Maharashtra’s GDP accounts for approximately 14.2% of India’s GDP and attracts almost 29% of the FDI received in India. The state contributes about 15% of India’s industrial output and is the second-largest exporting state, with a 17.3% share of India’s exports. Maharashtra has robust infrastructure, including 5 international and 13 domestic airports, 2 major and 53 minor seaports, and the country’s largest power production capacity. Maharashtra has 289 industrial complexes spread over 2 lakh acres of land. Additionally, Maharashtra has dedicated sectoral parks for wine, silver, floriculture, food, and textiles. The state has 27 IT parks and 9 SEZs.
The Government of Maharashtra has a well-established institutional setup with dedicated departments for investor facilitation: Maharashtra Industry, Trade, and Investment Facilitation Cell (MAITR), Investment Promotion, and Maharashtra Industrial Development Corporation (MIDC). In addition, the Maharashtra Small Scale Industries Development Corporation Ltd. (MSSIDC) has been established to aid, counsel, assist, finance, protect, and promote the interests of Small Industries. The Directorate of Industries (DIT), Govt. of Maharashtra, is an executive arm of the Industries Department. It is engaged in implementing Government Policies, Export Promotion, and Ease of Doing Business for the all-round development of industries in the state by seeking coordination among the state-level promotional corporations and departments.
Key initiatives to facilitate infrastructure-led industrial growth
Maharashtra has more than 30 mega projects under development, with an estimated investment of approximately US$40 billion. Some of the prominent projects include the Navi Mumbai International Airport, Mumbai Coastal Road, Delhi Mumbai Industrial Corridor, Mumbai Trans-Harbour link, Metro projects in Pune, Mumbai, and Nagpur, as well as the Maharashtra Samruddhi Mahamarg.
Another significant initiative undertaken by the Government of Maharashtra is the establishment of Maharashtra Industrial Township Limited (MITL). MITL is a notified Special Purpose Vehicle (SPV) formed through a Joint Venture between the National Industrial Corridor Development Corporation Limited (NICDC) and MIDC. Branded as Aurangabad Industrial City (AURIC), it encompasses a 10,000-acre area being developed as India’s first Greenfield Smart Industrial estate.
Policy-led industrial ecosystem to invite investments in the state
The Government of Maharashtra has sector-specific policies to attract investments through facilitation and incentives. The sectoral policies launched by the state government also focus on skill development, with the state government reimbursing a portion of the amount spent on training and skilling employees.
The state government announced dedicated policies for IT & Export in 2023. Additionally, the Government is developing reliable policies on Leather products & footwear, Circular Economy, and MSME.
Another revamped policy on the logistics sector is being worked on, where a state master plan is under consideration. The master plan is expected to include district logistics nodes, mega hubs, and multi-modal logistic parks to strengthen Maharashtra’s logistical connectivity and reduce the overall cost of transportation.
Steps undertaken to facilitate Ease of Doing Business
The Directorate of Industries launched Maharashtra Industry, Trade, and Investment “MAITRI” in 2016 to assist and handhold investors wishing to invest in Maharashtra. The online platform of MAITRI, the State Single Window System for various Government-to- Business (G2B) approvals required for setting up industries in Maharashtra, has, till date, disposed of over 2.90 lakh applications. Investors can avail themselves of 119 services spanning 15 departments through the MAITRI portal. The Maharashtra Industry, Trade, and Investment Facilitation Act, “MAITRI Act,” was rolled out with effect from 3rd July 2023, ensuring the state’s readiness to facilitate ease of doing business and enhance Maharashtra’s competitiveness in trade and investments.
Nodal agencies to facilitate investments in the state
Maharashtra Industrial Development Corporation (MIDC) is the nodal Investment Promotion agency under the aegis of the Government of Maharashtra. It provides businesses with infrastructure such as land, roads, water supply, drainage facilities, streetlights, etc. The Department uses its dedicated Single Window portal for various approvals, including land allotment and water connections required to set up the industry. MIDC acts as a Special Planning Authority, and its key activities include playing a vital role as a link between government and industry and assisting in land acquisition for investments.
