Delhi's economy projected to contract by 5.68% in FY21 due to Covid-19: Report
The economy of Delhi is expected to contract by 5.68 per cent in real terms due to the impact of the Covdi-19 pandemic, according to Delhi Economic Survey 2020-21.
However, the advance estimate of the gross state domestic product (GSDP) of Delhi at current price during 2020-21 is ₹7,98,310 crore, showing a contraction of 3.92 per cent over the previous year.
The GSDP at current prices increased by about 45 per cent in the last six years- from ₹5,50,804 crore in 2015-16 to ₹7,98,310 crore during 2020-21.
The per capita income also went down from ₹3.76 lakh in 2019-20 to ₹3.54 lakh in the current fiscal year, stated the survey tabled in the Budget session of Delhi Assembly by Deputy Chief Minister Manish Sisodia.
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 decline in trade and 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 ₹3,54,004 against per capita income of ₹1,27,768 at national level, the report said.
"Delhi’s per capita income during 2020-21 at current prices, has been worked out to ₹3,54,004 as against ₹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 ₹2,54,001 in 2020-21 as against ₹2,74,671 in 2019-20 registering a contraction of 7.53 per cent," the Survey said.
It showed predominance of 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 secondary sector (13.56 per cent) and primary sector (1.85 per cent).
The income from trade, hotels and restaurants in Delhi constituted ₹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, this 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 sector. More clearly, the percentage contribution of 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 ₹29,608.31 crore in 2011-12, which was equal to 8.61 per cent of its GSDP. In 2019-20, with outstanding debt of ₹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 the high ratio of 13.03 per cent in 2011-12.
Delhi has maintained its consistent revenue surplus which was ₹7,499 crore during 2019-20 (provisional) as compared to ₹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.