Delhi could become world’s 14th-largest city economy by 2050: Report | Economy & Policy News

Delhi could become the world’s 14th-largest city economy by 2050, with its economic output projected to cross $2 trillion, according to Oxford Economics’ 2026 Global Cities Index report. The projection comes as Indian cities emerge as some of the world’s strongest urban growth centres, with 55 of them featuring among the global top 100 for growth.

Delhi is currently the world’s 63rd-largest city economy, but Oxford Economics expects it to climb 49 places over the next 24 years. The capital is also India’s highest-ranked city in the overall index, at 268th, five places higher than its position a year earlier.

Delhi’s talent pool a key strength

Delhi’s strongest showing in the 2026 index is in human capital, where it ranks 13th globally. Oxford Economics’ assessment places the capital ahead of cities including Toronto, Seoul and Beijing on this measure.

The report attributes Delhi’s longer-term potential to its talent pipeline and corporate depth, which it says are characteristics associated with much higher-ranked global cities. However, the gains in economic scale are accompanied by challenges around air quality and income inequality, which are the biggest hurdles for the city’s performance.

Oxford Economics’ index does not measure economic size alone. The 2026 index assesses 1,000 cities across five categories: Economics, Human Capital, Quality of Life, Environment and Governance. Its economic measure includes GDP size and growth, economic stability, GDP per capita, employment growth and economic diversity.

India’s urban growth extends beyond the big metros

As many as 55 Indian cities feature among the world’s top 100 urban growth leaders in the 2026 index, with 23 making it into the top 50.

Oxford Economics said the breadth of India’s urban growth distinguishes it from other countries, with the expansion not limited to the largest metropolitan centres. Strong GDP trajectories, expanding labour pools, corporate networks and university ecosystems are among the factors supporting the growth of Indian cities.

Bengaluru: Indian city on Oxford’s ‘Cities to Watch’ list

Bengaluru is singled out by Oxford Economics as one of its global “Cities to Watch”. The technology hub climbed 20 places to 311th in the overall index, recording the largest improvement among India’s six biggest metropolitan cities.

Its economic outlook is also very strong. Oxford Economics expects Bengaluru’s real GDP to expand at an average annual rate of 9.2 per cent between 2026 and 2030, putting it among the 10 fastest-growing cities globally on this measure.

The report points to Bengaluru’s large pool of young, skilled graduates, hundreds of colleges and an established technology sector as factors supporting its expansion. Its growing role as a technology research and development centre, including in areas linked to artificial intelligence, could further support productivity and wage growth, Oxford Economics said.

Mumbai’s corporate base supports its longer-term rise

Mumbai ranks 330th globally in the overall index and is India’s leading city for corporate headquarters, ranking 23rd globally on that measure.

Oxford Economics projects that Mumbai’s city economy, currently the world’s 99th-largest, could rise to 36th-largest by 2050. The projection underlines the continued importance of the financial capital even as India’s urban growth becomes more dispersed across cities and regions.

Chennai ranks 381st globally, followed by Hyderabad at 421st and Pune at 427th. Hyderabad and Chennai also feature prominently in Oxford Economics’ growth projections, ranking 15th and 16th globally, respectively, for forecast GDP growth.

Smaller cities add breadth to India’s growth story

The report also points to strong growth prospects beyond the country’s established metropolitan centres. Amravati ranks seventh globally for growth, while Surat and Tiruchirappalli rank 11th and 13th, respectively.

Several other Indian cities recorded sizeable improvements in the index. Ranchi climbed 74 places, Prayagraj 70, Lucknow 58 and Visakhapatnam 54 places, according to reporting on the index.

Quality-of-life still far behind in Indian cities

The strength of India’s economic growth is not matched by its performance on all measures of urban development. Oxford Economics highlights quality of life, environmental conditions and income inequality as continuing weaknesses for Indian cities.

For Delhi in particular, poor air quality is identified as a significant constraint despite the capital’s strong human-capital base and economic potential.