Wednesday, February 5, 2025

‘A New Beginning’: Bengaluru Gets US Consulate, Tech Honchos Welcome Move

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IT experts believe the consulate in Bengaluru will streamline travel, assist with visa processing, and strengthen business and cultural ties through events, visits, and exchanges.

Karnataka Deputy CM DK Shivakumar, US Ambassador to India, Eric Garcetti and EAM S Jaishankar at the unveiling of US consulate in Bengaluru. (Image: News18)

Karnataka Deputy CM DK Shivakumar, US Ambassador to India, Eric Garcetti and EAM S Jaishankar at the unveiling of US consulate in Bengaluru. (Image: News18)

For Bengalureans, the announcement of the ‘site-dedication ceremony’ for the US consulate in the Silicon City is as sweet as the Mysore Pak presented to External Affairs Minister S Jaishankar by Bengaluru South MP Tejasvi Surya. Leaders in the IT and ITES sectors have welcomed this development, seeing it as an opportunity to facilitate smoother operations, strengthen ties with the US, boost trade and business relations, and foster student exchanges that will benefit both countries. IT experts believe the consulate will streamline travel, assist with visa processing, and strengthen business and cultural ties through events, visits, and exchanges.

The ceremony was held on January 17, during which a temporary office was set up at the JW Marriott.

At the opening of US Consulate in Bengaluru, External Affairs Minister Dr S Jaishankar said, “Today it is within our grasp, within the realm of possibility, that we realise the potential of India-US relations. It is important that Bengaluru too, realises its potential in the relationship.”

“This is the 12th foreign consulate in the city…As a country, today we are encouraging the opening of more embassies in the capital. It’s part of our deeper engagement with the world. But along with that, we are also encouraging more embassies to open consulates…I hope that there will be more occasions where more countries will open more consulates in Bengaluru. It would serve India’s interests, Karnataka’s interests and Bengaluru’s interests better,” he added.

US Ambassador to India, Eric Garcetti said, “It’s a great day. It’s a great day for Karnataka. It’s a great day for the United States and India. This is a town that lives and breathes the US-India relationship…It is a new beginning…We are stronger and we are together. America has benefited from Indian workers. We benefited from Indian visitors. We have Indian Americans who are now running universities. Indian Americans are running for the most important jobs. So to me, the more we can continue this and build on that, the better. That is my message for the future.”

Bengaluru’s GDP, according to the Bengaluru Innovation Report (2019) published jointly by the then government of Karnataka and Startup Karnataka, has been projected at 8.5 per cent till 2035. Amongst the world’s 780 major cities, 17 out of the 20 fastest-growing cities between 2019 and 2035 will be Indian, the study shows, with Bengaluru, Hyderabad, and Chennai among the top performers. With 37 per cent of the city’s population between the ages of 15 and 35 years, it is also among the most “millennial-friendly cities” in India and ranked 18th in the Asia-Pacific region.

While Bengaluru was always considered an ‘obvious choice’ for the US consulate, the existing consulates in Mumbai, Chennai, and Hyderabad have been overwhelmed. This move is expected to ease the pressure, according to industry experts.

Bengaluru is also home to 33 per cent of the tech talent in the country, with over 2 million IT professionals, of whom 70 per cent are engineers below the age of 35. “44 per cent of migrants moving to Bengaluru have tech skills, as opposed to 12 per cent for Delhi and 11 per cent for Mumbai,” said the report.

In January 2024, during a private book event, S Jaishankar recalled a lighthearted conversation with Tejasvi Surya, who regularly raised the issue of the US consulate during their meetings at Parliament. Jaishankar remarked that Bengaluru, being a global city, was a natural choice for the consulate.

“I had even urged him (Surya) to meet the US Ambassador (Kenneth Juster) in March 2020 to make the request, which he did. Now, I’m pleased that we’ve decided to open a US consulate in Bengaluru during Prime Minister Modi’s visit to the USA last year,” Jaishankar said. Nearly a year later, the consulate is set to be established in the city. Sources from Surya’s office have confirmed that Jaishankar is expected to attend the site-dedication ceremony.

