Economy of
Maharashtra
|
Currency
| Indian Rupee
?
|
---|
| 1 April ? 31 March
|
---|
Country group
| |
---|
|
GDP
| ?
42.67 trillion
(US$510 billion) (2024?25;est)
[4]
[5]
|
---|
GDP rank
| 1st
|
---|
GDP growth
| 10% (2024?2025; est)
[6]
|
---|
GDP per capita
| ?
332,692
(US$4,000) (2024?25; est)
[7]
|
---|
GDP per capita rank
| 12th
|
---|
GDP by sector
| Agriculture
: 13.2%
Industry
: 26.8%
Services
: 60%(2020?21)
[8]
|
---|
| 7.81
in poverty (2022)
[9]
|
---|
|
35.0
medium
(2012)
[10]
|
---|
|
0.688
medium
(2021) (
12th
)
|
---|
Labour force by occupation
| Agriculture 51%
Industry 9%
Services 40% (2015)
[11]
|
---|
Unemployment
| 4.3% (Feb 2022)
[12]
|
---|
|
| ?
1.19 trillion
(US$14 billion)
(2020-21)
[13]
|
---|
|
| 18.14% of GSDP (2022?23 est.)
[14]
|
---|
| ?
?89,598 crore
(US$?11 billion)
2.50% of GSDP (2022?23 est.)
[14]
|
---|
Revenues
| ?
4.05 lakh crore
(US$49 billion) (2022?23 est.)
[14]
|
---|
Expenses
| ?
4.95 lakh crore
(US$59 billion) (2022?23 est.)
[14]
|
---|
|
The
economy of the state
of
Maharashtra
is the
largest in India
.
[15]
Maharashtra is India's second most industrialised state contributing 20% of national industrial output. Almost 46% of the GSDP is contributed by industry. Maharashtra has software parks in many cities around the state, and is the second largest exporter of software with annual exports over
?
80,000 crores.
[16]
Although highly industrialized, agriculture continues to be the main occupation in many regions of the state. 24.14% of the working age population is employed in agriculture and allied activities.
[17]
: 18
Mumbai
, the capital of Maharashtra and often described as the
New York
of India
or
Manhattan
of India
,
[18]
is the
financial capital
and the
most populous city
of
India
with an estimated
city proper
population of 12.5 million (1.25 crore).
[19]
The city is the entertainment,
fashion
, and commercial centre of India. Mumbai hosts the largest urban economy of any city in India. is considered the financial capital of India with the headquarters of almost all major banks, financial institutions, insurance companies and
mutual funds
being based in the city. India's largest stock exchange
Bombay Stock Exchange
, the oldest in Asia,
[
citation needed
]
is also located in the city. More than 41% of the
S&P CNX 500
conglomerates have corporate offices in Maharashtra.
Political and Economic History
[
edit
]
Political history
[
edit
]
The British
East India Company
controlled
Mumbai
beginning in the 17th century, and used it as one of their main trading posts. The company slowly expanded areas under its rule during the 18th century. Their conquest of Maharashtra was completed in 1818 with the defeat of Peshwa
Bajirao II
in the
Third Anglo-Maratha War
.
[20]
The
British
governed western Maharashtra as part of the
Bombay Presidency
. A number of the
Maratha
states persisted as
princely states
, retaining autonomy in return for acknowledging British
suzerainty
. The largest princely states in the territory were
Nagpur
,
Satara
and
Kolhapur
; Satara was annexed to the Bombay Presidency in 1848, and Nagpur was annexed in 1853 to become
Nagpur Province
, later part of the
Central Provinces
.
Berar
, which had been part of the
Nizam
's Hyderabad State, was occupied by the British in 1853 and annexed to the Central Provinces in 1903.
[21]
However, a large part called
Marathwada
remained part of the Nizam's
Hyderabad Statee
throughout the British period. The British ruled for more than a century and ruined the economy of the Maharashtra. After Indian independence in 1947, princely states and Jagirs of the
Deccan States Agency
, were merged into
Bombay State
, which was created from the former Bombay Presidency in 1950.
