INDImag – Contemporary fiction | Motivational short stories | Social stories | Short story criticism

Bangalore has problems galore. It does not need a genius to fathom that. A quick drive around the city reveals many visuals, symptomatic of the banes of Bangalore’s enormous growth. But the fact of the matter is, with very minor differences, all Indian cities, except perhaps the capital Delhi, have infrastructure problems. Bangalore takes the cake, but others are not far behind. It is just, that,they do not get that much of a mention as Bangalore ; thanks to them, not being in the bytecode limelight.

Even in Bangalore, it is not as bad as the armchair geniuses opine. Media hyperbole, reiterated over and over serves as a fuel to a raging fire. The fire is made out to be of suicidal proportions, and many are sounding the death knells. Is it that dire ? It sure isn’t.

IT pains to pay !

NRN, Premji are beacons of Indian entrepreneurship. Their focus and determination in seeking out opportunities, and transforming their companies into multi-billion dollar corporations, is praise-worthy, and they richly deserve the status they enjoy in the country. That not withstanding, they are adding to our beleaguered city’s woes. IT companies, currently enjoy tax sops aka the tax holidays. The existing tax holiday, under the STPI scheme is set to expire in 2009. The scheme, among other things, waives corporate income tax and indirect taxation. Almost all of the other industries pay it. Not IT.

When the SPTI scheme expires, it would entail all IT companies, to pay a substantial corporate tax, as well as indirect taxes. This would provide much needed extra income to the governments, and cities like Bangalore, grappling with fund shortages. It is no chump change — a few billion dollars are at play. The big boys of IT, understandably, are not happy. It puts a spanner in their quest to become the first $10 billion Indian company. Each of the 3 IT majors : TCS, Wipro, Infosys, sits on a cash-pile of $1 billion plus. But why pay the government ? To circumvent the 2009 deadline, the companies are setting up Special Economic Zones. Why ? To extend their Tax Holiday of course, and more..!

IT needed the fillip in the 1990s, but, it is has grown well beyond the need for training wheels. IT is a $32 billion dollar industry, slated to hit $60 billion by 2010(per NASSCOM). Infosys, TCS, Wipro are all on track to cross $4 billion in revenues this year,and some, the 100,000 employees mark. They have all built ginormous campuses. They have long outgrown the need for the sops. But, the vanguards of Indian entrepreneurship and their proteges, are lobbying hard, to NOT pay what’s due of them. Hardly praiseworthy. Others need it now : Semi-conductors, Chip manufacturing, Product development of IT, Biotech to name a few. Not the $4 billion club guys. If they pay up, maybe something can be done about the infrastructure they keep harping about in Bangalore.

Real Estate is UN-Real!

The collateral impacts of the IT boom are no where more noticeable than in Real Estate markets. The office space absorption figures in 2006, in the country’s IT capital has

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reached a new high of 14.2 million sq ft, the highest among metros in India, and probably the second highest in the world after Tokyo. This makes a whopping 53 pc growth over the last year. Bangalore continues to attract 2-3 new IT firms every week. Seventy new companies have come up in the state, in the first six months of 2007, out of which, 32 were foreign companies.The state saw an addition of 30,000 techies in the same period, taking the total figure to 4.30 lakh. The numbers are expected to reach 4.75 lakh in the next six months. No prizes for guessing where a whopping majority of those will end up. All of this has skyrocketed the real estate market. A 60X40 plot that was available for Rs. 15 lacs in a calm Girinagar locality in 1999, now runs for a cool Rs. 1.1 crores.

Unchecked Influx

Seems like a common routine now : If you are done graduating, you need to head south, to Bangalore. Some, among the holy trinity of IT, threatened to walk out on Bangalore, amid much fanfare of course. They did give it a shot, only to return back to the city with their tails between their legs. Had they not scamper back, for once, it would have helped Bangalore. But all, still have a major presence. Add to that, in technology intensive product development & R & D outsourcing, the current flavor, Bangalore is the de facto choice.

With all of this activity, you see a steady influx of prospective job seekers who come into the city. From Mysore to Gwalior to Anantpur, people are heading to the Silicon Valley. Be it students fresh out of college or NRIs returning to India, Bangalore is a foregone conclusion. While it is good to see people find jobs and willing to relocate, none of this is helping the suffocating city, devoid of space.

Corporate Responsibility

The burgeoning IT has led to new found upswing in the consumer spend. While it is good for the business, it comes at a cost ; the Indian values system is being systematically replaced by materialism. Cars and cell phones are aplenty. Malls have sprung up in many a localities. The inept government(sans Krishna) does little, but boondoggle. The IT majors have a responsibility here. Till now, they seem to be in a hurry to make the next quick buck. It is time for some introspection, some realization that, they too have a stake in the city’s well being. They have a mutual need for symbiosis. We are not asking the NRNs and Premjis to be Bill Gates or Warren Buffets. But do more than tangle with inept, imbecile officials. You are better than that. Bangalore nurtured you and your dreams, long before NASDAQ seduced it..

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