A Tale of Two States: Punjab Vs Delhi

DD Mishra
4 min readJan 29, 2022

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An English Idiom says, “proof of the pudding is in the eating”. Here we are going to compare hard facts. Punjab is a full state, with a CM who has all the resources at his disposal. On the other hand, Delhi is not a full state with a CM with limited impact capability.

Delhi has the advantage of being the national capital but is comparatively smaller in size. Both state CMs have their own advantages and disadvantages. Hence, we are not comparing chalk and cheese.

So, let us see how both states have performed. What matters to the people is the outcome and result.

Economy

I tried to go through the IBEF presentation of both Delhi and Punjab to see how the states compare in terms of GSDP growth. Delhi’s average growth rate (CAGR) in constant currency was 7.70%, while Punjab was lagging by 6.76%.

Delhi’s economy (US$ 108.33 Billion) is larger than that of Punjab(US$ 74.61) despite Punjab being a bigger state. The growth rate is also much better.

CAGR Growth —Delhi Versus Punjab (source IBEF)

Per Capita Income

Punjab’s per capita income is less than half of Delhi’s per capita income. Delhi’s per capita income also grew faster than Punjab despite being more. The trend is contrary to the common phenomenon as the options are saturating in Delhi, and Punjab is expected to generate more opportunities.

During 2021 under constant prices, the per capita income of Delhi was INR 3.9 Lakhs and Punjab INR 1.7 lakhs.

Per Capita GSDP of Delhi and Punjab(Source IBEF)

Foreign Direct Investments

FDI inflow in Punjab is negligible compared to Delhi despite Punjabis being entrepreneurs, and many settled overseas. During the period Oct 2019 to March 2021, Delhi received Foreign Direct Investment of USD 9.4 Billion, wherein Punjab received USD 741.23 Million.

Electricity Tariffs.

Electricity tariffs are one of the lowest in Delhi. There has been a significant amount of work done in Tariff rationalization. People are benefitted in Delhi several times more compared to Punjab from not just the lower tariff but good availability. We have taken up to 300 units for comparison.

In addition, Delhi’s availability of power is 99.4% and exceeds the benchmark requirements of 98%. Punjab’s availability appears to be a journey as there is a shortfall.

Source PERC and DERC (2021 Data)

Healthcare

Delhi Government healthcare allocation is 3 times the percentage of spend on healthcare against the budget. Delhi Government has received several recognitions for the healthcare facility, which has been praised at the national and international level and has become a model. For Punjab, Healthcare is a journey despite good hospitals and an enthusiastic population.

Punjab and Delhi Healthcare Spending (PRS Budget analysis)

Education

Delhi’s share of spending on education is the best in the country. Punjab does not come even close to educational spending as a percentage of its budget. Over the years the Delhi Government schools have earned international recognition and have become role models.

Punjab and Delhi Education Spending (Source PRS Budget Analysis)

Unemployment

As per CMIE data, Punjab performed pretty well in terms of Unemployment compared to Delhi. Punjab did better than Delhi in labor participation as well.

Source CMIE

Despite both being popular states, it seems Punjab comparatively is lagging behind. There are more issues in Punjab which need immediate attention like water, agriculture, drugs, etc. Punjab needs good and honest governance to overcome its current set of challenges.

Note: I wrote another version of this story earlier in Punjabtoday with the topic A Tale of Two CMs — Amarinder vs Arvind.

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DD Mishra

I am a researcher, blogger, social worker, activist, and change agent who strives to create social equilibrium and harmony for sustainable development.