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Bangalore's
Rs. 260,26 crore (USD 6.5 billion) economy (2002–03
Net District Income) makes it a major economic centre in India.
Indeed, Bangalore is India's fourth larges and fastest growing
market. Bangalore's per capita income of Rs. .49 lakh (US$
1,160) is the highest for any Indian city.[34] The city is
the third-largest hub for high net worth individuals (HNWI
/ HNIs), after Mumbai and Delhi.
Bangalore is home to over 10,000 individual dollar millionaires
and around 60,000 super-rich people who have an investable
surplus of Rs 4.5 crore and Rs 50 lakh respectively. As of
2001 Bangalore's share of Rs. 1660 crore (US$ 3.7 billion)
in Foreign Direct Investment was the 3rd highest for an Indian
city. In the 1940s industrial visionaries such as Sir Mirza
Ismail and Sir Mokshagundam Visvesvaraya played an important
role in the development of Bangalore's strong manufacturing
and industrial base. Bangalore is headquarters to several
public manufacturing heavy industries such as Hindustan Aeronautics
Limited (HAL), National Aerospace Laboratories (NAL), Bharat
Heavy Electricals Limited (BHEL), Bharat Electronics Limited
Bharat Earth Movers Limited (BEML) and Hindustan Machine Tools
(HMT). In June 1972 the Indian Space Research Organisation
(ISRO) was established under the Department of Space and headquartered
in the city. Bangalore is called the "Silicon Valley
of India" because of the large number of Information
Technology companies located in the city which contribute
38% of India's Rs. 100,000 crore (US$ 22 billion) IT and software
export market. Bangalore's IT industry is divided into three
main "clusters" — Software Technology Parks
of India, Bangalore (STPI); International Technology Park
Bangalore (ITPB), formerly International Technology Park Ltd.
(ITPL); and Electronics City. Infosys and Wipro, India's 2nd
and 3rd largest software companies, have largest campus in
Electronics City. As headquarters to 38% of global SEI-CMM
Level 5 Companies, Bangalore's place in the global IT map
is prominent.
Infosys HeadquartersThe growth of Information Technology has
presented the city with unique challenges. Ideological clashes
between the city's IT moguls, who demand an addressal of the
infrastructural problems of the city, and the state government,
whose electoral base is primarily rural Karnataka's agricultural
workers, are aplenty. In July 2004 Wipro CEO Azim Premji threatened
to pull his company out of the city, stating, "We do
not see the situation (state of Bengaluru's infrastructure)
improving in the near future". It must be noted, however,
that IT companies do not pay any property tax to the state
government, depriving it of much needed revenue to improve
infrastructure. However, most infrastructural improvements
are done only in areas that directly benefit IT companies,
leading to the preception that the common people of Karnataka
are subsidising the already rich IT industry.
Biotechnology is a rapidly expanding
field in the city. Bangalore accounts for 47% or 127 of the
approximately 265 biotechnology companies in India. Biocon,
headquartered in Bangalore, is the nation's leading biotechnology
company and ranks 16th in the world in revenues. The Bangalore
Stock Exchange is the largest in South India.
United Breweries is also building "UB
City" in Bangalore, in one of the most expensive areas.
This will include some of Bangalore's tallest buildings, adding
to the skyline. The most famous of these buildings, is similar
to the Empire State Building in New York.
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