Delhi GSDP snippets

While Delhi is among the fastest growing states or union territories going by its economy, the economic survey report for 2012-13, released by the NCT government shows that the city has slipped from consistent double-digit growth rates between 2005-06 and 2008-09 to single digit in the past four years. This merely shows that Delhi too is under the influence of the economic slowdown that’s more evident in other parts of the country.
The growth rate was 10.5% in 2005-06, shot up to 12.4% in 2006-07, was 11.2% in 2007-08 and 12.9% in 2008-09. But from 2009-10 onwards, growth has ranged between 9.3% and 9%. The data on gross state domestic product (GSDP) shows a marginal decline since 2010 despite huge expenditure on development projects taken up in the run-up to Commonwealth Games and the many social sector schemes launched over two years.
Harping on the growth, the chief minister Sheila Dikshit-led government in its Economic Survey of Delhi 2012-13 highlights the fact that the GSDP has increased from Rs.100,324 crore in 2004-05 to Rs.365,726 crore in 2012-13 with a growth rate of 17.7% at current prices and 9% at constant 2004-05 prices.
While this does indicate fairly robust growth, a closer look at the graph of previous years reflects a worrisome trend. The data shows that the growth of GSDP at current prices was 18.8% in 2011-12 and at constant prices 9.2%. By that measure, 2012-13 has seen a decline in growth, even if it is marginal. In fact, in 2010-11, GSDP at current prices grew by 19.2% and at constant prices by 9.3%. This data reaffirms that for the past three years the slowdown has been palpable.
The GSDP measures the monetary value of all goods and services produced within the state during a given period of time, usually a year, without double counting. It serves as an indicator for measuring the economic activity of a state. Current prices take into account inflation while constant prices are used to track the trend in the real growth rate after discounting for rising prices.
The major share of Delhi’s income is from the service sector. The Economic Survey reports that like most urban economies, Delhi is also showing a trend of higher growth in the service sector. The contribution of the service sector to the GSDP of Delhi at constant prices increased from 80.5% in 2004-05 to 85.8% in 2012-13.
The Delhi CM cited figures from the Survey to indicate prosperity in the Capital. She stated that the per capita income in Delhi has crossed Rs.2,01,083 at current prices as compared to Rs.1,73,686 in 2011-12. The survey shows that the per capita income in Delhi is three times higher than the national average. This, she said, is a reflection of the satisfaction level of the residents.