[22]
In 1956, the
States Reorganisation Act
reorganised the Indian states along linguistic lines, and Bombay Presidency State was enlarged by the addition of the predominantly
Marathi
-speaking regions of
Marathwada
(
Aurangabad Division
) from erstwhile
Hyderabad state
and
Vidarbha
region from the
Central Provinces and Berar
. The southernmost part of Bombay State was ceded to
Mysore
. In the 1950s, Marathi people strongly protested against bilingual
Bombay state
under the banner of
Samyukta Maharashtra Samiti
.
[23]
[24]
On 1 May 1960, a separate Marathi-speaking state of Maharashtra by dividing earlier bilingual Bombay State into the new states of Maharashtra and
Gujarat
.
[25]
Economic history
[
edit
]
Before British rule, the Maharashtra region was divided into many revenue divisions. The medieval equivalent of a county or district was the
pargana
. The chief of the pargana was called
Deshmukh
and record keepers were called
Deshpande
.
[26]
[27]
The lowest administrative unit was the village. Village society in Marathi areas included the Patil or the head of the village, collector of revenue, and
Kulkarni
, the village record-keeper. These were hereditary positions.
[28]
The village also used to have twelve hereditary servants called the
Balutedar
. The Balutedar system was supportive of the agriculture sector. Servants under this system provided services to the farmers and the economic system of the village. The base of this system was caste. The servants were responsible for tasks specific to their castes. There were twelve kinds of servants under Bara Balutedar
[29]
[30]
[31]
In exchange for their services, the
balutedars
were granted complex sets of hereditary rights (watan) to a share in the village harvest under a
Barter
system.
[32]
In the 1700s, the important cities of Maharashtra region were the trading port of Mumbai under the British, Pune as the de facto political and finincial capital under Peshwa rule,
[33]
[34]
[35]
[36]
and Bhosale ruled Nagpur. In the previous century, Aurangabad had been the most important city in the region as the seat of
Mughal governors
.
Under the British rule (1818-1947), different parts of the present day state were ruled under different systems of government, their economic development also reflected this difference. Although the British originally regarded India as a place for the supply of raw materials for the factories of England, by the end of the 19th-century a modern manufacturing industry was developing in the city of Mumbai.
[37]
The main product was cotton and the bulk of the workforce in these
mills
was
[38]
from Western Maharashtra, but more specifically from the coastal Konkan region.
[39]
[40]
[41]
The completion of The
Hyderabad-Godavari Valley Railway
in 1896, with a 391 miles (629 km) line from Hyderabad city to
Manmad Junction
opened the Nizam ruled Marathwada region to growth of industry. In the early twentieth century, the
cotton
industry held an important place in Nizam's Hyderabad Government as the largest export of
Hyderabad State
. In 1889, a
cotton spinning
mill and a
weaving
mill were erected in
Aurangabad
, employing a total of 700 people. In
Jalna
alone there were 9
cotton ginning
factories and five cotton presses, with two more ginning factories at Aurangabad. The area of cultivated land under cotton in 1914 was three million
acres
(12,000 km
2
) in Hyderabad state, with most of the cotton being grown in the
Marathwada
districts, where the soil was particularly well suited to it.
[42]
In 1914 69,943 people were employed in cotton spinning, sizing, and 517,750 in weaving, cotton ginning, cleaning, and pressing. The wages paid were good, but the cost of living in Marathwara rose significantly due to the rise of the cotton industry, the uncertainty of rainfall, and availability of credit from money lenders.
