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Industrial Development & Economic Growth in Maharashtra

Last updated on Jun, 26 2020

Economic Snapshot
Per capita Income

 


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) grew at a CAGR of around 12.05 per cent between 2015-16 to 2019-20 to reach US$ 303.5 billion. Net State Domestic Product (NSDP) grew at a CAGR of around 7.07 per cent between 2015-16 to 2017-18 to reach US$ 340.41 billion.

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.

Jawaharlal Nehru Port is the largest port in India in terms of container traffic. During F20, the port handled 68.44 million metric tonnes of traffic.

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 Department for Promotion of Industry and Internal Trade (DPIIT), cumulative Foreign Direct Investment (FDI) inflow^^ in the state stood at US$ 137.93 billion between April 2000 and March 2020. Total merchandise export from the state stood at US$ US$ 74 billion during 2018-19 and US$ 49.94 billion during April-December 2019.

In 2019, 410 investment intentions worth Rs 115,277 crore (US$ 5.59 billion) were proposed in the state.

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. 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 May 2020, Asian Development Bank (ADB) and the Government of India signed a US$ 177 million loan to upgrade 450 km of state highways and major district roads in the state.
  • In March 2019, Sindhudurg airport was made operational, making it the first in the coastal Konkan region to be on the country's air map.
  • 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 March 2020, the state had a total installed power generation capacity of 43,493.29 megawatt (MW), out of which, private sector was the biggest contributor with a capacity of 22,004.27 MW, followed by 13,660.97 MW from state utilities, and 7,831.05 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.
  • 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 were 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.
  • In 2018, Maharashtra witnessed a footfall of 119.1 million domestic tourists and 5.1 million foreign tourists.

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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Maharashtra