National Capital Region (India): Economic Scenario - Revision history

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==The source of this article==
''' Draft Revised Regional Plan 2021: National Capital Region '''

July, 2013

National Capital Region Planning Board,
Ministry of Urban Development, Govt. of India,
Core-4B, First Floor, India Habitat Centre,
Lodhi Road, New Delhi-110003

[http://www.ncrpb.nic.in/ National Capital Region Planning Board]

=National Capital Region (India): Economic Scenario =

== BACKGROUND==

The size and nature of economic activities in NCR have changed over the years. Improvement of urban
infrastructure especially in terms of connectivity after the completion of Phase II of Delhi Metro and its
extensions to the CNCR and construction of expressways have had a profound effect on the nature of
economic activities within NCR. Other proposed projects like the DMIC Corridor and Dedicated Freight
Corridor are expected to have a further significant impact on the economic activities in NCR.

5.1.1 Gross Domestic Product

During the period 2004-05 to 2009-10, the Gross Domestic Product (GDP) of India increased by 52
percent whereas the GDP of NCR increased by 67 percent Table 5.1.

[[File: economic.PNG||frame|500px]]

NCR contributed 7.1 percent to India’s GDP
in 2009-10, whereas its share in the
population was 3.8 percent and its land area
even lesser at 1 percent (Figure 5.1).

5.1.2 Growth Rate of GDP

During the period 2004-05 to 2009-10, NCR’s GDP growth rate has consistently been higher than the all
India growth rate except for the year 2007-08 when the growth rate of GDP of NCR and India were
almost equal (Table 5.2 and Fig. 5.2).

Box 5.1
The contribution of the NCR in
India’s GDP is almost twice its
share of population.
[[File: economic1.PNG||frame|500px]]

[[File: economic2.PNG||frame|500px]]

[[File: economic3.PNG||frame|500px]]

[[File: economic4.PNG||frame|500px]]

Source: CSO (National Account Statistics); Economic Survey of Delhi, 2012-13; Department of Economic and Statistical Analysis, Haryana;

Directorate of Economics and Statistics, Rajasthan; updes.up.nic.in
Note: Analysis has been done from 2004-05 onwards because data for the previous periods uses a different base price.

5.1.3 Per Capita Income

During the period 2004-05 to 2009-10, the per capita income of
NCR went up from Rs. 38,758 to Rs. 59,264 whereas the all
India figures for the same period were Rs. 24,143 and Rs.
33,901 respectively (Table 5.3).

[[File: economic6.PNG ||frame|500px]]

Directorate of Economics and Statistics, Rajasthan; updes.up.nic.in

[[File: economic7.PNG||frame|500px]]

Source: CSO (National Account Statistics); Economic Survey of Delhi. 2012-13; Department of Economic and Statistical Analysis, Haryana;
Directorate of Economics and Statistics, Rajasthan; updes.up.nic.in

Table 5.4 shows the temporal change in per capita income growth rates during the period of analysis. The
rate of growth of per capita income of NCR had been higher than the rate of growth of per capita income
of India except in the period 2007-08 when the rate of growth of per capita income of NCR was 6.6
percent and that of India was 8.1 percent.

5.2 SUB-REGION WISE ANALYSIS

Among the various sub regions of NCR, Delhi had the highest share of GDP in NCR followed by
Haryana, Uttar Pradesh and Rajasthan Sub-Regions in 2009-10 (Table 5.5).

Box 5.2
The Per Capita Income of the NCR had
consistently been higher than the India’s
Per Capita Income during the period
2004-05 to 2009-10.

6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
2005-06 2006-07 2007-08 2008-09 2009-10
Annual Growth Rate of GDP
AGR of GDP (NCR) AGR of GDP (India)

0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2005-06 2006-07 2007-08 2008-09 2009-10

Percentage

NCT Delhi Haryana Sub-region Rajasthan Sub-region Uttar Pradesh Sub-region NCR

[[File: economic8.PNG||frame|500px]]

[[File: economic9.PNG||frame|500px]]

