 "More jobs, tech, affordable living: Bengaluru challenges Mumbai and Delhi")
Over the past decade, Bengaluru has transitioned from a promising tech centre to a formidable metropolitan hub, increasingly competing with the likes of Delhi and Mumbai. The "Bengaluru Rising" report, released by the UnboxingBLR Foundation during the Bengaluru Tech Summit and unveiled by Chief Minister Siddaramaiah, underscores the city’s economic expansion, lifestyle appeal, and global stature, as reported by The Economic Times.
Job creation and startup leadership
Bengaluru has firmly established itself as an economic powerhouse, ranking third in terms of new company formations, with over 27,000 companies registered between 2012 and 2023. The city also added 80 million sq ft of Grade-A office space, resulting in the creation of 800,000 jobs — the highest in India.
When it comes to startups, Bengaluru stands unparalleled. On average, the city hosted the emergence of 1,400 startups annually over the past decade, second only to Delhi-NCR’s 2,100 per year. Furthermore, Bengaluru leads the country in startup funding and the emergence of unicorns, solidifying its position as the entrepreneurial epicentre of India.
Lifestyle and connectivity
The capital city of Karnataka is known for its favourable living conditions and superior connectivity. Its temperate climate, with 181 days of pleasant weather annually, makes it an attractive destination for residents. Housing remains more affordable compared to cities like Gurugram and Navi Mumbai, contributing to its appeal. Bengaluru also boasts the highest passport ownership among Indian metros, at 25 per cent, reflecting its global reach and mobility, the report said.
Connectivity has played a significant role in the city’s growth. Between 2017-18 and 2022-23, it added 27 domestic air routes, the highest in India, and its passenger traffic now rivals Mumbai’s. The opening of Terminal 2 at Kempegowda International Airport has also driven a surge in international traffic.
Retail and consumer growth
Bengaluru’s consumer market mirrors its growing affluence. The city has led in the fastest increase in bank savings deposits, with a compound annual growth rate (CAGR) of 15.2 per cent over the past four years, totalling Rs 2.69 trillion in June 2023. Additionally, Bengaluru outpaces other cities in digital payments, having recorded 1.43 billion transactions via PhonePe in Q4FY23.
In retail, Bengaluru has surpassed Delhi NCR and Mumbai, adding 4.25 million sq ft of Grade-A mall space from 2019 to 2023. The city also leads in Airbnb listings, with 5,146 properties, though earnings per property trail Mumbai.
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Electric vehicles
Bengaluru has made substantial strides in promoting sustainable transport. In 2023, the city registered the highest number of electric scooters in India, totalling 77,860. It also ranks second for electric car registrations, with 6,811 vehicles, underscoring its commitment to eco-friendly mobility. This shift is supported by the city's young, tech-savvy demographic, the report said.
Traffic and infrastructure issues
Despite its rapid progress, Bengaluru also has its share of challenges. Traffic congestion and increasing road accidents remain a persistent problem. According to the National Crime Records Bureau, the city recorded the second-highest number of road accidents in India and is the only major city that has not reduced road accident deaths in the last decade.
The city’s urban planning remains fragmented, compounded by a lack of investment in public infrastructure. The report highlights that Bengaluru has the lowest per-capita municipal budget among major Indian cities, despite having the third-largest total municipal budget, the ‘Bengaluru Rising’ report added.