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INTRODUCTION

Bangalore is one in every of the foremost promising cities in our country and there are quite a few reasons for that. However, one in every of the necessary factors spur the town of Bangalore’s was serious central government investment in Bangalore’s public sector industries, partly as a result of it being geographically out-of-reach from India’s rivals – Asian nation and China.

The following is a listing of reasons why I feel that the town has been ready to thrive and become what we all know of today:

1)  Diversity of Talent:

Bangalore has historically housed many international technology companies, earlier ones being American state Instruments, India. metropolis homes variety of acknowledged engineering faculties manufacturing prime quality pc scientists, the Indian Institute of Management, metropolis (IIMB), a high management Institute in India, the Indian applied math Institute (ISI), the Indian Institute of Science (IISc), the Indian Institute of urbanology, the National school of law (NLSIU), The Indian Institute of Theoretical Sciences, National Institute of Fashion Technology (NIFT) and thus produces the foremost various young talent in one town, unique to the other town within the world.

 

2)  The Geographical Region of India:

Earliest startups that flourished within the town within the 90s square measure multi-billion-dollar market capitalized corporations on international stock exchanges like Infosys, Wipro Technologies, Mindtree being widespread ones and smaller ones embrace Tejas Networks and then on. once 20 years of domination by IT Services and regional offices of worldwide technology corporations, high talent began building new age companies between 2000-present. Flipkart, having originated in metropolis, non heritable many alternative e-commerce corporations originated in metropolis like Myntra and was itself eventually non heritable by Walmart in 2018 for about to $20 Billion. many alternative unicorns have their origins ln metropolis like Swiggy, Ola Cabs, InMobi, Quickr etc. The remaining Indian unicorns have sturdy groups settled in metropolis. high risk capital funds have set up their India offices within the town to search out opportunities to speculate in startups.

 

3) Food:

The city has many sorts of entrepreneurial pursuits that have formed it on the method from early 90s. the city is reputed for many restaurateurs. The model was based on  innovation and quick service popularly referred to as Darshini restaurants that served hot breakfast and beverages. Orkla foods, the Norwegian foods company bought MTR Foods, ancient able to eat goods whole in 2007 for about $60m[3]. A recent $100m whole is ID foods, quick turning into widespread in retail. Swiggy, AN on-demand food delivery imaginary being is widespread at the side of Zomato, an edifice review, listing and food delivery business, that originally started in metropolis. FreshMenu could be a close to imaginary being cloud room business that solely delivers via mobile apps and alternative on demand food apps. restaurant occasional Day, a listed entity is Bangalore’s picture occasional store chain with stores in national capital, Bratislava, Riga and national capital. Chai purpose could be a chain of tea stores supported in metropolis in 2010.

 

4) Real Estate:

Many risk capital funded startups like housing.com, nestaway, commonfloor.com (acquired by the imaginary being, Quikr) square measure disrupting the rental marketplace in India. many listed land brands have their origins within the town like status Developers, Brigade Enterprises, Total setting and Sobha Developers.

 

5) Aerospace:

India’s largest endemic OEM, Hindustan physics restricted (HAL) had its headquarters in India. many smaller tier one and tier a pair of suppliers had their base within the town to serve the OEM would like. The National region Laboratories (NAL) is additionally headquartered in metropolis and is devoted to the event of civil aviation technologies. metropolis additionally housed currently defunct full-service airline whole coraciiformes bird Airlines, that non heritable another airline startup, Air Deccan, a budget airline.

 

6) Space:

The Indian area analysis Organization (ISRO), one in every of the highest national area agencies within the world is headquartered within the town. ISRO is recognized world over for its endemic capabilities in launching low value satellites exploitation its own launch vehicles, PSLV and also the GSLVs. ISRO includes a record of deploying 104 satellites in orbits with success in a very single launch, that could be a record. ISRO has additionally launched a Mars mission, Mars Orbital Mission, that was very cheap value inter-planetary orbital mission. Startups have created makes an attempt to launch, satellite rovers and square measure analyzing satellite pictures to uses in agriculture and climate.

