Have you ever needed clarification about whether to mark Delhi as a state or a union territory on a map? You’re not alone—this confusion is common among many!
Delhi became a union territory in 1956 under the States Reorganisation Act and a National Capital Territory under Article 239AA. Even though Delhi has its own elected legislature, it is not a state. Delhi is a city because of its dense population, advanced infrastructure, and economic hubs.
Political and historical reasons aren’t the only ones responsible for this special governance structure. There are more interesting reasons, like economic and demographic reasons.
Why Is Delhi a City and a Union Territory
1. What Makes Delhi a City?
Delhi is a city because of its dense population, advanced infrastructure, and facilities. In 2011, Delhi’s population was 16,787,941, with an average annual exponential growth rate of 1.94%.
By 2024, the estimated population rose to a staggering 33,807,000. Usually, towns or villages have a small population.
Delhi has advanced transportation services like the Delhi Metro, which covers approximately 350 km across the city.
In fact, Indira Gandhi International Airport was the 10th busiest airport in the world in 2023, according to the data provided by Airports Council International.
According to the official site of New Delhi Airport, it had a passenger traffic of 7,36,73,708 in 2023-2024. Delhi has prominent advanced hospitals like AIIMS and Safdarjung.
People from small towns and villages usually travel to Delhi to get healed. Apart from government hospitals, there are private hospitals like Max, Fortis, Apollo, and Sitaram Bhartia.
Apart from healthcare, there are several reasons people are attracted to Delhi. You can read more about it in my article on ‘What is Delhi Famous For?’.
Delhi has educational institutions for all fields. For STEM, there’s IIT; for medical, there’s AIIMS; and for humanities and language courses, there’s DU and JNU.
The property rates in Delhi are higher than those in towns. The prices of land per square foot range between ₹9360/- (in less posh areas) and ₹21,960/- (in premium regions).
Apart from all these basic amenities, Delhi is also home to many substantial corporate offices and banks, where financial activities occur on a large scale.
When it comes to industries, you can find many hubs like Mayapuri, Okhla, and Narela, where manufacturing takes place.
2. Special Status of Delhi
According to the State Reorganisation Act, Delhi was granted the status of union territory in 1956. Union territories are regions the president governs through an administrator appointed by him.
In 1991, the parliament passed Article 239AA. According to this article, Delhi was given the status of National Capital Territory.
It mandated the presence of a legislature elected by the people and called the administrator appointed by the president a Lieutenant Governor.
This gave Delhi its third chief minister, Madan Lal Khurana, in 1993, after the office was abolished on November 1, 1956.
The central government exercises its control in the subjects of land management, policing, and public order through the lieutenant governor.
It is important for the centre to retain its control over Delhi for several reasons. Some are historically political, while others are related to national security.
Historical Factors
Delhi replaced Kolkata to become the capital of British India in 1911. The British started establishing Rashtrapati Bhawan and important central offices in Delhi.
Since then, Delhi has always been a centre of political power in India. Post-Independence, the Indian government continued to see Delhi requiring to be administered specially.
National Governance
Delhi’s significance in national governance is underscored by the fact that all three branches of the Indian government—the legislature, executive, and judiciary—have their headquarters here.
The Parliament of India, the Supreme Court of India, Rashtrapati Bhawan, and major central ministries are all located in Delhi, making it a crucial hub for the country’s governance.
Security of Officials
Delhi’s role in international relations is evident in Chanakyapuri, where major embassy offices of foreign countries like the US are located.
Do check out my article on the ‘Importance of Delhi in India’ to read about more such reasons on why Delhi is preferred as the capital over any other Indian city.
The officials from these countries work here, and their security is of national importance. This highlights the city’s crucial role in maintaining law and order, further justifying the centre’s control.
3. Need for a Legislative Assembly
Growing Urbanisation
According to the Economic Survey of Delhi (2021-22), the rural-to-urban area change percentage has increased rapidly (Chapter 19, Page 394 – Statement 19.1).
The percentage of urban areas in 1991 was 46.21%; in 2001, it was 62.35%, and in 2011 it was 75.1%. These factors made the government consider having a state legislature to govern Delhi.
Infrastructural Development
With the rapid urban population growth, the government recognized the pressing need to enhance infrastructure and facilities.
Urban planning, crucial for accommodating the burgeoning population and economic activity, necessitated a local government for expedited decision-making and effective implementation.
Local Economic Policies
The presence of a state government will ensure that the policies created are tailored to Delhi’s needs. For instance, the Delhi government manages real estate regulations and business licensing.
84.84% of Delhi’s economy is based on the service sector (Highlight of Delhi Economic Survey, Page 1, Point 4). Industries like hospitality, IT, and financial services contribute significantly to the service sector.
Policies in favour of these sectors were necessary. A state government elected by the people was the best option the Indian government could think of at that time.
4. Difference Between States and Union Territories
Governance Structure
State: States are governed by the Chief Minister and the elected legislative assembly.
Union Territories: Union territories are directly governed by the central government through an administrator or lieutenant governor appointed by the President of India.
Legislative Powers
State: The state government can make laws only limited to those subjects mentioned in the State List.
Union Territories: Parliament makes laws for all the subjects in all the lists.
But in the case of Delhi and Puducherry, the elected state legislature can make laws on any matter in the state list and the concurrent list of the Constitution of India.
Administrative Autonomy
State: There is more autonomy. The state government is responsible for maintaining law and order in the state.
Union Territories: There is less autonomy. The central government oversees most administrative tasks, including law and order.
Revenue and Budget
State: They generate revenue through sources like property and sales taxes.
Union Territories: Rely entirely on the centre for revenue (Not in the case of Delhi and Puducherry).
| State | Union Territories | |
|---|---|---|
| Governance | Elected Legislature | Central Government through LG or an Administrator |
| Legislation | State government makes law | Parliament Makes Law (Except for Delhi and Puducherry) |
| Administration | Complete Autonomy | Less Autonomy |
| Revenue | Own sources | Dependent on Centre ( Except for Delhi and Puducherry) |