The Practical Application of India Business

Produced in association with Dezan Shira & Associates

Bangalore
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| 3
Bangalore, Silicon Valley of India, was named the fourth Best Technology
Hub globally by the United Nations Development Programme.
O
ne can observe the countrys cultural diversity in Bangalore
- the city is a melting pot of races and cultures. Located
in the heart of southern India, with a population of 9.5
million, is also the third most populous city in India.
Bangalore is known as Te Silicon Valley of India. Te city is
the locus of information technology in India, with a large number
of software companies located within its territory, employing a
huge population of IT professionals. Karnataka state of which
Bangalore is the state capital accounts for more than a third of
Indias total software exports, most of which come from Bangalore-
based frms. Bangalores booming high tech sectors are supported
by a well-educated and technically trained populace, particularly in
the felds of engineering, management and various areas of science.
Bangalore, which ranked fourth in the countrys Liveability Index
2010, also earns its name as Te Garden City with a number of
parks, a large horticulture industry and a pleasant climate.
Economic and Investment Climate
Bangalore is home to a wide range of heavy and light industries,
as well as high tech and service industries, including electronics,
telecommunications, aerospace, pharmaceuticals, biotechnology,
food processing, automobiles, banking and fnance, mining, steel
and cement production. Given the citys reputation as the countrys
garment capital, textiles and local handicrafts like loom-weaving
are also prevalent in the citys economy.
Biotechnology
Bangalore leads the Indian biotechnology revolution. It is host to
leading biotechnology companies and start-ups, as well as R&D
facilities such as the Indian Institute of Science, the National Center
for Biological Sciences, the Jawaharlal Nehru Center for Advanced
Scientifc Research, the University of Agricultural Sciences, and the
Institute of Bio-Informatics and Biotechnology.
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Coleroon
Arabian
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ANDHRA
PRADESH
KARNATAKA
Pondicherry
Bangalore
Indian Ocean
Area
741 sq km
Population
9.5 million
GDP Karnataka
US$83 billion
BANGALORE

Ka r n a t a k a
state of which
Bangalore is the
s t at e capi t al
a c c o u n t s f o r
more than a third
of Indi as total
software exports

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4 |
DEZAN SHIRA & ASSOCIATES
Te Karnataka state government is also planning to establish ten
biotechnology fnishing schools to nurture qualifed, industry-ready
graduates. Most of these programs will be conducted by institutions
in Bangalore, as well as Mysore and Mangalore.
Government support for biotech includes fnancial support for
patent and product registration, waivers of fees for converting
agricultural land to industrial use, as well as assistance with the costs
related to obtaining standardization certifcates. Dedicated power
supplies to biotech companies exempt from power cuts have also
been promised by state authorities, as laid out in the Millennium
Biotech Policy II (2009).
Despite its impressive and rapid growth, the nascent biotech
industry faces signifcant hurdles in Bangalore in terms of funding,
regulations, and infrastructure. Many of these issues are explored at
Indias preeminent annual biotech conference, Bangalore India Bio.
Te Bangalore Helix project, a biotech cluster, was announced in
2011 and will likely be completed by 2013. Te project is expected
"to do to the biotech industry what the Bangalore International
Tech Park did to the IT sector."
Information technology
Bangalore is a favored destination for information technology and
other knowledge-based industries. Named by the United Nations
Development Programme as the fourth Best Technology Hub in
the world, it is no wonder that the city provides almost all Fortune
500 companies with outsourced services.
Te Karnataka state governments 2011 IT policy will further
bolster Bangalores engagement in the IT sector, as it aims to
strengthen Bangalores branding as a global IT R&D hub. A critical
element of the policy is a proposal for a research hub in Bangalore
supported by a prototype testing laboratory funded with private and
public capital (with the states contribution capped at 50 percent).
Te state government has further plans to establish a Information
Technology Investment Region near Bangalore International
Airport, with investments amounting to US$20 billion. Te region
will include special economic zones, industrial parks, export-
oriented units, and warehousing and free-trade zones. Completion
is expected for 2030, with a projected 255,000 direct and 857,000
indirect employment opportunities generated through this project.
Garments and Textiles
A major producer of cotton and silk, Bangalore has become the
countrys center for textiles and garments. All levels of government
actively promote the sector by setting up apparel parks across the
country, ofering modern facilities and convenient infrastructure.
Among these parks are the Doddaballapur Integrated Textile Park
and Apparel Parks Phase II and III, also located in Doddaballapur,
in Bangalores rural district.

The Bangalore
Helix project, a
biotech cluster, was
announced in 2011
and wi l l l i kel y
be completed by
2013

DEZAN SHIRA & ASSOCIATES

| 5
Horticulture
Tere is a booming horticulture industry in Bangalore, 90 percent
of which is based on exports of cut roses. Te citys favorable
climate and an enterprising farming community have led to the
growth of cut fowers exports, though in recent years, the industry
has fuctuated due to rising input and transportation costs, as well
as a shortage of labor.
Infrastructure
Road
Vast improvements to roadways have been achieved in the last
few years, as the National Highways Development Project and
Bangalore Development Authority have made signifcant headway
in their ambitious projects.
Te Hebbal fyover, a 6-lane, 6-loop highway, eases trafc to
Bengaluru International Airport, and relieves congestion on the
National Highway No. 7. Another road of note is the 62 km long
Outer Ring Road that connects all major roads and highways in and
around Bangalore, and replaces the decade old existing ring road.
Moving further from the core, there has been a proposal for another
Peripheral Ring Road of 110 km just outside the Outer Ring Road.

Railways
Connections to major cities by rail can be accessed from 4
stations: Bangalore City, Bangalore Cantonment, Yeshwantpur and
Bangalore East. To get to Delhi, the Rajdhani Express and Karnataka
Sampark Kranti provide reliable connections.
City Infrastructure
Bangalores Namma Metro launched its frst phase in October 2011.
A thousand passengers can be carried on each train, signifcantly
reducing trafc from bicycles, rickshaws and cars. Subsequent
phases of development will be complete in 2012 with underground
sections.
Bus networks are extensive, with services provided by the
Bangalore Metropolitan Transport Corporation and Karnataka
State Road Transport Corporation.
Air
Te citys Bengaluru International Airport, which opened in 2008,
is one of the frst private-invested airport in India, and replaced
the former Bangalore International Airport. Private investors
(including Germany's Siemens Group) hold a majority stake, while
the government holds a minority stake.
Operating both international and domestic fights with two
terminals, there are ambitious plans for future development of
the airport facilities, including an Airport City by 2020. Te

Th e c i t y s
B e n g a l u r u
I n t e r n a t i o n a l
Airport is one of
the first private
-invested airports
i n I ndi a , a nd
r e p l a c e d t h e
former Bangalore
I n t e r n a t i o n a l
Airport

6 |
DEZAN SHIRA & ASSOCIATES
development will involve high density business development around
the terminal area of the airport, with a focus on high technology
frms in aviation and precision engineering; an IT and IT-enabled
services SEZ; a business district for corporate headquarters and
ofces; and hotel, restaurant and shopping facilities.
Te Bangaluru International Airports construction has led to a
swift migration of commerce to the northern parts of Bangalore with
real estate prices rising steadily, large retail developments breaking
ground, and a signifcant amount of IT and industrial activity in
and around the Manyata Embassy Business Park (an IT SEZ with
investment from household names like Philips and IBM).
Resources
Municipal Government of Bangalore
http://www.bbmp.gov.in/
Bangalore Development Authority
http://www.bdabangalore.org/
Karnataka Udyog Mitra (state-initiated investment facilitation
agency)
http://www.kumbangalore.com/
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