SM Krishna: Former CM who transformed Bengaluru from pensioners' paradise to a global IT hub

SM Krishna

Somanahalli Mallaiah Krishna (SM Krishna), Karnataka’s Chief Minister from 1999 to 2004, is widely credited with transforming Bengaluru from a ‘pensioners’ paradise’ into India’s Silicon Valley. The 92-year-old leader passed away at his residence on December 10.

Krishna's leadership fostered a tech and biotech boom in Bengaluru, positioning the city as a global technology hub.

The foundation for Bengaluru’s rise began with public sector undertakings like HAL, ITI, and BEL. However, the city’s IT evolution began in 1984 when Texas Instruments established an R&D facility, followed by the arrival of global tech giants like Intel and IBM. The Y2K boom further accelerated the IT sector’s growth, with companies such as Infosys and Wipro leading the charge.

Also, read: Former Karnataka chief minister S M Krishna dies aged 92

Krishna’s government played a crucial role in Bengaluru’s transformation by introducing labour reforms, streamlining investment processes, and creating a favourable environment for IT businesses. Policies that supported 24/7 operations and night shifts for women helped fuel the industry's growth. He believed that e-governance was a prerequisite for industrial reforms in the state.

In fact, Krishna, popularly known as SMK, created two email accounts (smk@bangaloreit.com and cmkrishna@bangaloreit.com) and facilitated a platform for people to share their concerns online. He personally responded to many emails, dedicating at least 30 minutes daily when he was the CM.

Krishna’s tenure also saw Bengaluru attract major tech companies such as IBM, Cisco, Intel, and Amazon, while local firms like Infosys and Wipro flourished. Bengaluru’s GDP grew at an annual rate of 20.7 percent during his tenure, exceeding the national average of 7.9 percent.

During Krishna’s tenure, Bengaluru evolved into a global IT hub, attracting international tech giants while supporting local start-ups. His policies laid the groundwork for Bengaluru’s start-up ecosystem, which today is home to unicorns like Flipkart, Ola, and Swiggy.

Kiran Mazumdar-Shaw, founder of Biocon Limited told Moneycontrol: "Krishna was a visionary CM who brought in transformational legislation that catapulted Bengaluru and Karnataka as a technology hub. Under his leadership, vision groups were created with business leaders at the helm, a unique model that built a close and effective policy development model between business and government that has delivered strong leadership in IT, BT, Startups, etc. I consider him one of the great CMs of our country".

Krishna’s vision, combined with India’s economic liberalisation and competition from cities like Hyderabad, played a pivotal role in turning Bengaluru into a global technology powerhouse. It may be recalled that Andhra Pradesh Chief Minister N Chandrababu Naidu convinced former Microsoft CEO Bill Gates during a visit, leading to the establishment of the Microsoft India Development Center in Hyderabad in 1998. Krishna's tenure also saw the expansion of the International Technology Park Limited (ITPL) at Whitefield.

Also, read: SM Krishna, creator of 'brand Bengaluru', dies: A look-back at his political legacy

Krishna was instrumental in organising the first Bangalore IT.in, a technology exhibition in 1998, which has since been renamed Bengaluru Tech Summit (BTS). He also pioneered computer education in schools to promote e-literacy among students.

PPP model in governance

Krishna also earned recognition for initiatives like Bangalore Agenda Task Force (BATF) and e-governance steps, such as video conferencing and punch-card systems for government officials. BATF, a public-private partnership (PPP), brought together experts from various sectors to enhance government performance and address citizen concerns. He formed task forces and brought advisors from various sectors to drive technological transformation. IT Task Force, led by NR Narayana Murthy, made over 50 recommendations, including an international airport, which helped put Bengaluru on the global map. Bengaluru airport, which now connects to more than 100 non-stop destinations, is the third busiest in the country.

Infosys veterans praise Krishna

"Krishna was a visionary gentleman politician who encouraged IT, new Bengaluru airport, and several other foundational ideas to advance Karnataka” Infosys founder N R Narayana Murthy told Moneycontrol.

Infosys co-founder Kris Gopalakrishnan told Moneycontrol: "Krishna was instrumental in Bengaluru becoming the IT capital of the country. He had a vision for the development of Bengaluru that was ahead of its time. He started the PPP model for the development of Bengaluru city."

TV Mohandas Pai, former Chief Financial Officer (CFO) of Infosys from 1994 to 2006, said Krishna understood that the future of high-quality jobs lay in the services sector and worked closely with the IT industry to improve governance. "Known for his openness, respect for others, and transparency, he prioritised technology, globalisation, and job creation for Bengaluru’s growth. His creation of the BATF fostered closer ties between the bureaucracy and community, making Karnataka a model for governance. He was a visionary leader who will be greatly missed," Pai said.

V Balakrishnan, also known as Bala, another CFO of Infosys, said Krishna was instrumental in shaping Bengaluru as India’s IT capital. "His focus on infrastructure development and innovation laid the foundation for what Bengaluru is today. Without doubt his vision and contributions have left a lasting legacy on India’s IT landscape," Bala told Moneycontrol.

Also, read: How Bengaluru transformed from a pensioner’s paradise to a ‘swalpa adjust maadi’ city

"By creating BATF, he tapped into the talent and dedication of the private sector to enhance Bengaluru's governance and infrastructure. As the only CM to fully grasp Bengaluru’s importance, he played a pivotal role in shaping its rise as a global hub for IT and innovation," said RK Misra, Yulu co-founder and urban mobility expert.

