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.

Maharashtra’s Gross State Domestic Product (GSDP) at current prices was Rs. 32.24 trillion (US$ 467.38 billion) in 2019-20. GSDP of the state increased at a CAGR (in Rs.) of ~13.16% from 2015-16 to 2019-20.

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), the cumulative FDI inflows in Maharashtra were valued at US$ 10881.60 million between October 2019 and September 2020.

Total exports from the state stood at US$ 33.93 billion in FY21 (until November 2020). Maharashtra exported key items such as pearls, precious and semi-precious stones, drug formulations and biologicals, gold and other precious metal jewellery, ship, boats & structures, iron & steel and motor vehicles & cars.

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 73.08 million tonnes during 2019-20. In 2018-19, the state reportedly produced 7.7 million bales of cotton. In 2019-20 (as of April 2020), the state has also produced 428 MT of raw silk.

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

• In 2020-21, two new schemes, Gramin Sadak Vikas Yojana and Nagari Sadak Vikas Yojana, have been announced for construction of roads in rural and urban areas, respectively.  Rs. 10 billion (US$ 135.92 million) and Rs. 15.01 billion (US$ 204.02 million) have been allocated for these schemes, respectively.
• In 2020-21, Maharashtra spent 4.3% of its budget on roads and bridges, which is comparable to the average allocation by states (4.2%) for roads and bridges (Rs 110.49 billion or US$ 1.50 billion has been allocated for construction of roads and bridges).
• As of November 2020, the state had a total installed power generation capacity of 43745.35 MW, of which the private sector was the biggest contributor with a capacity of 22165.51 MW, followed by  13660.97 MW from state utilities and 7918.87 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, 48 SEZs with formal approvals, and 42 SEZs with notified approvals. As of February 2020, 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.
• 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.
• As of November 2020, number of companies listed on the NSE and the BSE* were 1959 and 5608, 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).

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