All eyes are on the outcome of the election. The political stability in a state like Maharashtra is something that businesses are betting on big time. This is because Maharashtra contributes nearly 13-14% of India’s GDP and is one state that attracts a sizeable chunk of both local and global investment. The state has attracted significant investments in areas such as IT parks, electronics manufacturing, and infrastructure development. It is also one of the largest automotive hubs in the country. The political environment and policies of the ruling parties play a crucial role in the state’s development.
Here is a look at some key investments over past four years-
Investments in Maharashtra in 2020
In 2020, Maharashtra attracted investments across various sectors such as IT parks, ESDM, ports, and electronics manufacturing. The state government, with the help of public-private partnerships (PPP), planned to develop large industrial parks, particularly through partnerships with developers who own large land parcels. One of the first projects under this plan was the Chordia Industrial Park at Shirwal, near Pune, in collaboration with the Maharashtra Industrial Development Corporation (MIDC).
Additionally, in December 2020, the Bhabha Atomic Research Centre (BARC) in Mumbai developed the ‘Ruthenium 106 Plaque,’ an indigenous treatment for eye cancer, specifically for ocular tumors.
Infrastructure Investments in 2021
In 2021, Maharashtra continued to attract substantial investments. The state budget for 2021-22 allocated 5.2% of its budget to roads and bridges, higher than the national average of 4.3%.
A total of Rs. 22,608 crore ($3.06 billion) was set aside for infrastructure projects, including the Pune-Nashik medium high-speed railway line, the Nashik Metro Neo Project, the Metrolite system in Thane, and the Pimpri Chinchwad to Nigdi Corridor. The state also saw 43.6 million domestic tourists and 0.2 million foreign tourists.
In August 2021, the Vehicle Scrappage Policy was launched across the nation including Maharashtra to encourage the replacement of old vehicles with newer models. The state is finalizing Standard Operating Procedures (SOPs) for setting up digitalized vehicle scrapping centers.
Investments in 2022
In May 2022, Maharashtra signed MOUs with 23 international firms to attract investments worth Rs. 30,379 crore (US$ 3.91 billion). The state also received Rs. 1.18 lakh crore in foreign direct investment (FDI) in 2022-23, surpassing other states like Karnataka, Delhi, and Gujarat.
Up to September 2022, 738 mega projects with an investment of Rs. 6.12 lakh crore were approved. One notable project is the Aurangabad Industrial City (AURIC), a well-developed industrial smart city in the Marathwada region with investments of over Rs. 7,000 crore. AURIC plans to develop a textile park, a mega food park, and an international convention center.
FDI and IT-ITES Policy in 2023
In 2023, Maharashtra continued to attract significant investment, including Rs 1.25 lakh crore in FDI, which was more than the combined FDI of Gujarat and Karnataka. In the first quarter of 2024-25, the state received Rs 70,795 crore in FDI, accounting for 52.46% of India’s total FDI.
Maharashtra’s new IT-ITES Policy 2023 offers major opportunities for multinational companies, especially in emerging sectors like Industry 4.0 and AVGC (animation, visual effects, gaming, and comics).
The policy allows IT companies to set up tech parks anywhere in the state and offers subsidies, including up to 100% on stamp duty and electricity charges for 10 to 15 years. A streamlined approval process through a single window clearance mechanism will further ease project implementation.
Power Generation and Subsidies in 2024
As of 2024, Maharashtra’s total power generation capacity stands at 47,800.59 MW, with the private sector contributing the most at 26,026.99 MW. Thermal power leads with 28,916.97 MW, followed by renewable energy at 17,814.96 MW and nuclear power at 1,068.66 MW. The state plans to spend Rs. 30,452 crore ($ 3.6 billion) on power subsidies in 2023-24.
In January 2024, Korean car maker Hyundai Motors announced plans to spend nearly Rs 6,000 crore in revamping the General Motors’ Talegaon plant in Maharashtra.
The Mumbai-Pune corridor is a key automotive hub for cities like Pune, Chakan, Nashik, and Aurangabad have been seeing significant investment from a host of global and local automotive majors.