Bangalore City Review

BANGALORE HIGHLIGHTS

Bangalore hosts a highly productive business services sector, but the average labour productivity is very low by global standards. Only 5% of employees in the city worked in business services in 2016, the lowest share among India's metropoles. The average productivity (USD9,300, 2.3 times the national average) in Bangalore was, however, only 19% of that in Seoul, 77% of that in Delhi, and 88% of that in Mumbai in 2016.

Higher household income than most cities in India

Household income in Bangalore (USD14,900 in 2016) is below that of Mumbai (USD16,900) and Delhi (USD22,000), due to a relatively smaller household size and lower labour productivity. However, compared with the rest of the country, Bangalore still enjoys 103% higher disposable income per household.

Greater consumer expenditure

In 2016, total consumer expenditure in Bangalore reached USD22 billion, which was around half that of Mumbai (USD42 billion, the largest urban market in India) and only 15% higher than in Kolkata (USD19 billion). Spending per household (excluding transport and housing) in Bangalore was 66% higher than in other regions of India in 2016.

One of the most affordable cities among metropoles in the BRIC region in terms of transport and housing expenses  

Expenditure per household on transport and housing in the city (USD2,900) exceeded the level elsewhere in India by 106% in 2016. Compared with other metropoles in India, this is 40% cheaper than in Delhi but 82% more expensive than in Kolkata. Among metropoles in the BRIC region, transport and housing were more affordable (apart from Kolkata) only in Novosibirsk, Russia.