[43]
Year
|
Gross Domestic Product (millions of
INR
)
|
1980
|
? 166,310
|
1985
|
? 296,160
|
1990
|
? 644,330
|
1995
|
? 1,578,180
|
2000
|
? 2,386,720
|
2005
|
? 3,759,150
[44]
|
2011
|
? 9,013,300
|
2014
|
?16,866,950
|
2019
|
?26,327,920
[45]
|
After the formation of Maharashtra, the state government established the Maharashtra Industrial Development Corporation (
MIDC
) in 1962 to spur growth in other areas of the state. In the decades since its formation, MIDC has acted as the primary industrial infrastructure development agency of the government of Maharashtra. Since its inception, MIDC has established at least one industrial area in every district of the state.
[46]
The areas with biggest industrial growth were the Pune metropolitan region and areas close to Mumbai such as
Thane district
and
Raigad district
.
[47]
Maharashtra was a pioneer in the development of
Agricultural Cooperative
Societies after independence. In fact, it was an integral part of the then Governing
Congress
party's vision of 'rural development with local initiative'. A 'special' status was accorded to the
sugar
cooperatives and the government assumed the role of a mentor by acting as a stakeholder, guarantor and regulator,
[48]
[49]
[50]
Apart from sugar, Cooperatives played a crucial role in dairy,
[51]
cotton, and fertiliser industries.
Support by the state government led to more than 25,000 cooperatives being set up by 1990s in Maharashtra.
[52]
In 1982 the State Government under
Vasantdada Patil
liberalised the Education Sector. This led to hundreds of private colleges and universities, including many religious and special-purpose institutions being set up in the state.
[53]
Politicians and leaders involved in the huge cooperative movement in Maharashtra were instrumental in setting up the private institutes
[54]
[55]
After the
1991 economic liberalization
, Maharashtra began to attract foreign capital, particularly in the information technology and engineering industries. The late 1990s and first decade of the 21st century saw huge development in the Information Technology sector, and IT Parks were set up in
Aundh
, and
Hinjawadi
areas of Pune.
[56]
Sectors
[
edit
]
Energy production
[
edit
]
Although its population makes Maharashtra one of the country's largest energy users,
[57]
[58]
conservation mandates, mild weather in the largest population centres and strong environmental movements have kept its per capita energy use to one of the smallest of any Indian state.
[59]
The high electricity demand of the state constitutes 13% of the total installed electricity generation capacity in India, which is mainly from fossil fuels such as coal and natural gas. There are large coal production facilities in
Chandrapur
district.
[60]
The Vidarbha region of the state is known to have significant coal reserves.
[61]
Mumbai High
, the offshore
oilfield
165 kilometres (103 mi) off the coast of Mumbai accounted for a significant percentage crude oil production in India.
[62]
[63]
[64]
Nuclear and renewable sources such as Hydroelectricity, Wind, solar, and biomass make a smaller contribution to electricity generation capability in the state.
[65]
A number of sugarmills use bagasse cogeneration to produce electricity for the mill use and surplus for the grid.
[66]
Maharashtra is the largest power generating state in India, with installed electricity generation capacity of 44 thousand MW.
[58]
The state forms a major constituent of the western grid of India, which now comes under the North, East, West and North Eastern (NEWNE) grids of India.
[57]
Maharashtra Power Generation Company (MAHAGENCO) operates
thermal power plants
.
[67]
In addition to the state government-owned power generation plants, there are privately owned power generation plants that transmit power through the
Maharashtra State Electricity Transmission Company
, which is responsible for transmission of electricity in the state.
[68]
There are a number of hydroelectric projects, particularly in western Maharashtra districts of Pune, Satara and Kolhapur for electricity generation.
Koyna Hydroelectric Project
in satara district is the largest by generation capacity in the state. The state also has a good potential for wind generated electricity, and is one of the leading states in generating wind power.
[69]
Mahavitaran
is responsible for distribution of electricity throughout the state by buying power from Mahanirmiti, captive power plants, other state electricity boards and private sector power generation companies.
