India must regulate global capability centres to retain its technological edge: Sridhar Vembu

Zoho founder Sridhar Vembu has called for stronger regulations around Global Capability Centres (GCCs)—the offshore arms of multinational companies that build technology and intellectual property (IP) out of India—arguing that the current system risks hollowing out India’s innovation potential.

Speaking to CNBC-TV18, Vembu said that while GCCs have brought in jobs and investment, the IP created using Indian talent is often owned and taxed abroad, leaving little long-term value within the country.

“GCCs build IP in India using Indian engineers,…