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India's national capital, Delhi, has the country's most service-intensive economy. In 2016, Delhi overtook Mumbai to become the city with the largest GDP in the country and it is increasingly aiming to replicate the success of Bangalore as a hub for IT companies. Delhi's GDP rose by 39% in real terms over the 2011-2016 review period, the same rate as the country as a whole, which boosted wealth and employment. Delhi's population reached 17.6 million in 2016, an increase of 8% on 2011.
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Delhi's labour productivity (GVA per employee) of USD12,100 in 2016 was 3-times higher than in the rest of the country, and the highest among major Indian cities. Delhi owes its leading position to its role as the capital city: public services employed a 23% share of the city's employees in 2016; and their productivity was 1.6-times higher than their counterparts in Mumbai.
Derived from higher productivity, the average disposable income per household was also the highest in the country. In 2016 it stood at USD22,000, 3-times the national average and 30% above that of Mumbai, (the city with the second-highest income level in India). Higher household size (10% higher than in Mumbai) and a broader working age (15-64-years-old) contributed to higher household incomes in Delhi.
Household expenditure (excluding transport and housing) reached USD6,200 in 2016; 79% higher than in the rest of the country, albeit slightly lower than in Mumbai, the city with the highest household expenditure. Globally, except for Bangalore and Kolkata, there are few metropolises with a lower household expenditure level than Delhi.
Consumer expenditure on transport and housing per household in Delhi was the highest in the country: USD4,800 in 2016, 3.5-times higher than the national level. Expenditure on transport and housing accounted for a combined 43% share of the total, the highest share among Indian metropolises. Meanwhile, the motorisation rate in Delhi was 6-times higher than in the rest of country and twice the rate in Mumbai.
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