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Q: hi-tech / bio-tech in India ( Answered 5 out of 5 stars,   1 Comment )
Subject: hi-tech / bio-tech in India
Category: Miscellaneous
Asked by: 161tat-ga
List Price: $55.00
Posted: 20 Jan 2004 13:25 PST
Expires: 19 Feb 2004 13:25 PST
Question ID: 298493
Please characterize the various cities in India in terms of their
hi-tech/biotech research/small business/growing businesses. 
Basically, I would love an answer like "City X, while big, is all old
business, and has no up-and-coming technology companies.  City Y is
growing bio-tech (URL's...), and City Z (e.g., Bangalore) is growing
in computer manufacturing and chip design.
     Sometimes, people tend to mis-characterize themselves in order to
appear bigger and more important.  If you see evidence of this (e.g.,
"We are the Silicon Valley & Research Triangle & MIT & Harvard of
India, all wrapped up in one!") then I would also be interested.  (Of
course, it might be true.)
     Note that I am not interested in cities which have no tech
sector, so if you see them, please just let me know their names and
then move on (i.e., no need to provide URL's).
     I am interested in whether a particular city's tech sector is
dominated by domestic companies, or if they are predominantly foreign
companies sending in their R&D (e.g., Sun / Intel / Motorola).  It
would be useful for me to know cities in which the tech sector is
largely native Indian and not dominated by foreign companies.
     Here's a hard one: If you are able to see which law firms tend to
provide service to these tech companies, that would be useful.  In
particular, do the companies in the individual cities tend to have
legal representation within their own cities, or do they all fly to
Delhi?  A relatively easy and satisfactory way to answer this question
would be to find a list of URL's of, say, the five big law firms in
Bangalore (if such exist).
     If anything unusual strikes you about the ethnic character of any
city about which you are reporting, that would also be interesting. 
(For example, City A has the largest Muslim population per capita of
any city in India.)  Don't spend too much time on this last request,
but it is of interest.
     If you can find most of what I ask for above, but not all, please
send your report anyway.
Thank you.

Request for Question Clarification by leader-ga on 20 Jan 2004 17:16 PST
Hello 161tat-ga:

It is a very interesting question but before proceeding a researcher
may need to clarify. There are many cities in India, how many cities
do you want to include in the answer? How comprehensive this report
should be? One can write on and on and on...........


Clarification of Question by 161tat-ga on 21 Jan 2004 00:49 PST
Fair point, leader.  I left it open because I am still at the point
where identifying the number/names of relevant cities is included in
the challenge.  In other words, it would not be useful for me to tell
you that I need exactly 12 cities (this isn't for a school report!). 
I would think that 6-12 cities is a reasonable number.  If for some
reason it seems that 6 itself is too high (i.e., there simply may not
be 6 cities with a real biotech/hi-tech sector), then you can tell me
that as part of your answer.

I have seen your reviews from >100 other satisfied customers, and am
willing to go with your judgement in defining a suitable answer to my
multi-part question.

Good luck,

Request for Question Clarification by leader-ga on 21 Jan 2004 07:45 PST
Thanks 161tat-ga:

I would try my best to provide you with a suitable answer. I was
curious to answer this question becasue I have extensively studied
South Asian economy and culture.

Subject: Re: hi-tech / bio-tech in India
Answered By: leader-ga on 22 Jan 2004 09:58 PST
Rated:5 out of 5 stars
Hello 161tat-ga:

It was such an interesting question to work on. I had to choose among
the top Indian cities for a variety of characters. In these types of
cases, I always depend on the rankings. I came up with my own list by
analyzing the different rankings and than assigning weights to each
ranking, thus coming out with the top cities.

First, the top Indian cities and than I will try to answer the other
inquiries at the end.


