Delhi’s economy has seen a consistent increase over the years. The investor-friendly policies of the government and Delhi’s position as the power centre have made Delhi a place of thriving business. Since Delhi is the prime centre for India’s economic growth, the economy of Delhi is of main importance in the country’s growth. Delhi has a wide range of industries that include IT, electronics, fashion, handloom and textiles that have been contributing to the growth of the Capital’s economy. Delhi has also not lost its touch with agriculture and animal husbandry. Crops such as wheat, jowar, bajra and gram are grown in and around Delhi.
Of the many industries, the main pillars of Delhi’s economy are hotels, banking and tourism industries. The relatively new entrant, the IT industry, is today one of the main industries in Delhi and is a major contributor towards its economy. Major IT companies in the world such as IBM, Google, Sony, Microsoft and more have their offices in the national Capital. These IT offices are located both in Delhi and NCR-Delhi. Noida and Gurgaon are where the IT action is centred and they are known as IT hubs. In fact, these regions also are referred to as the business hubs for most of Indian and multinational companies have their offices in these regions.
As Delhi gains reputation as an industrial and business city, job opportunities too, have seen a rise. With almost all kind of industries located in Delhi and its surroundings from construction to media, legal offices to marketing, human resources, engineering, financial sectors and more, Delhi is definitely where the action is today. In fact, Delhi offers job opportunities in almost every industry from skilled to non-skilled, from blue-collar jobs to the daily wage laborers’ jobs, from junior executives to high-level corporate jobs, from technical to office jobs, Delhi offers various jobs, and thus attracts people from different parts of the country to Delhi. Even it terms of salaries, Delhi has the best to offer. All these thriving and growing industries are contributing to the blooming economy of Delhi, which in turn is keeping Indian economy in high spirits, thus proving to be India’s capital in its true sense.
Growth in Delhi's Economy
One of the aspects of Delhi’s growing economy has been the entry of new industries. Over the years, the neighbouring regions such as Noida and Gurgaon too developed and saw the establishment of many vital industries. Apart from that, Delhi has offered a welcome and helping hand to the growth of industries such as fashion, corporate offices, jewellery sector, embroidery, silver vases, BPO and more, of which IT related industries have been the topmost industry. Though Delhi’s main income comes from these industries, even the growing and blossoming service industry contributes handsomely to the economical progress of Delhi.
Though amidst this industrial growth, Delhi has also not completely turned its back on agriculture. Even if not on a large scale, agriculture is carried out in the Capital, mainly on its outskirts. Crops such as wheat, gram, bajra and jowar are growing in these regions. Animal husbandry is another related occupation in the region. In fact it is also proving to be profitable to the farmers since much of the demand of dairy products in and outside Delhi is met by the dairy industry in Delhi.
Delhi is not rich in minerals and only few of the related industries can be see here. Some building and road making materials and china clay deposits are found in some parts which are used by various industries. The quartzite rocks found on the ridges are used for making stone wares and construction. Kaolin, the main raw material used in refractory industries are found in Delhi and also the fire clay used for making china ware.
Incentives by the Government
The government offers many schemes and incentives to industries so that they can function with ease. Some of these schemes are:
- Delhi Finance Corporation has many schemes that lend a helping hand to small and medium industries
- Delhi Finance Corporation has a guidance center that aims to help those who wish to set up their business or start-ups
- The government also has set up loan schemes to encourage business and are given to businessmen who want to further their business or are unable to manage funds for their ventures
- DSIDC or Delhi State Industrial Development Corporation helps investors in evaluating different projects
- DSIDC also helps in the marketing of products manufactured by Small Scale Industries
- For investments up to 0.05 millions, the government offers subsidy up to 50% for anti-pollution equipment
- The government with a view to encourage women entrepreneurs has allotted 10% reservation in Jhandewalan Complex
- Delhi Finance Corporation also offers finance schemes to promote women entrepreneurs
DSIDC or Delhi State Industrial Development Corporation, entrusted with the responsibility of maintaining and promoting industries in Delhi, has set up 840 locations that serve as the launch pad for several schemes announced by the government. While a majority of these sheds were allotted to unemployed youths for their ventures to promote self-employment, some sheds were allotted to DSIDC associates while some were given for export units.
The Corporation also has 446 industrial sheds as a part of the SFC scheme included in Delhi’s Master Plan. These are:
- Okhla Computer Complex (Computer related)
- Rohtak Road Indl Complex (General)
- Kirti Nagar Packing Complex (Timber related & Packing)
- Mangolpuri Engg. Complex (Light Engg)
These sheds were constructed with a view to assist industries and hence it is complete with all the infrastructure needs of the industries including office space, kiosks, shops and more. These sheds are also given to banks, telegraph offices and other offices on a monthly license basis.
Tourism in Delhi
Tourism industry in Delhi is a major industry as it contributes generously to the economy of Delhi. Tourism sector is responsible for around US$500 billion or more of turnover. The tourism industry also facilitates foreign exchange thus assuring a great income and in addition, it also opens up employment avenues that benefit economy in various capacities. Also, as tourism industry is one of the few industries that don’t need much investment but give high returns, it is considered to be a win-win situation for any country’s economic development.
Such an industry is of utmost important for a country like India, which is seen as a developing nation and where the capital investment is not much available but at the same time, the country needs activities that promise high output in terms of employment opportunities and economic activities. The tourism sector has seen a high number of domestic travelers and a scarce 0.4% of international tourists, yet, the single sector contribute to around 5.6% of GDP, in addition to providing 20 million or more job opportunities. Yet, the tourism industry has to travel much further to achieve its full potential. Even smaller countries get higher income as compared to India through its tourism industry. Hence, India has to put in more efforts to ensure that the returns from tourism sector grow rapidly in the years to come.
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