Other industries also bask in Bangalore's IT glory

Priya Padmanabhan






BANAGLORE: Before IT brought in bounty and a global brand name to Bangalore, the city was known for its public sector units like BEL, BEML, defence and aerospace labs, and traditional heavyweights such as machine tools, heavy engineering, garments and auto parts. 





With IT dominating Karnataka's exports and mindshare, is there a skew in the industry focus in Karnataka?





Well, not exactly. Although there are a few murmurs from the older industry sectors, that the IT industry overshadows other segments, the overall sentiment is that brand Bangalore has benefited all. 





S Babu, president of Federation of Karnataka Council for Commerce and Industry (FKCCI) says that thanks to Bangalore's reputation as an IT hub, other segments such as automotive and garment industry are basking in the reflected glory. 





“Because of IT, Bangalore has gained recognition globally. Before customers and investors were more familiar with Mumbai and Delhi. But now they are exploring the city for opportunities.”





He adds that while politicians and media may have painted a pro-IT focus, it is hardly true on the ground. Besides allotting land for IT companies, the government is also planning to set up Special Economic Zones for various vertical sectors, he added. 





Readymade garments and the textile sector make up for the second biggest exports for Karnataka after IT. The current revenue from this sector is Rs 7000 crore. Various industry bodies in Karnataka such as FKCCI are looking to increase the business in this sector. These associations are urging the government to provide land for setting up garment parks in and around Bangalore. 





The textile and garments sector, currently employs 400,000 people, and is expected to provide jobs to over 10 lakh people by 2010. Around 50 per cent of apparel export houses are present in older industrial areas such as Yeshwantpur and Peenya. These companies are urging the state to provide infrastructure support in these areas.





The Peenya Industrial estate, one of the oldest industrial hubs in Asia, contributes yearly revenues of Rs 8000 crore to the state. However, this area which houses 3500 small scale units, has been facing neglect and lack of proper amenities over the last few years. 





The significance of the area seems to have paled in comparison to the glamour and robust growth of the much younger IT sector. The companies in the 1800 acre industrial hub, are awaiting government approval for a proposal that would transform the estate into an integrated industrial park. 





The overall effect of the IT boom in the state can be attested by the fact that the amount of investments cleared by the former Dharam Singh-led coalition government in 20 months equals the total value of investment in the state in the last 10 years.





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