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 11.83 per cent from 2011-12 to 2019-20 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 producers 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 DPIIT, cumulative FDI inflows^^ in the state of Maharashtra during April 2000 to December 2019 stood at US$ 133.83 billion. In 2019, 410 investment intentions worth Rs 115,277 crore (US$ 5.59 billion) have been proposed in the state.

Total exports from the state stood at US$ 74 billion during 2018-19 and US$ 49.94 billion during April-December 2019.

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 March 2019, the Sindhudurg airport was made operational, making it the first in the coastal Konkan region to be on the country's air map.
• An MoU was signed between Airport Authority of India and Maharashtra Industrial Development Corporation to start the operations at Ratnagiri airport under the UDAN scheme.
• In December 2019, Adani Transmission Ltd (ATL) received the Letter of Intent (LOI) from Maharashtra State Electricity Transmission Company Limited (MSETCL) to build, own, operate and maintain a transmission project in the state, which will be first ever 400 kV substation facility in Mumbai.
• As of February 2020, the state had a total installed power generation capacity of 43,471.27 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. Maharashtra had 12 SEZs with valid in-principle approvals, 48 SEZs with formal approvals and 42 SEZs with notified approvals. As of November 14, 2019, the state had 31 exporting SEZs across diversified sectors including textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs, etc.
• Market Capitalisation of BSE and NSE for 2019-20 (till October 2019) stood at Rs 152.48 trillion (US$ 2,181.71 billion) and Rs 154.09 trillion (US$ 2,204.75 billion) respectively.
• In 2019, around 15 Bio-technology – SEZs have been proposed under public sector with an investment of Rs 4,968 crore (US$ 710.83 million). This project is expected to generate employment opportunities of about 0.77 million.
• 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.
• Tourist arrival in the state of Maharashtra in 2018 stood at 119.1 million domestic tourist and 5.1 million foreign tourists.
• 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.

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

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