Delhi is one of the fastest-growing states in the country. At current prices, the advance estimates of the Gross State Domestic Product (GSDP) of Delhi stood at Rs. 10.4 trillion (US$ 130 billion) in 2022-23. The state’s GSDP (in Rs.) increased at a CAGR of 9.55% between 2015-16 and 2022-23.

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.

In FY24 (until July 2023), the merchandise exports from Delhi stood at US$ 3.02 billion. Total merchandise exports from Delhi stood at US$ 8.14 billion and US$ 7.51 billion in FY22.

The Government of Delhi is committed towards creating a progressive business environment. The new Industrial Policy 2010-21 was aimed to provide a conducive environment for knowledge-based and hi-tech IT/ITeS industries in Delhi.

Delhi has a large skill base. 30% of the workforce is qualified for occupations such as engineering, medicine, law, and consultancy. Among all the states, Delhi has the largest share of skilled workforce, making it suitable for knowledge-based economic activities such as IT/ITeS, designing, R&D, and financial services.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Delhi amounted to ~US$ 27.06 billion between October 2019-June 2023. In 2023, six IEMs with proposed investments worth Rs. 400 crore (US$ 48.6 million) were filed in Delhi.

Delhi has become a start-up hub over the past few years. The Government prepared a draft start-up policy and is in the process of finalising it.

Some of the major initiatives taken by the Government to promote Delhi as an investment destination are:

• According to the state budget of 2022-23, the Delhi government aimed to spend Rs. 4,500 crore (US$ 590.50 million) in the next five years to generate 20 lakh jobs by 2027.
• In FY23, Delhi had a total installed power generation capacity of 6,893.03 MW, of which 5,764.91 MW was contributed by thermal power, 723.09 MW by hydropower, 302.26 MW by renewable power, and 102.83 MW by nuclear power.
• In 2022 the Delhi government approved the draft solar policy to increase the share of solar in the electricity mix from 9% to 25%. Further, in an ambitious move, the government revised the capacity target from 2 GW to 6 GW by 2025.
• Ahead of the G20 Summit, which was held in Delhi from September 8-10, 2023, civic agencies spruced up over 66 arterial roads and stretches across key parts of the city. The work included the installation of designer fountains, sculptures, flower pots, and footpath refurbishment.
• Delhi-NCR emerged as the favoured destination for luxury home buyers, witnessing the highest sales of apartments priced above Rs. 4 crore (US$ 480,365) in the first half of calendar 2023, as per an analysis by property consultant CBRE.
• In October 2023, the Software Technology Parks of India (STPI) set up an incubation facility, the Apiary Center of Entrepreneurship (CoE), in Gurugram to foster 100 blockchain startups over the next five years.
• As announced in June 2023, giving a fresh push to its Rozgar budget projects, the Delhi Government was planning to redevelop the non-conforming industrial areas in three different phases, with an aim to provide six lakh job opportunities.
• A world-class Technology Park was planned over 147 acres of land having multi-story Buildings at Rani Khera-Mundka, as per the Economic Survey 2022-23. The project is expected to provide direct employment to approx 1.5 lakh people and indirect employment to 13.50 lakh people.
• The new Start-Up Policy, which was approved in May 2022, envisages transforming Delhi into one of the best destinations for start-ups in India and globally.
• In August 2021, Union Minister of Civil Aviation, Mr. Jyotiraditya Scindia inaugurated the first direct flight on Bhavnagar (Gujarat) to Delhi route and IndiGo flights on Jabalpur to Delhi route.
• In July 2021, the Delhi government collaborated with Google to provide citizens with real-time information about buses and improve transport services.
• The Delhi government announced the ‘New Excise Policy 2021-22’ to generate optimum revenue and encourage ease of doing business.
• In order to raise Delhi’s export preparedness, the ‘State Export Award’ was introduced in the year 2020, for outstanding export performers who are contributing considerably to the state economy by earning foreign exchange through the export of their goods and services.
• The state government, under Budget 2023-24, allocated Rs. 9,048 crore (US$ 1.10 billion) towards transport.
• According to the State Budget 2023-24, the government allocated Rs. 3,250 crore (US$ 396.5 million) to the energy sector for providing subsidies to customers through DISCOMs.
• The state government, under Budget 2023-24, allocated Rs. 16,575 crore (US$ 2.02 billion) towards education, sports, arts, and culture, out of which Rs. 8,321 crore (US$ 1.01 billion) was allocated towards secondary education.
• On December 28, 2020, Prime Minister, Mr. Narendra Modi flagged off the country’s first-ever fully-automated driverless train service on the magenta line of Delhi Metro.
• 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 May 2021, the Delhi Metro Rail Corporation Ltd. (DMRC) invited an online global expression of interest from eligible and interested consultants for the implementation of the Delhi Metro Phase 4.
• The Delhi Government set up a Business Facilitation Council (BFC) to facilitate single-window clearances from various departments for establishing industrial enterprises in a time-bound manner.
• Small-scale industry registration has been simplified and replaced by a memorandum under the MSMED Act 2006. Further, filing of the memorandum is optional for micro, small and medium manufacturing enterprises, and micro and small service enterprises.
• Housing and Urban Development are the priority sectors in the development planning process of Delhi. In January 2021, the 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.
• Delhi Development Authority approved a new land pooling policy, which is expected to result in five more sub-cities, such as Dwarka, Rohini and Narela, in other urban extension areas. The new policy would ensure that the private sector is involved in the development of new urban extension areas in the cities.
• In the state budget 2021-22, the government proposed an allocation of Rs. 521 crore (US$ 71.69 million) for the implementation of schemes, programmes and projects in the sectors of Tourism, Art and Culture. Two new schemes, namely Delhi Heritage Promotion and Delhi Tourism Circuit will be introduced to boost tourism.