94 ECONOMIC SURVEY OF DELHI, 2005-2006 CHAPTER-9 INDUSTRIAL DEVELOPMENT 1. The industrial sector plays a vital role in the economic development of the National Capital Territory of Delhi. The manufacturing sector in Delhi contributes about 12% to the state income. The Industries Department estimates indicate that in 2001 about 1.29 lakh industrial units were functioning in Delhi, which provided employment to more than 14 lakh persons. The estimated investment and production in these units was around Rs. 2,524 crore and Rs. 6,310 crore, respectively. (Table- 9.1) INDUSTRIAL GROWTH 2. Delhi experienced a rapid growth of manufacturing activities. The Master Plan for Delhi rules out setting up large and heavy industries. There is, however, scope to expand small-scale industries. The availability of infrastructure, wholesale markets, trade and other commercial services have promoted the expansion of small-scale industries in Delhi. OVERALL GROWTH 3. There has been a phenomenal growth of small-scale industries (SSI) in Delhi in the last 2 -3 decades, where a sharp increase in the number of units from 26000 in 1971 to 1.29 lakhs in 2001 has been recorded. The number of Small Scale Industries (SSI) in Delhi since 1951 have shown a tremendous increase as indicated below:- Statement 9.1 GROWTH OF INDUSTRIAL SECTOR, 1951-2001 Year Number of Investment Production Employment Industrial units (Rs. crore) (Rs. crore) (Number) 1951 8,160 18.13 35.35 95,137 1961 17,000 60.00 121.00 1,87,034 1971 26,000 190.00 388.00 2,91,585 1981 42,000 700.00 1,700.00 5,68,910 1991 85,050 1,659.00 4,462.00 7,30,951 2001 1,29,000 2,524.00 6,310.00 14,40,000 Source: Estimated by the Dte. of Industries, GNCTD.
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94 ECONOMIC SURVEY OF DELHI, 2005-2006
CHAPTER-9
INDUSTRIAL DEVELOPMENT
1. The industrial sector plays a vital role in the economic development of the National Capital Territory
of Delhi. The manufacturing sector in Delhi contributes about 12% to the state income. The Industries
Department estimates indicate that in 2001 about 1.29 lakh industrial units were functioning in
Delhi, which provided employment to more than 14 lakh persons. The estimated investment and
production in these units was around Rs. 2,524 crore and Rs. 6,310 crore, respectively. (Table- 9.1)
INDUSTRIAL GROWTH
2. Delhi experienced a rapid growth of manufacturing activities. The Master Plan for Delhi rules out
setting up large and heavy industries. There is, however, scope to expand small-scale industries.
The availability of infrastructure, wholesale markets, trade and other commercial services have
promoted the expansion of small-scale industries in Delhi.
OVERALL GROWTH
3. There has been a phenomenal growth of small-scale industries (SSI) in Delhi in the last 2 -3 decades,
where a sharp increase in the number of units from 26000 in 1971 to 1.29 lakhs in 2001 has been
recorded. The number of Small Scale Industries (SSI) in Delhi since 1951 have shown a tremendous
increase as indicated below:-
Statement 9.1
GROWTH OF INDUSTRIAL SECTOR, 1951-2001
Year Number of Investment Production Employment
Industrial units (Rs. crore) (Rs. crore) (Number)
1951 8,160 18.13 35.35 95,137
1961 17,000 60.00 121.00 1,87,034
1971 26,000 190.00 388.00 2,91,585
1981 42,000 700.00 1,700.00 5,68,910
1991 85,050 1,659.00 4,462.00 7,30,951
2001 1,29,000 2,524.00 6,310.00 14,40,000
Source: Estimated by the Dte. of Industries, GNCTD.
ECONOMIC SURVEY OF DELHI, 2005-2006 95
96 ECONOMIC SURVEY OF DELHI, 2005-2006
4. The Industries Department is running a Tool Room & Training Centre with Danish collaboration at
Wazirpur Industrial Area with the objective of contributing towards the development of small scale
industries through supply of trained man-power and sophisticated tooling. The Production Wing of
the Centre is manufacturing tools, dies, moulds, jigs and fixtures, die casting dies, press tools etc.for
industries. The centre is providing 12.5% subsidy to small-scale units.
The Centre has been imparting training in the field of tool making tool design, computer
programming, CNC machine programming and operation, CAD/CAM etc. The trainees under
these courses are exposed to advanced methods of tools making and tool designing .The Centre
for information and technology in Tool Engineering and Computer Application (CAD/CAM)) has
been set up as a Sub Centre of TRTC at HTVTC Building at Okhla Industrial Area, New Delhi, wherein
various CAD/CAM course are being conducted.