Here are the rankings that I selected and the weights assigned to each ranking:

Top Indian cities to do business in.
(10 points assigned to top ten cities)

1. Delhi 
2. Mumbai
3. Chandigarh
4. Coimbatore
5. Bangalore
6. Chennai
7. Ludhiana
8. Pune
9. Hyderabad
10. Kochi

Most IT & software friendly cities
Also see
(10 points assigned to the top cities)

Hyderabad (10)

10 hotspots in biotech - India
(10 points awarded to the areas of exceptional growth, 7.5 points
awarded to special destination and 5 points awarded to a good growth

Delhi (10 points each)

Kerala (7.5 points each)

Chandigarh (5 points each)

Best cities to live in India
(5 points awarded to each city)


I also gave additional points to the cities that had good transport
and communication structure. Transport and Communication are the two
most important aspects of any Industry.

The points were based on the rankings from the ?Best Indian cities to live in?. 
I added the rankings and divided it by two; the lower the number, the
better. Only those cities were included that had 20 or less points.

Top cities by Infrastructure ? transport & communications
Confirmed by
(5 points awarded to the cities with less than 10 pints and 3 points
awarded to the cities with less than 20 points)

Chandigarh (5 points each)

Kochi  (3 points each)

I also gave additional 3 points to the cities that were cited to be
one of the best cities to live in Asia in Business Week report.
Because, the report was in 2001 and only major Indian cities were
surveyed, I only awarded 3 points that I think were very appropriate.

Asia?s top Cities

Bangalore (3 points each)

I didn?t take the state rankings into account but it is an important
aspect, as the perception of investor is of great importance.

State Rankings


Bangalore 41
Delhi 38
Hyderabad 35
Mumbai 33
Chennai 30
Pune* 25 
Ahmedabad*  23
 Kochi 23
Chandigarh 20
Ludhiana 15
Calcutta 15
Coimbatore 15

Ahmedabad and Pune are selected above Kochi and Chandigarh because
their states have a better image in the eyes of future investors. (See
State Rankings).


(Please review
for additional info on software industry and
for additional info on bio tech industry.)
>>>> Some of the excerpts are taken from these studies.


It is the Silicon Valley of India. With over 250 high-tech companies
including the home grown giants like Wipro and Infosys, it is one of
the fastest growing cities in Asia. It has around 50 institutes of
higher studies and a literacy rate of 84 percent. Bangalore is a
typical story of rags to riches where it wasn?t even in the limelight
fifteen years ago. That is one of the major reasons that the
infrastructure of this huge city is still in the building process.
Many claim that the infrastructure cannot cope with the advances in
technology sectors. Whatever the case may be, Bangalore has been most
generous in providing business incentives to the investors and
contains one of the best accommodation facilities for the business
traveler. Out of 430 of the large software companies in India, 87 are
headquartered here. Bangalore is also known for its greenery and clean

Best Indian business cities ? 5th
Good infrastructure 
Most desirable for software companies ? 6th
Best Indian City to live in (Business Week) ? Ist
Best cities to live in India ? 6th
Bio technology hotspot ? Exceptional growth
Most suitable states for the investors ? 3rd

High Tech industry in Bangalore

?Though Bangalore has a range of ITES companies, it seems to be
stronger in the call/contact center, transcription, and back-office
operations services. However, perhaps because of its IT-orientation,
the city has also been able to attract a reasonable number of
companies into database management/development, data processing,
engineering, design and GIS services. Given this, the city should
still be able to attract other forms of ITES companies. The city's
infrastructure, especially power and telecom, are not keeping pace
with the IT expansion. While the government promises uninterrupted
power supply, the reality is far removed, and many ITES firms have to
maintain their own back-up systems. This cranks up costs. The city's
public transport infrastructure is very weak and this has resulted in
many people buying their own vehicle. There is a lack of a neutral
accent among the local populace which necessitates training for call
center services. While real estate is not a problem, property costs in
Bangalore are higher than those in Chennai.?