[59]
Some areas of Mumbai get their electricity from private sector companies such as
Brihanmumbai Electric Supply and Transport
,
Tata Power
and
Adani Electricity Mumbai Limited
are electricity distributors.
Agriculture
[
edit
]
Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry, and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry, and related activities.
[70]
[71]
Although
Maharashtra
is a highly industrialized state of India, agriculture continues to be the main occupation in the state.
[17]
: 18
Since most of the cultivable land is still rain-fed, the
Southwest Monsoon
season between June and September is critical to the food sufficiency and quality of life in the state. Therefore, the agricultural calendar of Maharashtra and other parts of India is governed by Monsoon. Any fluctuations in the time distribution, spatial distribution or quantity of the monsoon rains may lead to conditions of floods or droughts causing the agricultural sector to adversely suffer. This has a cascading effect on the secondary economic sectors, the overall economy, food inflation and therefore the overall quality and cost of living for the general population. Many areas in Western Maharashtra on the Deccan plateau such as eastern
Pune
district, Solapur, Sangli, Satara and
Ahmadnagar
and the
Marathwada
region are particularly prone to drought.
Just like rest of India, land holdings tend to remain small and the percent of marginal farmers (landholding of less than 1.0 hectare 92.5 acre)) was 43%. The average holding over all size groups was under three hectares.
[
citation needed
]
Recent years have seen a huge increase in
farmers committing suicide
in Maharashtra because of indebtedness resulting from monsoon failure, climate change, and at times cost of growing crops being higher than the market price.
[72]
[73]
[74]
[17]
The cause for suicide has been linked in some studies to inability to
loans
mostly taken from banks and
NBFCs
to purchase expensive
seeds
and fertilizers, often marketed by foreign
MNCs
.
[75]
Irrigation
facilities are being extended so that agriculture could be made less dependent upon rain water. Maharashtra has by far the largest number of
Dams
in India. Despite that, the net irrigated area totals only 33,500 square kilometres or about 16% of cultivable land.
[76]
Principal Monsoon crops include millets such as
jwari
,
Bajri
, and Finger millet. These have been grown in the region for thousands of years.
[77]
In the high rain fall areas of Konkan and the eastern foothills of the
Sahyadri
mountains, different varieties of rice are cultivated. Other crops include
Wheat
,
pulses
, vegetables and
onions
. Maharashtra lags behind in the productivity of all the crops as compared to the Indian national averages, which itself is way behind the averages of some of
the other progressive countries of Europe and Asia.
[78]
The main Cash crops include
cotton
,
sugarcane
,
turmeric
, and several
oil seeds
including
groundnut
,
sunflower
and
soybean
. The state has huge areas under fruit cultivation of which
mangoes
,
bananas
,
grapes
,
pomegranate
and
oranges
are the main ones.
The state is a significant producer of milk. The milk is primarily obtained from
Water buffalo
, crossbred cattle, and indigenous cattle respectively. Unlike some southern states in India, in Maharashtra water buffalo and indigenous cattle account for bulk of milk production. The Pandharpuri is a popular buffalo breed in the state. Zebu and Gir are popular dairy cattle. Jersey and Holstein are the European breeds used for crossbreeding indigenous cattle. Although half of the milk is consumed by the owners, the other half is marketed and processed through a combination of small-scale vendors, private companies and dairy cooperatives.
[79]
Cattle is extensively used for agricultural work.the popular breeds for that include Khillar, Deoni, Gaolao, Red Kandhari and
Dangi. These breeds offer good draught power capacity, heat tolerance, disease resistance, adaptability to harsh agro-climatic
conditions and ability to survive and perform under scarce feed and fodder.
[80]
Maharashtra was a pioneer in the development of
Agricultural Cooperative
Societies after independence. In fact, it was an integral part of the then Governing
Congress
party's vision of 'rural development with local initiative'. A 'special' status was accorded to the
sugar
cooperatives and the government assumed the role of a mentor by acting as a stakeholder, guarantor and regulator,
[81]
[49]
[50]
Cooperatives play a crucial role in dairy,
[51]
cotton, and fertiliser industries. The members of the respective society include all farmers, small and large, supplying their produce to the processing mill, dairy etc.