 

7) Transportation:

Metropolis is that the home of India’s initial motorcar whole, Reva was non heritable by an outsized domestic auto company, Mahindra & Mahindra. many startups in automotive services, marketplaces square measure settled within the town. On demand taxi service, Ola Cabs, a Unicorn, originated within the town and purchased its early competition and peer, taxiforsure. Bounce is AN on-demand bike startup originated within the town. Zoomcar is on demand intercity automotive transportation startup running out of the town. RedBus could be an intercity bus collector that was bought by Naspers cluster.

 

8) Grocery: 

BigBasket.com, Zopnow.com and Zopper.com, started in on demand grocery and currently contend with Amazon’s Prime currently platform. Offline, formal retail format grocers originating from the town includes Food-World supermarkets that started in 1996 {and several and a number of alternative and several other} other native brands.

 

9) Retail:

Urban Ladder can be a number one omni channel commerce furnishings bourgeois supported by entrepreneurs from the city. Lifestyle, presently a section of municipality primarily based Landmark cluster originated as an entire metropolis in 1999. Tanishq can be a jewelry place of business whole and is owned by the Tata cluster. Printo can be a series of letter paper and printing services stores.

 

10) Fintechs:

Many fintechs have their origins at intervals the city. The revolutionary low price brokerage Zerodha, several cryptocurrency exchanges. Pine Labs is also a recent imaginary creature that builds POS systems. Capillary Technologies is also a loyalty, analytics provider designed over POS systems. QwikCilver, a gifting and loyalty platform supported in metropolis was non-transmissible by Amazon. Razorpay is also a fast growing payment processor supported at intervals the city.

 

11) Beverages, brew and Spirits:

The city is known for its craft breweries, well-liked ones being Toit, Arbor production Company et al. bird is one in every of the world’s largest brew brands that originated in metropolis. Amrut is Republic of India initial Single Malt Whisky complete that is sold-out all over the world and was named as a result of the vary three whisky at intervals the globe in 2010. Craft brew is at a rudimentary level but seems to be developing in quite a rapid pace.

 

 

12) Healthcare:

Biopharmaceuticals: Biocon is one in every of India’s largest pharmaceutical companies that put together owns a majority stake in India’s largest Clinical analysis Outsourcing (CRO) company Syngene International that works with international pharmaceutical majors. Strides Arcolab manufactures drug company merchandise for rising markets and will be a listed entity at intervals the Indian Stock Markets. chain of mountains pharmaceutical company makes several drug company and surprise care merchandise and is headquartered in metropolis.

Narayana Hrudayalaya, a listed business, is also a popular hospital chain that was designed by celebrated metropolis organ MD. Portea Medical, Practo unit of measurement variety of the fast-growing startups at intervals the world. walking on air is also a series of fast-growing maternity and repair brands supported at intervals the city in 2007.

 

13) Consumer goods:

Wildcraft, a fast growing out of doors journey merchandise company was supported inside the city. Zivame could be a net commerce undies company fast growing into the quantity one complete in Asian country. the long Kissan jam and condiment complete has its origins in metropolis.

 

14) Fitness and Sports:

There unit of measurement many sports facility aggregators where shoppers can book indoor courts or pool slots like Playo. many entrepreneur’s unit of measurement fixing sports facilities due higher interest in fitness. there is a fitness chain referred to as CureFit, endowed in by early entrepreneurs and restaurants connected like EatFit.

 

15) Agriculture:

Several vineyards unit of measurement developing around the city attributable to interest among a globally aware community of people residing inside the city. metropolis is to boot India’s largest export of roses, regarding seventieth of all rose exports come back from the city.

 

 16) Economic zones inside the city

There are several factors that have to be considered for a city to be considered a global city. Inside the city we have

  1. Chickpete house known for textile trades and early entrepreneurs inside the city
  2. Shivajinagar house homes automobile spares and services clusters
  3. Whitefield was a neighboring town to the metropolis, but over time has been assimilated into the city. Whitefield homes several information Technology Parks and much of international firms have their Asian country headquarters set inside the house.
  4. Koramangala and JP Nagar have traditionally been the realm where college startups take birth
  5. Natural science city homes all the foremost necessary IT service suppliers of Asian country

 

 

17) Indian headquarters of worldwide giants:

Bangalore is home for R&D centers of big corporations, outsourcing divisions travel Indian service suppliers to cater to international markets. Most business processes would like technology and metropolis is that the place with the availability of quality engineers needed to create these systems. Most developed markets haven’t got the availability of laptop computer scientists needed to automatize their business processes needed to scale. All high names from the geographic region have Indian offices inside the city.