Bio Tech industry in Bangalore

?The nation?s largest bio-cluster is located in Bangalore, the Silicon
City. With nearly 80 companies and 8,000 biotechnology professionals,
the Garden City is one of the leaders in biotech. The city is the home
to the country?s largest biotech company, Biocon, several research
centers run by multinational companies and some of the country?s top
biotech research institutions.

The industry has been attracted to the city mainly due to the
availability of talented human resources. Over 32,000 students are
pursuing biotech related courses in over 400 colleges affiliated to
Bangalore University.?


The administrative capital of India is not only its political hub but
it is considered to be one of the best cities to invest in. Delhi has
an extensive communication network. Although, Delhi has the highest
per capita income (~ RS 38000) of any Indian city but it has its
shortcomings in the educational and transport sectors. With an ever
growing population, the educational and transportation facilities are
not enough for the growing community. Organized criminal gangs are
known to operate from outside the capital territory and threaten the
peace of the capital. Even after these shortfalls, Delhi is a heaven
when it comes to cleanliness (new city) and a good place to hang out
for a foreign businessman. Delhi is the leader in Bio Tech sector with
over 30 world class bio laboratories.

Best Indian business cities ? Ist
Excellent Infrastructure (New City)
Most desirable for software companies ? 8th
Best Indian City to live in (Business Week) ? 3rd
Bio technology hotspot ? Exceptional growth

High Tech industry in Delhi

?By far the leader in ITES in the country, NCR, unlike Bangalore,
hasn't been able to attract every type of ITES Company. For instance,
from the profile of the companies operating in the region, it seems to
be particularly strong in call/contact center, back-office operations,
website services, web applications and data processing, with call
/contact centers leading the way. This region too has the potential to
attract every kind of ITES firm, given some of the following
initiatives: A lot remains to be achieved on the physical
infrastructure front. Delhi's power supply needs immediate attention,
as it necessitates backup power systems at companies, thus increasing
costs. The public transport infrastructure in NCR is quite inadequate.
This adds to the companies' operational costs and thus is not a cost
effective destination. As in many other parts of the country, the lack
of a neutral accent may be a problem for some ITES firms, especially
those in the call center business.?

Bio Tech industry in Delhi

?New Delhi is also home to four other key government departments?the
Department of Science and Technology (DST), the Ministry of Health &
Family Welfare, the Ministry of Agriculture and the Ministry of
Environment and Forests?which are involved closely with the
development of biotechnology. Two other important government
agencies?the Council of Scientific and Industrial Research (CSIR)
which runs a chain of 39 laboratories out of which 12 are dominant
players in biotech and the Indian Council of Agricultural Research
(ICAR) with its 91 laboratories out of which at least 20 do top end
research in biotech, are also headquartered in the Capital.?


Hyderabad is also known as Cyberabad and many believe that it may take
the title of Silicon Valley from Bangalore in the future. Hyderabad is
India?s most wired city and is recently selected by the Indian Housing
and Development Authority to be the cleanest city in India. It has a
very large Muslim population base due to its pre-dominantly Muslim
heritage. Hyderabad is also known for its business schools. It has
been chosen by Microsoft to be its only software development center
outside of the US. Huge investments are pouring in the city from all
areas. The most noticeable is the Telecom industry where half a
million connections are to be laid by 2020. Moreover, its bio
technology sector is the fastest growing in India.

Best Indian business cities ? 9th
Most desirable for software companies ? 1st
Best cities to live in India ? 4th
Bio technology hotspot ? Exceptional growth rate
Most suitable states for the investors ? 2nd

High Tech industry in Hyderabad

?Though the city scores high on infrastructure and policy, it has been
able to attract only certain kinds of ITES companies. The current ITES
population in the city is favorable towards engineering, design, GIS,
and data processing / management / digitization and seems to lag in
the contact center and transcription businesses.

The Andhra Pradesh government is aggressively marketing Hyderabad as a
choice destination for ITES companies. So there needs to be a greater
emphasis on the infrastructure. The city's public transport, for one,
needs improvement. The state's ITES policy is perhaps one of the best
in the country and puts a lot of emphasis on quality manpower. The
government must now deliver on those intentions and support institutes
that train manpower suitable for ITES.?

