(Meena Iyer)

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Bengaluru, silicon valley of Indias strain on urbanization
Preeti Mohan 3265734,WHS Urban Dynamics: Challenges of Urban Development in Megacities priya.kuku@gmail.com

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 70 91
percent of net new employment will be generated in cities million urban households will be middle class, up from 22 million today

68 cities will have population of 1 million plus, up from 42 today; Europe has 35 today $1.2
trillion capital investment is necessary to meet projected demand in Indias cities

700900 million square meters of commercial and residential space needs to be built or
a new Chicago every year

2.5

billion square meters of roads will have to be paved, 20 times the capacity added in the past decade

7,400

kilometers of metros and subways will need to be constructed 20 times the capacity added 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? ........................................................................................................... 1 Bengaluru, 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?
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.

(Guruprasad)

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. In 1949, 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'.

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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). These institutions 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 1901 2011 Population (lakh) 1.63 84.26 Decadal Growth (%) -9.58 65.18

Landscape Changes Bangalore has grown ten folds spatially from 69 (1949) to 741 square kilometer.
Year 1949 2013 Area (Sq. Km) 69 741

Changes in Water Bodies

Year 1973 2007 No of Water Bodies 216 93 Area in Ha 2748 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 they missed 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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CEOs Woes In the last six months, we have gone back ten years, said Hoekstra, CEO of Dutch multinational Philips cutting-edge research centre and a Bangalore loyalist who said his board could now question a recently approved $50-million new investment. Bangalore represents India. If the city does not scale up fast, why come here at all? argues Hoekstra, who in October startled the government by boycotting Indias signature infotech event, BangaloreIT.com. If we lose out now, we lose out to China. If we dont do something very quickly, fallout as far as foreign investment goes could be serious. N R Narayana Murthy, Infosys. Ive never seen it so bad ... were all shouting ourselves hoarse, but its all falling on deaf ears. Kiran Mazumdar Shaw, Biocon. We dont see the scene improving. Hence, our decision to look beyond Bangalore. Azim Premji, Wipro. "The challenge of Bangalore is that Karnataka is unable to handle its prosperity. It is an extraordinary city that pays 65 per cent of the state's taxes. We need to invest more in Bangalore," says an anguished Pai. If people know youre trying, they give you the benefit of the doubt, says the CEO of one of Indias top three IT companies, requesting anonymity. Out of 198 corporators in Bangalore city, one in every two has interests in real estate. Those in the know say Bangalore today is, in effect, ruled by real estate players. Bangalore bears the brunt of the absence of administration, with the politician-land mafia nexus reducing it to a cash cow. In 2009, a task force for protection of government lands, headed by former Karnataka additional chief secretary V. Balasubramanian, found that 80,000 acres of the 150,000 acres of state-owned land in the city had been encroached upon. The government chose to disband the task force. (HALARNKAR) Peoples Cry Subramaniam Vincent, editor of Citizen Matters, a portal that focuses on civic issues in the city, says, "Bangalore's development has been put on steroids in the last 10 years, with no plans for the natural resources that are needed to support this superfast growth. If Bangalore were a person running in a competition, they would fail every dope test," says Vincent. Shraddha, a radio jockey who hosts the popular breakfast programme 'Mad Mornings' on Fever FM, says, "Most listeners call in and talk about eco and infrastructure issues, about groundwater and garbage. All they want is our leaders to get the basics right." (Sudhir)

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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 getting proper 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 $34,921,558,371
(www.brookings.edu)

Share National GDP 2012 0.73%

GDP/Captia 2012 $3,963

Population, 2012 (country rank) 8,812,542

GaWC Global City Ranking, 2010 59

GDP/c Growth 1993- 2012 4.65%

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. 2. 3. 4. 5. Funding Governance Planning Sector Policies 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

For Bengaluru Industry Size

Today 2012 (Rs. Crore)

KIG Goal 2020 (Rs. Crore)

KIG and Beyond 2025 (Rs. Crore)

IT&BPO ESDM Total IT&BPO ESDM Total

135,000 300,000 17,000 100,000 152,000 400,000 Direct Employment 800,000 30,000 830,000

480,000 160,000 640,000

1,800,000 2,800,000 240,000 380,000 2,040,000 3,180,000

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)

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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 cluster economies 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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