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India Today issue dt December 6, 1999
Dec 6, 1999

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COVER STORY: DELHI
The New Delhi

An unceasing influx of business and families is changing the beat, tenor and character of the city

By Rohit Saran with Namrata Joshi

Malibu TowersIt may have happened in September 1999 when former United Nations executive and a diehard Mumbai aficionado Bhaichand Patel shifted to Delhi lock, stock and barrel. It may have happened in December 1998 when Raghu Krishnan gave up his job with a networking company in Bangalore to join a multinational beverage company in Delhi. Or it may have happened in January 1997 when Coca-Cola India shifted its headquarters from Mumbai to Delhi.The precise timing matters less than the consensus: Indians are invading Delhi at a pace unlike ever in the past, and unlike any other city in the country. Each immigrant, whether from a big city or a small town, is bursting with ambition. Each harbours a plan of a better life. "More by default than by design, Delhi is emerging as the Dream City of India. A city that provides people with job and home," says Gurcharan Das, former CEO of Proctor & Gamble, who shifted to Delhi in 1994 after living in Mumbai all his life.

Between 1991 and 1999, Delhi's population has swelled by 43 per cent -- faster than any other city in the country -- and is now close to 14 million. That's twice the population of Switzerland, a country about 30 times the size of Delhi. Another million people come to Delhi every day from the satellite towns. "Delhi is now the number one destination of migrants," pronounces Omesh Saigal, chief secretary, Delhi.

Of course, immigrants have landed in Delhi before, though never so relentlessly and not for the reasons they are coming in now. Even the post-Partition Punjabi influx into the city (approximately five lakh), which transformed the Capital's culture forever, pales when compared with the current rate of migration. A stark statistical evidence of the immigrant tide is that over 60 per cent of Delhiites are not Delhi-born.

That has changed the beat, tenor and character of the city. From a stodgy government city of the past, the capital has turned into a thriving business centre with both startups and MNCs thronging in. The "overgrown village" of the '60s and '70s, is today the most "hep and happening" city in the country.

Why Delhi? For one, because it's the city with the fastest rate of job creation. More than half the MNCs that have opened shop in India in the last decade have chosen Delhi as their base. These corporations span the entire spectrum of business activity. The Sonys and the Samsungs of consumer durables; the Daewoos and the Hondas of automobiles; the Motorolas and the Nokias of telecom; and the GE Caps and the ICRAs of finance.

Some have shifted to Delhi on second thoughts. Like Coca-Cola India, Tefal, a French home appliances company, shifted its base from Mumbai to Delhi in 1996. Most companies follow a typical pattern: sales, marketing and administrative headquarters in Delhi, and manufacturing in its industrial suburbs. Though Mumbai still has a larger industrial and employment base -- the city is the home of the Tatas, Birlas, Ambanis and Mahindras -- its economic engine is losing steam with the dwindling dominance of family-owned businesses, whereas in Delhi the unceasing advent of new businesses has spawned the growth of 9,000 industrial units every year since 1991. These units employ more than 11 lakh workers. "In the last few years, the jobs in Delhi have grown at least twice as fast as in Mumbai," says Vikram Chhachhi, a senior executive with Amrop, a leading head hunting agency.

Such a large-scale deluge of businesses is changing Delhi into something it never was. All through its seven rebirths from the Pandavas' Indraprastha to Edwin Lutyens' New Delhi, the city was the nerve centre of political power, never a commercial hub. In its eighth rebirth currently underway, the city promises to emerge as just that.

Delhi has a different charm for different businesses. For MNCs like Sony, the proximity to government, better international flight connectivity and presence of embassy schools are big practical considerations. A Delhiite will find it hard to believe, but the city's infrastructure is a big draw across all sections of immigrants. Cheaper and better housing and faster and easier commuting far outweighs the city's inadequate power supply and over-burdened public transport.

In fact, cheaper real estate is one factor on which both companies and executives get sold on Delhi. After all, rents in Delhi are about 30 per cent lesser than in Mumbai. "The attraction of Delhi's lower backroom costs (cost of setting up and running office or workshop) and better housing cuts across all levels of executives and professionals," says Anshuman Magazine, managing director of real-estate firm Richard Ellis, which entered India through Delhi before branching out to Mumbai.

