Economy of Bangalore
The Economy of Bangalore is an important part of the economy of India as a whole and contributes over 87% to the Economy of the State of Karnataka, accounting for 98% of the Software Exports of the State.
The establishment and success of high technology firms in Bangalore has led to the growth of Information Technology (IT) in India. IT firms in Bangalore employ about 35% of India's pool of 2.5 million IT professionals and account for the highest IT-related exports in the country.
One of the important factors spurring Bangalore's growth was heavy central government investment in Bangalore's public sector industries, partially because it is geographically out-of-reach from India's rivals Pakistan and China. This led to the concentration of technical and scientific navigator in Bangalore, and is a factor in leading the "IT revolution" in Bangalore. Karnataka's political leaders such as D. Devaraj Urs, Ramakrishna Hegde, Gundu Rao, Veerappa Moily, H.D.Deve Gowda, J. H. Patel and S.M. Krishna each played a pivotal role in the development of Information Technology and Business Process Outsourcing (BPO) in Bangalore. When R. K. Baliga, Founder of the Electronics City proposed the concept of developing the electronic city in the early 1970s it was met with skepticism but Chief Minister D. Devaraj Urs at that time supported him and approved the project. This initial seed investment by the Karnataka State Government in 1976 laid the foundation for the Electronics City.
Further meriting its nickname of the Silicon Valley of India, Bengaluru is home to India's largest start-ups (Flipkart, Ola Cabs, iD Fresh Foods) and has been repeatedly recognised as and rated the best city in India and one of the best in the world to start your own company. Complimented by the booming IT industry and venture capitalists and investors such as Goldman Sachs and NASDAQ, whose India branches are based out of Bengaluru , make it the perfect place for new tech companies. Bengaluru is also home to the majority of India's unicorns and to the world's largest pure-play data analytics firm - Mu Sigma. The Koramangala neighbourhood has one of the highest densities of start-ups in the world, second only to Silicon Valley, California.
Aerospace and Aviation industriesEdit
Bangalore also called the aviation monopoly capital of India. It accounts India's more than 65% aerospace business. World Aerospace giants such as Boeing, Airbus, Goodrich, Dynamatics, Honeywell,GE Aviation, UTL,others have their R&D and Engineering centres.
Long before Bangalore was called the Silicon Valley of India, the city made its name as headquarters to some of the largest public sector heavy industries of India. The Hindustan Aeronautics Limited (HAL) headquarters is in Bangalore, and is dedicated to research and development activities for indigenous fighter aircraft for the Indian Air Force. With over 9,500 employees, it is one of the largest public sector employers in Bangalore.
Today, HAL manufactures, under license, various fighter aircraft for the Indian Air Force (IAF) including Sukhoi 30 Flankers and Jaguars. HAL also develops indigenous products for the IAF such as HAL Tejas, Aeronautical Development Agency, HAL Dhruv and HAL HF-24 Marut.
The National Aerospace Laboratories (NAL) is also headquartered in Bangalore and is dedicated to the development of civil aviation technologies. Incorporated in 1960, NAL often works in conjunction with the HAL and has a staff strength of over 1,300 employees. NAL also investigates aircraft malfeasance.
A 1,000-acre (4.0 km2) special economic zone for the aerospace industry is being set up near the Bangalore International Airport. Bangalore was also home to large domestic airlines - now defunct Simplifly Deccan and Kingfisher Airlines.
Other heavy industries in Bangalore include Bharat Electronics Limited, Bharat Heavy Electricals Limited (BHEL), Indian Telephone Industries (ITI), Bharat Earth Movers Limited (BEML), HMT (formerly Hindustan Machine Tools), Hindustan Motors (HM) and ABB Group.
Bangalore houses many small and medium scale industries in its Peenya industrial area that claimed to be one of the biggest in Asia 30-years ago; newly including Apple's India manufacturing plant - the only active plant outside of China.
In June 1972, the Government of India set up the Space Commission and Department of Space (DOS). India's premier space research organization, the ISRO was created under the DOS and headquartered in Bangalore. The main objective of ISRO includes development of satellites and launch vehicles. Aryabhata, India's first satellite, was developed and successfully launched by ISRO. Since then, the organization has successfully launched numerous other satellites such as Bhaskara, Rohini, APPLE, and the INSAT series, and successfully deployed PSLVs and GSLVs. ISRO also heads India's ambitious moon and Mars program.
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 Organisation (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.
A majority of the 35 billion silk industry in India is headquartered in Karnataka State, particularly in the North Bangalore regions of kolar, Mulbagal,and Doddaballapura the upcoming sites of a 700 million "Silk City". Muddenahalli, in the outskirts of Bangalore, is the sites of the upcoming Sri Sathya Sai Baba University and College of Medicine and 6 billion Visvesvaraya Institute of Advanced Technology. Devanahalli is set to be the site of a 95 billion Devanahalli Business Park, near the Bangalore International Airport. These developments are set to contribute significantly to Bangalore's economy by creating jobs, expanding educational opportunities, and spurring infrastructure.
After making a mark as IT hub, Bangalore is hoping to evolve as a financial centre with the creation of a dedicated facility for companies in financial services. It has the software in the form skilled human resource, presence of global leaders in financial services and allied sectors and a proven capability to attract the needed resources. All that remains is to assemble the hardware – a dedicated financial city. Some of the noted financial companies in Bangalore are: Deloitte Consulting, Oracle Financial Services, ING Vysya and DreamGains Financials Pvt. Ltd.
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