Bangalore, a city of opportunities
By UK India Business Council (UKIBC)
Bangalore is the capital city of the southern Indian state of Karnataka. With a population of approximately 9.5 million, it is India's third most populous city after Mumbai and Delhi. Bangalore is known as the Silicon Valley of India because of its role as the nation's leading Information Technology (IT) exporter.
It is also among the top ten preferred entrepreneurial locations in the world and 400 out of the Fortune 500 companies have a presence in Bangalore at varying degrees.
The city produces close to 60% of Karnataka’s State Gross Domestic Product (SGDP) and contributes about 66% of its tax revenue. McKinsey estimates that by 2030 Bangalore’s GDP will have increased to GBP 76 billion from GBP 50 billion.
A hub for biotechnology, advanced engineering and manufacturing
Apart from IT and IT-enabled Services (ITeS), Bangalore is also a hub for the following sectors:
Aerospace Engineering. Bangalore has always been the aerospace hub of India. Apart from foreign companies such as Rolls-Royce and GKN Aerospace, many Indian private players are setting up their aerospace and defence department base in the city.
Automotive and Automotive Components. By virtue of its proximity to the automotive hub of Chennai and the talent pool of engineers, Bangalore has developed into a research and development centre for global OEMs and component manufacturers
Biotech, Pharmaceuticals and Medical Instrumentation. Karnataka is the Biotech Capital of India, with over 60% of all biotechnology companies in India having a base in Bangalore and driving 50% of the total biotech revenues in the nation. Some of the companies based out of Bangalore include Avesthagen, Biocon Ltd. and Novo Nordisk.
Beyond these sectors, Bangalore is also home to many renowned national and global players in the fields of Skills, Education and Innovation (R&D), Electronics, and Clean Technology and Sustainable Energy.
Some of India’s largest public sector industries are also based there, including Hindustan Aeronautics Limited (HAL), National Aerospace Laboratories (NAL), Bharat Heavy Electricals Limited (BHEL), Indian Telephone Industries (ITI), Bharat Earth Movers Limited (BEML) and Hindustan Machine Tools (HMT).
Premier science and technology research centres, such as Indian Space Research Organisation (ISRO), Central Power Research Institute, Bharat Electronics Limited (BEL) and the Central Food Technological Research Institute, are also headquartered in and around Bangalore.
Outlook
In January 2014, the Chief Minister of Karnataka, Mr K Siddaramaiah, announced the highlights of the state’s new industrial policy, replacing the earlier 5-year policy which ended in March. The new policy targets GBP 50 billion in investments and the creation of 1.5 million jobs in the manufacturing sector by 2025, with a view to making the state one of the top three investment destinations in India. In line with the National Manufacturing Policy, Karnataka’s Industrial Policy also aims to ensure that the manufacturing sector contributes 25% to the SGDP by 2025.
The Karnataka government is also setting up a National Investment and Manufacturing Zone (NIMZ) spread across 12,500 acres of land at Tumkur, about 70 km from Bangalore. And there are plans to establish three more NIMZs in the state, including one in Kolar, about 100 km from Bangalore.
Opportunities in the state will continue to grow, as GBP 2 billion have been identified as potential investments for infrastructure in the state, including the Bangalore-Mumbai Economic Corridor (BMEC) in which the UK has been an active player. Corridors will generate many opportunities across sectors, and an important driver for manufacturing growth.
