Delhi NCR – Business Opportunities & Market Entry

Delhi, India's capital city, experienced 9.2% economic growth in 2022-23. It's known for vibrant street shopping, diverse cuisine, and cultural heritage. Delhi has a thriving real estate market, potential in agrochemical products, and a significant power capacity of 6893.09 MW. It serves as a hub for government ministries, has the Delhi Metro with 286 stations, and hosts a busy airport. Delhi ranks 12th in export readiness, has a population of 20.5 million, high population density, and a literacy rate of 86.21%.

Top Industries

• Agriculture and Food Processing - Delhi, the capital of India, is a highly developed city with excellent connectivity and a bustling metro network. The National Capital Region (NCR) is India's largest milk market, with a steady demand for 5 million litres of milk per day. Delhi ranks as the 11th largest dairy market, dominated by cooperatives like Mother Dairy, Delhi Milk Scheme, and Amul. Agriculture is also prominent, with diverse crops cultivated to support food security and the economy of the region.
• Tourism and Hospitality - Delhi is a top tourist destination in India, offering rich cultural and historical experiences. Popular attractions include Akshardham Temple, India Gate, Qutab Minar, and Red Fort. The State Budget for 2022-23 allocated INR 1,500 crore to enhance tourism and support cultural initiatives. This investment aims to develop existing attractions, attract more visitors, and promote Delhi's arts and culture. The city's diverse range of landmarks, markets, and festivals contribute to its popularity among tourists, while the government's commitment ensures a memorable experience and preservation of cultural heritage.
• IT and ITeS - Delhi-NCR, with cities like Gurgaon and Noida, has witnessed remarkable growth in the IT/ITeS sector, narrowing the gap with established IT destinations. The region offers high-quality human capital, concentration of major multinational companies, and a cosmopolitan culture. Gurgaon hosts industry giants like Microsoft, Accenture, and TCS, while Noida is home to companies like SAP, Google, and Microsoft. Special Economic Zones (SEZs) and favorable infrastructure attract IT firms. The Smart Cities Mission further promotes growth and development in the region. Delhi-NCR has emerged as a competitive player in the IT sector, attracting companies for expansion and establishing their operations.
• Real Estate and Construction - Delhi's real estate market is highly attractive, offering investment opportunities in residential, commercial, and industrial sectors. The government's proactive measures, including industrial cluster redevelopment and the PPP model, promote sustainable urban development and attract private investment. These initiatives create modern spaces, boost economic growth, and provide job opportunities. Delhi presents a lucrative investment climate for domestic and international investors, driven by government initiatives and a strategic location as India's capital city.
• Healthcare - Delhi's healthcare system is advanced, with modern facilities and technology, making it a premier destination for medical care in India. The government has allocated 14.3% of its expenditure to healthcare, twice the national average, showing a strong commitment to the sector. This investment enables the development of infrastructure, procurement of advanced equipment, and recruitment of skilled professionals. Delhi attracts leading medical practitioners and specialists, and its renowned institutions foster collaboration and innovation. The city's priority on healthcare and significant investment make it a hub for specialized treatments and cutting-edge medical services.

