Maharashtra Economy and Infrastructure

Maharashtra, situated in the western region of India, is one of the wealthiest states with a booming economy supported by a rock solid infrastructure. It is also the most industrialised state in India. Out of all the states of the country, Maharashtra has the largest economy with a 'State Income' or Net State Domestic Product (NSDP) of over US$ 35.29 billion in 2003-04; this has expanded at a (CAGR) Compound Annual Growth Rate of 11.1 percent amounting to US$ 263.6 billion in 2015-16. The state contributed for over 27 percent of (GSDP) Gross State Domestic Product in 2014-15. Maharashtra also leads in FDI inflow. Out of all the Foreign Direct Investment received by the country Maharashtra accounts for 46 per cent in 2016. Major inflow is from the following sectors: real estate and infrastructure, computer hardware and software, telecom, services, motor vehicles and medicines.

The economy and infrastructure of the state have flourished considerably since the economic policies of the 1970s. Moreover the governments of the state have also contributed immensely by supporting the development and growth of economy and infrastructure in the state in terms of technology up-gradation and identifying opportunities for investment, industrialisation in rural areas, Joint ventures and tie-ups, etc. The state contributes to 35 percent of the country's automobile output; Mumbai, its capital has evolved into a financial hub with several global banking and financial institutions setting up base in the city. Another city, Pune has emerged as an educational hub. IT and electronics and business outsourcing industries have flourished in the recent years giving a high boost to the economy. India's largest and Asia's oldest Stock exchange, the 'Bombay Stock Exchange' is located in Mumbai. With setting up of software parks in Pune, Mumbai, Nashik, Aurangabad and Kohlapur, Maharashtra has become the second largest exporter of software.

Since agriculture is the mainstay of the state, it has been given the importance it deserves. The main food crops of Maharashtra are mangoes, grapes, bananas, oranges, wheat, rice, jowar, bajra, and pulses. Cash crops include groundnut, cotton, sugarcane, turmeric, and tobacco. The total irrigated area which has been used for crop cultivation is 33, 500 square kilometres. During 2015-16, Maharashtra became one of the leading producers of sugarcane and cotton in the country. As per the budget provisions of 2016-17, the state government aims to set up new textile units in the cotton growing areas of the state.

The economic infrastructure of the state includes the airports, roads, railways, power, telecom, and ports. Four international and seven domestic airports, 2 major and 53 minor ports, a well developed power supply grid are all boosters to the economy of the state. The social infrastructure includes education and training, health services and tourism. Rich in historical and cultural heritage, Maharashtra has tremendous potential for growth in tourism and the state has plans to expand the basic infrastructure facilities at various destinations for sustainable development of tourism. It plans for fresh private investments would create many direct and indirect employment opportunities for local residents. Ancient caves at Ajanta, Ellora, Elephanta, numerous forts, hill stations, religious tourism, beaches, as well as adventure tourism, all together fetch a good economic turnover for the state.

Industries

Maharashtra is the most industrialized state in India with a contribution of 23% to the national economy.... More than 60% of the population of Maharashtra is involved in agriculture and other professions which are indirectly related to agriculture. Sugar industry in Maharashtra is a co-operative giving a share to the farmers too. The state also has a long history in textiles. Poultry development, Dairy development, Chemical and allied products, electrical and non-electrical machinery, petroleum and allied products are the main industries in Maharashtra. Aurangabad and Pune are famous for auto components. Chappals (footwear) in Kolhapur; Cotton seeds in Akola, Pharmaceuticals in Aurangabad; Power looms in Malegaon, Bhivandi and Nagpur and many more things, make the state the most industrialised area.

Film and Television Industry

Mumbai houses a lot of film, television and music studios, and production houses. The FTII -Film and Television Institute of India in Pune, is a school teaching all genres of filmmaking. The film industry in India is the second oldest in the world and is one of the fastest growing industries with an estimated turnover of over Rs 260 billion as per 2011 calculations and is growing at a rate of 11.2% every year.

Forest produce

Total revenue through forest produce such as timber, firewood, Gum, Bamboo, grass etc was approximately Rs 399 Crores as per 2013-14 data.

Animal Husbandry

Animal Husbandry, Dairying and Fishing play a very important role in the state economy and is intrinsically linked to agriculture. Livestock rearing for eggs, milk and milk products, leather and flesh, wool are an important occupation for most of the people living in the state.. The agriculture industry in most part of the state is still dependent on rainfall. Now, irrigation facilities are being extended and a large number of dams are being used. Animal husbandry plays a very important part in the rural economy. Endowed with a 720 km coastline, the state contributes to fish production; adding to its economy.

Since animal husbandry is included in the state list, the responsibility of taking care of the cattle belongs to the state. The schemes are related to sheep development, poultry, piggery, fodder development and livestock health.

Financial Hub of the Country

Mumbai, the capital city of Maharashtra, has been given the name of the financial capital of the country. The gross domestic product of the state is Rs2, 71, 406 crore for the year 2001 - 2002 which accounts for 13% of the national income. Maharashtra is a major industrial hub of the country with booming industries like the textiles, automobiles and chemicals.

Mumbai has a concentration of industries like the chemical industry, the cotton industry, manufacturing, electricity, electrical machinery, transport equipment. Along with the large scale industries there are certain small scale industries like the handloom, power loom, dyeing and printing, blacksmithing, carpentry, pricks and tiles manufacturing, soap making.

rs: Polymers include rubber, alpha picolinic acid, rubber chemicals, organic pigments and fillers and the companies which produce such chemicals are K K Chemical Industries Oceanic Laboratories Pvt. Ltd.


Last Updated on January 5, 2018