Surely, much of the acclaim about Delhi's quality infrastructure is due to its sprawling suburbs of Noida, Gurgaon, Faridabad and Bhiwadi. "Neighbouring states have used the proximity to Delhi to market themselves very well," says, Saurav Adhikari, CEO of Tefal, who lives in Gurgaon and works in Delhi. Bhiwadi, for instance, is building a dry-port to allow direct dispatch of export consignments. But more than anything else these bedroom towns -- so called because their population floats in and out of Delhi during office hours -- have ensured unhindered expansion of the capital. The only limits to Delhi's expansion are the generous boundaries (30,242 sq km) of the National Capital Region (NCR) which extends into Uttar Pradesh, Haryana and Rajasthan.

There is something more basic behind business magnetic charm for Delhi. It's the nation's most affluent market. An average family in the capital earns Rs 21,830 a year against the national average of Rs 9,321. This has much to do with the presence of 6.5 lakh government employees who were granted generous salary revisions.

But income tells only half the story. Delhiites in particular and north Indians in general spend larger proportion of their income on consumption than their counterparts in other parts of the country. "The Punjabi-ism is not just about making it, not just spending it, but flaunting it," remarks Khushwant Singh, the city's unabashed admirer and critic. No wonder Delhi has more vehicles (40 lakh) than Mumbai, Chennai and Calcutta put together; it's the biggest consumer of soft drinks (about 20 per cent of national sales); and is the single-largest market for electronics and home appliances.

The rapid influx of business has enhanced Delhi's status as a city of decision and opinion makers. Headquarters of all major national newspapers -- both general and financial -- have moved to Delhi over the years. In the early '70s, Delhi had no national magazine of repute and Bombay had three -- The Illustrated Weekly, Imprint and Onlooker. Today Mumbai has none and Delhi has two -- India Today and Outlook. Even more conspicuous has been the growth of TV companies like NDTV, Zee News, TV18 and ANI. No wonder, Delhi's share in the national ad pie has risen from 11 per cent in 1980 to 37 per cent in 1998.

SO Delhi works for work. Does it work for life? Nobody is ready to bet on it yet, but everybody accepts that life in the city is getting better. As life and work become more intertwined with the explosion of communication technology, people are flocking to cities that cater to both. On that yardstick, the surging waves of immigrants to Delhi are an indication of its improved life-after-work. "Delhi offers every thing from a very rural, natural setting for people who enjoy a calm family situation to a cosmopolitan life," says Suhel Seth, who shifted from Mumbai to Delhi in 1996 and today runs a Delhi-based advertising firm, Equus. He finds it easier to pursue his hobby of theatre acting in Delhi than Mumbai or Calcutta.

As for the growth of arts, Delhi has reached a point in the last few years where only a transplanted Mumbaikar would remain unimpressed. The city has over 100 art galleries, out of which 25 are active throughout the year; its cinema halls attract over 90 lakh film buffs a year, and along with its suburbs, Delhi has nine golf courses, including the country's first night golf course. One of the telling indicators of Delhi's lead over other cities was the recent release of a book on Amitabh Bachchan in Delhi three days before its release in the Bollywood city of Mumbai.

Though even the unabashed Delhi fans admit that "Mumbai eats better than Delhi", they are quick to point out the mushrooming of tier-II (a level below 5-star) eating joints that have dotted Delhi's landscape in the last decade. The city's clubs and restaurants pull in about 50,000 people every Saturday. If slick super-clubs like Djinns in Hyatt do not appeal, the sheer variety in Delhi promises that something will -- whether 32nd Milestone in Gurgaon or Daniells' Tavern in Imperial Hotel.

For classical dancers, Delhi's draw now extends beyond government patronage to genuine appreciative audience. Bharatnatyam dancer Yamini Krishnamurthy had been performing in Delhi since 1975 though she lived in Chennai. By 1992 she was convinced that she had to move to the city for better prospects. Kuchipudi dancer Raja Reddy shifted to Delhi for the same reason. Says he: "Delhi is the base from which to get national and international fame."

Delhi's social life has both followed and is being followed by its changing professional and business life. The sprouting television industry is an instance of this trend. Traditionally the centre for current-affairs programme, the city has become a production base for entertainment shows as well. TV18 took the lead by making serials like Vakalat (Zee) and Bhanwar (Sony) in Delhi. Channel V started shooting prime shows like Cool Maal and V Dares You in Delhi. "Delhi has excellent establishment in terms of studios, cameramen and editors. What it had been lacking is professionalism, but that too is changing," observes R. Rohit Vaid, executive producer with Channel V.

