Delhi faces declining GDP share and business environment challenges

Delhi is experiencing a relative decline in its economic contribution to India's GDP, according to a Comptroller and Auditor General (CAG) report tabled in the Delhi Assembly. The capital's share of the national GDP fell from 4.12% in FY2017-18 to 3.82% in FY2023-24.

This economic shift appears to be a redistribution within the National Capital Region (NCR) rather than a general weakening of the area. While Delhi's share has slipped, neighboring cities have seen growth; Noida's share rose from 0.84% to 0.87%, and Ghaziabad saw a notable increase from 0.24% to 0.39% over the same period.

Compounding these economic trends, the Delhi government has acknowledged shortcomings in the city's business environment following a World Bank ‘Business Ready’ (B-Ready) assessment. The assessment highlighted deficiencies in critical areas such as property records, construction permits, and basic water-quality checks. Despite efforts to digitize government services, the city faces challenges in the efficiency of delivering fundamental civic and business infrastructure required to support private sector investment.