Maharashtra’s economic voyage is set to make it a $1 trillion economy by 2028, a goal supported by its formidable performance in FDI, GDP, and exports. It leads India in FDI, securing the top spot for two years in a row, and ranks second in export value. Contributing 13% to India’s GDP, Maharashtra’s economy would rank 30th globally if it were a country, outpacing Singapore and closely following Thailand.

The global IT industry, valued at USD 5.0 trillion in 2021, has seen rapid growth, especially post-pandemic. The IT services market is expected to grow from USD 1.2 trillion in 2024 to USD 1.8 trillion by 2029, with a CAGR of 8-8.5% from 2022 to 2032. Maharashtra’s IT market size is estimated at USD 48 billion 2024, 19% of India’s total. Mumbai and Pune are the epicentres of this growth, with other districts like Nashik, Nagpur, and Chhatrapati Sambhajinagar poised to become IT hubs in the next 5-8 years. The state boasts 205 private and 37 public IT parks, employing around 1.1 million people.

Mumbai, India’s data centre powerhouse, accounts for 52% of the nation’s DC footprint, with Maharashtra commanding nearly 60%.

The global IT industry, valued at USD 5.0 trillion in 2021, has seen rapid growth, especially post-pandemic. The IT services market is expected to grow from USD 1.2 trillion in 2024 to USD 1.8 trillion by 2029, with a CAGR of 8-8.5% from 2022 to 2032.

To become the AI capital of India, Maharashtra aims for a GVA of 25% market share and needs to achieve a CAGR of 13-14%, up from the current 10%.

In the AVGC sector, Maharashtra is a leader with the thirdhighest number of screens in India and over 295 AVGC studios, representing more than 30% of the nation’s total. Mumbai and Pune are educational hubs for animation, VFX, and gaming, with 20 universities specialising in these fields. The state’s digital user base is vast, with 12.6 crore cell phone connections, and the online gaming segment is projected to reach USD 3.9 billion by 2025. The 2023 IT & ITeS policy identifies AVGC and emerging technologies as critical sectors, supporting skills development, co-working spaces, funding, and recruitment.

Since introducing its first IT policy in 1998, Maharashtra has aggressively adapted to meet the changing needs of the IT sector. The policies focus on creating large-scale employment and self-employment opportunities, ensuring a 24/7/365 working environment, protecting data and consumer privacy, delivery systems. The latest policy emphasises ease of doing business, fostering emerging technologies, and nurturing innovation and startups.

The vision of Maharashtra’s IT/ITeS Policy 2023 is to establish the state as a globally competitive IT/ITeS destination that promotes inclusive growth and positions Maharashtra as India’s intellectual, technological, and knowledge capital. The policy aims to create 3.5 million jobs and attract INR 95,000 crore in investments during the policy period, with an annual export target of INR 10 lakh crore. The policy focuses on critical IT services, AVGC and emerging technologies, data centres, startups and innovation, and infrastructure development, including integrated IT townships and the ‘Walk to Work’ concept.

Strategic drivers of the policy include a unified single window system for all IT & ITeS segments, promoting the dispersal of these segments across the state, and turbocharging emerging technologies, AVGC, green IT, and startups. The state plans to appoint technology ambassadors to promote Brand Maharashtra through improved governance and renew its focus on IT exports via startups and MSMEs.

The M-Hub initiative fosters an integrated ecosystem for collaboration among corporations, government, investors, mentors, and academia, strengthening core areas of the IT sector, including AVGC, emerging technologies, startups, and related ecosystem development. Maharashtra hosts 17% of India’s tech startups, highlighting its robust innovation environment.

The state offers numerous policy incentives to support IT/ITeS infrastructure and integrated IT townships. These include a floor space index (FSI) limit of up to 5 or as per local development control regulations (DCR), critical infrastructure funds, concessional premiums, faster permissions through a single window system, and eased norms for IT townships. Additional common incentives encompass power supply at industrial rates, property tax rates at par with residential rates, substantial stamp duty and electricity duty exemptions, certification and market development assistance, patentrelated assistance, rental assistance, and power through open access.

