Booming Bangalore -1

P.201 no. 2



P.201 no. 3

What are the potential benefits and problems of an economy with growth driven by foreign companies ?

In the early 1990s the Indian Government liberalized India’s economy, allowing large numbers of overseas companies to set up operations there. Then Bangalore became India’s hub in the ‘new economy’. The economy grew rapidly which brought benefits and problems. In the following I want to outline the potential benefits and problems of an economy growth driven by foreign companies, in general.

When companies out-source their firms the new location benefits from it.  Many jobs are created, but the problem is that the big profit goes to the place of origin of the company.

However due to the growth Bangalore’s infrastructure profits from the economic situation. The big IT companies need taxi firms to transport their visitors around the city and drive their workers to and from the office, so the taxi business is booming. In addition they built six new shopping malls, have luxury car showrooms selling upmarket brands and they opened 500 new bars and cafes in 2007, because young well-paid workers go out more often to restaurants or bars. Bar owners can not even get enough staff for their bars. These impacts of the economic growth are good because with the ‘new wealth’ of the people new needs like shopping opportunities come up.

Summed up economies with growth driven by foreign companies have problems and benefits of different importance. Of course it would be better if the whole money would stay in the out sourced place but they still profit from the jobs and the whole city gains a better image. As long as the economy growth, they profit from the foreign companies. With out them f.e. Bangalore might not have the highest average incomes in India. 


International Tech Park Bangalore



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: