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Inside India's 'Silicon Valley': a city straining under pressure

A photo collage of India's Silicon Valley (Bengaluru) and the underlying water, traffic, and infrastructure problems
The city of Bengaluru, formerly known as Bangalore, is India's biggest tech hub, commonly referred to as the "Silicon Valley" of India.

Dinodia Photo/Getty, Peter Dazeley/Getty, Will & Deni McIntyre/Getty, Tyler Le/BI

Silicon Valley is the undisputed global tech hub. The small corner of California is the birthplace of Apple, Google, and OpenAI β€” companies that have, for better or worse, changed modern life.

Far away, in the southern Indian state of Karnataka, another tech hub has been finding its footing in the international market. The city of Bengaluru is the startup capital of India and shares similar DNA to California's Silicon Valley.

Bengaluru grew into an IT hub in the wake of the rapid expansion of its electronics manufacturing industry from the 1940s to the 1960s. Back in the US, Silicon Valley was home to the semiconductor industry in the 1950s and owes its name to the silicon transistors produced there in the 1960s.

By the mid-1980s, Apple, Oracle, and Microsoft had a presence in the Valley, while in Bengaluru, large companies like Infosys and Texas Instruments moved in.

Bengaluru is widely referred to as the "Silicon Valley of India," producing tech unicorns and housing offices for companies like Amazon, Google, and Dell. After taking over Twitter, Elon Musk shut the company's offices in Delhi and Mumbai but kept the Bengaluru office. Earlier this year, Virgin Atlantic launched daily direct flights from London to Bengaluru.

However, the city's status as a tech metropole is under pressure as rapid growth tests the local infrastructure. Estimates place the current population at roughly 14 million, compared to 8 million in 2010.

Heavy traffic, water shortages, and rising property prices have led to online speculation that Bengaluru may be crumbling and debates about whether another city will emerge as a new tech hub in India. During a water crisis earlier this year, some tech companies in Bengaluru had to tell employees to stay home.

Business Insider spoke to four current and former Bengaluru residents in and outside the tech industry who shared their experiences of how India's "Silicon Valley" is holding up under the pressures of rapid urbanization and whether they believe it can maintain its place as a global tech hub.

Vikram Chandrashekar

Headshot of Vikram Chandrashekar

Photo courtesy of Divya Balasubramanyam, Tyler Le/BI

Vikram Chandrashekar, 50, was born in Bengaluru and has worked at Oracle for the past 27 years. He told BI he is happy for the job opportunities Bengaluru's status as a tech hub has brought, but is nostalgic for the city of his youth.

A lake he visited when he was younger, across from a guava and mango orchard, has now been replaced by housing.

"I think urbanization is good, but in my mind, it wasn't planned for, in the sense that it happened too fast, too soon." Vikram Chandrashekar

Chandrashekar said the IT boom drew people to the city, bringing a larger airport, a more diverse culture, and better internet connectivity. He is also grateful to the startup ecosystem because he has access to new services and products faster than the rest of the country.

He said local people have benefited from job opportunities, but they still complain about the issues urbanization has caused. Chandrashekar doesn't plan to leave his hometown and thinks creating other tech hubs in India to redirect the growing population is a solution.

Read Vikram Chandrashekar's full story here.

Dhruv Suyamprakasam

A photo collage with a headshot of a man in the center.

Headshot courtesy of Dhruv Suyamprakasam, Tyler Le/BI

Dhruv Suyamprakasam grew up joining his dad on business trips to Bengaluru and Hyderabad, another large tech hub in India. When Suyamprakasam became a founder himself, he moved to Bengaluru twice.

However, the founder said the city wasn't a golden ticket to success, and Suyamprakasam decided it was better to build his startup in his local city.

Suyamprakasam first moved to Bengaluru in 2010 after launching a medical startup with his relative.

It turned out to be a mistake. Suyamprakasam said Bengaluru's tech ecosystem's "fail-fast" mentality put too much pressure on their medical startup. He also felt excluded for being from a smaller city, not speaking Hindi, or not having studied at India's top engineering school.

"Bangalore has definitely got an amazing tech crowd coming up, amazing tech crowd. But Silicon Valley is Silicon Valley." Dhruv Suyamprakasam

Suyamprakasam said access to talent and venture capital are huge advantages of Bengaluru, while smaller cities can offer lower costs and more space.

Still, Bengaluru doesn't compare to Silicon Valley's vast capital and power. The founder said Bengaluru can be great on its own merits, but it needs to start being more inclusive.

Read Dhruv Suyamprakasam's full story here.

Batool Fatima

Headshot of Batool Fatima

Photo courtesy of Sheya Foundation, Tyler Le/BI

Batool Fatima, 50, moved to Bengaluru nearly 25 years ago from Hyderabad. Like Chandrashekar, the founder of a local nonprofit organization saw the city known for greenery and lakes change before her eyes.

Fatima said she is concerned that the city may not be able to support further population growth and that residents must work on improving the city's problems.

"I would live in Bengaluru and work on solutions rather than leave." Batool Fatima

She said more intellectuals and non-tech workers have moved to Bengaluru which has been beneficial. But there have been reports of tensions between locals and immigrants who don't speak the language.

The influx of people has also caused environmental strains, including a recent water crisis. Fatima said the shortage disproportionality impacted high-rise buildings, a telling example of the lack of planning around urban growth.

The philanthropist said she wanted companies to invest in solutions to protect Bengaluru's natural resources, like funding wetland wildlife reserves. She also said community action, like residents collecting stormwater drainage, is more helpful than complaining about the government.

Fatima said developing nearby suburbs could reduce the strain on the city's center and allow the tech hub to continue to thrive.

Read Batool Fatima's full story here.

Spencer Schneier

Photo collage including Spencer Schneier

Courtesy of Spencer Schneier, Tyler Le/BI

Spencer Schneier is from New York, but spends half his year in Bengaluru and the other half in San Francisco running a tech startup.

The pandemic opened Schenier's eyes to the idea of leaving the US. In 2020, Schneier worked with two Indian cofounders and joined them on a trip to Mumbai and Bengaluru. While traveling, he decided to launch a startup from Bengaluru to help businesses expand overseas.

Schneier told BI he chose the city because it gave him access to customers, other founders, and small businesses to learn from. He said the Indian startup ecosystem was more conservative than the US, but the next generation of investors is really promising.

India is a molten hot talent volcano that's just blowing up right now. Spencer Schneier

Now Schneier spends half his time in San Francisco and half in Bengaluru. He loves the Indian city's moderate climate and generosity. The tech CEO said he struggles with traffic and bureaucracy in the city, but feels he is part of a larger trend of people moving to India to start businesses.

Schneier told BI he believes the appeal of Bengaluru's talent density and local generosity will gain popularity.

Read Spencer Schneier's full story here.

In the tussle between economic growth and sustainability, can Bengaluru have it all?

Bengaluru has undergone significant changes in its transition from a serene "Garden City" to the Silicon Valley of India. Residents said the rapid urbanization has brought both opportunities and challenges.

The opportunities β€” a booming tech and startup industry, jobs, and diversity β€” draw people to the city and keep locals living there. But residents BI spoke to are keenly aware of the tradeoffs, pointing to environmental degradation, rising costs of living, and traffic.

The tension between Bengaluru's growth as a tech hub and the cost for its inhabitants lies at the heart of the city's future.

Harini Nagendra, a professor at Azim Premji University in Bengaluru, said, "There's a city which is growing, and there's obviously the economic prosperity it brings, but there's also the ecological degradation that you see everywhere."

Nagendra echoed Batool Fatima's suggestion of a collaborative solution with companies and residents maintaining their local environments.

Narendar Pani, an economics professor at the National Institute of Advanced Studies in Bengaluru, said the city's growth also hinges on education – better education in urban planning and the ongoing strength of city's educational institutions.

"When people look at Bangalore's future, they think about roads and water," he said. "Water is important, but I think more than the roads, a much more critical element is education."

He, like other residents who spoke to BI, expressed a cautious hopefulness that Bengaluru would solve its problems and continue to grow.

"I belong here, so I would like to think the ideas will come," he said.

Read the original article on Business Insider

I moved to Bengaluru, India. It used to be like a dream city, but it feels like it's bursting at the seams.

Headshot of Batool Fatima
Fatima said she feels Bengaluru may not be able to support further population growth.

Photo courtesy of Sheya Foundation, Tyler Le/BI

  • Batool Fatima moved to Bengaluru, "India's Silicon Valley," nearly 25 years ago.
  • She said the city felt like a dream when she arrived but now it's struggling with urbanization.
  • After a water crisis this year, some people are leaving Bengaluru but Fatima plans to stay.

This as-told-to essay is based on a transcribed conversation with Batool Fatima, 50, about environmental issues facing Bengaluru, the city known as "India's Silicon Valley." The following has been edited for length and clarity.

I was born and raised in Hyderabad. Like Bengaluru, it's one of India's tech hubs.

I moved to Bengaluru in 2000 after I got married because my husband lives there. I also visited frequently as a child because my father used to work there.

It was like a dream city for us then. It was more advanced than Hyderabad, with wider roads and a lot of greenery and lakes.