[82]
As with dairy and sugar, cooperatives play a significant part in marketing of fruit and vegetables in Maharashtra. Since the 1980s, the amount of produce handled by Cooperative societies has increased exponentially. Common fruit and vegetables marketed by the societies include products such as bananas, mangoes, grapes, onions and many others.
[83]
Over the last fifty years, the local sugar mills and other cooperative bodies have played a crucial part in encouraging political participation and as a stepping stone for aspiring politicians.
[49]
Maharashtra and Karnataka have been at the forefront of obtaining
Geographical indications
for a variety of fruit, vegetables, and other crops in the state. Agricultural products on the list from Maharashtra includes
Chiku
of
Gholvad
,
Nagpur oranges
,
Nashik grapes
,
Mahabaleshwar strawberry
, Waghya Ghevada (a
French bean
variety) of
Satara district
,
[84]
Jalgaon eggplant,
Ambemohar
rice etc.,
[85]
[86]
Maharashtra with a coastline of 720 km is one of the leading states in India in marine fish production. Major fish landing centres are New Ferry Wharf, Sassoon Dock and Versova, situated in Mumbai metropolitan area, and they account for nearly 60% of the state fish landings. In year 2017?18, the production was 475,000 metric tons from fish caught in the Arabian sea off coastal Konkan region of the state.
[87]
[88]
As part of its sustainability efforts, the state has started a project for the identification of suitable plantation sites for
Jatropha
, a drought resistance plant.
[89]
[90]
The village of
Ralegaon Siddhi
in
Ahmednagar District
is heralded as a
sustainable model
of village development.
[91]
Manufacturing Industry
[
edit
]
Maharashtra is India's leading industrial state contributing 18.4% of national industrial output in 2013. Almost 46% of the GSDP is contributed by industry.
[92]
[93]
Western Maharashtra around the metropolitan areas around Mumbai and Pune account for a significant percentage industrial output.
To attract industries to different areas of the state, the government of Maharashtra established
Maharashtra Industrial Development Corporation
(MIDC) in 1962. MIDC facilitates manufacturing business by creating
Special economic zones
that have infrastructure such as land (open plot or built-up spaces), roads, water supply, drainage facilities, etc.
[94]
[95]
To date, 233 areas have been developed around the state with an emphasis on different sectors such as manufacturing, IT, pharmaceutical and wine.
Maharashtra has had a long history in textiles with
Mumbai
being the original home of India's textile mills.
Solapur
,
Ichalkaranji
,
Malegaon
and
Bhiwandi
are some of the cities known for the textile industry today.
Pharmaceuticals
,
petrochemicals
, heavy
chemicals
,
electronics
,
automobiles
, engineering,
food processing
, and plastics are some of the major industries in the state. Maharashtra is renowned for the production of three-wheelers,
jeeps
, commercial vehicles and
cars
,
synthetic
fibers
, cold rolled products and industrial alcohol. Pune is emerging as one of the largest automobile hubs in the country.
The state capital Mumbai and the Mumbai Metropolitan Region has historically been the most industrialized area in the state. Industrial development in the state is largely concentrated in the
Pune Metropolitan Area
,
Nashik
,
Aurangabad
and
Nagpur
. The six important industries in the state are cotton textiles, chemicals, machinery, electricals, transport, and metallurgy.
[96]
Chemical and pharmaceutical Industry
[
edit
]
Information and Media
[
edit
]
Maharashtra is the leading Indian state for many
Creative industries
including
advertising
,
architecture
,
art
,
crafts
,
design
,
fashion
,
film
,
music
,
performing arts
,
publishing
,
R&D
,
software
,
toys
and
games
,
TV
and
radio
, and
video games
.
