This article analyses the Indian city of Delhi using the contrasting concepts of resilience and agglomeration economies. Delhi is an expanding system that is changing because of economic, social and ecological driving forces. The driver–pressure–state–impact–response (DPSIR) framework is used in this article. We measure the extent of population pressure at the ward level [population pressure index (PPI)] by applying the statistical stochastic frontier function framework. We then examine the association between the PPI and the variables representing well-being and the overall ecosystem. There are overlaps between PPI and poor well-being indicators. However, some areas have a poor environmental state even though their population pressure is not at the frontier. This seems to have resulted from population growth spilling over to areas not fit for human habitation. Further migration of people in response to growth and employability may worsen the levels of well-being. However, appropriate interventions and investment in basic amenities can stop such severe welfare losses and help the city maintain its role as the engine of growth.