New Delhi (Agency): Bengaluru, often cited as the “Silicon Valley of India,” is a city of contrasts. On one hand, it is celebrated as the best place to live in the country, boasting a strong IT sector that fuels economic growth. On the other hand, its residents are grappling with skyrocketing prices on essentials, from food to housing and healthcare.
Recent assembly election results in Karnataka demonstrated that inflation was a key issue for voters. The Congress party’s policies, initially dismissed as “freebies” by the rival BJP, resonated with the public and led to a landslide victory. Focusing on issues like inflation allowed Congress and Chief Minister Siddaramaiah to tap into the everyday struggles of the people.
However, experts point out that the higher Cost of Living Index (CLI) also indicates a higher standard of living. Bhavesh Kothari, Founder and CEO of Property First, stated, “The cost of living in Karnataka is 1.29 times more expensive compared to the rest of India. But this higher CLI has a positive bearing, as the state is ranked the best place to live in India.”
Bengaluru’s strong job market, offering high salaries and ample opportunities, has led to increasing demand for luxury properties. This has, in turn, raised the overall cost of living. Kothari believes that while inflation is concerning, the city’s growth trajectory will eventually balance out the rising costs with an improved quality of life.
Post-pandemic, the focus on health insurance has led to an increase in annual premiums by Rs 4,000 to Rs 6,000. Staple food items like “tur dal” have seen a sharp rise in prices, going from Rs 70-90 per kg to Rs 120-140 per kg. In shopping complexes, the price is even steeper, fixed at Rs 180 to Rs 200.
The Congress government has implemented relief measures like free electricity, free travel for women, and free rice. These schemes have proven to be a boon for lower-income groups. Plans are also underway to launch an unemployment allowance for youth and a monthly allowance for women heads of families.
Officials have noted that even the upper-middle-class families are taking advantage of the free power scheme to cut down their monthly bills. Yet, the escalating prices of LPG gas cylinders remain a significant worry for families. From Rs 940 in October 2022, the price soared to Rs 1,105 by March 2023, affecting even the cost of eating out.
While schemes like the Pradhan Mantri Ujjwala Yojna (PMUY) have expanded access to LPG for disadvantaged rural women, the Mukhyamanthri Anila Bhagya (MMABY) Scheme aims to offer similar benefits but has faced objections from the Central government.
While Bengaluru may top the charts in terms of livability and offer vast opportunities for growth, the harsh reality of inflation continues to be a challenge for its residents, cutting across social strata. It is a city balancing its economic dynamism with the urgent need to address the mounting cost of living.
