New Delhi: Delhi’s economic growth is set to moderate in 2025-26 with its Gross State Domestic Product (GSDP) expanding at a slower pace following the post-pandemic surge.Though the growth is easing from high double-digit levels seen during 2021-23 to a more stable single-digit trajectory, the overall size of Delhi’s economy continues to expand steadily with the services sector continuing to be the key driver, while industry is playing a secondary role.
GSDP is the total monetary value of all goods and services produced in a state in a year. A higher value means more business activity, income and jobs.According to advance estimates of state domestic product for 2025-26 released by Delhi govt’s directorate of economics and statistics this week, the city’s GSDP at current prices is projected to rise to about Rs 13.3 lakh crore in 2025-26 from Rs 12.1 lakh crore in 2024-25. This marks a steady increase compared with Rs 10 lakh crore in 2022-23 and Rs 8.7 lakh crore in 2021-22. In the pandemic-hit year of 2020-21, GSDP had dropped to Rs 7.4 lakh crore, showing the extent of disruption caused by Covid-19 before the recovery phase took off.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 pace has since moderated to 8.9% in 2024-25, with an uptick to 9.4% in 2025-26.“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,” said an official.The services sector, which includes trade, transport, real estate and financial services, continues to drive Delhi’s economy and is the largest contributor to the GSDP. Construction and manufacturing are expanding steadily, though without the earlier surge, according to figures shared by govt.The figures show that jobs and incomes in the city continue to rise, though not as rapidly, and that prices and demands are likely to remain more stable, the official said.However, economists generally 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, as against 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, according to the Economic Survey 2025-26 tabled by chief minister Rekha Gupta in the assembly. Delhi’s per capita income is now around two and a half times the national average, which underlines its growing earning capacity and economic advantage.
