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Study on The Delhi NCR’s Economic Geography

Principal Researchers:
Dr. Shipra Maitra & Dr. Balwant Mehta​

Theme: Growth and Employment
Sponsor: World Resources Institute
Assignment : Analytical Study

Aims and Objectives: The research aims to analyze the economic structure and inclusiveness of Delhi NCR’s economy, with a particular focus on stressed sectors such as the informal economy, women, and urban lower-income youth. It will examine how future digitization and the gig economy might affect economic inequalities and identify necessary improvements in skilling, access to formal jobs, and education to integrate marginalized groups into the mainstream growth process of NCR.

Methodology: The study utilized a detailed analysis of secondary data sources, including the “Periodic Labour Force Survey” (2018-19), surveys of “Employment and Unemployment” conducted by NSS for the years 2004-2005, 2011-12, and 2017-18, the “Un-Incorporated Non-Agricultural Enterprises” survey (2015-16) by NSS, and various Labour Bureau Reports. The focus was on major sections of the workforce, including women, informal sector workers, and urban youth who are NEET (Not in Education, Employment, or Training).

Findings:

  • Employment generation for a large section of unskilled and semi-skilled persons, along with skill enhancement for access to decent jobs, is a significant challenge to inclusiveness.
  • The majority of the workforce in NCR is in informal employment. Manufacturing employment is significant, but sectoral productivity of unorganized manufacturing is low.
  • The hospitality industry is a main contributor to Delhi’s growth and needs encouragement through proper regulations and middle-level hotel development.
  • Low female participation in the labor market can be improved by creating job opportunities in sectors like electronics hardware, tourism, hospitality, education, and health. Safe transportation and flexible working hours should be promoted.
  • Rajasthan and UP, with a substantial labor force lacking higher education, should focus on agro-based enterprises and small-scale manufacturing while increasing investment in economic and social infrastructure.
  • Specific economic activities and skill requirements should be mapped to increase productivity. Some NCR districts show specialization in certain economic activities, with Meerut, Ghaziabad, Bulandshahr, and Delhi being hubs for artisanal works.

Recommendations:

  • Create an enabling environment for women and NEET youth to participate in the production process.
  • Provide skill development training and financial supports like credit facilities to improve productivity of self-employed and regular workers.
  • Encourage the hospitality industry through proper regulations and the development of middle-level hotels.
  • Promote job opportunities for women in electronics hardware, tourism, hospitality, education, and health sectors, along with safe and secure transportation and flexible working hours.
  • Focus on agro-based enterprises and small-scale manufacturing in Rajasthan and UP, with increased investment in economic and social infrastructure.
  • Map area-specific economic activities and skill requirements to enhance productivity, especially in districts specializing in certain economic activities.