Introduction
Delhi is the capital of the Republic of India and the seat of all three branches of the Government of India. It is one of the largest metropolises in the country. Delhi shares border with the states of Uttar Pradesh and Haryana. It is the center of international politics, trade, culture, and literature in India.
Delhi is one of the fastest growing states in the country. At current prices, the advance estimate of Gross State Domestic Product of Delhi is Rs 7.98 trillion (US$ 108.33 billion) in 2020-21. The state’s GSDP (in Rs.) increased at a CAGR of 7.70% between 2015-16 and 2020-21.
Delhi has an attractive real estate market and is a preferred tourist destination. Owing to its location, connectivity and rich cultural history, Delhi has always been a prime tourist attraction of the country. Delhi Metro is the seventh busiest metro rail network in the world. It is being built in phases. Phase-I completed with 59 stations (including interchange stations) and 65.1 km of route length of which 13.17 km is underground and 51.93 km surface or elevated. The average daily line utilization of Delhi Metro is 56.61 lakh per day by January 2021.
The Government of Delhi has been committed towards creating a progressive business environment. The new Industrial Policy 2010-21 aims to provide a conducive environment for knowledge-based and hi-tech IT/ITeS industries in Delhi.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investment (FDI) inflow in Delhi stood at US$ 9,443.83 million between October 2019 and March 2021. In 2020, 32 IEMs with proposed investments worth Rs. 3,710 crore (US$ 507.26 million) were filed in Delhi.
Recent Developments
- In order to raise Delhi’s export preparedness, the ‘State Export Award’ has been introduced in the year 2020, for outstanding export performers who are contributing considerably to the state economy by earning foreign exchange through export of their goods and services.
- The state government, under budget 2021-22 has allocated Rs. 8,944 crore (US$ 1.23 billion) towards developing road transport.
- According to State Budget 2021-22, Government allocated Rs. 3,225 crore (US$ 443.75 million) towards energy sector for providing subsidies to customers through DISCOMs.
- In May 2021, the Delhi Metro Rail Corporation Ltd. (DMRC) invites an online global expression of interest from eligible and interested consultants for implementation of the Delhi Metro Phase 4.
- In December 2020, the Delhi government appointed a consultant for redesigning the national capital roads on the lines of European cities and the project is likely to be completed by early 2023.
- In the 2020-21 state budget, Rs. 400 crore (US$ 56.75 million) was allocated to the Chief Minister Local Area Development scheme.
- An amount of Rs. 100 crore (US$ 14.56 million) has also been allocated for a new scheme, CM Mohalla Suraksha Yojana, to ensure safety and security of citizens.
- In the 2020-21 budget, the Delhi government has allocated Rs. 100 crore (US$ 14.18 million) to upgrade classrooms of grades 9-12 of all government schools to digital classrooms over a period of five years.
- Also, the government has allocated Rs. 7,704 crore (US$ 1.09 billion) to develop the healthcare sector in its budget 2020-21.
Key Sectors
- Housing and Urban Development are the priority sectors in the development planning process of Delhi. In January 2021, Delhi Development Authority (DDA) launched its 2021 housing scheme for the sale of 1,354 flats, mostly in the High-Income Group (HIG) and Middle-Income Group (MIG) categories.
- The state government, under budget 2021-22 has allocated Rs. 15,707 crore (US$ 2.16 billion) towards education.
- During 2020, the government has proposed 5 projects each of backyard ornamental fisheries & medium scale ornamental fisheries along with two projects for development of recreational & ornamental fisheries in water bodies of Delhi. Total project cost will be Rs. 155 Lakh (213.27 thousand) under Central Sponsored Scheme Pradhan Mantri Matsya Sampada Yojana (PMMSY).
- Delhi has become a start-up hub over the past few years. The Government has prepared a draft start-up policy and is in the process of finalising it.
- The real estate market in Delhi is lucrative and attracts investors from India and abroad. Owing to the advanced infrastructural base, the city meets the requirement of a profitable investment. Real estate, ownership of dwelling and professional services contributed Rs. 2,245 billion (US$ 30.9 billion) to Delhi’s Gross State Value Added (GSVA) in 2020-21. Housing sales in the Delhi-NCR market increased by 6% QoQ at 6,644 units in January-March 2021. The office market in Delhi NCR witnessed a net absorption increase of 5%, with 1.07 million sq. ft., in Q1 2021 (QoQ). According to a report from Cushman & Wakefield, Delhi's upscale Khan Market has become the world's 20th most expensive retail location.
- As per the new Industrial Policy for Delhi 2010-21, the Government is keen on developing and promoting the hi-tech, sophisticated, knowledge-based IT and ITeS industries in the state. For this, the Government has planned to set up ‘Centre of Excellence’ to promote innovation and entrepreneurship in these sectors.
- Software exports from STPIs in Delhi was worth Rs. 2,363.45 crore (US$ 338.17 million) in 2018-19.
FACTFILE
Capital
New DelhiGeographical Area (sq km)
1,483State Language
English, Hindi, Punjabi, Bihari and HaryanviLiteracy Rate
86.2 per centKey Industries:
Banking
Agri and processed food
Financial services
Insurance
Construction and real estate
IT and ITeS
Tourism
Logistics
Related News
MORE
