Maharashtra State Presentation and Economy Growth Report | IBEF
Maharashtra is situated in the western region of the country. It is the most industrialised state in India and has maintained its leading position in the industrial sector in the country. The state is a pioneer in small scale industries and boasts of the largest number of special export promotion zones. Maharashtra has a large base of skilled and industrial labour, making it an ideal destination for knowledge based and manufacturing sectors.
At current prices, Maharashtra’s gross state domestic product stood at Rs. 26.62 trillion (US$ 366.67 billion) in 2020-21AE. GSDP of the state increased at a CAGR (in Rs.) of 6.42% from 2015-16 to 2020-21AE.
Mumbai, the state's capital, is the commercial capital of India and has evolved into a global financial hub. The city is home to several global banking and financial services providers. Pune, another major city in the state, has emerged as the educational hub. Maharashtra has emerged as a key hub for IT & ITeS, electronics, and captive business outsourcing industries.
The Government of Maharashtra has several policies in place to set up the right kind of business climate in the state. These policies aim to motivate investors to invest into various sectors in the state, thereby contributing to the overall development of the economy.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019 and March 2021, FDI inflow in Maharashtra stood at US$ 23,432.35 million, accounting for ~28% of the total FDI inflow in India. During Magnetic Maharashtra 2.0 in June 2020, the state attracted investment proposals of` Rs. 1.13 lakh crore (US$ 15.23 billion) with expected employment >2.50 lakh.
Total exports from the state stood at US$ 58.41 billion in FY21. Maharashtra exported key items such as pearls, precious and semi-precious stones, drug formulations and biologicals, gold and other precious metal jewellery, motor vehicles & cars and iron & steel.
Maharashtra is the largest producer of sugarcane and is the most industrialised state in India and has maintained the leading position in the industrial sector in the country. Sugarcane production reached 69.31 million tonnes during 2019-20. In 2019-20, the state produced 6.64 million bales of cotton. In 2019-20, the state also produced 409 MT of raw silk.
The following are some of the major initiatives taken by the Government to promote Maharashtra as an investment destination:
- The state government proposed the ‘Hindu Hruday Samrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg’, an eight-lane expressway (701 kms long and 120 metre wide) connecting Mumbai and Nagpur with a total estimated cost of Rs. 55,335.32 crore (US$ 7.6 billion). Of the total land required, 92.3% land was acquired as of December 2020.
- An additional international airport has been proposed at Navi Mumbai through public-private partnership in four phases with an estimated cost of Rs. 14,179 crore (US$ 1.95 billion) for Phase I to reduce air-traffic congestion at Chhatrapati Shivaji Maharaj International Airport, Mumbai. It is one of the largest greenfield airports planned to handle a minimum of 6 crore passengers and 15 lakh MT of freight per annum.
- Under the State Budget 2021-22, the government spent 5.2% of its budget on roads and bridges, which is higher than the average allocation by states (4.3%) for roads and bridges (Rs. 22,608 crore or US$ 3.06 billion has been allocated for construction of roads and bridges).
- In 2021-22, Maharashtra allocated 17.2% of its education budget, which is higher than the average budget (15.8%) allocated by states to education (using 2020-21 BE). Rs. 74,830 crore (US$ 10.18 billion) has been allocated to the education, sports, arts and culture sectors.
- As of April 2021, the state had a total installed power-generation capacity of 44,176.12 MW, of which the private sector was the biggest contributor with a capacity of 22,571.24 MW, followed by 13,660.97 MW from state utilities and 7,943.91 MW from central utilities.
- The Government of Maharashtra is promoting the development of several Special Economic Zones (SEZs) across Maharashtra for sectors such as IT/ITeS, pharmaceuticals, biotechnology, textile, automotive and auto components, gems and jewellery, and food processing. Maharashtra had 12 SEZs with valid in-principle approvals, 51 SEZs with formal approvals and 45 SEZs with notified approvals. As of October 2020, the state had 37 exporting SEZs across diversified sectors including textiles and apparel, food processing, footwear and leather products, multi-product, pharma and IT SEZs.
- In December 2020, Union Minister for Skill Development and Entrepreneurship, Mr. Mahendra Nath Pandey inaugurated the first batch of Indian Institute of Skills in Mumbai, a joint initiative between Ministry of Skill Development & Entrepreneurship (MSDE), Government of India and Tata Indian Institute of Skills.
- In FY20, the number of listed companies on the NSE and the BSE were 1,795 and 5,377, respectively.
- In October 2020, Asian Development Bank (ADB) and Government of India signed a US$ 177 million loan to upgrade 450 km of state highways and major district roads in the state.
- In 2019, tourist arrivals in Maharashtra stood at 149.2 million (domestic) and 5.5 million (foreign).