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(Meena Iyer)
Benga-lRuled-Out?Bengaluru, silicon valley of Indias strain on
urbanization
Preeti Mohan
3265734,WHS
Urban Dynamics: Challenges of Urban Development in Megacities
priya.kuku@gmail.com
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Opportunity of Indias urbanization to 2030
5 times the number by which GDP will have multiplied by 2030
590 million people will live in cities, nearly twice the population of the United States today
270 million people net increase in working-age population
70percent of net new employment will be generated in cities
91million urban households will be middle class, up from 22 million today
68cities will have population of 1 million plus, up from 42 today; Europe has 35 today$1.2trillion capital investment is necessary to meet projected demand in Indias cities
700900 million square meters of commercial and residential space needs to be built ora new Chicago every year2.5billion square meters of roads will have to be paved, 20 times the capacity added in thepast decade7,400kilometers of metros and subways will need to be constructed 20 times the capacityadded in the past decade
The speed of urbanization poses an unprecedented managerial and policy challengeyet India
has barely engaged in a national discussion about how to handle this seismic shift in the makeup
of the nation. Indeed, India is still debating whether urbanization is positive or negative and
whether the future lies in its villages or cities. This is a false dichotomyvillages and cities are
interdependent and symbiotic. (Shirish Sankhe)
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Table of Contents
Benga-lRuled-Out? ........................................................................................................... 1Bengaluru, silicon valley of Indias strain on urbanization ......................................... 1
Tale of Two Cities ........................................................................................................ 1
Journey to Premier Metropolis ...................................................................................... 1
Bangalored ................................................................................................................... 2
Effects................................................................................................................................................. 2
Affects ................................................................................................................................................ 3
Urban Decay ................................................................................................................ 5
Political Chaos .................................................................................................................................... 5
CEOs Woes ........................................................................................................................................ 6
Peoples Cry ........................................................................................................................................ 6
Lurking Neighbors ............................................................................................................................. 7
Retain Global Trademark ............................................................................................. 8
Sustainable Measures .......................................................................................................................... 8
Conclusion .................................................................................................................. 10
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Preeti Mohan
3265734,WHS
Urban Dynamics: Challenges of Urban Development in Megacities
priya.kuku@gmail.com
Benga-lRuled-Out? 1
Benga-lRuled-Out?
Bengaluru, silicon valley of Indias strain on urbanization
Tale of Two Cities
Bangalore, the state capital of Karnataka, is located on the
southern part of the Deccan Plateau near the border of two
other South Indian states, Tamil Nadu and Andhra Pradesh,
and not far from the third, Kerala. At an elevation of about
900m, it is known for its mild, salubrious climate and until
recently was regarded as a 'pensioners paradise' because, by
Indian standards, it was a quiet and well-established city.
The history of Bangalore is a tale of two cities, a western part or pete that dates back to at least
five centuries; and the eastern part or Cantonment that is no more than two centuries old. In1949, the twin municipalities of Bangalore City and Cantonment were united into the Bangalore
City Corporation. Bangalore was wrenched out of its existence as a divided town to become a
big city in the 1970s.(Gopalan)
Journey to Premier Metropolis
In its journey from a non-descript small town to a premier metropolis, Bangalore passed through
several stages of industrial and economic history.
Founded in 1537, the city has had a long history as a centre of textile and silk production.
Industrialisation started during the early twentieth century. India's first prime minister J. Nehru
(1947-64) sought to turn Bangalore into India's intellectual capital, India's 'City of the Future'.
(Guruprasad)
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Since then, four phases can be distinguished in the economic history of the city. The first phase,
during the 1950s and 1960s, was dominated by the Government of India's initiatives like Bharat
Heavy Electrical Limited (BHEL), Bharat Earth Movers Limited (BEML), Hindustan Machine
Tools (HMT), Indian Telephone Industries (ITI) and knowledge-based production facilities like
Hindustan Aeronautics Limited (HAL) and National Aerospace Laboratories (NAL). Theseinstitutions still have a major impact on the city.
The second phase, beginning in the late 1960s and running through the 1970s, witnessed the
rapid growth of state government bureaucracy and state-run businesses and setting up of ISRO,
India's premier space research organisation.
