Union Minister Piyush Goyal recently called for the creation of a new Silicon Valley in the country. However, it will not be a walk in the park, considering the combination of factors that made Bengaluru the Silicon Valley of India.
Published Oct 10, 2024 | 9:00 AM ⚊ Updated Oct 10, 2024 | 9:00 AM
The city gained momentum in 1996-97 when multinational companies (MNCs) set up shop in Bengaluru, attracting talent from across the country. (Mohseen Khan/Wikimedia Commons)
Despite traffic woes, infrastructure challenges, and water shortages, Bengaluru continues to be the unrivalled IT hub of India.
Known as the “Silicon Valley of India,” it remains the top choice for IT companies, leading the nation in software exports and becoming a key player in semiconductor design.
So, what keeps Bengaluru at the forefront of India’s tech revolution?
BV Naidu, the first director of Software Technology Parks of India (STPI-Bengaluru) and Chairman of Karnataka Digital Economy Mission (KDEM) explained that the city gained momentum in 1996-97 when multinational companies (MNCs) set up shop in Bengaluru, attracting talent from across the country.
This created a snowball effect, where an abundance of tech talent drew even more companies to the city.
Bengaluru became a hub for experienced, lateral hires, making it easier for companies to scale with mature talent. Once professionals moved to Bengaluru, they rarely left, knowing that career growth was almost guaranteed.
“It is from here the snowball effect started. The availability of talent. Because of this existing talent, any company coming here was sure that more than 50 percent of their staff could be lateral hires from other companies. Lateral hires are mature tech talent. Getting other people is not that difficult,” he said.
Bengaluru has always been ahead in creating policies that support the IT industry. In 1998, Karnataka established India’s first IT department and introduced the first IT policy, setting the benchmark for other states.
From then on, Karnataka has led the way in creating sector-specific policies, including those for electronics, semiconductor design, cybersecurity, and Global Capability Centers (GCCs).
The tradition of involving the industry in policy creation has ensured that Bengaluru remains a dynamic and business-friendly environment.
Naidu highlighted the “By Industry, For Industry” mantra, where the government consistently engages with the tech industry to shape policies. Vision groups and stakeholders are regularly consulted, creating a collaborative ecosystem that has been in place since the early days of the city’s IT-boom.
Bengaluru’s rise to prominence is evident in its IT export figures.
In 1991-92, Karnataka’s total IT exports were just ₹16 crore, contributed by 13 companies. By 1999, exports surged to ₹3,500 crore, and by 2024, they crossed a staggering ₹9 lakh crore.
Bengaluru exports $64 billion in IT services, accounting for a significant portion of India’s total IT exports. The growth has been fueled by over 4 million people working in more than 1,400 IT firms across the state.
Sharath Bachegowda, MLA of Hoskote and Chairman of KEONICS, GoK represented Karnataka’s IT and BT department at the Dakshin Dialogues-2024 in Hyderabad and addressed key stakeholders on the theme “People & Technology: Governance for Tomorrow.”
He said that today, “Bengaluru alone exports $64 billion in IT exports, while Hyderabad exports $19 billion. We’ve laid the foundation—now, we must seize the opportunity presented by the current geopolitical landscape, demographic dividend, and our vibrant democracy.”
With its rich talent pool, collaborative governance, and proactive policies, Bengaluru continues to be the driving force behind India’s digital economy, maintaining its position as the “Silicon Valley of India.”
(Edited by Majnu Babu).
