URBAN AND REGIONAL ECONOMICS- Final Essay
An analysis of the economic development and current economic context of Bangalore, India.
1. Bangalore, India: An overview
2. Brief History
3. Current economic structure, city structure
4. Land use patterns and rent
5. Bangalore in context of broader Indian economy
6. Bangalore in context of broader Asian economy
1. Bangalore, India: An overview
Bangalore is the capital city of the state Karnataka, located in the south-west region of India. It has an area of approximately 2190 square kilometres, and a fast growing population of close to ten million.1 Bangalore is India’s third most populous city, following Mumbai and Delhi, and was listed as part of the “top ten preferred entrepreneurial locations in the world” in 20122 as well as among the top ten cities in the world recommended to visit by Lonely Planet (travel advisory).3 Bangalore houses many of the prominent educational and research institutions of India across a wide range of faculties; including science, management, fashion technology, heavy industries, technology companies, telecommunications, electricals among others.4 However, the most prominent industry for which Bangalore is renowned for is the IT industry and the IT clusters; the ‘silicon valley of India’, which will be discussed in detail in the following sections. As per the 2001 census, 79.4% of Bangalore’s population is Hindu,5 which interestingly plays a significant role in the development of the economy, which will be explored in greater detail in the following historical section. Furthermore, the city has a literacy rate of 89%,6 with roughly 10% of Bangalore’s population living in slums which is quite a low figure compared to the rest of the nation.7 The cosmopolitan nature of the city has led to much migration over the past years, notably starting in the period of 1991-2001 with a growth rate of 38% during the decade.8 This has had many positive impacts upon the growth of the city and economy, which will be discussed in following sections; however the rapid growth in population has also had the dire consequences faced by many fast growing cities in developing countries. These include a deepening of social inequalities, mass displacement and dispossession particularly in a context of rapid infrastructural change coupled with institutional corruption, and many environmental issues leading to serious health crises due to water shortage and problems in the poor neighbourhoods. Furthermore, the 2008 National Crime Records Bureau showed that Bangalore accounted for 8.5% of the total crime reported from the 35 major cities in India, which is a significant increase compared to about fifteen years ago.9 What has resulted from the economic developments over the past decade and a half can perhaps best be described as the “tangible conflict between India’s oriental history, and way of its modern citizen’s expectations for the future”,10 where city malls, bars and offices stand side-by-side with temples and bazaars.11 How this present identity formed has much to do with the long and intrinsically complicated political, sociological and economic history of India and Bangalore, coupled with its geographic location and natural assets, which will be briefly explored below.
2. Brief History
The pre-colonial history of India is extremely long and equally interesting; multiple tales of battles and successive dynasties. However, for the purposes of this paper, we will only deal with what is referred to as ‘Modern Bangalore’, which had its formal beginning in 1537, but gained a new identity under British rule after it was captured by the British Armies on 21 March 1791.12 In this context, the geographic location of Bangalore along with the population demographics played a key factor for how it came to be the city it is today, which will be discussed in the following sub-section....
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‘Census GIS Household"’, censusindiamaps.net. 2006, cited in .
Ghosh, Jyotirmoy. ‘Entrepreneurship in tourism and allied activities: a study of Bangalore city in the post liberalization period’, Pondicherry University, 2012.
J Vang and C Chaminade, M Bogdanowicz and A Bianchi (eds), ‘East Asian Growth: Policy Lessons from Bangalore, India’, Technical Notes of European Comission Joint Research Centre, 2011.
Jairam Ramesh. ‘IT in India: Big successes, large gaps to be filled"’, Online Edition of The Business Standard, 2007.
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