WRI Report: NCR Witnesses Economic Developments With Investments & Employment Opportunites

The report by WRI India titled "Morphology of Delhi National Capital Region’s Economic Geography and Implications for Planning" suggests that the National Capital Region (NCR) has experienced a shift in economic activity from the core of Delhi to the suburban areas. This spatial analysis of the region's economic geography reveals a rise in investment, employment, and income in the NCR, highlighting the importance of consolidating the economic potential of the entire region.

The report recommends the establishment of an NCR economic development council to effectively plan and strategize for the region's economic growth. Union Minister of Housing and Urban Affairs, Hardeep Puri, released the report during the Connect Karo 2023 event, as per a report in Hindustan Times.

To compile the report, WRI gathered data from various sources, including three Census of India reports, four economic census reports, establishment directories, and Delhi Development Authority (DDA) master plans, among others. The analysis underscores the need for comprehensive planning to harness the economic potential of the NCR effectively.

“The clear trend was a sort of hollowing out of the centre, and more economic activities shifting towards the peripheries, such as the NCR cities. However, unlike many other areas where industries completely shifted out, the area has managed to contain the activities within the region. This shows a clear need for planning from the regional perspective,” said Amitabh Kundu, senior advisor to WRI India and one of the authors of the report.

The report further divides the National Capital Region (NCR) into three subregions: NCT Core, CNCR (Central NCR) Periphery, and Rest of Region. The analysis found that the core of the NCR, which includes Delhi, has been consistently losing employment to its periphery and larger rural region, both of which have seen significant employment gains. The peripheral CNCR districts, particularly Gurugram (Haryana) and Gautam Buddha Nagar (Noida, Uttar Pradesh), have attracted more investments and have higher per capita incomes than other districts in their respective states.

The report also highlights that the CNCR Periphery, despite being rapidly urbanizing suburbs, still needs to catch up with the Core NCT in terms of infrastructure provision levels.

Partnerships For Economic Development

To address these economic trends and challenges, the report recommends the establishment of an NCR economic development corporation, similar to the NCR Transport Corporation (NCRTC), to develop regional economic development strategies. Additionally, the authors suggest setting up a Delhi economic development corporation to revitalize the Core NCT. They also advocate for spatio-economic assessments to improve investment decisions and strategies to enhance the participation of marginalized groups in the economy of Delhi NCR.

It has also emphasised the need for a comprehensive Delhi NCR Regional Plan and related strategies, prepared more frequently than once in 20 years, to effectively address the region's dynamic economic development needs. It highlights the presence of dedicated economic development councils, periodic preparation, and updating of strategic economic development plans, and partnerships with the private sector in global city-regions, which are absent in Delhi NCR.

As stated in the report despite being India's prime economic powerhouse, the strategic intent for economic diversification, competitiveness, investment crowding, job creation, economic recovery post-pandemics, and core area revitalization in Delhi NCR remains low. It also points out that there are multiple laws governing economic activity across the participating states, inadequate supporting infrastructure, and regional policy directives that are only recommendatory.

The experts present at the roundtable discussion acknowledged the significance of the report's findings and data points, emphasizing the need for a nodal agency that would be responsible for overseeing the overall economic growth of the National Capital Region (NCR) without being bound by state government differences. Such an agency would play a crucial role in coordinating and implementing strategies to promote economic development in the region.

OP Agarwal, a former joint secretary at the Ministry of Housing and Urban Affairs and a senior advisor to NITI Aayog, suggested that the Ministry of Industries or Commerce could potentially assume this role. He also proposed considering the possibility of expanding the role and scope of the NCR planning board beyond just planning to include coordination and implementation of economic development initiatives.

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