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.