City Spotlight: Delhi

Posted by Reading Time: 3 minutes

Aug. 21 – Delhi, also referred to as the National Capital Territory of Delhi, is comprised of two contrasting yet complimentary parts: Old Delhi and New Delhi – the capital of India. Delhi lies in the northern part of the country and is surrounded by the state of Haryana on all its sides except the East, where it borders the state of Uttar Pradesh.

In addition to being the nation’s capital city and the largest commercial center in northern India, Delhi is a hub for small-scale industries. It also plays host to a number of national and international events, including sports-related events, conferences and seminars. The city’s recent successful 2010 Commonwealth Games further significantly raised its profile.

Industrial Estates

The Delhi State Industrial Development Corporation has established a number of industrial estates designed to attract investment, including Kirtinagar Industrial Area, Mangolpuri Industrial Area, Naraina Industrial Area and the New Okhla Industrial Development Area (Noida). There will also be a new knowledge-based industrial park in Baprola, as well as four industrial estates established through the Corporation’s Public Private Partnerships (PPP) in Bawana, Nerla, Okhla and Patparkanj.

The Delhi-Mumbai Industrial Corridor

The Delhi-Mumbai Industrial Corridor (DMIC), a state-led development zone, is currently under construction in the region. The US$90 billion project, which is funded by the state in addition to financial and technological support from the Japanese government, promises state-of-the-art infrastructure and an inviting investment climate for foreign enterprises, and is expected to span 1483 kilometers over 6 states. As part of the DMIC, the Indian government will establish a Multi-modal High Axle Load Dedicated Freight Corridor (DFC) between Delhi and Mumbai which will cover the DMIC’s total 1483 kilometer route.  Additionally, the DMIC will include a variety of other infrastructure projects, such as power facilities, rail connectivity to ports en route, etc.

Unfortunately, there have been a number of delays in the completion of the DMIC, ranging from land purchase issues within the six states that the DMIC will be built upon to the scaling back of various associated projects.

Information Technology

The government of Delhi is in the process of expanding IT and IT-enabled services throughout the city. This includes several measures, such as setting up the first Information Technology Park of Delhi at Shastri Park. The government has also created an IT policy with the aim of creating a conducive investment environment in IT, encouraging the use of IT in areas such as education, agriculture, food safety and governance.

Small-scale Industry

Delhi is India’s center for small-scale industries, and these have been vital to the industrial development of the city. These industries manufacture a wide variety of items such as televisions, tape recorders, light engineering machines, automobile parts, sporting goods, bicycles, footwear, textiles, fertilizers, medicine, leather goods and software.

The manufacture of certain items has historically been restricted to small-scale operations, with 873 items reserved for small-scale manufacturing at one point. This list has been gradually chipped away by the federal authorities, with only 21 items remaining today. Among these items are wood furniture, laundry detergent and food products. While large-scale production of the hundreds of now liberalized items is permissible, manufacturers must still acquire industrial licenses and fulfill an export obligation of 50 percent of yearly production.

The Delhi Department of Industries is also further promoting small-scale industries that are modern, high-tech, sophisticated and export-oriented.  In addition, industries that are not resource-intensive are also being encouraged.


Delhi is a fusion of ancient and modern cultures. It has a wealth of beautiful sites in the form of forts, monuments, palaces, gardens, museums and bazaars constructed by various rulers throughout its long history. These include Lal Quila, also known as the Red Fort; Jama Masjid, one of the country’s most famous mosques; Qutub Minar, a beautiful 13th century tower and UNESCO World Heritage Site; India Gate, a war memorial; Laxmi Narain Mandir (Birla Mandir), a stunning Hindu temple; Humayun’s Tomb; the world-renowned Lotus Temple; and Dilli Haat, a state-organized food and craft bazaar.

To promote tourism, the government set up the Delhi Tourism and Transportation Development Corporation Limited. The Corporation distributes tour-related materials through tourist information centers throughout the city, conducts city sight-seeing and excursion tours, offers outdoor adventure activities and has also undertaken the restoration of monuments.

Furthermore, the Corporation has also signed a contract with Doordarshan, one of the largest broadcasting companies in India, to promote tourism in Delhi through commercials as well as documentaries and special programs.

You can stay up to date with the latest business and investment trends across India by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

Related Reading

City Spotlight: Mumbai

City Spotlight: Bangalore

Key Sectors for FDI in India: Telecoms, Power and Oil & Gas

Key Sectors for FDI in India: Airports and Ports

Key Sectors for FDI in India: Manufacturing and Energy

Key Sectors for FDI in India: Roads and Railways