Sub-sector-specific incentives include fiscal and non-fiscal support such as Power Tariff Subsidy, 24/7/365 Power Supply, Relaxed Parking Norms, Dial before Dig service, Infrastructure status, Facilitation to establish captive power farms, and Provision of deemed distribution licenses for Data Centres. The Emerging Technologies and AVGC Sector are also assisted through Capital Subsidy, Power Tariff Subsidy, Recruitment Assistance, Grants for Events and Competitions in AVGC, Skill Development Assistance for AVGC, Global Joint Ventures and International promotion for AVGC Units, and Intellectual Property Protection Facilitation for Emerging Technologies and AVGC.

Mumbai, India’s data centre powerhouse, accounts for 52% of the nation’s DC footprint, with Maharashtra commanding nearly 60%. To become the AI capital of India, Maharashtra aims for a GVA of 25% market share and needs to achieve a CAGR of 13-14%, up from the current 10%.

The Maharashtra Information Technology Interface (MAHITI) Portal exemplifies the state’s commitment to efficiency, transparency, and cost savings. This single-window system streamlines the approval process, enhancing businesses’ ease of access and simplifying interactions between IT and ITeS segments and government agencies. By creating a unified platform, the MAHITI Portal supports the state’s ambitious economic goals and strengthens Maharashtra’s position as a leading destination for IT investments.

Maharashtra’s commitment to ‘Minimum Government, Maximum Governance’ is exemplified by its innovative digital platforms like MAITRI, the DI portal, and the comprehensive governance dashboard. These tools have been instrumental in simplifying business operations, promoting investments, and providing transparent governance.

MAITRI (Maharashtra Industry, Trade, and Investment Facilitation Cell) is the Investment Facilitation and Promotion Cell of the Department of Industries, Government of Maharashtra. It is enhancing governance through its revamped portal. This upgrade streamlines the business environment with a redesigned registration process, integration of G2B services, and features like a dynamic MAITRI Wizard, AI chatbot, and Incentive Calculator. The portal now supports multiple factory units under one registration and includes a Compliance/Applications dashboard for tracking and analysing application data, helping refine departmental strategies and improve efficiency.

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The grievance and investment dashboards, internal MIS initiatives by MAITRI, are designed to enhance efficiency and strategic planning. The Grievance Dashboard tracks grievances with details on the date, resolution, department actions, and location. This data helps analyse department performance and devise future strategies. The Investment Dashboard tracks investment leads, capturing details on queries, potential amounts, employment, location, sector, and source. This information aids in understanding investment trends and informs strategies to boost investments in the state.

The M-Hub initiative fosters an integrated ecosystem for collaboration among corporations, government, investors, mentors, and academia, strengthening core areas of the IT sector, including AVGC, emerging technologies, startups, and related ecosystem development.

The DI (Directorate of Industries) portal (di.maharashtra.gov.in) is vital for accessing information and services related to Maharashtra’s industrial growth. It provides data on government initiatives, schemes, and incentives to support investors and industry units. Recent upgrades include a dynamic dashboard with real-time industrial performance insights, an ‘Investor’s Guide’ for accessing schemes, and improvements in content, document management, and user experience. Upcoming features will include links to government tenders, a recruitment tab, and sections for news, press releases, and grievance redressal to enhance transparency, accessibility, and public engagement.

We are orchestrating a nationwide sequence of innovative IT Roadshows to catalyse investment and expansion in our IT sector. These gatherings are not just events; they are strategic engagements inviting investors and international entities to witness firsthand the vibrancy of our IT landscape. By interfacing with pivotal industry figures, we reinforce our dedication to becoming the preferred hub for IT investment and ingenuity.

Maharashtra’s strategic approach, robust infrastructure and connectivity, favourable policy and incentives ecosystem, skilled workforce, and cost-effective real estate make it an attractive destination for IT investments. The state’s high connectivity, vast user base, rising startup ecosystem, and strong macroeconomic indicators, such as stable growth, high per capita income, and leading FDI destination status, position Maharashtra as a lucrative and stable place for exponential growth in the IT/ITeS sector. With essential factors in its favour, a dedicated policy and an integrated ecosystem for collaboration, Maharashtra is poised to continue its upward trajectory in the IT sector and achieve its goal of a $1 trillion economy by 2028.

Insights shared by Shri Deependra Singh Kushwah, IAS, Development Commissioner (Industries), Government of Maharashtra 

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