Journalism of Courage
After contracting due to Covid-induced lockdowns and other measures aimed at containing the pandemic, the capital’s economy has recovered past pre-Covid levels, faster than the country’s, according to the Delhi Economic Survey 2022-23.
As per the survey, sectors such as construction, trade, hotels, transport, communication and broadcast services, in addition to those under the umbrella of financial, real estate and professional services, were recorded as the drivers of this recovery. This has also pushed Delhi’s Gross State Domestic Product (GSDP) beyond national levels over the 2021-22 and 2022-23 fiscals.
“Given Delhi’s status as the capital city and its primacy — in terms of location — as the focal point of the NCR, the service sector is at the core of its productive activities like in most urban economic centres,” a government official said.
“This has grown more and more robust over the years and has not only become the backbone of its economy but also formed the foundation of its recovery after the pandemic,” the official added.
Impacting both supply and demand, Covid, the survey noted, led to the almost full suspension of economic activity; curbed consumption and investment; restricted labour supply and production, leading “to the predicament of saving ‘lives’ or ‘livelihoods’”.
Delhi’s GSDP, at current prices, was not left unaffected as it witnessed a contraction of 3.72% during 2020-21 reflecting the “unparalleled effect” of Covid and containment measures. However, as per the survey, it is expected to witness real GSDP expansion of 9.18% in 2022-23.
The manufacturing sector, for instance, recorded a growth of 4.96% in Delhi compared to -3.0% at the all-India level in 2019-20. Growth in this sector had contracted to -10.44% in Delhi compared to 2.9% at the national level in 2020-21. In 2021-22, this surged to 11.03% in Delhi compared to 11.1% nationally and to 1.44% in the city compared to 0.6% at the all-India level during 2022-23.
In construction, Delhi recorded contraction to -2.19% compared to 1.6% at the all-India level in 2019-20. In 2020-21, it dipped further to -8.36% compared to -5.7% at the national level. In 2021-22, growth in the sector bounced back to 24.33% compared to 14.8% nationally and was recorded at 12.37% compared to 9.1% at the all-India level during 2022-23.
Financial, real estate and professional services, in 2019-20, recorded growth at 3.62% in the city compared to 6.78%, 0.37% and 2.09% in 2020-21, 5.05 and 4.7 in 2021-22 followed by 8.46 and 6.9 in 2022-23.
“GSDP of Delhi at current prices, estimated at Rs 7,92,911 crore during 2019-20, showed a growth of 7.38% over the preceding year. GSDP of Delhi at current prices decreased to Rs 7,63,435 crore in 2020- 21 indicating a contraction of 3.72%,” the survey recorded. This, however, was before it “increased to Rs 9,04,642 crore, indicating expansion of 18.50% over preceding year,
