Sachin Agarwal August 8, 2004
Tags: economy
Decline of Delhi
Have you heard the famous saying Dilli hai dil walon ki, Mumbai paise walon ki? If you have ever been to Delhi, you must have heard Delhiites say this ad nauseam. Delhites accused Mumbaikars of having wealth without warmth. But Dilli’s dil too had its roots
in its paisa. Delhi has been famous for ‘easy’ money: money that you earn easily; and ‘free’ money: money that you spend easily. It was because of this sweeping consumerist culture came warmth and friendliness.
But what lessened the attraction of Delhi for me was its choking pollution. Thanks to Sunita Narain, a heady activist from Delhi’s Centre for Science and Environment (CSE), Delhi now has the world’s largest eco-friendly public transport system run on CNG. This revolution did not come about easily. The CSE’s petition in the courts took years to bring about this change. Transport operators said their interests were being hurt, vested political interests had their own objections, and there were several doubting Thomases about the viability and safety of CNG.
But at the time there were other changes taking place in Delhi that went unnoticed.
Delhi’s traditional wealth and easy money came from its proximity to the agriculturally and industrially rich states of Punjab and Haryana. It benefited from being north India’s centre of trade and India’s political capital. Markets were open till late in the night. The shopkeeper never had time for small customers. You could not question them too much because they always had another customer. Economic reforms added to Delhi’s fortunes, making it the commercial hub of north India. This was Dilli ka dil, attracting people from across the country.
But Delhi as an economic centre with ‘easy’ money is gradually losing its charm. Its citizens, especially businesspersons and those in the services, began to feel the pinch about five years ago.
Post-reforms, the power of politicians and bureaucrats in making decisions for the market is steadily decreasing, thereby curbing their inflow of under-hand money. The increasing dominance of the CBI over the political and administrative class also served as a deterrent in controlling under-the-table deals. The powers-that-be might still be making money but they are wary of spending, lest their black money become obtrusive in the CBI’s eyes.
Sky-high salaries of high-flying corporate executives have been taking a beating since 1997 the start of an economic downturn. Salaries came down to realistic levels and so did over-inflated consumption. Downsizing and rightsizing, mergers and acquisitions, retrenchment and VRS were the new buzzwords. Stories like When your man loses his job became routine in women’s magazines. The markets of Delhi became overcrowded with goods in the absence of customers. This was the time when buy-one-get-one-free and 0% finance schemes started appearing.
The Supreme Court’s order to move all factories out of Delhi was another serious set-back for Delhi’s economy. Decades of corrupt Inspector Raj had taught big and small manufactures to misuse with impunity the resources meant for civic consumption. Who cared for such trivial things as pollution and resource shortages? Such practices were advantageous in terms of costs of production and distribution. The apex court’s order, inter-alia, also meant investing huge sums in the creation of new manufacturing facilities in designated industrial areas. Not all were able to bear the burden of new investments. This took its toll on the earning and spending potentials of factory-owners and displaced labour. Nobody even offers tea and sympathy to factorywallah. Those who were not able to set-up new factories were the worst hit, but even those who could, became cautious spenders, in stark contrast with their earlier fikar-not (don’t worry) attitude.
Apart from the status of a world-class public transport system, the Delhi Metro is also forcing unemployment upon thousands. Although it has created a few hundred technical jobs, but talk to shopkeepers and rehri-wallahs (street vendor/hawker) whose small establishments were demolished to erect tall concrete structures for the Delhi Metro. The central and state governments both want to take credit for the Delhi Metro, but who will take credit for the losses in the incomes of thousands of Delhi’s lesser mortals?
Most owners of the ‘blue line’ buses (earlier called ‘red line’), the backbone of the city’s public transport system, depend on the daily income generated by their bus. The conductor, driver and the bus-owner share their revenue at the end of each day. Their hardship in acquiring a CNG bus for twenty lakh rupees and selling their diesel bus at throwaway prices, largely remained out of the sight of the mainstream media. This has had profound effects on their living standards.
For over a decade, I have been visiting Delhi for half a dozen times every year to procure supplies for my business. I used to meet arrogant suppliers and vendors. By Delhi standards, mine was an inconsequential requirement. Perhaps their attitude seemed especially arrogant to me because I came from Lucknow, the famed host to gracious speech. As though they wanted to say, ‘chalay aatay hain kahan-kahan se’. At their polite-best, they used ignorance to turn down customers as though they do not need them.
In recent years, while my business’s requirements did not increase, but the suppliers’ behaviour has improved remarkably! Obviously, the slump in their business means they also have to take small customers seriously. The contempt has disappeared as if it never was. No longer are the bazaars agog with frantic activity. The overload of buyers is missing and so is the sheen of the market. Wholesalers in Sadar bazaar cherish those golden years...
