Last updated: Dec, 2023
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 a border with the states of Uttar Pradesh and Haryana. It is the centre 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 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. 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 64.75 km of route length of which 13.17 km is underground. The first section of a priority corridor under Phase-IV is expected to open by July 2024.
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 in FY23 and US$ 7.51 billion in FY22.
The Government of Delhi has been 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.
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.
Recent Developments
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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) was allocated for a new scheme, CM Mohalla Suraksha Yojana, to ensure the 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
- 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.
- 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.
- 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 July 2021, NTPC Vidyut Vyapar Nigam Limited (NVVN) (a subsidiary of NTPC Ltd.) invited tenders to implement hydrogen fuel cell buses in Delhi and Leh.
- In July 2021, Delhi Metro launched the country’s first FASTag-based cashless parking facility at Kashmere Gate metro station (Delhi) to offer more efficient transportation services to commuters.
- 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) has been allocated towards secondary education.
- The state government, under Budget 2022-23, has allocated Rs. 15,507 crore (US$ 2.05 billion) towards education, of which Rs. 3,485 crore (US$ 454.91 million) was allocated towards government primary schools and Rs. 1,460 crore (US$ 190.58 million) was provided to local bodies for primary education.
- During 2020, the government proposed five projects each for backyard ornamental fisheries & medium-scale ornamental fisheries along with two projects for the development of recreational & ornamental fisheries in the water bodies of Delhi. The total project cost was expected to be Rs. 155 Lakh (US$ 2,13,270) under the 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. 2,636.34 billion (US$ 32.2 billion) to Delhi’s Gross State Value Added (GSVA) in 2022-23 (as per advance estimates).
- 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 became 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 a ‘Centre of Excellence’ to promote innovation and entrepreneurship in these sectors.
- Software exports from STPIs in Delhi were worth Rs. 6,373.15 crore (US$ 777.5 million) in 2021-22.
