New Delhi:Telecom sector has taken the lead in FDIs tally of Delhi in the first nine months of 2006-07. It is followed by transportation, electrical equipment including software, service sector and hotel and tourism as its share in total Capital’s FDI inflow has been to the tune of 54%, according to analysis carried out by Assocham.
Transportation sector contributed to Delhi’s FDIs inflow by 10% as against 8% of electrical equipment including software, while service sector contributed only 7%.
Hotels and tourism contributed only 4% as against other sector’s contribution of 17%. Telecom registered the highest growth trajectory in Delhi’s total FDI inflow since the government’s industrial policy lays special emphasis on promotion of industries that can achieve optimum level of production with less space and power while generating employment for skilled persons and sophisticated industries to produce high value items.
In 2006-07, Mumbai emerged as the second best city for attracting FDIs, ranging little over 4.25 Euro billion followed by Bangalore, Chennai, Hyderabad, Ahmedabad and Chandigarh.
The Chamber has projected that the thrust area for industrial development of Delhi in the coming months would be hotels, power, tourism and transportation since they will register substantial growth in view of their demand with telecom sector coming to saturation, its growth graph will shift to sub-urban areas.
It highlights that National Capital Territory of Delhi will emerge as one of the biggest centres for small scale industry because of skilled craftsmen (jewellery, embroidery, silver vases and bowls and tea sets, ornamental jewel boxes made of brass, silk and silk embroidery, ivory carvings, handloom, textiles, copper and brass utensils).
Retailing and leisure industry including entertainment are likely to dominate FDI interest as majority of Delhi households prefer spending nearly 40% of their discretionary spending on these making the capital the fastest growing consumer market in India.
The chamber has proposed institutional improvements like increasing mass transport options by providing adequate, accessible and affordable modes like buses, mini-buses, electric trolley to make Delhi more efficient.