Maharashtra is a prominent location for the Indian entertainment industry, with many films, television series, books, and other media being set there.
[97]
Mumbai is the largest centre for film and television production and a third of all Indian films are produced in the state. Multimillion-dollar
Bollywood
productions, with the most expensive costing up to
?
1.5 billion
(US$18 million), are filmed there.
[98]
Marathi film
used to be previously made primarily in
Kolhapur
, but now are produced in Mumbai.
Telecommunications
[
edit
]
Construction and real estate
[
edit
]
Service Sector
[
edit
]
The
Service sector
dominates the economy of Maharashtra, accounting for 61.4% of the value addition and 69.3% of the value of output in the state.
[99]
The service sector includes traditional fields such as education, health, transport, real estate, banking and insurance as well as newer sectors such as information technology.
Banking and finance
[
edit
]
Mumbai, the capital of state and the
financial capital
of India, houses the corporate
headquarters
of numerous
Indian companies
,
multinational corporations
, and financial institutions. India's main
stock exchanges
and capital market and commodity exchanges are located in Mumbai. These include the
Reserve Bank of India
, the Bombay Stock Exchange, the
National Stock Exchange of India
, the
SEBI
.
The State continues to attract industrial investments from domestic as well as foreign institutions. Share markets in the state transact almost 70 per cent of the country's stocks.
[100]
Maharashtra is one of the leading states in cooperative urban and rural banking. The state's urban cooperative banks in 2007 accounted for 40% of the sector in India and majority of the deposits.
[101]
[102]
[103]
Wholesale and retail trade
[
edit
]
The retail scenario in the state consists of both organized and unorganized sectors. The
organized sector includes supermarkets, hypermarkets, departmental stores, malls and other privately owned retail chains. The
unorganized includes mainly the family owned and operated local grocery stores,
convenience stores, vegetable markets, and hawkers.
[104]
The unorganized sector dominates retail trade and is preferred by the consumers.
[105]
Online shopping is becoming popular in India with Maharashtra, and particularly the city of Mumbai, leading the nation.
[106]
Education and Training
[
edit
]
The literacy rate in the state was 88.69% in 2011. Of this, male literacy stood at 92.12% and female literacy 75.75%.
- Primary and secondary level
Maharashtra schools are run by the state government or by private organisations, including religious institutions. It is mandatory for local authorities to provide primary education under state law. However, secondary education is an optional duty.
[
citation needed
]
[107]
[108]
Public primary schools in the rural and urban are run by the area
Zilla Parishad
or the municipal corporations respectively. Private schools are run mainly by education trusts and are required to undergo mandatory inspection by the concerned authorities. Private schools are eligible for financial aid from the state government.
[109]
The secondary schools are affiliated with the
Council for the Indian School Certificate Examinations
(CISCE), the
Central Board for Secondary Education (CBSE)
, the
National Institute of Open School (NIOS)
or the
Maharashtra State Board of Secondary and Higher Secondary Education
. Under the
10+2+3 plan
, after completing secondary school, students typically enroll for two years in a
junior college
, also known as pre-university, or in schools with a higher secondary facility affiliated with the
Maharashtra State Board of Secondary and Higher Secondary Education
or any central board. Students choose from one of three streams, namely
liberal arts
, commerce or science. Upon completing the required coursework, students may enroll in general or professional degree programs.
Instruction in schools is mainly in Marathi, English or Hindi, though instruction in other languages such as
Urdu
, Gujarati or Kannada is also offered if there is sufficient local demand.
[
citation needed
]
[110]
[111]
[112]
Private schools vary in their choice of curriculum and may follow the State Board or one of the two central boards of education, the
CBSE
or
CISCE
.
[113]
[114]
*Tertiary level
Maharashtra has 24 universities with a turnout of 160,000 Graduates every year.
[115]
[116]
The
University of Mumbai
, is the largest university in the world in terms of the number of graduates and has 141 affiliated colleges.
