The Indian flexible workspace industry has called on the Government of India to introduce supportive policy measures and GST rationalisation in the upcoming Union Budget 2026, aiming to sustain its rapid growth and strengthen India’s position as a global business hub.
Valued at USD 5.99 billion in 2025, the Indian flexible office market is projected to reach USD 11.39 billion by 2030, growing at a robust CAGR of 13.72%. The total stock of flexible office space is expected to cross 100 million sq. ft. by 2026–27, driven by rising demand from startups, enterprises, and global firms adopting agile, asset-light operating models.
Industry leaders highlight three key priorities: tax and GST reforms, regulatory clarity, and ease of doing business.
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GST rationalisation: Treat flexible workspace services as essential business infrastructure rather than hospitality, simplifying taxation and reducing compliance burden.
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Tax incentives: Encourage adoption of green buildings and smart technologies (IoT, AI).
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Regulatory clarity: Clear guidelines for satellite communication (SatCom) spectrum to enable high-speed connectivity and hybrid operations.
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Streamlined approvals: Faster permissions for new centers, especially in Tier 2 and Tier 3 cities.
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Growth drivers: Policies to support Global Capability Centers (GCCs) and incentives for advanced digital infrastructure.
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Sustainability push: ESG-aligned practices and green certifications to strengthen India’s global competitiveness.
Ms. Archana Naidu, Board Member and Head of Business at iKeva, said: “India’s flexible workspace sector is becoming a critical enabler for global businesses, especially GCCs and digitally driven enterprises. GST rationalisation, clarity on satellite spectrum, and incentives for Tier 2 and Tier 3 city expansion will be vital to ensure sustainable growth and competitiveness.”
These measures, industry leaders believe, will further accelerate digital transformation, attract global businesses, and promote sustainable, asset-light growth models across India’s flexible workspace ecosystem.
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