2 has globalized, but areas like automobiles and textiles have also attracted substantial foreign investments with automobile majors like Volvo and Toyota setting their plants in the district. With the internationalization of trade, a massive increase in exports from Bangalore could be noticed, from Rs. 20.87 billion in 1993-94 to Rs. 88.69 billion in 1999-2000 and to Rs. 432.21 billion in 2004-05 (Narayana,2011), with a significant contribution from the Information and Communication Technology (ICT) sector. These metrics indicated a remarkable degree of globalization in Bangalore. The integration of Bangalore into the globalizing network of trade and capital showed enormous positives for all, the city, the people living there, and the government. The city noticed a remarkable boom in its economic growth. From 36.58 billion rupees in 1980-81 to 71.72 billion rupees in 1993-94 and to Rs.146.96 billion in 1999-2000, the Gross District Income (GDI) of Bangalore increased rapidly. As a result, Bangalore's share to India's national income rose from 17.46% in the early 90's to 29.21% at the beginning of the 21stcentury (Narayana, 2011). The rising economy of Bangalore made it one of the most significant factors contributing to the country’s rising Gross Domestic Product (GDP). The globalization of the economy with the world economy was also beneficial as it boosted the foreign capital inflow in the city. The Foreign Direct Investment (FDI) increased from 818.4 million rupees in 1993-94 to 38,606 million in 2000-01 (Narayana, 2011). This massive increase in investment attracted some of the best Indian and foreign IT firms to come in and set up their offices. The growth of IT industry proved out to be very advantageous as the prices of new technical products dropped rapidly and products became more innovative. As a result, the IT usage became more widespread as even the poor’s could afford them now. These firmsalsocreated employment for millions of young engineers from across the country and gave opportunities to people from all social classes to earn an income as these firms needed a variety of human labor, ranging from manufacturing jobs to high technology positions. The city now provided full-time employment to 2.1 million people, which had increased from 1.37 million in 1991. Out of 4100,000 IT employees in India in early 2001, it was estimated that 25% of it was located in Bangalore (NASSCOM, 2001). As the employability increased, the Per Capita Income that is the average earnings per person in a particular area increased from Rs.7,472 in 1980-81 to Rs.36,592 in 2004-05 in Bangalore (Narayana,2011). Higher-income per head made the people of Bangalore better off as their living standards improved, and people could now consume higher levels of goods and services. An increase in GDP per capita also helped the government finances to grow as people started paying more taxes, and the government spends on income support and unemployment benefits came down. The deficiency of budget was no more a problem and the government had more resources to invest. Demand for a smart work environment and large exclusive campuses were noticed. Thus, peripheralization was encouraged by the state government which led to the setup of Electronics City and Software Technology Park of India (STPI), 20 km south of Bangalore (Aranya, 2003; Madon, 1997). Development in infrastructure attracted a lot of companies to relocate to Bangalore from different parts of the country. With developing infrastructure, real estate and construction industry of Bangalore made a considerable profit out of this. This growth of

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Impact of Globalization on Bangalore City

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