In a recent move, many back-office technology and infrastructure operations of big investment banks around the world unit of measurement run out of the city due to talent to manage their information centers and proximity to totally different service suppliers.

 

18) Aerospace and Aviation industries

The Sukhoi-30MKI could also be a dual-role fighter that is factory-made below license of Sukhoi by Bangalore-based geographic region physical science restricted for the Indian Air Force.

 

Bangalore jointly referred to as the aviation monopoly capital of Asian country. It accounts India’s over sixty one-fifth business. World half giants like Boeing, Airbus, Goodrich, Dynamatics, Honeywell, GE Aviation, UTL, others have their R&D and Engineering centres.

Long before metropolis was referred to as the geographic area of Asian country, the city created its name as headquarters to variety of the most important public sector vital industries of Asian country. The geographic region physical science restricted (HAL) headquarters is in metropolis and is dedicated to analysis and development activities for native fighter for the Indian Air Force. With over 9,500 employees, it’s one in every of the most important public sector employers in metropolis.

Today, HAL manufactures, below license, varied fighter for the Indian Air Force (IAF) moreover as Sukhoi thirty Flankers and Jaguars. HAL jointly develops native merchandise for the IAF like HAL Tejas, physics Development Agency, HAL Dhruv and HAL HF-24 Maruti.

The National half Laboratories (NAL) is to boot headquartered in metropolis and is dedicated to the event of civil aviation technologies. Incorporated in 1960, NAL sometimes works in conjunction with the HAL and contains an employee’s strength of over one,300 employees. NAL jointly investigates craft misconduct.

A 1,000-acre (4.0 km2) special economic zone for the half trade is being started on the brink of the metropolis International landing field. metropolis was jointly home to massive domestic airlines – presently defunct Simplifly Deccan and Kingfisher Airlines

 

19) Manufacturing Industries

Other significant industries in metropolis embrace Asian country natural philosophy restricted, Asian country significant Electricals restricted (BHEL), Indian phonephone Industries (ITI), Asian country Earth Movers restricted (BEML), HMT (formerly geographical area Machine Tools), geographical area Motors (HM) and FTO cluster.

Bangalore is additionally changing into a destination for the automotive trade. Volvo contains a plant in metropolis.

Bangalore homes several tiny and medium scale industries in its Peenya industrial space that claimed to be one among the most important in Asia 30-years ago; recently as well as Apple’s India plant – the sole active plant outside of China

 

20) Biotechnology

Biocon, headquartered in Bangalore, is one of India’s largest biotechnology companies. Biotechnology is a rapidly expanding field in the city. Bangalore accounts for at least 97 of the approximately 240 biotechnology companies in India. Interest in Bangalore as a base for biotechnology companies stems from Karnataka’s comprehensive biotechnology policy, described by the Karnataka Vision Group on Biotechnology. In 2003-2004, Karnataka attracted the maximum venture capital funding for biotechnology in the country – $8 million. Biocon, headquartered in Bangalore, is the nation’s leading biotechnology company and ranks 16th in the world in revenues.

Institute of Bioinformatics and Applied Biotechnology (IBAB), initiated by Biotechnology vision group, ICICI and Biocon (located at ITPL) is trying to shape revolutionary scientists in the field.

Like the software industry which initially drew most of its workforce from the local public sector engineering industries, the biotechnology industry had access to talent from the National Center of Biological Sciences (NCBS) and the Indian Institute of Science (IISc). And Indian Biotechnology Research Organization (IBRO) is recently under process of development to boost Biotechnology Growth in India, providing the Advanced Research and Talent pool to India from IBRO, whose mission and vision is Research and Development in Biotechnology to make India as a Global Leader in Biotechnology. Other Major Biotechnology company based out of Bangalore is Advanta India.