Over the years, the rapid expansion of certain industries in Bengaluru, such as IT and ITES, fueled significant construction and population growth. The landscape changed in front of our eyes. Development has had a positive impact, creating opportunities for both locals and migrants.

But Bengaluru is dealing with water scarcity issues and some people seem to be leaving the city because of problems with infrastructure. Rather than leaving, I want to work on solutions. The community must come together to prioritize sustainability and the city's natural resources to preserve its future.

People who've moved to Bengaluru help to sustain the city

I've been working in the nonprofit sector since 2011. In June 2024, I started my own nonprofit, Sheya Foundation. We're invested in equitable access to healthcare and education, and I'm also very interested in climate issues.

Bengaluru is seen as an IT city. It's an aspirational city to live in because it's known for its pleasant climate and career opportunities.

With the development of the city's tech sector, a lot of intellectuals have moved in, many who care about the city and climate. However, there have also been environmental and economic strains.

There's an economic strain on people who don't work in IT and don't make high salaries. With wealthier tech workers in the city, the cost of living has risen dramatically, and houses have become more unaffordable. I'm seeing young people dropping out of school to start work because of the impact of higher costs on families.

Other people who aren't IT employees have moved to the city to work in industries serving the tech community, such as hospitality and schools. These people are helping to sustain the city.

There have been some tensions between local people and those who've come from elsewhere because of cultural differences. Recent reports suggest a rise in confrontations between locals and people who don't speak the language.

I'm not from Bengaluru and haven't encountered any negativity myself. But I speak Telegu, which many local people also understand, so I feel at home here.

I'm concerned about water scarcity in the city, but there are solutions

Water scarcity has become a particularly visible issue in Bengaluru.

The number of lakes in the city has decreased significantly in recent decades due to urbanization. Too many high rises are coming up too fast, and I don't think there's enough planning going into water facilities to sustain residents.

Bengaluru dealt with a huge water crisis earlier this year. It particularly affected people in high-rise buildings because the buildings are over-reliant on borewells that dried up during the crisis.

The water crisis didn't affect me too badly. Where I live, there's only one borewell for our group of villas, so we agreed to ration it and only use the water for half an hour per house each day. Since June, we've had good rain, so we no longer need to restrict ourselves.

The water issues seem to have calmed down across the city. But we'll have to see if there'll be a year-on-year impact during the summer months.

We need to be ruthless about not encroaching on our lakes. If we're going to be lax on this aspect, people are going to leave. I've read on the news that some people left during the summer because of a lack of water.

I'd like to see companies investing in solutions for Bengaluru. For example, they should work with the government to develop vegetation wetlands.

Residents also need to assess what we are doing to treat water as a precious commodity instead of complaining about what the government isn't doing. The community has to collaborate with the government by doing things like looking into stormwater drainage for their houses.

We need to work on solutions for the city rather than try to create a new Bengaluru elsewhere

Public infrastructure has struggled to keep pace with Bengaluru's growing population. I feel the city is bursting at the seams and may not be able to support further population growth.

But that doesn't mean I want it to stop developing as a tech hub. Bengaluru contributes significantly to India's GDP and helps generate high-paying jobs. Maintaining it as a tech hub allows players in the tech ecosystem β€” multinational companies, startups, research institutions, and a skilled workforce β€” to continue collaborating, driving innovation and job creation.

The state government has been developing nearby suburban regions like Yeshwanthpur and Bidadi, which can reduce congestion in the city's core while enabling Bengaluru to continue excelling in tech. In my opinion, that's a more viable solution than relocating the IT sector to other regions in India.

It's not going to be easy to move a tech hub from Bengaluru to another city. When I visit, Hyderabad, my hometown, which is also known for IT, there are similar issues there in terms of traffic, water, and property prices.

I want to keep using my foundation to build community awareness. I love Bengaluru, and I'd rather stay here and work on solutions than leave.

Want to share your story? Email [email protected]

Read the original article on Business Insider

I was born in the 'Silicon Valley' of India and watched it change from a quiet, green city to an international tech hub

Headshot of Vikram Chandrashekar
Chandrashekar supports carpooling and rainwater harvesting to deal with infrastructure issues in the city.

Photo courtesy of Divya Balasubramanyam, Tyler Le/BI

  • When Vikram Chandrashekar was growing up in Bengaluru, it was quiet and full of natural beauty.
  • Chandrashekar said urbanization is a good thing, but it changed the city too quickly.
  • He enjoys living in a tech hub, but said locals are struggling with the pressure on infrastructure.

This as-told-to essay is based on a transcribed conversation with Vikram Chandrashekar, 50, who was born in Bengaluru, India, about how the city has changed over his lifetime. The following has been edited for length and clarity.