52 per cent of founders in Bengaluru are 30 years or older, with an average age of these startup founders being 32 years in the country. It also states that Bengaluru’s unicorns have led to the creation of more than 2,100 entrepreneurs across India, of which 1,100 started ventures in Bengaluru and then expanded across the country and abroad. From deep tech and IP development, Bengaluru has a unique cluster of IT, biotechnology, and interestingly, a large number of expat founders who have invested in the new industrial economy of the city.

Ease of Doing International Business

Kris Gopalkrishnan, Chairman of Axilor Ventures and former Vice-Chairman of Infosys, emphasised that the consulate will significantly benefit Bengaluru, a truly global city, and improve the ease of doing international business. “Consulates facilitate trade and investment,” Gopalkrishnan said. “Bengaluru is the startup capital of the country, and on average, the industry is attracting about 10 billion dollars in investments. The city also has the largest number of GCCs and the largest number of IT services professionals. These are all global employees and global businesses,” he said. India is considered the preferred Global Capabilities Centre destination, with 25-30 per cent of Fortune 500 companies having established their GCCs in the country.

Gopalkrishnan added that if one looks at the passenger data, especially international travel, Bengaluru has truly become a hub for international travellers, not the tourist type, but those interested in setting up businesses. This would be of convenience to them as well, he added.

Reinforces Bengaluru as a Global Hub

Mohandas Pai, Chairman of Aarin Capital and former CFO of Infosys, said this move not only addresses logistical challenges but also reinforces Bengaluru’s position as a global hub for technology professionals, surpassing even California, which has 1.5 million tech workers.

Bengaluru, with 2.5 million technology professionals and over 60,000 IT companies, plays a pivotal role in India’s tech landscape. According to income tax data, 60 per cent of India’s export of services is directed to the United States. This means an estimated 1.5 million people in Bengaluru provide services to the US, many of whom need to travel frequently. The establishment of a US consulate in Bengaluru will simplify the visa process, allowing these professionals to apply and interact locally, saving both time and costs, said Pai.

Pai said, “Bengaluru is home to over 200,000 individuals who are either American citizens, green card holders, or children of tech professionals born in the US. For them, the consulate will provide much-needed convenience and support. Additionally, with a steady influx of Americans and representatives from American companies visiting Bengaluru, the consulate will foster closer ties between the two nations.”

‘Great Stress Reliever’

Ravi Gururaj, former chairman of the Nasscom Product Council and now CEO of Leapmile Robotics, a Bengaluru-based company developing innovative smart warehousing platforms, highlights the transformative impact of establishing a US consulate in Bengaluru. He emphasises that this development will immediately enhance efficiency and convenience for US citizens who are resident in or visitors to Karnataka by providing quick access to essential services and cater to any special needs that may arise during travel. This is a much-needed and long sought after development for the city.

Over time, as visa services are introduced at the Bengaluru consulate, Indian residents in the US or those planning travel to the United States will also benefit. Gururaj believes that the presence of a consulate will help strengthen business relations, particularly in the tech sector, and foster cultural exchanges and collaborations.

“Currently, individuals are often required to travel to other cities like Chennai, Hyderabad, or Delhi for consular services. This not only consumes time but also presents logistical challenges and unnecessary stress. The Bengaluru consulate will alleviate much of this burden,” he told News18.

The US Department of State, which manages consulates, will also benefit from reduction in load on the existing consular facilities in other cities, resulting in fewer delays and improved operational efficiency. “Having a consulate in Bengaluru will significantly ease these challenges,” Gururaj concluded.

Will Encourage Students to Consider More Opportunities in the US

Nisha Holla, Research Fellow at 3one4 Capital, who was also involved in the Bengaluru Innovation Report, 2019, said that Bengaluru and the US have a multi-decadal relationship, pushing the frontiers of technology and innovation.

“The IT industry and the startup ecosystem centered in Bengaluru have been instrumental in this. The US Consulate opening in Bengaluru opens yet another corridor in cementing this relationship. About 3.3 lakh Indian students are studying in the US. At least 15-20 per cent are from Bengaluru, and this will certainly help Bengaluru play a central role in streamlining the visa process for exchange programmes between students and workers.”

