Some Important Facts About Bengaluru.
We all know that Bengaluru is the silicon valley of India and Bangalore has become such an important it Hub of India that over 80 percent of all global it offices exist in Bangalore alone if you look at what Bengaluru has achieved in the past 20 years it is absolutely crazy in 1991-92 software exports were just 16 crores rupees from 13 companies employing less 2 000 people but fast forward to today Bangalore has over 14 000 IT firms employs over 40 lakh people and delivers a software expert worth 6.3 lask crores that is more than the GDP of Bihar Orissa and a dozen Indian states and most importantly it also make up nearly 40 percent of the total IT exports of India but if you notice something Bengalure is neither the financial capital of India nor is it a port city so the question is what the hell did Bengalure di differently to become such an extraordinary IT Hub of India what the government policies that turned Bengalure into the most conducive startup city in India.
Reasons Behind The Success Of Bengaluru
When we speak of Bengalure most people think Bengalurr’s gratness started with the it boom of India in the 1990s but you would be surprised to know that the actual seeds of bengaluru’s revolution were planted even before India’s independence so let’s dive into some history and understand the story this is a story that dates back to 1900s India during that time bengaluru was part of the Mysore Presidency and was ruled by Maharaja Krishnaraj IV the Maharaja was extermely development oriented adn wanted tos see its develop very fast in fact he set up an economic conference in 1911 which was like a modern day think tank where various experts would come together deliberate discuss and analyze ideas this economic conference was so ahead of its time that while India as a nation made primary education compulsory in 2009 with the right to education act this economic conference in Maysore made a primary education compulsor in 1913 itself which was almost 100 years before the formal government of India on top of that the Maharaja gave away huge land grants to set up institutes like IIS and National college of bengalure and if you look at the impat of these developemtns in 1951 while India’s literacy rate was just 18.3 percent Bengalure had literacy rate of 43 percent this was the first factor that led to the rise of Bengalure which is education so if educatio is strong talents are skilled and if talents are skilled industries come and economic opportunities arise and this is where the second piller of bengalure growth came in which is public industry.
Development Of Bengaluru After Independence
In the years after Independence because Bengalure had great talent and literacy rate the national government established some of the country’s biggest public sector factories in Bengaluru these included Indian telephone limited, Hindustan Aeronautics, Bharat Electronics, and even Bharat Heavy Electrical Limited and also unlike partition reasons Bengaluru was far far away from all the adverse events happening in the country so it became all the more ideal to set up industries in fact at one point out of the 77 R&R organizations in India 40 existed only in Bengalure this also included the ISRO this is the story of Bengaluru until the 1970s where the educational foundation attracted economic opportunities and here where something crazy happens.
Bengaluru In The 1970s After IT Revolution
With the IT revolution of bengalure people in 1970 s was a very very special decade in world history because this is where the offshoring trends started in the world to tell about it if you see the trajectory of the US economy after the World War I and World War II they made a tone of money because of which U.S. alone had two thirds of the world’s gold and this led to massive industrialization in the U.S and there was so much demand for the workers that the worker wages went from 574 dollars in 1910 to 3018 dollar in 1950 so you see that is a six time jump in just four decades so the labor cost had become so hing that to manufacture the same product the companies had to spend five times more on labour where as the skill needed to do their job did not upgrade so that the low skilled work the cost of production increased drastically but during the same time if you look at the countries like Mexico China and India the labor costs were extremely low in 1950 the annual labor wages in India were just 265 ruppes and even a few decades later in the 1970s Chinese wages were only 3 % of the average U.S wages at that time this is the reason why the companies in U.S. found it extemely uneconomical to stay in the U.S this is the reason why the companies in the US and Europe decided to take their manufacturing hubs out of US and Europe to other underdeveloped and developing countried which had lesser labor costs so here is how the offshoring in the electronics industry happened let’s say there is a phone manufacturer company called Apple that wants to actually offshore operations because of high labor costs so they would have four types of operations designs manufacturing assembling and sales for designes the company might choose to locate its design them in Silicon Valley California whre it could take advantage of a highly skilled workfore and get access to Cutting Edge Technologies but for manufacturing the company might like to choose to established its manufacturing operation in countries like China where labor costs ar lower then in the US then for assembly the company may choose to establish its assembly operation in Mexico where the labor costs are lower than the U.S. and where skilled workforce is available and this is also because with Mexico they get a close proximity to the U.S. market so shipping become easy similaryly for assembly in the Asian countries they might choosen to set up assembly opeartions in Vietnam Thailand or Malaysia where there is large and growing Electronics manufacturing industry so if you see the choice of the countries of offshoring was based on two variables cost of Labor and avilability of skilled labor and just like a typical manufacturing indusry the rise of software started with soemthing called microprocessors.
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