Impact of FDI on Delhi Economy

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The Impact of FDI on Delhi Economy has been impressive leading to substantial growth in sectors like IT, real estate, retail and tourism. Delhi has ranked second only to Mumbai, among the Indian cities in terms of FDI inflows during 2000 to 2006.

Delhi is the national capital of India. It is situated in the northern part of the country. Delhi serves as the gateways to all the northern states such as Jammu and Kashmir, Haryana, Punjab, Rajasthan, Uttar Pradesh, Uttaranchal, and Himachal Pradesh.

Impact of FDI on Delhi Economy - Investment Overview

  • The inflow of FDI influences the economic growth of Delhi.
  • The investments have helped in creating a strong base for the latest technology.
  • The amount of FDI inflows to Delhi during the period 2000 to 2006 was Rs 318.61 billion, which is just next to Mumbai.
  • Delhi was able to attract a high FDI inflow in the realty sector, as the central government has allowed 100% FDI, pertaining to integrated townships, on the condition that the construction area should be equal to 100 acres.

Impact of FDI on Delhi Economy - Economic Overview

  • The economic analysis of the sectoral growth reveals that the contribution of the primary sector such as agriculture, fishing, livestock, forestry, mining and quarrying, and the secondary sector, such as manufacturing activities has decreased
  • The tertiary sector including services like commercial trade, business services, tourism and hospitality, transportation, communication, banking and insurance, real estate, public administration, etc has contributed to the major development of Delhi
  • The primary sector contributed around 3.85% in the period 1993-94, which by the year 2004-05 came down to 0.97%
  • The contribution of the secondary sector in the period 1993-94 was 25.20%, which was reduced to19.92% by 2004-05
  • The contribution of the tertiary sector was 70.95% in 1993-94, which was increased to 79.11% by the year 2004-05

Impact of FDI on Delhi Economy - Development in Major Sectors

  • Information Technology and ITES
  • Real estate.
  • Retail and Leisure
  • Hotel and Tourism
  • Healthcare Hub and Medical Tourism
  • Transport and Logistics
  • Financial Services