Bengaluru's rise as a cosmopolitan city

Bengaluru’s rise as a cosmopolitan city, with its mild weather, swanky pubs, and booming real estate, is tied to its IT-driven growth, attracting talent with lucrative job opportunities and high salaries.

Krishna recognised the importance of IT and biotechnology for Bengaluru’s future. Amid global economic challenges like the dot-com crash and a US slowdown, he worked to sustain the city’s tech ecosystem, supporting both global giants and smaller firms.

Former Prime Minister Atal Bihari Vajpayee once remarked to Krishna that global statesmen now preferred visiting Bengaluru over New Delhi. VG Siddhartha, son-in-law of Krishna, was the founder of the Café Coffee Day chain and an investor.  In the late 1990s, it was common to see young people and aspiring entrepreneurs gathering at the Brigade Road outlet, brainstorming their next big ideas. Krishna had not yet recovered from the shock of Siddhartha's passing in 2019.

In the words of Revathy Ashok, Managing Trustee and CEO, Bangalore Political Action Committee (B.PAC), Krishna listened to entrepreneurs and developed the infrastructure that the IT industry relies on today. "Before IT’s rise, Bengaluru was known for its public sector and educational institutions. Krishna fostered a culture of listening to civil society and entrepreneurs by creating vision groups, simplifying licensing, and automating government services," Ashok told Moneycontrol.

Krishna’s legacy also includes his extensive political career, which spanned multiple roles in Indira and Rajiv Gandhi’s cabinets, as well as his tenure as Governor of Maharashtra and Union External Affairs Minister.

Ajit Isaac, the managing director of Quess Corp, believes Krishna’s contribution to making Bengaluru a global IT major is often understated. "Coming out of Y2K projects, the city transformed into a global offshoring centre thanks to the SMK govt that aligned policies to lead that change. From a city of a little more than 5 million people then, we are 3x of that in about 20 years! He surely laid the foundations for what Bangalore is today" Isaac told Moneycontrol.

From rural to urban

Krishna belongs to the Vokkaliga community and his roots are in Mandya, a town in southern Karnataka, located around 100 km from Bengaluru. Krishna started his political career in 1962, winning the Maddur assembly seat in Mandya as an independent candidate.

Krishna's early life was defined by determination and a thirst for knowledge. He earned a law degree from Maharaja's College in Mysore and furthered his education in the US, graduating from Southern Methodist University and The George Washington University Law School as a Fulbright Scholar.

Krishna, a tennis enthusiast, also served as the President of the Karnataka State Lawn Tennis Association from 1999 to 2020, during which he made efforts to bring Venus and Serena Williams to Bengaluru.

In fact, Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar often credits three Vokkaliga leaders for Bengaluru’s evolution: Kempegowda, who founded the city; Kengal Hanumanthaiah, who built the Vidhana Soudha; and S M Krishna, who propelled it into a global metropolis. Shivakumar's eldest daughter is married to Krishna's grandson. Shivakumar was the Urban Development Minister in Krishna's cabinet from 1999 to 2004.

Krishna's government in 1999 also saw the highest number of women ministers. C Motamma handled Women and Child Development, Rani Satish managed Kannada and Culture, Suma Vasanth oversaw Muzrai, and Nafeeza Fazal was in charge of the Science and Technology portfolio.

Krishna’s tenure saw major infrastructure projects, like Rs 100 crore Vikas Soudha, and welfare schemes such as Yashaswini, which provided healthcare, and a mid-day meal scheme for children. His initiatives in e-governance and the Bhoomi land record project marked significant milestones in modernising Karnataka’s governance systems. Bhoomi project particularly helped farmers obtain land certificates as valid as passports or driving licenses. It provides computerised copies of land records free of charge.

Controversies

Krishna’s tenure was marked by a severe drought that affected the state for three out of his nearly five years in office. His excessive focus on urban issues appeared to alienate rural voters. The decision to hold early polls and align the state and Lok Sabha elections in 2004 backfired.

His tenure as CM also witnessed the kidnapping of Kannada matinee idol Rajkumar and politician Nagappa by Veerappan, who was charged with sandalwood smuggling and poaching of elephants.

Krishna's administration also faced widespread protests, criticism from the Supreme Court over the Cauvery water dispute, and farmer suicides due to drought. After serving as the Governor of Maharashtra and India’s External Affairs Minister, he joined the BJP in 2017 and maintained a low profile within the party. His contributions to Bengaluru’s IT boom and governance reforms earned him the Padma Vibhushan.

Prashanth Prakash, founding partner of the global venture capital firm Accel Partners, told Moneycontrol: "SMK is the man who inspired entrepreneurs to dream big. His contributions to Bengaluru, especially to the IT and startup ecosystem, are invaluable. He has left a mark and a legacy to which the city will always be indebted."

City’s infra challenge

While Bengaluru thrived under Krishna’s leadership, challenges like traffic congestion and potholes remain the same. Krishna's promise to turn Bengaluru into Singapore has not been fulfilled, as city's infrastructure remains a challenge.

The city has grown into India's Silicon Valley at a 5G pace, its infrastructure development is still at a 2G pace. Potholes and persistent traffic jams make commuting a nightmarish experience for citizens. Growth and industries has been largely restricted to Bengaluru, while other districts, including North Karnataka region, remain underdeveloped. At this point, the city’s rapid growth, coupled with migration and poor infrastructure, is taking a toll on its brand.

Also, read: 'Brand Bengaluru' caught between DK Shivakumar’s vanity projects and city's crumbling infra