New Delhi

ChiefEconomic Adviser V Anantha Nageswaran on Thursday said the government has done its part by announcing several measures in the Budget to support Global Capability Centres (GCCs), and called on industry to invest in skilling, capability development and innovation to address the challenges posed by artificial intelligence. Observing that AI has exposed the old model, Nageswaran said it is likely to displace routine, repetitive and rule-based tasks, and it would be unrealistic to deny the risks posed to business models built solely around low-cost execution.

Addressing the CII GCC Summit, he said the Union Budget has simplified and expanded the transfer pricing safe harbour regime for GCCs, providing a uniform margin, higher thresholds and faster approvals, improving tax certainty.