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Bangalore India Economy

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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