[117]
According to prominent national rankings, many Maharashtra colleges and universities are ranked among highest in India.>
[118]
[119]
Maharashtra is also home many autonomous institutes as
Indian Institute of Technology Bombay
.
[120]
Most of these autonomous institutes are ranked the highest in India and have very competitive entry requirements.
Pune has historically been known as a center for higher education and has been referred to as the "Oxford of the East" . In 2006, it was reported that nearly 200,000 students from across India study in Pune at nine universities and more than a hundred educational institutes.
[121]
[122]
The state has hundreds of other private colleges and universities, including many religious and special-purpose institutions. Most of the private colleges were set up in the last thirty years after the State Government of
Vasantdada Patil
liberalised the Education Sector in 1982.
[53]
Although private, the government plays a regulatory role in the operations of these colleges. Politicians and leaders involved in the huge cooperative movement in Maharashtra were instrumental in setting up many private institutes
[123]
[124]
The growth of IT clusters in the state has led to a corresponding increase in setting up engineering colleges to cater for the demand for skilled labor in areas where the clusters are located such as Pune.
[125]
The state also has four agricultural universities located in different regions of state.
[126]
There are also many regional universities that higher education needs at the district levels of the state. Apart from this, there are a number of
deemed universities
in the state.
[127]
There are also local
community colleges
with generally more open admission policies, shorter academic programs, and lower tuition
[
citation needed
]
.
*Vocational training
There are a total of 416 ITIs and 310 ITCs with an intake of approximately 1,50,000
(1,13,644 in ITIs and 35,512 in ITCs) students.
The state has 416 post-secondary school
industrial training institutes
(ITIs) run by the government and 310 Industrial Training Centres (ITC) run by private entities that offer
vocational training
in numerous trades such as construction, plumbing, welding, automobile mechanic etc. Successful candidates receive the National Trade Certificate.
[128]
In 2012 approximately 1,50,000 (1,13,644 in ITIs and 35,512 in ITCs) students were enrolled in programs run by these organizations.
[129]
: 32
Transport
[
edit
]
Mumbai has been the major port in Maharashtra with flourishing trade and industrial development since 17th century A.D. Major national highways, railways pass through state, aiding in fast movement of goods and people. The state has also added to the road network connecting district places to major trading ports and cities. Mumbai, Pune and Nagpur are the major airports in the state. Mumbai's Chhatrapati Shivaji Maharaj International Airport was recorded as the busiest single runway airport in the world. Two new airports, one each in Navi Mumbai and Pune are proposed to be constructed.
*Road Transport
The state has a large, multi-modal transportation system with the largest road network in India.
[130]
In 2011, the total length of surface road in Maharashtra was 267,452 km;
[131]
national highways comprised 4,176 km
[132]
and state highways 3,700 km.
[131]
Other district roads and village roads provide villages accessibility to meet their social needs as well as the means to transport agricultural produce from villages to nearby markets. Major district roads provide a secondary function of linking between main roads and rural roads. Almost 98% of villages are connected via the highways and modern roads in Maharashtra. Average speed on state highways varies between 50 and 60 km/h (31?37 mi/h) due to heavy presence of vehicles; in villages and towns, speeds are as low as 25?30 km/h (15?18 mi/h).
[133]
The national highways get funding from the central government, however, state highways and local roads rely on the state government. Lack of funding has led Maharashtra government to rely on the private sector to fund state highways.
[134]
The
Maharashtra State Road Transport Corporation
(MSRTC) provides economical and reliable passenger road transport service in the public sector.
[135]
These buses, popularly called ST (State Transport), are the preferred mode of transport for much of the populace. Hired forms of transport include metered taxis and
auto rickshaws
, which often ply specific routes in cities.
*Railways
Indian government owned
Indian Railways
runs Rail network in Maharashtra as well as the rest of the country. The state is well-connected to other parts of the country with a railway network spanning 5,983 km between four Railways.