The third phase began during the 1980s, when Bangalore experienced the effects of preliminary
liberalisation launched by Prime Minister R. Gandhi (1984-89), and private enterprises became
growth engines.
The fourth phase, starting in the late 1980s, brought increasing and more varied relationships
with multinational corporations. During the 1990s, Bangalore developed into a preferred location
for high-technology industries and it emerged as a globally integrated centre of high-technology
research and production.
Only recently did biotechnology emerge as another rapidly expanding field. Bangalore accounts
for about 50% of biotechnology companies in India. The metropolis is also becoming an
important destination for the automotive industry. (Dittrich)
Bangalored
Effects
The first overseas firm to identify and utilize this cluster of talent was Texas Instruments (TI),
which established an offshore center in Bangalore in 1985 followed by Motorola and HP
Bangalores offshore potential despite bureaucratic impediments.
In 1990 the Department of Electronics created the Software Technology Park in Bangalore,
which heralded the deregulation of imports, freedom for 100 percent foreign equity investment,
and tax incentives. Bangalore was nicknamed the Silicon Plateau, as it sought to transition to
higher-value-added activities by capitalizing on the programming demands of the Y2K crisis.
Within 20 years Bangalores IT-oriented agglomeration has come to function as a hub of
specialization within expanded global production networks.
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During the 2000s, Bangalore received more of its investment from foreign sources than did any
other Indian city. In 2004, for example, Bangalore had garnered 45 billion rupees of foreign
investment, representing over 30 percent of its total investment. By contrast, foreign investment
made up less than 1 percent of investment in Mumbai and Calcutta, 13 percent in Delhi, and 7
percent in Hyderabad.(www.brookings.edu)
Amongst Indian cities, Bengaluru (139) ranked higher than New Delhi (143), Mumbai (146),
Chennai (150) and Kolkata (151) in overall quality of living, according to Mercer's 2012 Quality
of Living Index. (MISHRA)
Affects
The boom in the IT sector, the ever increasing migratory population, and the added natural
increase in the population has increased the pressure on the natural environment and
infrastructure.
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Demographic profile
The Population growth in Bangalore (1901 - 2011)
Year Population (lakh) Decadal Growth (%)
1901 1.63 -9.58
2011 84.26 65.18
Landscape Changes
Bangalore has grown ten folds spatially from 69 (1949) to 741 square kilometer.
Year Area (Sq. Km)
1949 69
2013 741
Changes in Water Bodies
Year No of Water Bodies Area in Ha
1973 216 2748
2007 93 918
E-Waste
The average per capita waste by a citizen in Bangalore is 19kgs (42 lbs).
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Solid Waste Management
Only 10% of waste is recycled because there is only one recycling facility in the city. There are
six city-authorized landfills, which is not enough to handle the 30,000 tons of waste generated
each day.(Mujumdar)
Urban Decay
Political Chaos
Bangalore today is, in fact, sitting on a ticking time bomb. In the early nineties, Bangalore
experienced a large amount of information technology investments but subsequently the interest
began to wane. The apathy of the State Government even in the Electronic City, the lack of
infrastructure improvements was reducing information technology inputs (Heitzman, 1999).
The bureaucrats were unperturbed as the flow of projects remained constant but what theymissed was that many of these projects represented the implementation of schemes during the
previous five years. The disappointment with elected representatives has also provoked civil
society groups into action. In 2008, only 47 per cent voted in Bangalore.
With a bumper Rs 8,420 crore budget for 2013-14, Bangalore looks like it's in for some good
times. But the absence of concrete steps to convert promises to reality throws a shadow of doubt
on the feasibility of many of the projects.
Ajit Phadnis, research scholar (FPM), IIM-Bangalore, said the budget should have focused on
the involvement of public participation in some schemes, like maintenance of lakes and gardens.
"It should also have spoken about reforming urban governance in Bangalore and effective
implementation of the Kasturirangan Committee report," he added. (TNN)(Dr. Robin King)
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Dewaker Basnet from Bangalore writes " Thank you for involving me in one of the most
pertinent discussions that faces this city.