@@ Line 97: / Line 97: @@
 percent and that of India was 8.1 percent.
-.2 SUB-REGION WISE ANALYSIS
+== SUB-REGION WISE ANALYSIS==
 Among the various sub regions of NCR, Delhi had the highest share of GDP in NCR followed by
@@ Line 272: / Line 272: @@
 even further from 2006-07 onwards.
-.3 WORK FORCE PARTICIPATION RATE (WPR)
+== WORK FORCE PARTICIPATION RATE (WPR)==
 As per 1991 Census, Alwar district of Rajasthan sub-region had the highest WPR of 40.4 in the NCR,
@@ Line 298: / Line 298: @@
 for female was 41.2 in Alwar and 10.6 in NCT Delhi respectively (Annexure 5/VII).
-.4 STRUCTURAL COMPOSITION OF WORK FORCE
+==STRUCTURAL COMPOSITION OF WORK FORCE==
   [[File:  economic24.PNG||frame|500px]]
@@ Line 375: / Line 375: @@
-.5 FINANCIAL INCLUSION
+== FINANCIAL INCLUSION==
 The objective of financial inclusion is to extend financial services to the unserved population which is an
 important tool to unlock a region’s growth potential.
@@ Line 431: / Line 431: @@
-.6 FOREIGN DIRECT INVESTMENT
+==FOREIGN DIRECT INVESTMENT==
 According to RBI data, the RBI Office in Delhi which collates information pertaining to FDI has reported
@@ Line 438: / Line 438: @@
 wise data for FDI was not available, district-wise analysis could not be undertaken.
-.7 POLICY AND PROPOSALS
+== POLICY AND PROPOSALS==
 The key rationale behind the formation of NCR was to promote balanced growth and harmonized

@@ Line 191: / Line 191: @@
 during 2004-05 to 2009-10.
   [[File:  economic15.PNG||frame|500px]]
-[[File:  economic16.PNG||frame|500px]]
@@ Line 303: / Line 304: @@
 WPR of 42.7 (male). The highest and lowest WPR for female was 32 in Alwar district and 7.4 in NCT
 Delhi and Bulandshahr respectively (Annexure 5/V).
 In 2001 Census, Alwar District (Rajasthan) had the highest WPR of 48.7 in the NCR, followed by Rewari
 district (Haryana) with WPR of 43.6, while the least WPR of 28.5 was observed in Ghaziabad district of
@@ Line 309: / Line 311: @@
 Delhi had the second highest WPR for male (52.1), it also had the
 second lowest WPR for female (9.4) (Annexure 5/VI).
 As per 2011 Census, Alwar district of Rajasthan sub region recorded the
 highest WPR of 46.5 in NCR, followed by Rewari district of Haryana
@@ Line 452: / Line 455: @@
 .6 FOREIGN DIRECT INVESTMENT
 According to RBI data, the RBI Office in Delhi which collates information pertaining to FDI has reported
 that Delhi (which includes New Delhi and part of Haryana and Uttar Pradesh) had been the second
 highest recipient of FDI inflows (21.9 percent) after Maharashtra (26.2 percent) in 2011-12. Since district
 wise data for FDI was not available, district-wise analysis could not be undertaken.
 .7 POLICY AND PROPOSALS
 The key rationale behind the formation of NCR was to promote balanced growth and harmonized
 development of the region and focus should be on making the metros and regional centres have their own
 influence region.
 i) Comparison of per capita income of different districts of NCR excluding Delhi reveals that
 Bulandshahr, Meerut and Ghaziabad in Uttar Pradesh sub region, followed by Mewat in Haryana sub
@@ Line 470: / Line 477: @@
 infrastructure needs a boost in this district. Baghpat has remained the only district in the NCR which
 has not received NCRPB’s funding.
 ii) Employment in the secondary and tertiary sectors in NCR is constrained by the issues of skill
 development of the work force. Therefore, there is a need for new projects with focus on skill
 development and vocational training.
 iii) Connectivity within NCR has been the driving force for the change in both the size and nature of
 economic activities in NCR. RRTS project has the potential to improve the growth prospects and
@@ Line 486: / Line 495: @@
 Pradesh sub region had contributed the maximum in-migration to Delhi during the decade of 1991 to
 .
 v) The three investment regions under the proposed DMIC project namely Manesar-Bawal Investment
 Region (MBIR), Khushkhera-Bhiwadi-Neemrana Investment Region (KBNIR) and Dadri-Noida-
@@ Line 492: / Line 502: @@
 expanding the manufacturing and services base and develop the corridor stretches as “Global
 Manufacturing and Trading Hubs”.
 Box 5.7
 It is interesting to note that districts having low per capita income also have a lower percentage of households
 availing banking services. In Haryana sub region, Mewat district had the lowest per capita income and the

@@ Line 108: / Line 108: @@
 -05 to 2009-10.
-.0
+  [[File:  economic100.PNG||frame|500px]]
-.0
-.0
-.0
-.0
-.0
-.0
-.0
-.0
--06 2006-07 2007-08 2008-09 2009-10
-Annual Growth Rate of GDP
-AGR of GDP (NCR) AGR of GDP (India)
-−
-.0%
-.0%
-.0%
-.0%
-.0%
-.0%
--06 2006-07 2007-08 2008-09 2009-10
-−
-Percentage
-−
-NCT Delhi Haryana Sub-region Rajasthan Sub-region Uttar Pradesh Sub-region NCR
   [[File:  economic8.PNG||frame|500px]]

@@ Line 61: / Line 61: @@
 [[File:  economic1.PNG||frame|500px]]
-[[File:  economic2.PNG||frame|500px]]
-−
 [[File:  economic3.PNG||frame|500px]]