Bengaluru has become known as the "Silicon Valley of India," but it was once known as a "Garden City."

I was born in Bengaluru and have lived in J.P. Nagar, a neighborhood in the south of the city since I was seven. Back then, it was a remote area with a lot of trees and gardens.

There was a huge lake with a guava and mango orchard across from it. We used to get off the school bus, grab a mango, wash it in the lake, and eat it.

Now, there are houses where the lake used to be, and the majority of the orchard is gone. As the tech sector developed in Bengaluru over the decades, there was a lot of urbanization. As a result, there's less greenery on the streets and more high-rise buildings.

Urbanization is good, but it transformed Bengaluru too quickly and too soon β€” the city's been catching up ever since. It's left some people feeling frustrated about things like traffic, housing costs, and this year's water crisis.

I've witnessed Bengaluru's transformation into a tech hub

Bengaluru used to be a place where retirees wanted to live. It was a quiet place with a relatively moderate climate.

There's a long history of science and tech development in Bengaluru. The Indian Institute of Science and Raman Research Institute is here. We also have a decadeslong history of aerospace research and electronics manufacturing.

In the 80s and 90s, IT companies like Infosys, Wipro, and Texas Instruments moved into Bengaluru. In the mid-2000s, the startup ecosystem grew as it became more accessible and normalized to start a business.

IT created a lot of job opportunities, just like it did in Silicon Valley. Today, there's a large startup ecosystem and community of venture capitalists. It's probably the best place to launch a startup in India, which means more people have come to the city, creating a need for more space, public transport, and residences.

It also created a lot of urbanization, which gave people more access to resources. We had a larger airport, restaurants with various cuisines coming into the city, and affordable internet access due to more competition between companies.

Because of the startup ecosystem, we get new services and products faster than other Indian cities. I've benefited positively from urban development in these ways.

There are benefits and drawbacks to Bengaluru's transformation

I'm employed in the IT sector. I've been working at Oracle for the past 27 years, and my current role is solutions architect.

People in Bengaluru have undoubtedly benefited from the job opportunities created by the tech boom, but I think local people are split on the effects of urbanization.

It's common to see negative comments about Bengaluru on social media or people complaining to their friends. I think the three biggest issues they raise are the water crisis, housing prices, and traffic.

Traffic is definitely an issue. Public transport isn't sufficient as it stands. Before the pandemic, I'd take the metro to work four days a week because it made me less angry than driving in traffic.

Residential pricing has increased from what it used to be, but so have housing prices in other cities. I'm living in a house that belonged to my parents, so I don't have to pay rent, and this isn't an issue for me.

Bengaluru has had long-standing issues with water. There are too many people and a limited water supply due to a decreasing number of lakes. Earlier this year, there was a very bad water crisis because it got very hot and there was little rain.

People were consciously trying to conserve water, and the government brought in water tankers for people to get water at a price. I've never struggled with water supply in the past: I have access to a well, rainwater harvesting, and facilities to store water from the public supply. But this year, I noticed the public water supply was running out more frequently, so even I had to buy water a few times. It was a bad feeling which made me see how the city was changing.

Things have definitely improved since the summer, and hopefully, people will be more prepared for next summer.

I support carpooling, using public transport, and rainwater harvesting to address infrastructure issues in Bengaluru. We should also plant trees for the next generation. Tree roots can help absorb rainwater when there's flooding, so it's important to conserve every tree.

Creating other prominent tech hubs like Bengaluru is a good solution, but progress has been slow

Despite the concerns people have, I don't think people are leaving Bengaluru.

Jobs are a big reason why. There are opportunities in tech and other industries serving that community, such as schools, public transport, and cooking.

There are problems, but they're probably not as bad as social media portrays them to be. I'm frustrated by the traffic and water crisis, but I'll probably continue to live in Bengaluru.

For many years, people have talked about creating alternate cities to Bengaluru within the state, or cities like Hyderabad or Mumbai replacing it, but I feel progress on this has been small.

The solution probably lies in creating other cities like Bengaluru that can distribute the load across various places, but even in other countries, this doesn't happen. One or two cities always take most of the burden.

There are cities near Bengaluru, like Mysore and Mangalore, that could be developed and house more tech parks, but people have to be willing to move there. I think companies have to move first so that good infrastructure, like schools and jobs, can develop, incentivizing people to move. Why not create more Bengaluru's across the country?

It's going to take a long while for anything to change, so I still think Bengaluru will continue to be "India's Silicon Valley."

It would be like trying to move the capital city.

A whole ecosystem would need to be shifted, and that's not going to be easy.

Want to share your story? Email [email protected]

Read the original article on Business Insider
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