Sadly enough, day in and day out we have been listening of news of the intellectual capital of
Bangalore drifting away from this city. Hyderabad opens its arms for Infosys, Mindtree plans to
open operations at Orissa, Biocon chief visions to expand the base beyond Bangalore, Azim
Premji silently delves into the possibility of a future in Pune etc., This brings us to one of the
most important questions " What ails Bangalore?" (www.joneslanglasalle.com)
Bad roads Improper planning No proper drinking water Political gimmicks
Trivialities in thought (is the city gettingproper roads, good infrastructure, good
governance, civic decency and the likes if we
change the name from Bangalore to
Bengaluru?
Lurking Neighbors
We are closely tracking developments in
Bangalore after the statement by Mr. Premji,
admits West Bengals IT minister Manab
Mukherjee.
At BangaloreIT.Com, Kerala Chief Minister
Oommen Chandy tried luring IT further south.
Wipro Software has got itself 200 acres in
Thiruvananthapuram and Infosys 50 acres. Consultant McKinsey has set up an outsourcing
centre and Tata Consultancy Services is building a training centre. All this despite Keralas big
problempoor English skills.
In Tamil Nadu, English isnt a problem. TCS has acquired 70 acres for a 20,000-strong
development centre, Wipro intends to ramp up its campus to 20,000 and Infosys to 25,000. A
new technology park at Hosur is only an hours drive south of Electronics City.
The regions of Hyderabad and Pune within India offered greater incentive packages with better
infrastructural facilities.
As for China, it seems closer than ever before.(HALARNKAR)
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Retain Global Trademark
The international business community will closely follow what Bangalore does and how it
evolves over the next decade.
GDP (country Rank)
2012
Share
National
GDP 2012
GDP/Captia
2012
Population,
2012 (country
rank)
GaWC
Global City
Ranking,
2010
GDP/c
Growth
1993- 2012
$34,921,558,371 0.73% $3,963 8,812,542 59 4.65%(www.brookings.edu)
The citys decisions on development will decide its productivity, which in turn will decide if
global businesses choose Bangalore as their centre for future growth. The challenge
encountered today is a play-off between urban growth and the capacity of public authorities
to answer it in terms of infrastructure, civic amenities and urbanisation process controls
The cost of delay:According to estimates by the KIG, a delay in addressing the infrastructure
needs of Bangalore until 2020 will mean an escalation of costs from the current estimate of Rs
255,992 crore to Rs 318,000 cr.(Sri. TV Mohandas Pai)
Sustainable Measures
Urban operating model should focus:
1. Funding2. Governance3. Planning4. Sector Policies5. Shape
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Adopt a mixed model of governance
Ten Initiatives to create a vibrant ecosystem
centred on the core strength of IT and IT-related
industries:
ESDM IP Innovation Emerging ICT Clusters Education Talent Development Infrastructure Branding Entrepreneurship and Strategic Relationship with other
countries
The required initiatives, targets and policies recommended under each of the ten key initiatives
are designed to deliver against the emerging global sectors for successful cities and economies:
productivity, infrastructure, quality of life, equity and environmental sustainability.(Sri. TV Mohandas
Pai)
For
Bengaluru
Industry
Size
Today
2012
(Rs.
Crore)
KIG
Goal
2020
(Rs.
Crore)
KIG and
Beyond
2025 (Rs.
Crore)
IT&BPO 135,000 300,000 480,000
ESDM 17,000 100,000 160,000
Total 152,000 400,000 640,000
Direct Employment
IT&BPO 800,000 1,800,000 2,800,000
ESDM 30,000 240,000 380,000
Total 830,000 2,040,000 3,180,000
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Conclusion
Bangalore has comparable enviable strengths and opportunities. However, as we have seen, they
are not immune to larger problems, setbacks, or downturns. While continuing to support clustereconomies the area should expend some resources on diversifying their economy to protect
themselves and provide a more stable economy in the area.(Mhatre)
Cities have periods of growth and prosperity, followed by decay and destruction which could be
due to war or natural disasters, inadequate supply of resources or even due to a river changing its
path (for example, Mohenjodaro and Harappa).
However, cities can be made resilient through adaptation, as we have seen in the case of London,
which rose to become one of the major financial and service centres of the world after the
decline of its manufacturing/industrial supremacy. (Sujaya Rathi)
In keeping with global thinking, Karnataka must create a balanced approach to development,
addressed. Such a balanced approach will help in creating equilibrium between Industrial &
Economic development and Social & Ecological development.
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