Maharashtra Industrial Township Limited (MITL) has been set up to provide plug-and-play infrastructure to investors willing to invest in Aurangabad. As per early estimates, more than INR 7,000 crore worth of investments are expected, with an employment generation capacity of 10,000. Approximately 330 acres of land have already been allotted to 174 units. It is based on walking to work and having a reliable 24-hour power supply, ETPs, pre-approved EC, and many other features.
Promotion of the MSME ecosystem in Maharashtra
Maharashtra has over 34 lakh registered MSMEs employing more than 1.37 crore individuals. Its’s women-centric schemes have increased women’s participation in creating MSME units, with women heading more than 19%. The Raising and Accelerating MSME Performance (RAMP) scheme, a World Bank- sponsored project, aims to benefit more than 1,00,000 MSMEs and incentivise greenfield and brownfield MSMEs in Maharashtra.
Attracting FDI and channelizing investments
Maharashtra’s business-friendly environment, the conducive framework of various pro-industry policies, and skilled workforce have helped the state maintain its largest share (~29%) in attracting FDI in India.
Maharashtra’s economy is comparable to that of many countries, including, but not limited to, Singapore, UAE, Thailand, Israel, and Vietnam. The upcoming industrial policy offers a comprehensive industrial ecosystem for global value chains to establish their footprint in Maharashtra. The policy emphasizes establishing collaboration with trade bodies to promote exports and investments in the state. National/International universities shall be approached to tie up R&D efforts to foster innovation.
Exports and promotion of ODOP scheme in Maharashtra
Maharashtra is already ranked number 2 in exports from India. To further strengthen exports from the state, 37 One District One Product (ODOP) based Industrial Clusters are being developed, encompassing 8,814 Industrial Units. Maharashtra has introduced a comprehensive program to promote the ODOP initiative by establishing the ODOP Facilitation Centre to identify verified sellers/exporters of ODOP products and actively engage with Export Promotion Councils (EPCs) to promote exports from the state.
Maharashtra Government promotes emerging tech for industrial innovation & advancement
The Maharashtra Government is promoting the employability and skills of the future by providing incentives to companies with employees in super- specialized job roles. This includes positions such as AI research scientists, solution architects, data scientists, optical scientists, embedded solutions engineers, etc. These incentives aim to encourage the development of cutting- edge skills in the workforce. Mumbai is at the No. 1 position in data centre capacity across India, and it is expected to maintain its position in the coming years with the number of projects announced.
Support for AVGC and Emerging Technologies Sectors: The state government has introduced dedicated fiscal and non-fiscal interventions to support the AVGC (Animation, Visual Effects, Gaming, and Comics) and Emerging Technologies sectors, including AI-ML, Big Data, Robotics, etc. These interventions focus on enhancing the availability of skills, co-working spaces, funding, and recruitment within these strategic sectors.
Also Read | 60 successful years of Maharashtra Industrial Development Corporation
M-Hub is an initiative to promote innovation in emerging technologies and establish Maharashtra as a knowledge-led economy. The government is offering various fiscal incentives to encourage the growth of the IT and ITeS sectors. These incentives include stamp duty exemptions, electricity duty exemptions, power rationalization benefits, certification and patent- related assistance, market development assistance, open access and power tariff benefits, property tax exemptions, and support for setting up IT and ITeS units in any zone. The government has made specific financial provisions to ensure these industries receive the necessary financial support for growth and development. This includes rental assistance and other financial incentives to create a conducive environment for these sectors. Single-integrated IT portals like MAHITI display efforts to streamline and simplify processes related to emerging technologies.
Views expressed by: Shri Deependra Singh Kushwah, IAS, Development Commissioner (Industries), Government of Maharashtra