 

21) Government Incentives and programs:

Tax holiday for IT services: Government of Karnataka was the first state Government to introduce a tax holiday for IT services companies to set up shop in the city to earn a decade long Corporate tax holiday to incentivize the industry. Political maturity and motivation was key to achieve early support in this direction.

IT SEZ program: Server IT Special Economic Zones are now setup where they receive a corporate tax holiday if offices are situated in those zones

 

22)  Ministry of IT:

One of the early states in India to have a Ministerial position for Information Technology. This was created to address the issues faced by the industry in terms of physical and digital infrastructure, education, supply of graduates and so on.

Adoption of Technology in Government programs: Multiple government initiatives have included digitization of citizen programs and Karnataka has been at the forefront of adoption of technology. The Regional Transport Office in the city are fully computerized and they the earliest to do so. Bangalore also achieved full computerization of the Indian Passport Distribution process, first in the country.

The digital office of the Income Tax Department of India is based in Bangalore. The need for build of systems to collect and refund taxes for millions of citizens and need for data analytics and AI to prevent fraud meant that Bangalore city was an obvious choice for the same.

 

Bangalore, a Comparative Study of its Past Demography VS Now

In 1991, the foremost common languages spoken in urban center were:

Kannada (38%)

Tamil (28%)

Telugu (17%)

Urdu (13%)

Malayalam (3%)

Hindi (2.5%)

 

Communities with an extended history within the region embody the Tamilians, Kannadigas and Telugus. By the 1500s, urban center had speakers of all 3 languages. The Tamil-speaking folks originally migrated to the region in 3 waves: within the tenth century when urban center was captured by Cholas of Tamil Nadu; throughout the Vijayanagara period; and within the 1700s throughout a time of would like for militia. Telugu-speaking folks migrated to the town by invite of Mysore royalty.

At just once, the town had a considerable Anglo-Indian population, that was the second-largest behind city, however this population has since fallen to merely 10,000. About seventy-nine percent of the population is Hindu, that is in line with the Indian national average. Muslims account for thirteen of the population, followed by Christians (6%) and Jains (1%).

About 100 percent of residents in urban center board slums, though this range is low compared to different major cities in developing countries, like capital of Kenya (60%) or Mumbai (50%). urban center is handling several issues that return from growing terribly apace in an exceedingly developing country, as well as social difference, associate increasing range of slums, public health crises from waste product problems and water shortages, and mass displacement. abundant of the increase in urban center is because of migration from different states, that has multiplied tension between locals and immigrants.

Bangalore additionally incorporates a terribly skew female-male gender ratio: 908 ladies for each 1000 men.

 

Bangalore Population Growth 

The population density of Bangalore has increased 47% in just ten years thanks to growing opportunities and growth that are bringing people from across the country. In 2011, there were 4,378 people per square kilometer, up from 2,985 ten years before.

Bangalore is now growing faster than ever, crossing the 10-million mark in 2013. The urban region has grown three times faster than the state as a whole, and it is now home to 16% of the state’s population.

 

Analysis of the 2007/08 Indian recession and its effects and causation in Bangalore.

 

After careful study of the housing rates, employment rates and the financial credibility of the banks during the period of 2005-2009. I have come to the following conclusions; It may be true with remainder of the planet that a majority of the world had suffered during the great recession, but India had some higher immunity to resist the worldwide meltdown that started in the USA in 2007.This monetary crisis compacts varied economies across the world; as well as the USA, UK, Japan, China, France and the Republic of India. During this turmoil the countries had varied impacts. However, countries like China and India had a lesser share of the worldwide despair.

Financial policies implemented in India after liberalization in 1991 played an important role in this perspective. In India we have strictly regulated market by active participation of financial regulators like Reserve Bank of India, Securities and Exchange Board of India, Ministry of Finance, Ministry of Corporate Affairs. These regulators make sure that though Indian Markets have exposure to foreign players however at a similar time have lesser vulnerability to world risks. Participatory Notes (P Notes) is one of the measures taken by the Government of India (GOI) to control the Foreign Institutional Investment (FII).A plausible explanation for the severe contraction in global trade throughout the good Recession is the enlarged financial gain physical property of world trade that has up from around a pair of within the 1960’s to around four in 2008 (Freund 2009).

