Maharashtra: The Business and Industrial Power of India

Maharashtra is well connected to all major markets through five international and 13 state airports, as well as a 720-kilometer long coastline with 55 shipping ports, making it a key player in international trade. Maharashtra also prides itself on its export figures. Its share of total Indian exports is a record 20 percent, and it is important to highlight that it ranks among the best in terms of foreign direct investment, attracting as much as 39.16 billion US dollars in investments from October 2019 to March 2022.

Textile Policy of Maharashtra

Maharashtra is a leading producer of various fibers, including cotton, silk, and bamboo, contributing to the growth of the textile and apparel industry in the state. This sector is now the second-largest job generator in Maharashtra, accounting for 12 percent of total Indian production in this sector and 16 percent of exports. To further enhance productivity and competitiveness, the state has opened a total of 14 private and 10 state textile parks with plug-and-play facilities, and recently launched a new textile policy offering various incentives in the form of upgrade subsidies, interest subsidies, and tax exemptions, all aimed at attracting investments worth 5.6 billion US dollars and creating a total of one million jobs by the end of 2023.

The automotive industry and auto parts industry are also key areas, making up 20 percent of total Indian production and 25 percent of India’s total exports in this sector.

Center of the Indian Automotive Industry

Maharashtra is home to major automotive centers such as Pune, Nashik, Aurangabad, and Nagpur. Pune is the largest automotive hub in India, with over 4,000 manufacturing units just in the Pimpri-Chinchwad region and is home to major companies such as Bajaj Auto, Daimler Chrysler, and Tata Motors. It is also important to note that the Maharashtra government is currently finalizing a policy to promote the production of electric vehicles. The goal is to produce 100,000 electric vehicles per year in the next three to five years, with incentives potentially including a 15 percent subsidy for buyers, expected to stimulate demand, and a tax refund on goods and services for manufacturers.

Leading in Electronic Manufacturing

The Electronics System Design and Manufacturing (ESDM) sector of Maharashtra also accounts for 20 percent of total Indian production in this sector and 18 percent of exports. The state has three electronic manufacturing clusters (EMC) in Pune, Aurangabad, and Navi Mumbai, with corresponding research and development and testing facilities. Talegaon and Khed in Pune district are well-known ESDM hubs in the state and have the locational advantage of excellent connectivity to the two largest Indian ports – Mumbai and JNPT. These hubs meet the demand for electronic goods from various industries, including automotive, telecommunications, consumer electronics, and defense. With the government’s efforts towards digitalization and the increasing demand for electronic products, the ESDM industry in Maharashtra is expected to grow significantly in the coming years.