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The Karnataka government recently announced a one-time relocation incentive of up to Rs 50,000 per employee for IT companies willing to look beyond Bangalore to other cities in the state. States like Telangana and Andhra Pradesh have engineered incentives, such as tax waivers, low-cost loans for startups, friendly employee policies and so on, to attract investments and talent. While these initiatives are laudable it’s humbling to understand that Bangalore is an ecosystem and such phenomenon takes time to come by. How do such cities happen and what lessons do they hold.
Bangalore is home to over 16,000 startups, accruing 47 percent of India’s USD 12 billion startup funding in 2024. Every third Global Capability Centre (GCC) in India is in the city which already hosts 400 of the Fortune 500 companies. As a city that enjoys one of India’s highest per capita GDP, this former cantonment of the British rivals San Francisco, Shanghai and Tal Aviv in terms of the strength of its technology ecosystem. Notwithstanding the infrastructure that is perennially wanting and with occasional boats on the streets, this ‘Pensioner’s Paradise’ continues to attract talent, capital and dreams in an uncontested manner. Why?
It hinges on Bangalore’s scientific temperament. Years before the technology outsourcing and the ensuing IT industry happened, the city was primed as an earnest scientific breadboard. With the likes of National Institute of Mental Health and Neurosciences (1847), Indian Institute of Science (1909), National Aerospace Laboratories (1959), Indian Space Research Organization (1972), Indian Institute of Management (1973), and National Institute of Fashion Technology (1986), Bangalore was predisposed as a cradle of science. It’s a place where engineering, medicine and humanities blended seamlessly.
The appreciation of science and the ready adoption of technology by its citizens, right from the humble auto drivers to the multimillionaires, warrants that Bangalore remains as the testbed for many of India’s digital public utilities. The new doesn’t surprise Bangaloreans, for there’s a humble sense of exploration all around. This scientific temperament means that startups can experiment, fail, pivot and still be around. Most importantly, be around. As much as the land is fertile here, so is the market.
At a social level, Bangalore is arguably India’s most forgiving city. As for Mumbai, when you move down the fast local towards the Arabian Sea you feel the poverty line catching up with you – that’s the lure of money and then some more in the Maximum City. The desperations of moving up the economic order are often masqueraded as the spirit de corps of the city and slowing down is construed as a death knell in a city that never sleeps. Delhi brings to fore the imperative of connection and influence, where ‘what you know’ is often triumphed with ‘whom you know’.
If money speaks in Mumbai, and power speaks in Delhi, it’s knowledge that does the talking in Bangalore. Scores of immigrants, right from the founders of Wipro to Flipkart and CRED, found their anchor in Bangalore, for its fertile market and congenial disposition. None of it, though, has come at the cost of natives weaving their magic, as evident by the success of BigBasket and Zerodha. The city remains impartial, inviting and relenting—the right mix for creative thinking.
Lastly, the vibes at the offer. At 920 meters above the mean sea level, Bangalore is naturally blessed. The flora, fauna, old city calm blended with the new city charm offers one a huge productivity advantage. Unlike any other city, you can jog at any time of the day, hit a nearby coffee shop or gang up at the pub down the road at pretty much any pin code. The political climate, which is modest and rarely flaring, has a comforting effect. Unlike Maharashtra, Tamil Nadu, Uttar Pradesh or even West Bengal where everyone knows who’s in charge, Bangalore’s politics is rarely a national event. This background stability helps the thinkers and doers focus on the real stuff—creation. The music, literary, sports and civic activities catalyse the creative juices, which in turn are supported by a relatively high standards of safety and cleanliness. The calm demeanour and rather non-confrontational attitude of the citizenry afford outliers to persevere, further broadening the range of what’s acceptable.
It’s my 22nd year in Bangalore, and I haven’t found a reason to look elsewhere. Though an immigrant, I proudly call Bangalore as my city. A city that has offered me employment, education, intellect, legitimacy and purpose. While frustrated companies occasionally shift their offices out, most would rather swim to the office than look elsewhere. The milieu of Bangalore is indeed difficult to replicate, much like the Paris of the first half of the 20th century and New York in the second half, but one must learn from the unique city and strive to preserve its value for generations to come.
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