The centre has started one year Condensed Course in tool and die making wherein 20 trainees
per year will be trained. The centre is conducting 2 year Post Diploma in Tool Design (Part time-
Evening Course) where in approx.20 trainees are trained. The Centre is conducting short-term
course in the field of various processes involving in tool making and tool designing. The Centre is
also to start additional short-term courses in the field of Engg. Drawing, Plastic mould, press tool
designing and manufacture, CNC milling, EDM wire cut etc.
Tool Room & Training Centre has taken up number of steps to increase their revenue by increasing
seats in various training courses. Some new short term courses are also being introduced. An amount
of Rs. 4 crore was provided in 2005-06 for purchase of new machines to up grade the technology
and to increase the production activities so that it may function on self-substained basis.
5. A Hi-Tech Vocational Training Centre has been set up with Italian collaboration at Okhla Industrial
Area for providing training on CNC machines and for providing machining facilities to small-scale
industries. This Centre has started a number of training programmes for different level of technical
personal to earn more revenue.
6. In order to make the National Capital Territory of Delhi a world class cyber state, the Delhi Government
has planned to set up state-of-the art 'Hi-tech City for Information Technology' on about 100 acres of
land with the best communication links, uninterrupted and clean power supply with back up power
generation and other advanced technical facilities. This project could not make headway so far
due to non-availability of suitable land. IT Park (6 hctr. land) has been set up at Shastri Park by DMRC
at a cost of Rs.174 crore. With a view to establish and develop Industry-University-R &D linkages.
"Bio-Technology Park" is being set up in collaboration with Delhi University which will help in the up
gradation of technology of existing industries and development of high-tech and non-polluting
industries in Delhi. Construction work is nearing completion and the Centre is likely to function shortly.
INDEX OF INDUSTRIAL PRODUCTION
7. The index of industrial production (1993-94 base year) shows an increasing trend. The Time series
containing index of industrial production data in Delhi is given below:-
ECONOMIC SURVEY OF DELHI, 2005-2006 97
Statement 9.2
INDEX OF INDUSTRIAL PRODUCTION IN DELHI (BASE YEAR 1993-94)
Year Index % growth over previous year
2000 – 01 103.28 9.55
2001 – 02 109.38 5.91
2002 – 03 115.85 5.92
2003-04 123.35 6.47
2004-05 141.66 14.84
2005-06 135.70 (-) 4.21
Source: Directorate of Economics & Statistics, Government of NCT of Delhi
Statement 9.3
INDEX OF INDUSTRIAL PRODUCTION IN MAJOR SECTORS OF INDUSTRY
Sector Annual Average Index Percentage
2004-05 2005-06 increase
1.Manufacturing 140.96 134.64 -4.48
a) Food Products 97.86 97.38 -0.53
b) Beverages,Tabocco and related products 55.71 52.47 -5.82
c) Wool silk and man made Fibre Textiles 44.41 46.16 4.65
d) Textile products 13.55 18.35 35.42
e) Leather and related products 107.38 90.27 -15.93
f) Basic chemical products 218.31 225.17 3.14
g) Non-metallic mineral products 96.46 83.80 -13.12
h) Basic metal and alloys industries 63.56 56.51 -11.09
i) Metal Products 59.15 61.81 9.57
j) Machinery & equipment 480.34 437.02 -9.02
k) Transport equipment 39.31 38.22 -2.77
l) Other manufacturing 322.24 312.97 -2.88
2. Electricity Generation 153.34 153.18 -0.10
3.General 141.66 135.70 -4.21
Source:Dte. Of Economics & Statistics
98 ECONOMIC SURVEY OF DELHI, 2005-2006
8. MONTHLY COMPARABLE INDEX OF INDUSTRIAL PRODUCTION IN DELHI.
The average annual index of industrial production for 2005–06 has been estimated as 135.70
while it was 141.66 during 2004-05 with base year 1993 – 94 as 100. This shows 4.21% decrease
in IIP when compared with the previous year. It is clear from the table given below that only during
October, December 2005, there is an improvement of 8.97% and 20.73% while for remaining ten
months of the year there is a decline as compared to corresponding month of previous year.
Statement 9.4
MONTH-WISE INDEX OF INDUSTRIAL PRODUCTION (BASE:1993-94=100)