Bio Tech industry in Hyderabad

?The city is leveraging its inherent strengths in the pharma and
thanks to the presence of some of the country?s leading biotechnology
research centers; Hyderabad is all set to become the Genome Valley of
the country. In fact, in the suburbs of Hyderabad, India?s first
exclusive Genome Valley, housing leading biotechnology companies has
come up.

Hyderabad has yet another feather in its cap. The nation?s first
exclusive biotech venture fund ( APIDC-VCL) with an initial corpus of
Rs 40 crore has been launched in May 2003 by the Andhra Pradesh
Industrial Development Corporation.?

Mumbai (Bombay)

Mumbai is as diverse as India itself. It is the cultural and business
capital of India. Almost, half of the foreign trade is carried out in
Mumbai which is also the home of the largest stock exchanges in Asia.
As the capital of the state of Maharashtra it has always seen
extensive developments in its infrastructure and economy.  With over
100 institutes of higher education and famous poverty slumps, foreign
investors can always find educated workforce as well as dirt cheap
labor. According to the survey done by MDIC, it will remain as the
future hotspot for the foreign investors. It should also be noticed
that Mumbai is the birthplace of criminal gangs and the crime rate has
always been high. Long gone under hiding, the ghost of Dawud Ibrahim
still haunts the streets.

Best Indian business cities ? 2nd
Most desirable for software companies ? 7th
Best Indian City to live in (Business Week) ? 2nd
Best cities to live in India ? 5th
Bio technology hotspot ?Good growth rate
Most suitable states for the investors ? Ist

High Tech industry in Mumbai

?Next only to the Delhi-Gurgaon-Noida belt as the preferred choice of
destination for ITES firms, Mumbai is strong in call / contact
centers, back-office operations, and data processing / management.
However, it seems to be quite weak in transcription services and
network management / maintenance.

Mumbai is plagued by high real estate rates, too. Even a depressed
real estate market has failed to bring down the prices on par with the
other metros. Though Mumbai has adequate trained manpower, the cost is
among the highest in the country. The public transport infrastructure
while best in the country is offset by the poor quality of the roads.?

Bio Tech industry in Mumbai

?The state?s history of biotechnology engagement goes back to the 19th
century when The Haffkine Institute was set up in 1899 in Mumbai. In
2003, the state has 4,100 registered pharmaceutical manufacturers out
of the total of 20,053 in India and contributes about 40 percent of
the sector?s total turn over. Many international companies have shown
their preference to the state. The list includes GlaxoSmithKline,
Novartis, Pfizer, Johnson & Johnson, Abbott, Aventis, Knoll. India?s
top biotech venture capital company, ICICI Ventures is also based in

Chennai (Madras)

Chennai has been known for its highly educated professionals and its
financial industry. Most of the 51 percent of the students in India
who graduate in electronics and computer science complete their
education in this city. According to a survey by National Association
of Software and Service Companies, Chennai is the most preferred
destination for Indian tech businessmen. They like Chennai due to its
crime free and educational environment that is suitable for raising a
family. The software industry is at the heart of its economy and is
growing at a fast rate due to the availability of professionals,
training facilities and low cost of business development.

Best Indian business cities ? 6th
Most desirable for software companies ? 3rd
Bio technology hotspot ?Good growth rate
Most suitable states for the investors ? 1st

High Tech industry in Chennai

 ?Chennai, despite a relatively sturdy infrastructure, hasn't been
able to attract as many ITES firms as Bangalore. The profile of the
companies operating in the city indicates that the city is strong in
call / contact center, content management / development & animation,
data processing / management / digitization and Web site services /
Web applications.

The city loses out to the likes of Delhi and Bangalore in the
'perception game.' It is perceived to be conservative and lacking in
infrastructure. Accordingly, the study reveals that it would help if
the government found a way to highlight the success stories of
companies based in Chennai.?

