DELHI

Delhi is the political capital of the country, with the dubious distinction of also being the crime capital and routinely congested air and roads. It is gearing up for the 2010 Commonwealth Games, which is definitely giving it a facelift. Ironically, it has survived almost 25 years having cashed on rejigging itself over 1982 Asian Games. It has strongly leaned on suburban cities of Gurgaon, Faridabad, Noida and Ghaziabad, else it would have been in imponderable despair by now. The neighbouring Haryana patronises by providing it manpower on all fronts: police, teachers, bureaucracy, bus drivers, etc. .

It has been plagued by blow-hot-blow-cold restructuring waves, both guided and obstructed by active judiciary. The poor handling of transport initiatives has added to the woes. Surely, CNG buses have lowered pollution levels, although talks afoot to limit entry of diesel-powered vehicles are pretty controversial. .

Delhi sits on a huge reserve of demand conditions. It can sell and sell and sell, though the discerning customer has to be a hard bargain and also wary of flyby-night-operators. The retail industry in Delhi is one of the most thriving in India. The presence of a huge consumer market, a large pool of skilled labour and rise in disposable incomes have helped Delhi in its industrialization and retail growth. .

Supporting industries are respectable though not internationally acclaimed in their proper right. The lead it had with regard to small-scale food processing industry was negated when the Supreme Courtordered relocation of units. Construction, power, telecommunications and real estate are the pillars of Delhi's economy. The key industries include information technology, telecommunications, hotels, media, banking and tourism. The manufacturing industries of Delhi have also expanded as many consumer goods industries have established manufacturing units and offices in the region. It can definitely think of institutional merger of its municipalities and also of satellite towns, provided that doesn't turn out to be too centralised. The reverse move too can fetch good results, fragmentizing into autonomous areas but with a common unified programme. The work culture in Delhi is often described in negative terms by corporate honchos. .

Delhi definitely needs separate airports for domestic traffic. But plans are executed so slowly that by the time projects are completed, the demand has already gone many times higher. It has to manage the Yamuna more keenly. Also, the city sits on a fault line, which would be disastrous given the high population density. But then, Delhi has a most permissive culture that assimilates all diversity. .

COMPETITIVE STRENGTHS

Best supporting industries
Superior competitive intensity
Very good factor conditions .

COMPETITIVE WEAKNESSES

Very poor quality of life
Discouraging business incentives
High business costs




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