In a way, Delhi is the epicentre of India's economic modernisation. That reflects as much in the swarming of new foreign and Indian companies as in the profusion of opportunities in new vocations like choreography, copywriting, designing and consultancy. "Delhi allows you to reinvent yourself. It offers you options to take on a new persona anytime," comments David Abraham, the man behind the super premium designer label Abraham & Thakore.

A lot that is good about life in Delhi is due to its cosmopolitan nature. It welcomes nobody, but accepts everybody. For newcomers there is no ethnic or cultural barrier. The predominance of Punjabi culture in the capital is under threat from the teeming national and international immigrants. Though no formal study has been done to the effect, individual estimates suggest that Punjabis account for only a fourth of Delhi now, down from one-third in the '60s. "Everybody is a minority in Delhi. The city is truly a melting pot of ethnic identities," remarks Singh.

Actually, Delhi had to be the most cosmopolitan city of India. Unlike other states, Delhi's educational institutions and its government do not accord any preference to local residents in admissions or recruitment. That roots out regional or ethnic bias in selection. The presence of 4.4 lakh Central government employees is another guarantor of ethnic diversity.

In fact, Delhi is toning up its diversity just when other big cities are grappling to maintain theirs. The people of Calcutta resent the rising clout of Marwaris; Bangaloreans are miffed at the waning hold of Kannadigas and Chennai has never been too open-hearted to north Indians. The enforcement of quotas for Maharashtrians in offices and schools and diktats like closure of all discos by midnight have taken some zip out of Mumbai's social life. Rues Patel: "My biggest grievance with Mumbai is its growing cultural intolerance. Gone are the days when capitalist Bombay used to scorn at socialist Delhi." He recounts the days of his youth when a degree from Bombay or Calcutta University had greater weight in the job market than one from Delhi University. Today the situation has reversed.

Delhi stole a march over other cities in academics quite some years ago. Its three universities and the host of science and liberal arts institutions are teeming with thousands of intellectuals and researchers. When Gurcharan Das decided to become a writer after retiring from over 30 years of busy corporate life, he preferred Delhi to his beachfront house in Alibag, a suburb of Mumbai. "Delhi is also the intellectual capital of India," he says. "Everything from academia to publishing to media is headquartered here."

Of course nobody planned Delhi's growth. Nobody ever has. For thousands of years, Delhi's fabric has been built, knocked down, rebuilt and knocked down again, not according to the blueprint of any government. Compared with the cities of Chandigarh or Pune, Delhi feels like a mess. That's because it has been made by millions of individuals anxious to make a quick buck. Unfortunately, that spirit is as prevalent among its traders, businessmen and dealers as among its town planners.

That's the reason why even as Delhi thrives, it remains leavened by the spirit of nonchalance best captured by the city's unofficial motto: sub chalta hai (everything goes). So, much of the business is done without paying user charges for power, water or waste disposal. Despite tough posturing by the Supreme Court, 70 per cent of the effluents draining into the Yamuna are untreated and air pollution remains unabated.

"When things go wrong they will be deeply, harshly and frighteningly wrong," warns Sarita J. Das, member secretary of the NCR, who is in the luckless position of trying to clear up the mess. Das sees contours of Delhi's endangered dream in the one-third of its population that lives in slums and unauthorised colonies. K.J. Alphons, former chairman of Delhi Development Authority (DDA), is equally gloomy. "Behind the blinding glitter of the new millionaires the city is failing the bulk of its citizens. Even the basic rudiments of a civic life and civil behaviour seem to be evaporating from the city," he says. He fears that the politician-bureaucrat-powercrat triumvirate will continue to gloss over the city's problems for short-term gains.

Ironically, the city's plunge into chaos can't be blamed on anybody. The DDA -- the metro's main planning body -- reports to the Central government not to the government of Delhi. Ditto for Delhi Police, which is fighting a losing battle against crime. Over 200 crimes a day have earned the capital the dubious reputation as the crime capital.

But to dwell on the downers is to miss the point Singh puts it best. "Delhi," he says, "is not a pleasant place; it is not agreeable or cheerful or easy or exempt from reproach. It is only irresistible."

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