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Delhi's per capita income tumbled to Rs 3.54 lakh, GSDP shrank by 5.68%

The advance estimate of the GSDP of Delhi at current price during 2020-21 is Rs 7,98,310 crore, manifesting a shrinkage of 3.92% over the previous year

twitter-logoBusinessToday.In | March 9, 2021 | Updated 16:11 IST
Delhi's per capita income tumbled to Rs 3.54 lakh, GSDP shrank by 5.68%
Delhi's per capita income has been the second-highest in the country after Goa's for many years

Delhi's per capita income plunged from Rs 3,76,211 in 2019-20 to Rs 3,54,004 in 2020-21, a contraction of 5.91%, due to the impact of the COVID-19 pandemic, according to the economic survey tabled by the UT (Union Territory) government in the assembly on Monday, March 9.

This is the first time since 2010-11 that per capita income in the national capital has contracted, the survey added.

Delhi's per capita income has been the second-highest in the country after Goa's for many years.

Also Read: 10,113 companies shut down in India from Apr 2020-Feb 2021; Delhi tops list

Deputy Chief Minister Manish Sisodia, who tabled the survey in the Budget session of the Delhi Assembly, also stated that the Gross State Domestic Product (GSDP) shrunk by approximately 5.68% in real terms.

This contraction in GSDP indicates that Delhi's economy did better than the national average, which is likely to contract in the 7-8% range for the financial year.

The advance estimate of the GSDP of Delhi at current price during 2020-21 is Rs 7,98,310 crore, manifesting a shrinkage of 3.92% over the previous year.

The GSDP at current prices increased by about 45 per cent in the last six years - from Rs 5,50,804 crore in 2015-16 to Rs 7,98,310 crore during 2020-21.

In real terms, the contraction in Delhi's GSDP is expected at 5.68 per cent in 2020-21 compared to a degrowth of 8 per cent at national level, said the report.

Sisodia said in the Assembly that the pandemic halted government activities for some months, causing a decline in trade, revenue, and financial constraints.

Delhi has the second highest per capita income (in real terms) in India. The per capita income of Delhi at current prices during 2020-21 is estimated at Rs 3,54,004 against per capita income of Rs 1,27,768 at national level, the report stated.

Also Read: COVID-19 pandemic: Delhi's economy likely to contract 5.6%, says Lt Governor Anil Baijal

"Delhi's per capita income during 2020-21 at current prices, has been worked out to Rs 3,54,004 as against Rs 3,76,221 during 2019-20 showing a contraction of 5.91 per cent. In real terms, per capita income of Delhi has been estimated at Rs 2,54,001 in 2020-21 as against Rs 2,74,671 in 2019-20 registering a contraction of 7.53 per cent," the survey said.

It showed predominance of the service sector with its share of contribution to Gross State Value Added (at current prices) at 84.59 per cent during 2020-21 followed by the secondary sector (13.56 per cent) and the primary sector (1.85 per cent).

The income from trade, hotels, and restaurants in Delhi constituted Rs 79,263 crore during 2020-21 (advanced estimate) at current prices, which is nearly 11.18 per cent of Gross State Value Added (GSVA) of Delhi (base year 2011-12).

More clearly, the sector's contribution to GSVA of Delhi during the last ten years was more than 11 per cent, it said.

The GSVA of Delhi at 2011- 12 prices showed a declining trend of agriculture and allied sectors. More clearly, the percentage contribution of the agriculture sector to GSVA of Delhi at current prices reduced from 0.94 per cent in 2011-12 to 0.38 per cent in 2020-21, it said.

The total gross cropped area in Delhi increased to 43,500 hectares in 2019-20 which was 36,445 hectares during 2011-12, it said.

The report also noted that Delhi's debt problem is "well under control," stating that the government had an outstanding debt of Rs 29,608.31 crore in 2011-12, which was equal to 8.61 per cent of its GSDP. In 2019-20, with an outstanding debt of Rs 34,461.83 crore as on March 31, 2020, the debt-GSDP ratio had declined substantially to 4.15 per cent.

The ratio of interest payment to revenue receipts also declined to 5.84 per cent in 2019-20 from a high ratio of 13.03 per cent in 2011-12.

Delhi has maintained its consistent revenue surplus which was Rs 7,499 crore during 2019-20 (provisional) as compared to Rs 6,261 crore in 2018-19. Delhi's revenue surplus was 0.90 per cent of GSDP during 2019-20 and 0.91 per cent during 2020-21 (budgetary estimate), the survey said.

Also Read: Delhi Election 2020: How the capital's economy performed in last 5 years

(With inputs from PTI.)

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