DELHI START-UP POLICY 2022

Overview The current Delhi Start-up Policy focuses on fostering the growth of start-ups in various key areas such as AI, robotics, cyber security, and renewable energy. Extensive research, consultations, and collaborations have been conducted with stakeholders, including start-up founders, industry associations, and investors. The policy aims to position Delhi as a Global Innovation Hub and preferred start-up destination by 2030. It incorporates best practices from renowned innovation hubs and includes a start-up task force for effective implementation. Approved in May 2022, the policy offers incentives like interest-free loans, free professional assistance, streamlined procurement norms, and support for student entrepreneurs. The target is to nurture 15,000 start-ups by 2030. Business Incubators The Government of Delhi has supported the establishment of incubators and physical infrastructure for creative enterprises. Through a grant-in-aid of INR 1.5 Crore, 11 academic incubators have been set up in collaboration with renowned institutions. These incubators receive financial support for capital, operations, and maintenance expenses. The incubators provide valuable resources to start-ups, including mentorship, seed funding, investor connections, and participation in events. With over 30,000 sq. ft. of supported space, the government has played a crucial role in strengthening the incubation ecosystem. Free of Cost Services The Delhi Start-up Policy aims to streamline paperwork and official formalities for entrepreneurs. It proposes the empanelment of agencies and professionals who will provide free assistance to start-ups, helping them with legal matters, marketing, investments, and taxation. This support will reduce administrative burdens, allowing start-ups to concentrate on their core business activities and promote their growth and success. Fiscal Incentives The Government of Delhi has introduced fiscal incentives as part of the Start-up Policy to support start-ups in their early stages. These incentives include reimbursement on lease rentals, grants for patent filing, reimbursement of exhibition stall/rental costs, monthly allowances for operational/employment costs, financial grants for capital and operational expenditures, and support for procurement of key software. These incentives aim to alleviate financial burdens, encourage entrepreneurship, and foster the growth of start-ups in Delhi. Non-Fiscal Incentives The government is committed to supporting young entrepreneurs by providing free guidance and assistance through expert panels. It aims to develop an entrepreneurial curriculum, foster strong linkages with industry associations, facilitate access to subsidized technology offerings, organize fundraising events, and provide access to government data for e-governance pilot projects. These initiatives create a supportive ecosystem that offers both fiscal incentives and non-fiscal benefits, enabling the success of start-ups and contributing to the overall growth of the start-up ecosystem in Delhi.

Delhi Electric Vehicle Policy 2020

The Delhi Electric Vehicle (EV) Policy 2020 promotes the adoption of electric vehicles in Delhi to combat pollution and improve air quality. It provides financial incentives for purchasing electric vehicles, including subsidies and scrapping incentives. The policy focuses on developing a robust charging infrastructure network and exempts electric vehicles from road tax and registration fees. It also emphasizes awareness programs, capacity building, and training for maintenance and repairs. The policy encourages electric vehicles in public and shared transport systems. Overall, the policy aims to create a sustainable and eco-friendly transportation ecosystem in Delhi.

National Education Policy 2019

The NEP 2019 is a policy framework that aims to transform the education system in India by focusing on student-centric learning, skill development, and technology integration. It emphasizes early childhood education, foundational literacy, and numeracy. The policy promotes a flexible curriculum, critical thinking, and experiential learning. It highlights teacher development and the use of technology in education. The NEP 2019 also emphasizes vocational education, higher education reforms, and research and innovation. It's important to note that implementation may vary across states and Union Territories.

Delhi Master Plan 2021

The Master Plan formulated by the Delhi Development Authority (DDA) is a comprehensive urban development strategy that considers factors like population growth, housing needs, transportation, environment, and socio-economic development. It aims to achieve balanced growth across the city and improve the quality of life for residents. The plan focuses on physical infrastructure development, including transportation, water supply, sewage systems, waste management, and public amenities. It addresses housing needs, promotes affordable housing, and implements slum rehabilitation programs. The plan incorporates measures for environmental protection, encourages sustainable practices, and supports renewable energy use. It also promotes economic growth by attracting investment and creating employment opportunities in commercial and industrial sectors.

