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This article is more than 2 years old.

March 22, 2017 This article is more than 2 years old.

Bengaluru’s startup ecosystem is what it is because of its engineers.

With an average annual salary of $8,600, engineers in India’s tech hub cost 13 times less than their Silicon Valley counterparts, according to the 2017 Global Startup Ecosystem Report released on March 14. The city is home to the world’s cheapest crop of engineers, with the average annual pay of a resident software engineer falling well below the global figure of $49,000.

And companies, Indian and otherwise, choose to work out of Bengaluru because it is the most cost-efficient.

Not only has the tech center nurtured startups like Flipkart and Big Basket, it is also home to big foreign firms like Uber and Amazon.

However, the city’s talent pool poses challenges in access and quality. For the most part, “engineers haven’t been hired very quickly, experience is average, and visa success is low,” the report says. “The quality and professionalism of resources is also questionable in many cases,” Abhimanyu Godara, founder of US-based chatbot startup Bottr.me, which has a development team in Bangalore, said in the report.

The city, home to between 1,800 and 2,300 active startups, also has the youngest tech talent among all startup ecosystems.

Overall, Bengaluru bagged the 20th spot out of 55 cities when evaluated on parameters such as performance, funding, market research, talent, and startup experience by research firm Startup Genome and the Global Entrepreneurship Network. Despite dropping five ranks from last year, it remains India’s favorite tech hub.

Below are the complete rankings for the best startup ecosystems. (Key; 👌= unchanged, 👆= up, 👇= down, 🎁= new entry)