Delhi's Economic Growth to Moderate in 2025-26, GSDP Projected at Rs 13.3 Lakh Crore
New Delhi: The economic growth of Delhi is poised to moderate in the fiscal year 2025-26, with its Gross State Domestic Product (GSDP) expanding at a slower pace following the post-pandemic surge. While the growth rate is easing from the high double-digit levels witnessed during 2021-23 to a more stable single-digit trajectory, the overall size of Delhi's economy continues to expand steadily. The services sector remains the primary driver of this growth, with industry playing a secondary role.
GSDP represents the total monetary value of all goods and services produced within a state in a year. A higher GSDP value indicates increased business activity, higher income levels, and more job opportunities, reflecting the economic health of the region.
Projected GSDP Figures and Historical Trends
According to advance estimates of state domestic product for 2025-26 released by the Delhi government's directorate of economics and statistics this week, the city's GSDP at current prices is projected to rise to approximately Rs 13.3 lakh crore in 2025-26, up from Rs 12.1 lakh crore in 2024-25. This marks a steady increase compared to Rs 10 lakh crore in 2022-23 and Rs 8.7 lakh crore in 2021-22. In the pandemic-affected year of 2020-21, GSDP had dropped to Rs 7.4 lakh crore, highlighting the significant disruption caused by Covid-19 before the recovery phase commenced.
Growth Rate Analysis and Economic Stabilization
In percentage terms, following the pandemic, Delhi's growth surged to 16.9% in 2021-22, followed by 14.8% in 2022-23 and 11.3% in 2023-24. However, this rapid pace has since moderated to 8.9% in 2024-25, with a slight uptick to 9.4% projected for 2025-26. An official commented, "It shows a gradual decline from very high growth rates to more moderate levels, which in turn indicates that the post-Covid rebound phase is over and that the economy is settling into a steadier growth trajectory due to stability in economic activities. A moderation after a rebound is expected, indicating the economy is stabilising rather than overheating."
Sectoral Contributions and Economic Drivers
The services sector, which encompasses trade, transport, real estate, and financial services, continues to be the largest contributor to Delhi's GSDP, driving the city's economy. Construction and manufacturing are expanding steadily, though without the earlier surge, according to figures shared by the government. The official added that jobs and incomes in the city continue to rise, albeit at a slower rate, and that prices and demands are likely to remain more stable.
Constant Price Analysis and Per Capita Income
Economists often rely on constant prices for a clearer comparison as they factor out inflation. At constant prices, which reflect the real size of an economy after adjusting for inflation, Delhi's GSDP is estimated at Rs 7.7 lakh crore in 2025-26, compared to Rs 5.7 lakh crore in 2021-22.
Meanwhile, Delhi's per capita income is projected to be Rs 5,31,610 for 2025-26, according to advance estimates, marking a 7.9% increase over 2024-25, as per the Economic Survey 2025-26 tabled by Chief Minister Rekha Gupta in the assembly. Delhi's per capita income is now approximately two and a half times the national average, underscoring its growing earning capacity and economic advantage.
