecurity, and cloud computing are commanding salary premiums ranging between 30% and 40%, reflecting the strategic importance of these competencies in driving business growth. Additionally, variable pay is becoming a more significant component of overall compensation. The average variable pay as a proportion of fixed salary rose to 16.1% in 2025, up from 14.8% the previous year. Source: IANS  

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AI Could Hit Global Jobs Like a ‘Tsunami’, Warns IMF Chief

Artificial intelligence could reshape the global labour market with the force of a “tsunami”, potentially disrupting millions of jobs and rattling financial systems, cautioned Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). According to IMF estimates, nearly 40 per cent of jobs in emerging economies and about 60 per cent in advanced economies could be affected by AI. While the technology is expected to eliminate certain roles, it will also enhance and create others. However, Georgieva acknowledged that policymakers still lack clear strategies to help workers transition smoothly into the evolving AI-driven economy. She warned that AI could exacerbate inequality within and across nations, favouring countries and individuals with advanced technological capabilities while leaving others behind. Unchecked expansion of AI, she said, may also create instability in financial markets. Despite the concerns, Georgieva highlighted AI’s significant growth potential. The technology could lift global output by nearly 0.8 percentage points, pushing economic growth beyond pre-pandemic levels and opening new avenues for employment. For India, she noted, such momentum could support its ambition of becoming a developed nation under the “Viksit Bharat” vision. The IMF chief emphasised that countries investing in digital infrastructure, skill-building, and AI adoption will be better positioned to benefit. She outlined three key risks: widening inequality between technological “haves” and “have-nots,” threats to financial stability, and large-scale job displacement. The IMF has earlier cautioned that rapid AI-related investments, particularly in the US, could risk forming a speculative bubble reminiscent of the early 2000s dot-com crash. Source: TNN

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