Bio Tech industry in Chennai

?Chennai has been an early adopter of biotechnology. Chennai?s biotech
showpiece, the Rs 62.5 crore Ticel Bio Park Limited, in collaboration
with Cornell University, was inaugurated last April. Its wet labs are
equipped with the latest equipment to facilitate top quality research
in fermentation & microbiology, molecular biology, plant tissue
culture, downstream processing and analysis. Besides the park will
also feature - Customized Lab Facility, Greenhouse Facility and
Training Center. The Park is expected to become operational by January


Pune is mostly overlooked because of its close proximity to Mumbai. In
fact the Pune-Bombay industrial belt is the busiest industrial belt in
the country. Pune has its own software technology park and seeks its
professionals from some of the country?s elite private institutions.
The University of Pune has more than 70 research institutions by

Best Indian business cities ? 8th
Most desirable for software companies ? 9th
Best cities to live in India ? 6th
Bio technology hotspot ? Exceptional growth
Most suitable states for the investors ? 3rd

High Tech industry in Pune

?Though Pune has not managed to attract many ITES companies, those
that are there seem to be evenly distributed between the call/contact
center, data processing/ management / digitization, and back-office
But the other services are conspicuous by their absence.
Infrastructure tops the list of concerns. A reliable and continuous
power supply needs to be provided. Currently, ITES companies need to
have their own back-up power systems to supplement the utility's

A rickety public transport system forces firms to spend on
transportation. Despite the government's sops for ITES units on the
FSI norms, real estate rates in Pune are not very low.?

Bio Tech industry in Pune

?In 1954, Pune created a landmark in biotechnology by becoming the
first Indian city to have a company producing penicillin, the
Hindustan Antibiotics Ltd. The plant was then the largest producer of
penicillin in Asia. The vaccines produced by Serum Institute of India
Ltd, the foremost and the largest manufacturer of vaccines, sera and
biologicals in India, reach every one out of four children in the
world. The Venkateshwara Hatcheries group is the largest producer of
poultry vaccines in India. Apart from these, Pune has also housed
firms like Alfa Laval India, Praj Industries, SciNova Informatics and
Persistent Systems which are major suppliers to the biotechnology


Ahmedabad is the capital of the state of Gujarat. For several decades
it has been known as the Manchester of England due to its textile
industry but now the government is doing its best to portray Ahmedabad
as a technology hub. Ahmedabad has one of the finest institutions of
higher learning in India with centers like Indian Institute of
Management and Space Application Center that are located in the newly
designed 300 hectare Science Park. It is known to have an elite
educational system that competes directly with innumerable educated
Gujratis living abroad. Recent violence in the state of Gujarat has
not obstructed new investment but it has concerned a very large Muslim

Good infrastructure 
Most desirable for software companies ? 5th
Best cities to live in India ? 10th
Bio technology hotspot ?Good growth rate

High Tech industry in Ahmedabad

?According to the profile of the ITES companies operating in the city,
Ahmedabad is strong in Web site services and Web applications, call /
contact centers and back-office operations.
In other services, such as database management /development, data
processing / management and network management/remote maintenance, the
city is relatively weak, though it has the telecom infrastructure to
support these services. This shows that the manpower available in the
city is best suited for call / contact centers and back-office

In order to attract the entire range of ITES companies, the city needs
to address the recent communal riots that have raised security concern
for businesses. The public transport and the cost of power which is
one of the highest in the country also reduces the competitiveness of
products and services coming out of the city.

Another problem is that despite good educational infrastructure, many
students migrate to Mumbai each year in search of better prospects.
This drain needs to be stanched to retain local talent.?

Bio Tech industry in Ahmedabad

?The state government has identified healthcare and pharmaceuticals,
agricultural biotechnology, industrial enzymes, bioinformatics,
contract research, marine and environmental biotechnology as the
thrust areas in biotechnology.