“This development could also encourage more students and professionals to consider opportunities in the US with this improved accessibility and convenience,” she said.

Bengaluru contributes the largest number of workers abroad, particularly in the tech industry. Additionally, the city boasts a vast ecosystem of universities and schools, with Bengaluru Urban District ranking among the top three in the country for the concentration of educational institutions. Many students from this region pursue higher education in the US, contributing to India’s substantial expenditure on international studies.

‘It Was High Time Bengaluru Had a US Consulate’

Neeti Sharma, CEO of Teamlease Digital, said it was high time the city got the consulate, considering how Bengaluru has been growing by leaps and bounds.

From an optics perspective, Sharma points out two key factors. First, Bengaluru’s status as both the tech and startup capital of India has elevated its global importance. Second, the consulate is expected to foster increased trade between Bengaluru and the US, acting as a key catalyst and facilitator for growth.

Sharma highlighted the significance of both cloud and physical data centers being established by companies operating in both nations. These developments present immense opportunities and will make business operations more seamless. Over time, as trade grows, the city’s economic landscape will benefit greatly, she noted.

Education also plays a crucial role, with numerous students heading to the US for higher studies. “With the consulate in Bengaluru, there will be enhanced support for business collaborations. Technology today is a global endeavour. There are many AI first companies that have presence both in the US and Bangalore. Additionally, sectors like cybersecurity, space tech, AI, and data centers are seeing strong collaborations,” Sharma added.

In the short term, she noted, the consulate will simplify visa access for the tech community, the student community, and anyone looking to travel to the US.

Hari Menon, CEO and Co-Founder of BigBasket a popular homegrown startup, also echoed the same sentiment about Bengaluru’s large chunk of population travelling to the US. “Be it for work (H1B), be it to study (Student Visa), or be it for parents regularly visiting the US to spend time with their children (B1, B2).”

Having a US consulate in Bengaluru will immensely help. It will save travel time for Bengalureans and also reduce pressure on consulates in Chennai and Hyderabad, he said.

Serial entrepreneur and Promoter for brands like Big basket, Bluestone, HomeLane and Portea Medical K Ganesh also emphasised – “It’s better late than never.”

Bangalore’s selection as the location for a US consulate is seen as a long-overdue decision, given its status as a global hub for technology and business. Historically, metro cities include —Delhi, Mumbai, Kolkata, and Chennai—then Bangalore grew into a major player and became a metro city. Over the years, the city’s importance has grown, particularly in terms of travel to the U.S. for business and education.

“The flights from Bangalore to the US are often more expensive than from Chennai, and there have been times I’ve travelled to Chennai just to save on costs. The high price of tickets itself is an indication of the demand that exists. So this is fixing that.” This, coupled with the significant number of multinational companies operating out of Bangalore, made the absence of a consulate surprising. As one puts it, “It’s better late than never.”

Politics over the consulate

The consulate has also seen a heated political debate between the Congress and BJP in Karnataka, both fiercely claiming credit, each seeking to position themselves as the driving force behind the long-awaited development.

Bengaluru South MP Tejasvi Surya, who met External Affairs Minister gifting him Mysore Pak, a local sweet, while posting a video, credited Prime Minister Narendra Modi and Jaishankar for setting up the consulate. He called it a win for Bengaluru’s IT sector, students, and businesses, claiming it would boost trade, ease travel, and streamline visa processes.

“It’s official Bengaluru….it’s been been made possible only and only because of PM Narendra Modi and External Affairs Minister S. Jaishankar’s efforts. What better way to thank our EAM than with our own Mysuru Pak!” Surya’s video caption said.

Karnataka IT-BT Minister Priyank Kharge swiftly countered it dismissing the BJP’s claims. He also pointed out that visa services would not be immediate, and took a jab at the BJP, suggesting the delay was due to Gujarat being prioritised.

BJP MPs should stop misleading people. While the Consulate will be opened soon, it will be only to service Americans and will take a while before they start processing visas from here, he said.

Bengaluru has always been the natural choice for a US consulate, given its thriving ecosystem for investments and trade that mutually benefits the US and India, he stated.

News india ‘A New Beginning’: Bengaluru Gets US Consulate, Tech Honchos Welcome Move


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