You reason that the cultural rootedness of South India is the driving factor behind this surge. A fish can take to water and a bird to air any time, irrespective of duration of their captivity. 2nd economy of the world, Japan had a severe set back during World War II. They fought it back hard. You narrated atrocity forced expressional barricade on Bengalis during British time. National anthem is written by a Bengali during that period. Bengal is synomymous with premier Indian literature irrespective of large Muslim crowd (indicating possible suppression of Hindu culture).
The current state of Northern India is due to the social unrest born out of terrorism. Give North Indians a free atmosphere to prosper, they will show their metal as well.
IT Industry chose Bangalore first because of the terrain, weather and massive educational institutes. Only Urban centers (where culture takes less precedance unlike suburban and rural areas) are developed. Where is the cultural influence ?