Nemish Hemant, New Delhi. This year has been a mixed one for Delhi's business and industry. After the change of government in Delhi, the changed governance system has infused new energy with positivity in the economic sector of Delhi. Many decisions and policies of the Rekha Gupta government have been business and entrepreneur friendly. It also raises hopes for a better business and industrial environment in the future. However, many announcements have not yet materialized on paper.
Meanwhile, air pollution and the terrorist blast in front of the Red Fort created concern and fear in the business environment of Delhi. Sealing in Neel Katra of Chandni Chowk has again created the fear of sealing. Along with encroachment by street vendors, lack of traffic jam facilities, markets and industrial areas continued to struggle with lack of basic facilities. Along with removing the lack of basic facilities in industrial areas, the government has not been able to move forward with announcements like giving ownership rights of property to entrepreneurs.
Historic decisions taken on trade and factory licenses
This year, there have been many policy decisions at the government level which have been historic and have been improving the overall business and industrial environment, in which the historic decision has been made to link the health, trade license and factory license process with property tax, making the health, trade license and factory license process simple, transparent and corruption-free, along with liberating the Delhi Police from the requirement of license and NOC. This was possible due to the triple engine government. These demands were fulfilled after decades with BJP coming to power at the Center and Delhi and with BJP coming to power in MCD.
Policies that will change the business and industrial environment of Delhi
Similarly, with major reform decisions like new industrial policy, logistics policy and excise policy, the government seems to be moving towards ease of doing business. DDA increased the FAR of planned commercial centers from 250 to 300, which provided relief to thousands of traders.
The government's intention is to make Delhi the business capital of the country, for which ambitious announcements were made in the budget of the Delhi government, important of which was the announcement of the formation of Delhi Traders Welfare Board, which acts as a bridge between the traders and the government. However, this board has not yet taken concrete shape, due to which the restlessness of businessmen and entrepreneurs is increasing.
Emphasis on investment summit and startup
With the announcement of the draft Industrial Policy 2025-35 under the leadership of Chief Minister Rekha Gupta and steps like taking steps towards startup policy, there is hope that now investors will be attracted in Delhi too. The government has also announced an investment conference in Delhi on the lines of other states. It is expected that the Delhi government will organize the Global Investor Summit next year in January-February 2026, with the aim of making Delhi a major investment hub.
Delhi government is working rapidly on logistics and warehousing policy, which will focus on reducing congestion and pollution. There is a proposal to build three urban consolidation centers in the outer areas and provide subsidy, which will expand the scope of business. Similarly, connecting the young minds with the goal of a developed India, a draft of Startup Policy 2025 has been released, under which a target has been set to create 5,000 startups by 2035 by setting up a venture fund of Rs 200 crore and to make Delhi a global innovation centre.
There was a boom in shopping due to GST cut and the market came to a standstill.
The huge cut in GST just before Diwali gave a boost to the market and industry. People bought a lot. The purchasing power of people increased due to reduction in GST rates. There was a 20 to 30 percent increase in demand for every product compared to last Diwali.
However, the Red Fort blast brought Delhi's main business hub to a halt, bustling with activity and shoppers. There was a 50 percent decline in business for a few days. Especially during the wedding season, the sale of lehengas, sarees, suits and other garments and clothes was affected in Chandni Chowk.
gasping for air pollution
Policy reforms poised Delhi to become a trade and industry hub by 2025, but pollution and regulatory hurdles halted progress. Where business in markets was affected due to pollution. At the same time, many challenges like non-use of diesel gensets, ban on construction activities etc. blocked the path of industry and construction sector. At the same time, due to the No Fuel without PUC campaign, there has been a decline of up to 20 percent in the sales of 150 petrol pumps located in the border area.
Only talk on redevelopment of wholesale markets of Old Delhi, no roadmap
There was only talk about the redevelopment of the wholesale markets of Old Delhi, the major business hub of Delhi. A group of businessmen also submitted its draft to the government. The Chief Minister announced the restructuring of Shahjahanabad Redevelopment Corporation (SRDC). Hopefully that will happen in the next year. But the way the encroachment of street vendors continued in Chandni Chowk and Sadar Bazaar, due to which the situation sometimes became anarchic. Similarly, the markets continued to struggle with the lack of basic facilities. He was a disappointment.
The Delhi government under the leadership of Chief Minister Rekha Gupta started with many historic decisions creating a positive environment. Especially the way inspector raj and corruption have been freed from the new provisions in factory license and health trade license. He is special. Its far reaching consequences will be visible.
By the way, there are problems in applying through internet in the new system, it is expected that they will be solved in the coming time. The government's busyness has increased in the last few months. Therefore, the campaign to be launched from October to give property ownership rights to entrepreneurs has not started yet.
The government has also released the draft of the new industrial policy, which is being taken positively. However, there is still confusion regarding its provisions. There are only speculations on the provisions of the labor law introduced by the Central Government; relief may come with the introduction of the new electricity law, which is being discussed by the government. There has not been much change in attitudes regarding industry being responsible for pollution. Whereas, to get Make in India off the ground, there is a need for a change in that perspective.
- Mukesh Kumar, Vice President, Laghu Udyog Bharti
Overall, this year was mixed for Delhi's industrial trade. Many decisions of the Centre, State and MCD have brought relief to them, but the talk of change at the policy level has not materialized. Whereas, there is a need for change. Because, in the growing grip of e-commerce, there is a dire need of basic facilities in the markets. Also, by adopting ease of doing business, a new generation can be connected to industry and trade, which will not only strengthen economic progress but will also reduce the unemployment rate. India will be strong.
Brijesh Goyal, Chairman, Chamber of Trade and Industry (CTI)