Industrial Development & Economic Growth in Maharashtra

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.

GSDP of the state grew at a CAGR (in Rs) of around 11.77 per cent from 2011-12 to 2017-18 whereas the Net State Domestic Product (NSDP) grew at a CAGR of around 11.75 per cent from 2011-12 to 2017-18.

The state’s capital, Mumbai, is the commercial capital of India and has evolved into a global financial hub. The city is home to several global banking and financial service firms. Pune, another major city in the state, has emerged as the educational hub. It is the one of the largest producer of sugarcane, pomegranates and cotton in the country.

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 DIPP, cumulative FDI inflows* in the state of Maharashtra during April 2000 to December 2018 stood at US$ 123.73 billion. Total exports from the state stood at US$ 69.73 billion during 2017-18. During 2018-19**, exports stood at US$ 53.97 billion.

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 93.04 million tonnes during 2018-19^^. During 2018-19^, cotton production in the state stood at 7.83 million bales. The state is a pioneer in small scale industries and boasts of the largest number of special export promotion zones.

The following are some of the major initiatives taken by the government to promote Maharashtra as an investment destination:

• In April 2018, the Maharashtra State Electricity Company Ltd embarked Rs 130 crore (US$ 20.17 million) project to develop and expand power infrastructure in Mumbai, Thane, Navi Mumbai and Kalyan-Dombivili.
• As of January 2019, the state had a total installed power generation capacity of 43,779.10 MW.
• 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 & auto components, gems & jewellery and food processing. As of January 22, 2019, the state had 29 exporting SEZs across diversified sectors including textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs, etc.
• The Government of Maharashtra provides single-window clearance to all units to reduce the average time required for establishment of such units and issue various clearances required for setting up of industries at a single point.
• The Government is focusing on providing IT-related infrastructure, fiscal incentives to IT units and an institutional framework for the IT sector.
• Textile parks, aimed to provide world-class infrastructural components for the textile sector and enhance productive capacity, are being set up in Maharashtra to maintain its leadership position in textile exports and production.
• In April 2018, IOCL, BPCL and HPCL and Saudi Aramco signed a Memorandum of Understanding (MoU) worth Rs 3 lakh crore (US$ 46.55 billion) to jointly build and develop an integrated refinery and petrochemicals complex with the capacity of processing 60 million metric tonnes per annum in Maharashtra.
• As a part of the ‘Make in India’ initiative, the state government in planning to come up with an electronics policy for companies interested to invest in this sector in Maharashtra.

Note: *Includes Maharashtra, Dadra & Nagar Haveli and Daman & Diu, P – Provisional, ** - Upto December 2018, ^ - As per 1st advance Estimates (Kharif Season), ^^ - As per 1st advance Estimates

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