This enlarged physical property of world trade is thanks to the emergence of cross-border production and provide networks. Economies are increasingly characterized by vertical specialization and this has resulted in a major expansion of intra-industry trade, thereby amplifying contagion during the crisis. Trade finance is that the alternative major issue that has been planned. Some estimates say that trade finance contributes to eightieth of trade flows and therefore it’s contributed to around 100 percent to fifteen falls in world trade (Auboin 2009).

Other factors through that exporters were hit onerous were the sharp reduction within the costs of the main listed commodities. World commodity prices crashed between August 2008 to February by an average of 49%. Thus, the decline in world trade was a combined effect of both volume and price decline. Indian exports and imports fell in line with world trade flows. In terms of year on year growth rates, the export contraction started from October 2008; imports started contracting a little later, from December 2008.During the core period of the crisis, the average contraction in exports and imports has been around 20% in the first phase (October 2008-September 2009) and 28% in the second (December 2008-September 2009). Before the crisis, India’s exports and imports (from September 2003 to August 2008) had been growing robustly at 28% and 35% respectively. The delay in India’s trade flows, however, started even prior to the post-Lehman crisis as is reflected in the deseasonalized month-on-month trade data. Exports had begun to decline from June 2008 when they went down by 13% and import contraction started in September 2008 when they contracted by 83% on a month-to-month basis. This was surely the consequence of a policy-induced economic slowdown. Driven by inflationary considerations, the RBI pushed up interest rates until August 2008.On a year-on-year basis, exports started contracting from October 2008 (12%) whereas the import contraction started a little later from December 2008 (8%). These initial declines were pushed to the following collapse by the worldwide slump.

The financial crisis impacted various economies across the world; including the USA, UK, Japan, China, France and India. During this turmoil the countries had varying impacts; countries like China and India had a lesser share of the worldwide despair. There are many reasons which it has led the world to believe that India survived the global problem. Financial policies implemented in India after liberalization in 1991 played an important role in this perspective. In India we have strictly regulated market by active participation of financial regulators like Reserve Bank of India, Securities and Exchange Board of India, Ministry of Finance, Ministry of Corporate Affairs. These regulators ensure that although Indian Markets have exposure to foreign players but at the same time have lesser vulnerability to global risks. Participatory Notes (P Notes) is one of the measures taken by the Government of India (GOI) to control the Foreign Institutional Investment (FII).

Another side of why India survived recession is that poverty prevailing in India. As per the World Bank Report, 80% of Indian’s population survives on less than 2$ a day. These individuals principally earn their resource on daily wages. They are least impacted by any crises, as poor people will eat pulses and chapati but if finds pulses are expensive he will switch to other cheaper alternatives like potato or sometimes will have chapati with just salt. In this approach an oversized portion of Indian Population is totally proof against any monetary turmoil. India has not solely shown bigger resistance throughout monetary crisis however it had been one amongst the countries showing the quickest recovery this monetary crisis displayed the strength of Indian economy. It has additionally helped in any fine standardization our economic policies and dynamical the vision of assorted company.

 

Conclusion 

The Economy of Bangalore has grown by leaps and bounds over the last decade and,through this paper endeavour aimed to understand the dynamics of that aspect. This paper shows how exactly the Bangalorean Economy was able to survive and sustain itself through some of the most torrid periods of the global as well as the Indian economy and become the thriving economy that it has now become. It has been a long and arduous journey . But one that will go down in history of India as one one of the most defining and crucial moments in modern  times.

 

Sources

Article number: 170200 , (2018, March) Survey-based socio-economic data from slums in Bangalore, India. Roy Debraj , Pallavi Bharath , Menon Niveditha, King Robin, Pfeffer Karin, Lees Michael & M. A. Sloot Peter

https://www.nature.com/articles/sdata2017200

Indian Institute of Science – Bangalore city profile

Government of India – Press Information Bureau – India stats: million plus cities in India

World Urbanization Prospects – United Nations population estimates and projections of major Urban Agglomerations

Data:  https://data.gov.in/

 

 

By Srijan Vasireddy

Grade 12 student, Christ Junior College, Bangalore.

This piece was written under our Writing Mentorship Program – June 2019.

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