Analysis of the economic, social and demographic implications of the construction of the international airport at Devanahalli

Abstract

After India gained independence in 1947, the city of Bangalore evolved into a manufacturing hub for public sector heavy industries—particularly aerospace, telecommunications, machine tools, heavy equipment, and defence. The last two decades have witnessed tremendous growth in the industry and infrastructure of Bangalore. Bangalore was already known as the Electronic City of India but following liberalization, the establishment and success of software service firms, have transformed it into the Silicon City of the world, accounting for over 35 percent of India’s software exports1. Many large multinational Infotech companies have established operations in the city. Having made a niche for itself in the international arena in terms of its growth with major players in the IT industry gaining footholds here, Bangalore has come to be best known within India for being the country's unofficial high-tech capital. Bangalore's Rs. 260,260 crore (USD 60.5 billion) economy2 makes it a major economic centre in India. Indeed, Bangalore is India's fourth largest and fastest growing market. With the increased presence of industrial players, the Karnataka Government has identified an 'IT Corridor' in Bangalore and is expected to spend a sum to the tune of Rs.200 crore over the next two years developing it. This IT corridor stretches from Whitefield through Indiranagar, Koramangala, Hosur Road, HSR Layout, Electronics City, JP Nagar and Banashankari3. With the growth of the IT industry in Bangalore, there has been a tremendous surge in the floating and fixed population of Bangalore setting it at 6.5 million, making it the 3rd most populous city in India and growing at a staggering pace of 38 percent per anuum. The distinct IT corridor as indicated by above largely forms the basis for the residential hub of Bangalore too. Since most IT companies are located in this corridor, their employees too, of course, prefer to live in adjoining areas. Thus Airport Road, M.G. Road, Hosur Road, Cunningham Road, Infantry Road, Whitefield, Electronic City, Koramangala, J.P. Nagar, Jayanagar and HAL are areas of choice for most IT professionals. Bangalore is currently the 3rd richest city in the world and has a growth rate of 35% in its wealth base4. Some of the drivers of this wealth are the increased number of rich Indians moving back to Bangalore from abroad the numerous high-value entrepreneurs that the city is incubating. Bangalore has never been as attractive a city as it is now and this makes it imperative to create adequate infrastructure in place to boost industrial growth, trade and internationalization of the city to be truly recognized as a global hub in the world However, there are some issues that face the metropolis of Bangalore which prevent it from becoming the truly global hub that it should be poised to be. The metropolitan area of Bangalore has been one of the most neglected areas in India for international travel connections. This is despite the fact that the area is harnessing a burgeoning technology prowess. Many business commentators have stated that international airport facilities for Bangalore are critical and essential in order for Bangalore to succeed in both commercial areas and in the tourist industry. Currently, the domestic airport managed by HAL (Hindustan Aeronautics Limited) doubles up as an international airport as well. However, it is not equipped to handle the surge in demand for air travel to and from Bangalore over international waters. Furthermore, the lack of an international airport is stifling the potential growth of Bangalore and serves as a huge lacuna in the existing infrastructure of the city.