Arvind Kushwah, research executive, Indus Biotheraputics, a leading
company in Ahmedabad said, "Looking at the opportunity and available
resources in the state we see good growth for biotechnology. Although
the industry in the state is still in a nascent stage, it will pick up
as many institutions are offering biotechnology courses. The
government is also considering setting up of Biotech Park."

Other notable cities


Other questions answered

IT, Bio tech and software markets have so deeply penetrated the Indian
economy that no major city has a dominant local market. Numerous
technology parks have been established all around India.

Other industries are still very much influenced by the local
companies. Prime examples are Textile industry in Ahmedabad and Film
industry in Mumbai.

As for the last part of your question, you may want to consult the
Legal500 which is the largest and most
comprehensive directory of law firms on the internet. You can also
find the top law companies in each of the city that I listed as my top
picks. They have very extensive information. May be you will get your
answer. Also, it has this to say:

?Most of the major corporations and banks in India have impressive
in-house legal departments, which will rival in size all but the
largest independent law firms. In-house lawyers can remain members of
the Bar as well as represent their employer in court. Traditionally,
external counsel was used only for the most sizeable cross-border
transactions and litigation. Now, as the independent firms grow in
experience and size, they are used increasingly for standard
regulatory matters. As competition between the firms increases,
in-house counsel are also spreading their instructions between a
variety of firms. Senior in-house lawyers often return to private
practice, and are regularly snapped up by the leading commercial law
firms. Likewise, associates in law firms will often get placements
within in-house departments, in the hope of cementing relationships
between firm and client.?

Important Links

India?s Top Tech Parks

Crime in India

Best website for Indian Stats

India?s Bio-tech sector

Best Infrastructure in country (Punjab)

A few useful search strategies

?< High tech cities India >?

?< Ranking of Indian cities >?

?< Technology AND "Indian cities" >?

I hope this will help. Please let me know if you are not satisfied. I
will be obliged to serve you.


Request for Answer Clarification by 161tat-ga on 23 Jan 2004 06:50 PST
One quick question before I give your answer the EXCELLENT rating it
deserves.  (Don't spend more than 2 minutes on it, please.)
Based on your research (i.e., don't do more research), if you had to
put a percentage estimate in (a) bio-tech and (b) high-tech, what
would be your guess of the ratio of companies in India that do their
own R&D, compared to those that are service providers for others
(either, for example, manufacturing medicines, or being call centers /
web site managers).  If you want to add to your guess the name of one
or two representative cities, I wouldn't object.


Clarification of Answer by leader-ga on 23 Jan 2004 09:41 PST
Hello 161tat-ga:

Thanks very much for your comments. 

As far as I know only the very large companies in India have their own
R&D departments. By mid 2003, around 90 of the world leading companies
had established their R&D departments in India. Google did that, too.

It is difficult for many LOCAL INDIAN developing companies to set
their own R&D departments becasue of the high costs of evaluating data
and not becasue of manpower. Foriegn companies are well equiped to do
this becasue of thier experience in data collection methods.

Outsourcing R&D will be the choice for many Indian and a few foriegn
companies in the future. One of the fact is that the central
government in India is a little reluctant to spend thier money on R&D
becasue they have many other issues.

If I had to estimate the ratio of medium to large of companies that do
their own R&D and those that outsource, than I would say 10-90

Hyderabad and Bangalore are known for R&D but the state of Maharashtra
is trying hard to make Bombay and Pune the R&D hub.

I hope this helps. Please clarify, if you have futher questions.

161tat-ga rated this answer:5 out of 5 stars and gave an additional tip of: $5.00
EXCELLENT answer.  Everything I asked for, and more.  I was initially
concerned about bidding so high ($55), but I see now that it was worth
it.  Thanks, leader.

Subject: Re: hi-tech / bio-tech in India
From: leader-ga on 24 Jan 2004 14:32 PST
Thank you for a five star rating and a tip.


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