Staggering white-collar success of Bengaluru has left a non-urban world behind, says Bagchi

Bengaluru’s ascent as a global hub for white‑collar talent has been meteoric, but the city’s triumphs have cast a long shadow over the non‑urban segments of Karnataka’s economy, a concern voiced by Anupam Bagchi, the newly appointed chairman of the state’s Skill Vision Group. Bagchi, a veteran of the technology sector and a former senior executive at a multinational software firm, warned that while the state’s premier institutions such as the Indian Institutes of Technology (IITs) have surged ahead since the 1950s, a parallel decline has been evident in the country’s Industrial Training Institutes (ITIs). He argued that the two pathways must not only coexist but also operate in a complementary, “stereophonic” manner, each reinforcing the other’s growth rather than diverging into a widening gulf.The contrast Baghi highlighted is stark..

Over the past three decades, Bengaluru’s IT parks, startup incubators and multinational campuses have attracted talent from across the sub‑continent, creating a pipeline of engineers, data scientists and product managers whose salaries often dwarf those of traditional blue‑collar workers. Meanwhile, enrolment in ITIs – institutions that provide vocational training in trades such as electrical work, machining, and automotive repair – has slipped, with several centres reporting vacancy rates above 30 percent. The decline is not merely numerical; it signals a structural shift in the state’s labour market, one that could leave millions of workers without the skills needed for emerging sectors.Bagchi’s remarks come at a pivotal moment for Karnataka’s policy agenda..

The state government, under Chief Minister Basavaraj Bommai, has pledged to invest ₹12,000 crore in skill development over the next five years, aiming to upskill 1.5 million youth. Yet, critics argue that the bulk of the funding is earmarked for advanced digital training, with comparatively modest allocations for traditional trades. “If we keep channeling resources only to the high‑tech corridor, we risk creating a bifurcated economy where a minority enjoys prosperity while the majority lags behind,” Baghi warned during a press conference on Tuesday.Data from the Karnataka Skill Development Corporation corroborates his concerns..

Between 2015 and 2022, the number of students graduating from IIT‑affiliated programmes in Bengaluru rose by 78 per cent, while ITI completions fell by 22 per cent. The wage gap between graduates of the two streams widened from a factor of three in 2010 to nearly five in 2023. Moreover, a recent survey by the Centre for Policy Research found that 41 per cent of ITI alumni in Karnataka were either underemployed or unemployed, compared with just 9 per cent of IIT graduates.The root of the disparity, according to Baghi, lies in perception as much as in policy..

“There is a cultural premium attached to a university degree, especially from an IIT, that overshadows the dignity and necessity of skilled trades,” he said. This mindset, he argued, discourages young people from pursuing vocational pathways even when those routes offer stable employment prospects in sectors like renewable energy, infrastructure and advanced manufacturing – areas that the state aims to expand under its ‘Make in Karnataka’ initiative.To address the imbalance, Baghi outlined a three‑pronged strategy for the Skill Vision Group. First, he proposes a “dual‑track” curriculum that integrates basic engineering concepts into ITI programmes, thereby elevating their academic rigour without diluting their practical focus..

Second, he calls for stronger industry partnerships, urging firms such as Tata Motors, Bosch and Hindustan Aeronautics to adopt ITI graduates through apprenticeship schemes, similar to the models successful in German and Japanese economies. Finally, he stresses the need for a public awareness campaign that reframes vocational training as a viable, respected career choice, leveraging media, community leaders and school counsellors.Industry response to Baghi’s proposals has been cautiously optimistic. A senior manager at Infosys, who requested anonymity, noted that the company’s own hiring data shows a growing demand for technicians who can maintain data‑center hardware, robotic assembly lines and IoT devices – roles that traditionally fall outside the purview of university‑trained engineers..

“If we can bridge the skill gap at the ITI level, we’ll have a more resilient supply chain for our operations,” he said.However, not all stakeholders are convinced that the proposed measures will be sufficient. Representatives from the All India Federation of Trade Unions warned that without robust wage guarantees and social security benefits, attracting talent to vocational tracks will remain an uphill battle. They also highlighted the risk of “skill mismatch” if curricula are not regularly updated to reflect rapid technological change..

“We need a dynamic framework that can adapt to the evolving demands of Industry 4.0, not a static set of courses that become obsolete within a few years,” the union’s spokesperson asserted.The debate has also drawn attention to regional disparities within Karnataka. While Bengaluru enjoys world‑class infrastructure and a concentration of multinational firms, smaller towns such as Hubli‑Dharwad, Mysuru and Bellary struggle with inadequate training facilities and limited access to industry mentors. Baghi acknowledged these gaps, urging the state to deploy mobile training units and digital platforms that can reach remote learners..

“Technology can be the great equaliser,” he said, “if we use it to bring quality instruction to every corner of Karnataka.”As the Skill Vision Group prepares its detailed roadmap, the government is slated to release a white paper later this month outlining funding mechanisms, regulatory reforms and monitoring metrics. The document is expected to detail incentives for private sector participation, including tax rebates for companies that hire a set percentage of ITI graduates, and the establishment of a state‑level accreditation board to ensure uniform standards across institutions.Baghi’s call for a “stereophonic” approach – a harmonious duality where high‑tech and vocational streams amplify each other – echoes a broader national discourse on inclusive growth. While Bengaluru’s skyline continues to glitter with glass towers and venture‑capital inflows, the challenge remains to ensure that the city’s success does not become an isolated phenomenon, but rather a catalyst for a balanced, skilled workforce that can sustain Karnataka’s economic ambitions across urban and rural landscapes alike..