Maharashtra has undertaken several progressive measures and policies in the recent past to facilitate investments in the state and has recorded positive performances in several parameters that is expected to boost investments further. The state is expected to grow by 9.4% as per the advance estimates of real (at constant 2011-12 prices) Gross State Domestic Product (GSDP) for 2016-17 as opposed to 8.5% in 2015-16.
Maharashtra is expected to grow at a faster rate than the national average with the Agriculture & Allied Activities sector projected to grow at 12.5% and Industry and Services Sector projected to grow at 6.7% and 10.8% respectively. The state contributes close to 15% to National GDP and attracted 45% of the total Foreign Direct Investment (FDI) equity inflows in India in 2016-17, the highest among all states. Manufacturing, the driving force of the Make in India initiative now contributes close to 21.43% of the state’s GSDP.
With the overall positive outlook of the state and its well-developed infrastructure, abundant natural resources, quality education and skilled manpower, Maharashtra is well positioned as an ideal place for setting up new industries and doing business.
In order to encourage more investments in the state, the State Cabinet cleared a string of policies in sectors such as Aerospace and Defence Manufacturing, Textiles, Fintech, among others and also amended the State Goods and Services Tax which would lead to faster processing of refunds for the companies in the state. The government expects that these measures would boost job creation in a big way.
Maharashtra also ranks among the top 10 states in introducing Ease of Doing Business (EODB) reforms and played a critical role in India’s 30 places jump in the Doing Business Rankings of 2018. Major reforms were undertaken under several parameters such as the grant of all approvals and licenses through online Single Window System for improved labour regulations, simplification procedures for getting faster electricity connections, construction permits and other areas, greater digitization including digitally signed licenses and online submission of records among many others.
With the objectives of continuing on this growth path and becoming the number one destination for global as well as domestic investors, Maharashtra launched the first ever state driven Global Investor Summit “Magnetic Maharashtra: Convergence 2018” in Mumbai from 18-23 February 2018. Confederation of Indian Industry (CII) is the national partner.
Hon’ble Prime Minister of India, Shri Narendra Modi inaugurated the summit on 18 February in the presence of many prominent national and international business leaders. The Prime Minister announced that Maharashtra would become the first state in India to become a Trillion Dollar economy in the next few years.
Set against the backdrop of India’s magnetic state and commercial capital, Mumbai, the three day long initiative would let people experience the gateway for all industrial investments in India – Maharashtra, where the best minds from the industry, government ministries and academia will come together to connect, collaborate and discuss strategies that would further strengthen the investment climate in the state.
This years’ focus sectors, where Maharashtra aims to invite more investments include sectors such as Textiles, Food Processing, Defence & Aerospace, Gems & Jewellery, Financial Services etc. as well as upcoming sectors like Renewable Energy, Data Analytics, Electric Vehicles, Artificial Intelligence and Genomics.
Further Opportunities in the State
With an area of 3.08 lakh sq.km, Maharashtra is the third largest state in the country in terms of area and presents ample investment opportunities in terms of connectivity. Development of roads, highways and flyovers along with the development of metro trains and monorails would continue to be a focus area.
To provide a further boost to the already expansive Rs 550 billion logistics and warehousing industry, the Maharashtra Government has come out with a comprehensive logistics policy that would facilitate the setting up of 25 integrated logistics parks and over 100 logistics parks across the state. These logistics park would provide end to end logistical support by providing multi-functional facilities such as storage, distribution, distribution, trade facilitation etc., all under one roof.
To fulfil its aspirations of becoming a world-class international financial centre, the Government is planning to set up an International Financial Service Centre (IFSC) in Mumbai, on par with international financial centres such as New York, Singapore and London.
Other investment opportunities include the Dighi Port Industrial Area along the Delhi-Mumbai Industrial Corridor and the Shendra Bidkin Industrial Area, which have developable areas of 253 sq kms and 84.17 sq kms respectively.
Another area which require investments is the development of smart cities and related infrastructure as well as the development of an international airport with cargo hub alongside the existing airport and a Special Economic Zone (SEZ) with residential zone with integrated rail and road connectivity.
With abundant opportunities for attracting more investments, the Global Investor Summit would provide the perfect platform for the state to encourage more investments in the state and facilitate greater infrastructure development.