This comprises the Old city of Delhi which was an import centre during the Mogul Emperors; New Delhi, the Capital since 1912, and adjoining areas. It is governed by a Lieutenant Governor appointed by the Centre. There is also a Legislative Assembly consisting of Elected Members and a Council of Ministers which exercise Executive and Legislative powers in respect of certain subjects which does not include the Police, Judiciary or Law and Order.

New Delhi was previously mainly the Centre of Government and where diplomatic missions were located, but today it has expanded enormously and has become a commercial centre as well. Most large banks, financial institutions, law firms, accountancy firms, medical centres, insurance companies, multinational companies have a significant presence in the city especially since there is much interaction or liaison work to be done with the government. Much of the work which is outsourced from abroad is sent to Delhi as there is a large pool of well educated and English speaking people available to work for lesser remuneration than in the West.

There are building restrictions in the city mainly to preserve Lutien’s Delhi, the colonial and mogul architecture; and most of the large buildings, call centres and offices of multinationals are located in the outskirts such as in Gurgaon, Faridabad or Noida. There are many 5 star hotels and restaurants. There is much scope for development in the area of cheaper hotels and youth hostels, international restaurants, bars, youth clubs, discos and entertainment for the young, entertainment for children, centres for the elderly whose families have migrated abroad and educational institutions. Retail in terms of affordable clothing and cosmetics, electronic goods, fitted kitchens, foreign furniture etc are all likely to do well due to the sizable middle class and rich business communities. The infrastructure needs to be developed and there is overuse of the resources available, as people from other parts of the country migrate into New Delhi.