Delhi economy: Per capita income near Rs 5 lakh; capital ranks no. 2, services sector fuels growth

NEW DELHI: Confirming Delhi's place among the richest states/UTs in the country, a recently released report says the capital's per capita income is now Rs 4.93 lakh, placing it at No.

2 spot ahead of Goa although the latest data from the coastal state is not available.Even if Goa retains its second position after data updation, the national capital will remain among India's top three states/UTs. Both Goa and the No.1 state, Sikkim, have a much smaller population than Delhi. Other industrialised states such as Karnataka, Tamil Nadu and Maharashtra are much lower in the list.

In absolute GDP, Delhi ranks 11th in India. Its economy is much larger than that of Kerala, Haryana, Bihar, Odisha, Punjab and Assam.Delhi's high income is largely linked to two factors: its skewed share in population and economic activities, and its economy being services-based like advanced countries. In 2011-12, the national capital's share was 3.9% of India's GDP. It rose to 4% in 2013-14 but has now decreased to 3.7%. Despite being a magnet for migrants from all parts of the country, its share in India's population has not increased at a rate that one may assume.

In 2011-12, Delhi constituted 1.4% of India's population and today the share is 1.6%, much smaller than its share in GDP.Apart from this, Delhi's economy is like the advanced economies of western Europe and America. In 2011-12, the share of agricultural activities or the primary sector was 3.5% in its economy, which has now reduced to less than 1%. The share of manufacturing has largely remained the same at around 13% while the share of services has increased from 83.4% to 86.6%.