1. Five reasons why Delhi overtook Mumbai to become India’s economic capital

Five reasons why Delhi overtook Mumbai to become India’s economic capital

Delhi has been ranked 30th in Oxford Economics’ study of the top 50 metropolitan entities globally for the year 2015, whereas the country’s financial capital, Mumbai, is ranked 31st.

By: | Published: November 28, 2016 12:54 PM
Oxford Economics is one of the world's foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities.

Hello Mumbaikars! We have a very sad news for all of you! Delhi, not Mumbai, is India’s economic capital, says a TOI report. Yes! According to the latest data released by Oxford Economics, Mumbai ranks 31st among 50 top metropolitan economic entities globally in 2015. Delhi has been ranked 30th in Oxford Economics’ study of the top 50 metropolitan entities globally for the year 2015, whereas the country’s financial capital, Mumbai, is ranked 31st. We take a look at five reasons why Delhi beat Mumbai to become the economic capital:

1) According to Oxford Economics findings, Delhi Extended Urban Agglomeration (EUA) consisting of Delhi, Gurgaon, Faridabad, Noida and Ghaziabad had a GDP of $370 billion, in terms of purchasing power parity (PPP). In comparison, the GDP of Mumbai EUA (Mumbai, Navi Mumbai, Thane, Vasai, Virar, Bhiwandi and Panvel) was pegged at $368 billion. The firm’s forecast for 2030 shows that both Delhi and Mumbai will move further up the list. However, Mumbai, with a predicted rank of 14th will continue to trail behind Delhi, which will be ranked 11th. While Delhi is predicted to be at the 11th spot, Mumbai will be 14th. Mumbai EUA, with a lower population, scores over Delhi EUA in per capita terms. A TOI analysis of Oxford Economics figures puts Mumbai’s per capita GDP at PPP at $16,881, while the same for Delhi is $15,745.:

2) According to Prof Bino Paul, Tata Institute of Social Sciences (TISS), post-liberalisation, Delhi National Capital Region (NCR) seems to have outpaced Mumbai metropolitan in physical infrastructure and social infrastructure. Prof Paul told TOI, “Perhaps, what makes Delhi NCR more buoyant and inspirational than Mumbai may be attributed to massive spatial consolidation and contentedness that have emanated from synchronisation between state and business, in particular in locating industry decisions,” he said.

3) Sangita Kamdar, a professor in economics, confirmed that Delhi had overtaken Mumbai. “Business is attracted more towards Delhi as they prefer to be closer to the national government for clearances. But more important is the availability of infrastructural facilities which affect the cost of doing business,” she told TOI. Mumbai’s high-cost economy is not favourable to business. The high cost of land and skilled labour does not provide the right incentives to attract investment—domestic and foreign,” she said.

4) Kamdar added that GDP per capita was a better indicator of economic performance, and here Mumbai leads Delhi, indicating better markets and purchasing power.

5) Paul observed that while Mumbai retains the charm of an open dynamic urban space, owing to preferential decision-making on investment, Delhi appears to have been surging ahead of Mumbai.

Devendra Fadnavis rejected the notion that Delhi’s GDP has gone ahead of Mumbai. “I want to challenge these figures. From figures of the Reserve Bank of India, Economic Survey of India and Maharashtra, it is evident that Mumbai is ahead in terms of GDP and financial status. The MMR GDP is higher,” he told TOI.

Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities.

  1. S
    Shreyas Kambli
    Feb 6, 2017 at 6:13 am
    Mumbai is a self dependent City (Major private business headquartered) which earns billions & also contributes taxes to the entire country. Where as Delhi is a city totally dependent on central government spending which increases its GDP, Mumbai contributes in Taxes & Delhi eats Taxes. The Infra built in Delhi is from the taxes earned from the country, not on its own
    Reply
    1. S
      Shreyas Kambli
      Feb 6, 2017 at 6:16 am
      i am from Bengaluru, however i would love Mumbai to be the capital of the country & would be somethin to be proud about, The people & ethics if chosen as the capital would improve the entire country, rather the UP, Bihari run Delhi
      Reply
      1. G
        Ganesh
        Nov 28, 2016 at 9:36 am
        Answer is simple countries all economic resources and incentives are absorbed by Delhi people working in different, science and technology ministries, their relatives their links and corruption. If earlier one rupee is released from Delhi, only 10 paise was reaching to village since last 15-20 years’ entire rupee is looted by Delhietes. As a result, progress was concentrated there and not its pollution has reached highest due to over-eating. it doesn't require Oxford Economics to tell, its common man’s feeling, Financial express- you don’t publish this comment i will never click or read FE news
        Reply
        1. G
          Ganesh
          Nov 28, 2016 at 8:03 am
          Answer is simple countries all economic resources and incentives are absorbed by Delhi people working in different, science and technology ministries, their relatives their links and corruption. If earlier one rupee is released from Delhi, only 10 paise was reaching to village, since last 15-20 years entire rupee is looted by Delhietes. As a result progress was concentrated there and not its pollution has reached highest due to OVER-EATING. it doesn't require Oxford Economics to tell, its commen mans feeling, Financial express- you doent publish this comment i will never click or read FE news
          Reply
          1. M
            Mumbaikar
            Nov 28, 2016 at 9:03 am
            This is what happens when you get Thakre politics
            Reply
            1. N
              Nandu, Sabka
              Nov 28, 2016 at 7:44 am
              What a load of bull!
              Reply
              1. J
                jeet
                Nov 28, 2016 at 8:13 am
                Good , I hope now the useless UP and biharies will leave mumbai atlast...
                Reply
                1. N
                  Nair
                  Nov 28, 2016 at 11:01 am
                  This cannot be disupted outright, especially after the unearthing of stashed up cash in Delhi post demonetisation, land of JUGGAD. PUN intented.
                  Reply
                2. S
                  Sanchayan Sarkar
                  Nov 28, 2016 at 11:58 am
                  So many real estate in mumbai are on the hang. The munil councils in mumbai are horrible.
                  Reply
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