Best Locations To Set up Business in Delhi NCR

• Gurugram: Major corporate and industrial hub in Delhi-NCR with multinational companies and IT parks.
• Noida: Prominent business destination known for its well-planned industrial sector and IT companies.
• Connaught Place, Delhi: Prime commercial and business district with corporate offices and retail outlets.
• Nehru Place, Delhi: Major commercial and IT hub in South Delhi, known for its electronics market.
• Saket, Delhi: Emerging commercial and retail centre in South Delhi with shopping malls and corporate offices.
• Aerocity, Delhi: Prime business district near the airport with hotels, office complexes, and convention centres.
• Greater Noida: Industrial city offering industrial parks, SEZs, and affordable land options for manufacturing.
• Faridabad: Industrial city with a strong manufacturing base, affordable land, and good connectivity.
• Manesar, Haryana: Industrial town near Gurugram known for its automobile and technology sectors.
• Okhla Industrial Area, Delhi: Well-established industrial zone with a wide range of manufacturing units.
• Sahibabad Industrial Area, Ghaziabad: Industrial hub known for manufacturing units, especially in engineering and textiles.
• DLF Cyber Hub, Gurugram: Popular commercial and entertainment hub with restaurants and cafes.
• Cyber City, Gurugram: Prominent business park hosting major IT and corporate companies.
• Dwarka, Delhi: Fast-growing residential and commercial area with infrastructure development.
• Knowledge Park, Greater Noida: Educational and IT hub with universities and research institutions.
• Ghaziabad: Rapidly developing city with a mix of residential, commercial, and industrial areas.
• Faridabad Industrial Area: Industrial zone known for manufacturing units in engineering and textiles.
• Palam Vihar, Gurugram: Residential and commercial area near the Delhi airport with connectivity to Delhi and Gurugram.

Business Clusters in Delhi NCR

• Nehru Place, Delhi: IT hub for hardware and software businesses.
• Cyber City, Gurugram: Prominent IT and corporate hub.
• Connaught Place, Delhi: Prestigious business district with offices and retail stores.
• Udyog Vihar, Gurugram: Industrial estate with diverse industries.
• Okhla Industrial Area, Delhi: Major zone for garments, textiles, and engineering.
• Noida SEZ, Noida: Economic zone for IT, electronics, and manufacturing.
• Film City, Noida: Hub for media and entertainment production.
• Kundli Industrial Area, Sonipat: Industrial zone for textiles, engineering, and chemicals.
• Knowledge Park, Greater Noida: Hub for education, research, and IT companies.
• DLF Cyber Hub, Gurugram: Social and entertainment hub with upscale venues.
• Rajiv Gandhi Renewable Energy Park, Gurugram: Park for clean energy technologies.
• Noida-Greater Noida Expressway: Development corridor for commercial and IT sectors.
• Jasola District Centre, Delhi: Commercial hub with offices in finance and consulting.
• Narela Industrial Area, Delhi: Manufacturing and industrial hub in North Delhi.
• Okhla Phase III, Delhi: Industrial area for pharmaceuticals, chemicals, and plastics.
• Aerocity, Delhi: Emerging business district near the airport.
• Knowledge Park II, Greater Noida: Educational hub for engineering, management, and technology.
• Manesar-Bawal Investment Region, Haryana: Industrial and logistics hub near Gurugram.
• Rohini, Delhi: Suburban area with affordable office spaces for start-ups.

Tax Benefits, Incenitives and Subsidies

Setting up a business in Delhi-NCR can provide various tax benefits, incentives, and subsidies. Here are some of them-

• GST Incentives: Benefits under unified tax system.
• Electricity Duty Exemption: Reduction in electricity duty for certain industries.
• R&D Incentives: Grants and incentives for research and development activities.
• Start-up and MSME Support: Initiatives for start-ups and small businesses.
• Skill Development Subsidies: Support for workforce training and upskilling.
• Industrial Infrastructure Upgradation Scheme: Assistance for upgrading industrial infrastructure.
• Capital Investment Subsidy: Subsidies on eligible investments.
• Industrial Promotion Subsidy: Financial assistance, tax exemptions, and land acquisition support.
• Infrastructure Development Subsidies: Subsidies for infrastructure projects in industrial areas.

Delhi NCR is a thriving business hub with diverse industries, including finance, agriculture, construction, tourism, logistics, and IT/ITeS. It offers a skilled workforce from premier educational institutions and has a strong economy with a high GDP and consistent growth. The region's attractive real estate market, rich cultural heritage, and excellent connectivity make it an ideal destination for businesses and tourists. The IT and software industry and English-speaking population further contribute to its economic potential. The government's infrastructure focus, ease of doing business initiatives, and support for start-ups enhance market entry opportunities. With its vibrant economy, skilled workforce, supportive policies, and strategic location, Delhi NCR is a promising market for business growth.


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