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Delhi State Presentation and Economic Growth Report | IBEF

Last updated on Jul, 29 2021

Economic Snapshot
Economic Snapshot

 


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. The average daily line utilization of Delhi Metro is 56.61 lakh per day by January 2021.

The Government of Delhi is 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.

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), Foreign Direct Investment (FDI) inflow in Delhi stood at US$ 9,443.83 million between October 2019 and March 2020. In 2020, 32 IEMs with proposed investments worth Rs. 3,710 crore (US$ 507.26 million) were filed in Delhi.

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.

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

  • 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.
  • The state government, under budget 2021-22 has allocated Rs. 15,707 crore (US$ 2.16 billion) towards 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) invites an online global expression of interest from eligible and interested consultants for implementation of the Delhi Metro Phase 4.
  • Delhi Government has 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 industries registration has been simplified and replaced by memorandum under 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, 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 has approved a new land pooling policy, which is expected to result in five more subcities, 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 has proposed an allocation of Rs. 521 crore (US$ 71.69 million) for the implementation of schemes, programmes and projects of the sectors of Tourism, Art and Culture. Two new schemes, namely Delhi Heritage Promotion and Delhi Tourism Circuit will be introduced to boost tourism.
Delhi State Presentation

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