Delhi's business landscape braves impact as G20 summit takes centre stage

Shuttered for security reasons, markets to miss weekend crowds

In the heart of Delhi’s bustling Khan Market, a thriving hub known for its upscale boutiques and eateries, preparations for the G20 Leaders’ Summit were in full swing. The local traders’ association had plans to welcome visiting delegates with mementos showcasing Indian craftsmanship and hospitality. However, those plans now lie on hold, as Khan Market, along with several other major markets in central Delhi, prepares to shutter its doors temporarily.

The reason? The G20 Leaders’ Summit, set to unfold in New Delhi from September 9 to 10.

The city is all decked up for the global event. Vibrant hoardings welcoming G20 delegates have sprouted across the landscape and security measures have been dialled up to their peak.

Balancing act

To ensure the security of the attendees and facilitate their movement, New Delhi has imposed a series of restrictions, particularly in the central areas, including Bharat Mandapam at Pragati Maidan, the venue for the summit, and the hotels where the delegates will be staying. However, essential services such as medical and grocery stores, milk booths, and vegetable and fruit shops will remain open.

The trade-off between security and commerce is palpable. While the operations of essential services remain intact, the closure of major markets like Connaught Place, Janpath, parts of Old Delhi and Khan Market is expected to have an impact on local businesses.

Traders, despite lamenting the loss of weekend business and the missed opportunity to showcase India’s retail prowess to foreign delegates, say they realise the importance of security.

Sanjiv Mehra, president of the Khan Market Traders’ Association, sums up the sentiment: “We regret the inconvenience to regular visitors, many of whom are diplomats and expats. This could have been a good occasion to display our products to the visiting dignitaries, but we understand that security is of utmost importance.”

At Khan Market, "restaurants typically see business worth Rs 9-10 crore on a weekend," says Mehra. This time round, it will go dry as the market will close on the night of September 7 and reopen only on September 11.

Over at Connaught Place, which invites shoppers in droves, the signature white pillars of Georgian-styled buildings have been freshly painted, signalling a city ready to shine on the global stage.

Mahesh Lal, a vendor, notes that while areas under the jurisdiction of the New Delhi Municipal Corporation (NDMC) are usually kept immaculate, the past two weeks have seen heightened maintenance, including watering of plants and fresh graffiti and murals on the market’s walls. In some parts, new stone benches have replaced older ones.

NDMC has invested about Rs 3.5 crore on painting, cleaning and repair work in the market, says Atul Bhargava, president, New Delhi Traders’ Association.

Retailers upbeat, but…

Despite the temporary closure of the markets, retailers in these areas are enthusiastic about the event. The manager at Lord of the Drinks, a resto-bar in Connaught Place, beams with pride when he talks about the country organising an event of this magnitude, but acknowledges that it comes at the cost of a weekend’s business.

According to Bhargava, "traders in the market will lose out Rs 300-400 crore in business as it will remain closed from September 8 to September 10, with some restrictions taking effect as early as Wednesday night (September 7)."

The Association is made up of traders from the 14 blocks of inner and outer circle in CP, Regal building, Rivoli building, Scindia House and Old Janpath market. 

“We had high expectations as a lot of repair work was being done in the area. But Connaught Place will, unfortunately, be a ghost market this weekend, with only the buildings lit up,” he says, adding that they do understand that security comes first.

At the Janpath market close by, security deployment is high even on Wednesday afternoon. Undeterred, shoppers continue to flock to the bazaar, making the most of their time before the long weekend.

Some kilometres away, in the bustling lanes of Chandni Chowk in Old Delhi, Ajay Kumar Mittal, owner of Mittal Emporium that sells Lucknowi chikankari suits, expresses his delight with India’s presidency at the G20, while recognising the potential impact on commercial activities due to travel restrictions.

The expected absence of buyers on the streets during the weekend could result in a 10 to 20 per cent downturn in business, he says. Chandni Chowk, known for its vibrant shops, sees 400,000 to 600,000 visitors per day, totalling 12 to 18 million monthly, according to a report by JLL.

“It was a big opportunity for the trading community, but the dignity of the nation is attached to this, which is why traders have decided to cooperate with the government,” says Praveen Khandelwal, national secretary-general, Confederation of All India Traders. “But we hope the delegates get to view Indian products and, through their consulates and embassies, get a sense of Indian retail activity, which translates to more opportunities for traders and exporters,” he adds.

One view is that with the G20 summit being a tight, agenda-driven event, the visiting dignitaries would in any case have no time to go to these markets.

That said, as New Delhi’s businesses navigate the balance between commerce and security, the hope is that the long-term benefits will outweigh the temporary inconveniences.