City’s IT sector still hungry for mega investments
Bengaluru will continue to be a growth story in the IT sector, and the Global Investors Meet 2012 will see one of the biggest investments in the IT sector, expected to be in the region of `10,000-crore, M.N. Vidyashankar, Commerce and Industries Department, Principal Secretary told Deccan Chronicle.
“IT is going to grow in Bengaluru and the proof of this is one of the biggest investments, in Asia will be made in the GIM 2012. One single company, one of the biggest in the world, will invest Rs 10,000 crore in a project,” he said.
Top Indian IT companies like Infosys, TCS and Wipro, and ‘big tickets’ companies like Ascendas will be participating in the global meet. Karnataka is considered the computer capital of the country and a centre of high-tech industries, especially software. Bengaluru is popularly known as India's Silicon Valley, and most large software companies have set up shop here, operating out of state-of-the-art facilities.
India's IT industry, with Bengaluru firms forming the largest component, is now worth an annual $100 billion and growing at 14 per cent a year. However, policy stagnation and political instability may be taking their toll. With Infosys setting up campuses in Pune and Chandigarh, and BT major Biocon setting up a manufacturing unit in Visakhapathnam, there is speculation that companies may be moving out of the state.
“Yes, there have been cases of companies opening shop in other states. However, that has been purely because of logistical reasons and in no way will affect the growth story of Bengaluru,” Mr Vidyashankar says. IT exports this year have touched Rs 1.35 crore, and in GIM 2012, IT companies with an investment potential of about Rs 82,000 crore will be participating. “There is huge potential available in Bengaluru for the growth of IT companies. The existing MNCs will grow provided political conditions are favourable. This year, IT growth is expected to be around 10 to 12 per cent. Even the global investments have been higher than the GDP,” said Infosys co-chairman Kris Gopalakrishnan.
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