Economy of Bangalore

United Breweries Group headquarters at UB City, Bangalore. Which is a Central Business District and a major landmark of the city. Also the first luxury shopping mall in India.
World Trade Center, Bangalore at Brigade Gateway, Rajajinagar, Malleswaram houses the Amazon India headquarters

Bangalore or Bengaluru, the capital city of the South Indian state of Karnataka, India. The economy of Bengaluru contributes over 43.65% to the economy of the State[1] of Karnataka, accounting for 98% of the Software Exports of the State.

The estimated Metro GDP (PPP) of the city is around US$300 billion, with a Metro GDP (PPP) Per Capita of roughly US$25,461 in 2021. It has been ranked as the third most productive metro area in India.[2][3] According to the estimates, Metro GDP (PPP) of the city has grown to US$359.9 billion in 2023.[4]

Bangalore, often referred to as the "Silicon Valley of India," has an economic base rooted in the Information Technology (IT), Biotechnology, Aerospace, Telecommunications, Electronics, and manufacturing sectors, contributing significantly to Karnataka's GDP. The city is also emerging as India's major hub for Electric vehicle (EV) innovation and manufacturing, housing several startups and global giants focusing on EV design, battery technology, and infrastructure. Other significant industries include education, healthcare, real estate, and automotive. Additionally, Bangalore is a global hotspot for Global Capability Centers (GCCs), housing over 40% of India's GCCs. These centers, established by multinational corporations, leverage Bangalore's tech-savvy workforce, advanced infrastructure, and robust innovation ecosystem to manage critical operations, including R&D, IT support, finance, and customer services. The city is home to GCCs for companies across diverse industries such as technology, banking, retail, and healthcare. Prominent firms like Microsoft, Google, Goldman Sachs, and Shell operate large-scale GCCs in Bangalore, driving global innovation and operational efficiency. The presence of these centers has significantly contributed to the city’s reputation as a preferred destination for offshore innovation and strategic business support. Bangalore's skilled talent pool, with over 2 million IT professionals, combined with its world-class infrastructure and startup ecosystem, creates a symbiotic relationship that fuels the growth of GCCs. The city's GCC sector not only supports global operations but also fosters the development of cutting-edge technologies in AI, machine learning, and data analytics, reinforcing its position as a critical player in global business strategies. This growth is further complemented by Bangalore's thriving industries in information technology, EV manufacturing, aerospace, and biotechnology, making it a comprehensive hub for global and domestic economic activities. With nearly 40% of India's startup ecosystem based here, Bangalore remains a vibrant innovation center. Industries like education, healthcare, real estate, and automotive thrive alongside traditional sectors such as silk and garment production. Strategic infrastructure like Kempegowda International Airport, Electronics City, and Whitefield further bolsters the city's economic prominence.[5]

The establishment and success of high technology firms in Bangalore have led to the growth of Information Technology (IT) in India. As of 2020, IT firms in Bengaluru employed about 3.5 million employees in the IT and IT-enabled services (ITES)/BPM sectors, out of nearly 4.4 million employees across India,[6][7] and accounted for the highest IT-related exports in the country.[citation needed] In 2014, Bangalore contributed US$45 billion, or 38% of India's total IT exports.[8]

One of the important factors spurring Bangalore's growth was heavy state government investment (and its environment) in Bangalore's public sector industries which is what makes it so developed and rich.

According to the Bangalore Innovation Report, with projected GDP growth of 8.5%, Bangalore will be the world's fastest growing city until 2035.[9]

  1. ^ ROTTI, JOLAD (10 September 2013). "Bangalore the main revenue generator for Karnataka". karnataka.com. The Times of India Sept 9 2013. Retrieved 21 May 2018.
  2. ^ "Deep Dive City Bangalore, India" (PDF). Transformative Urban Mobility Initiative. Retrieved 9 January 2024.
  3. ^ "Fastest Growing Cities". The Times of India. Retrieved 30 August 2018.
  4. ^ "Bengaluru, India - C40 Cities". C40 Cities. Retrieved 9 January 2024.
  5. ^ "Bengaluru, India: Foreign Investment Brief". 21 September 2023. Retrieved 22 November 2024.
  6. ^ "IT employee strength to rise to 4.8mn this year". The Times of India.
  7. ^ "IT employees get nod to set up trade union in Karnataka".
  8. ^ "'Bangalore will become the world's largest IT cluster by 2020'".
  9. ^ "Bengaluru to be world's fastest growing city". Deccan Herald. 23 January 2020. Retrieved 9 January 2023.