Maharashtra’s Gross Domestic Product (GDP) could reach $1 trillion by 2030, says a Morgan Stanley research report. The state currently has a GDP of $536, the highest among Indian states, which is equivalent to the GDP of Singapore, the 28th largest economy in the world.
The report suggests that the state has achieved this gigantic economic growth through a combination of investment, industrialisation, exports, fiscal prudence, a high literacy rate, and strong and stable leadership.
The report elaborated that the state’s “fiscal prudence is evident with a debt-to-GDP ratio among India’s lowest.. Even with a lower share of farm in output than the country’s average, it is India’s leading producer of several farm products.”
Morgan Stanley on Maharashtra GDP: Key drivers
According to the Morgan Stanley report, industrialisation is among the top drivers of Maharashtra’s economic growth. Over the past decades, Maharashtra has changed its focus from a primarily agrarian economy to an industrial economy focused on manufacturing and services.
The state is also the top recipient of Foreign Direct Investment, taking 39.2% of the total FDI inflow in FY25. The state received a total of $19.6 billion in FDI last fiscal..
Morgan Stanley on Maharashtra GDP: Contribution to GDP
Maharashtra’s industrial sectors form 22.5 per cent of its GDP. Metal, auto, auto parts, food products, refined petroleum, machinery and equipment are the backbone of Maharashtra’s industrial output.
Maharashtra an auto hub
Maharashtra is one of the biggest producers of auto and auto parts in the country, having a share of 20 per cent in the country’s total output. Further, it has a share of 16-17 per cent in medicine and health equipment and an 8 to 12 per cent share in textile production.
However, in the past ten years, Maharashtra’s industrial sectors’ contribution in its GDP has decreased by 7.8 per cent, while the services sector’s share has risen by 9.2 per cent in the same period.
Service sector in Maharashtra
Service sector makes 64.3 per cent of Maharashtra’s GDP. The state has emerged as a hub for information technology, startups, banking, finance, insurance and real estate.
In the service sector, the state is the most favoured destination of IT companies for their Global Capability Centres. Maharashtra has 43 per cent share in the country’s total GCCs. The total number of GCCs in the state reached 730 in FY24.
Export sector growth in Maharashtra
Maharashtra is the second largest exporter in India, after Gujarat. The share of state in country total export stood at 15.4 per cent in FY24, making 13.7 per cent of the state’s GDP. The major exports of the state are jewellery, electronics, chemicals, engineering machinery and pharmaceuticals.
Maharashtra’s $1 trillion target by 2030
The state government aims for a $1 trillion economy by 2030, leading in infrastructure investment and focusing on high-growth sectors. According to the Morgan Stanley report, the 730 global capability centres (GCCs) in the state enhance its growth visibility.
That apart, they added that the “high literacy rate, low Gini coefficient, gender parity, and regional equity are works in progress. Major investments are underway in energy transition.