Delhites now complain of having no money as consumers’ pockets have lost depth. Everyone is feeling the multiplier effect of lower spending. An all-round squeeze in earning potential has left life in Delhi not so exciting.
Whatever happened to Dilli ka Dil?
But what lessened the attraction of Delhi for me was its choking pollution. Thanks to Sunita Narain, a heady activist from Delhi’s Centre for Science and Environment (CSE), Delhi now has the world’s largest eco-friendly public transport system run on CNG. This revolution did not come about easily. The CSE’s petition in the courts took years to bring about this change. Transport operators said their interests were being hurt, vested political interests had their own objections, and there were several doubting Thomases about the viability and safety of CNG.
But at the time there were other changes taking place in Delhi that went unnoticed.
Delhi’s traditional wealth and easy money came from its proximity to the agriculturally and industrially rich states of Punjab and Haryana. It benefited from being north India’s centre of trade and India’s political capital. Markets were open till late in the night. The shopkeeper never had time for small customers. You could not question them too much because they always had another customer. Economic reforms added to Delhi’s fortunes, making it the commercial hub of north India. This was Dilli ka dil, attracting people from across the country.
But Delhi as an economic centre with ‘easy’ money is gradually losing its charm. Its citizens, especially businesspersons and those in the services, began to feel the pinch about five years ago.
Post-reforms, the power of politicians and bureaucrats in making decisions for the market is steadily decreasing, thereby curbing their inflow of under-hand money. The increasing dominance of the CBI over the political and administrative class also served as a deterrent in controlling under-the-table deals. The powers-that-be might still be making money but they are wary of spending, lest their black money become obtrusive in the CBI’s eyes.
Sky-high salaries of high-flying corporate executives have been taking a beating since 1997 the start of an economic downturn. Salaries came down to realistic levels and so did over-inflated consumption. Downsizing and rightsizing, mergers and acquisitions, retrenchment and VRS were the new buzzwords. Stories like When your man loses his job became routine in women’s magazines. The markets of Delhi became overcrowded with goods in the absence of customers. This was the time when buy-one-get-one-free and 0% finance schemes started appearing.
The Supreme Court’s order to move all factories out of Delhi was another serious set-back for Delhi’s economy. Decades of corrupt Inspector Raj had taught big and small manufactures to misuse with impunity the resources meant for civic consumption. Who cared for such trivial things as pollution and resource shortages? Such practices were advantageous in terms of costs of production and distribution. The apex court’s order, inter-alia, also meant investing huge sums in the creation of new manufacturing facilities in designated industrial areas. Not all were able to bear the burden of new investments. This took its toll on the earning and spending potentials of factory-owners and displaced labour. Nobody even offers tea and sympathy to factorywallah. Those who were not able to set-up new factories were the worst hit, but even those who could, became cautious spenders, in stark contrast with their earlier fikar-not (don’t worry) attitude.
Apart from the status of a world-class public transport system, the Delhi Metro is also forcing unemployment upon thousands. Although it has created a few hundred technical jobs, but talk to shopkeepers and rehri-wallahs (street vendor/hawker) whose small establishments were demolished to erect tall concrete structures for the Delhi Metro. The central and state governments both want to take credit for the Delhi Metro, but who will take credit for the losses in the incomes of thousands of Delhi’s lesser mortals?
Most owners of the ‘blue line’ buses (earlier called ‘red line’), the backbone of the city’s public transport system, depend on the daily income generated by their bus. The conductor, driver and the bus-owner share their revenue at the end of each day. Their hardship in acquiring a CNG bus for twenty lakh rupees and selling their diesel bus at throwaway prices, largely remained out of the sight of the mainstream media. This has had profound effects on their living standards.
For over a decade, I have been visiting Delhi for half a dozen times every year to procure supplies for my business. I used to meet arrogant suppliers and vendors. By Delhi standards, mine was an inconsequential requirement. Perhaps their attitude seemed especially arrogant to me because I came from Lucknow, the famed host to gracious speech. As though they wanted to say, ‘chalay aatay hain kahan-kahan se’. At their polite-best, they used ignorance to turn down customers as though they do not need them.
In recent years, while my business’s requirements did not increase, but the suppliers’ behaviour has improved remarkably! Obviously, the slump in their business means they also have to take small customers seriously. The contempt has disappeared as if it never was. No longer are the bazaars agog with frantic activity. The overload of buyers is missing and so is the sheen of the market. Wholesalers in Sadar bazaar cherish those golden years...
Delhites now complain of having no money as consumers’ pockets have lost depth. Everyone is feeling the multiplier effect of lower spending. An all-round squeeze in earning potential has left life in Delhi not so exciting.
Whatever happened to Dilli ka Dil?
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