[136]
[137]
The rail network is used for carrying freight and people but a greater percentage of freight is carried by trucks than by rail.
*Passenger rail
There are multiple train services that connect major cities of India to cities in Maharashtra, for example, the
Mumbai Rajdhani Express
, the fastest
rajdhani
train, connects the Indian capital of New Delhi to Mumbai.
[138]
There are also many services that connect cities within Maharashtra such as the
Deccan Queen
connecting Mumbai with Pune. The
Maharashtra Express
service which connects the city of
Kolhapur
in southwestern Maharashtra to
Gondia
in Northeast Maharashtra holds the current record for the longest distance covered in one state as its entire run of 1,346 km (836 mi) is entirely within Maharashtra.
Thane and CST are the busiest railway stations in India,
[139]
the latter serving as a terminal for both long-distance trains and commuter trains of the Mumbai Suburban Railway.
Maharashtra also has suburban railway networks in
Mumbai
and
Pune
that carry around 6.4 million passengers every day using the same tracks that are used by long-distance passenger and freight trains.
[140]
*Sea ports
The two principal sea ports,
Mumbai Port
and
JNP
(also called Nhava Sheva), which is also in the Mumbai region, are under the control and supervision of the government of India.
[141]
JNP accounts for more than half of total container volumes handled at India's 12 public ports and around 40 percent of the nation's overall containerized ocean trade.
[142]
There are around 48 minor ports in Maharashtra.
[143]
Most of these handle passenger traffic and have a limited capacity. None of the major rivers in Maharashtra are navigable and so river transport does not exist in the state.
*Air transport
Almost all the major cities of Maharashtra have airports.
CSIA
(formerly Bombay International Airport) and
Juhu Airport
are the two airports in Mumbai. The two other international airports are
Pune International Airport
and
Dr. Babasaheb Ambedkar International Airport
(Nagpur). While
Aurangabad Airport
is a domestic airport operated by
Airports Authority of India
. Flights are operated by both private and government airline companies.
Nashik Airport
is also a major airport.
Most of the State's airfields are operated by the
Airports Authority of India
(AAI) while
Reliance Airport Developers (RADPL)
, currently operate five non-metro airports at
Latur
,
Nanded
,
Baramati
,
Osmanabad
and
Yavatmal
on a 95-year lease.
[144]
The
Maharashtra Airport Development Company
(MADC) was set up in 2002 to take up development of airports in the state that are not under the AAI or the
Maharashtra Industrial Development Corporation
(MIDC). MADC is playing the lead role in the planning and implementation of the
Multi-modal International Cargo Hub and Airport at Nagpur
(MIHAN) project.
[145]
Additional smaller airports include
Akola
,
Amravati
,
Chandrapur
,
Dhule
,
Gondia
,
Jalgaon
,
Karad
,
Kolhapur
,
Nashik Road
,
Ratnagiri
, and
Solapur
.
[146]
Tourism
[
edit
]
Tourism is a major industry in Maharashtra with areas around Aurangabad, Mumbai and Pune. Places of interest include ancient caves and monuments at
Ajanta
,
Ellora
,
Elephanta
and
Karle
-Bhaje, numerous mountain forts from the Maratha empire era such as
Raigad
,
Sinhagad
,
Rajgad
,
Shivneri
,
Panhala
, British era hill stations such as
Lonavala
,
Khandala
,
Mahabaleshwar
, and
Matheran
, tiger reserves such as Melghat, Nagzira, and
Tadoba
, and national parks such as Navegaon Bandh.
Religious tourism includes places such as Shirdi (Saibaba temple), Nashik (Hindu holy place), Nanded (Gurdwara), Nagpur (Dikshabhomi),
Siddhivinayak temple
and Haji Ali Dargah in Mumbai and Pandharpur (Vitthal-Rukmini temple) as well as the five
Jyotirlingas
out of eleven and
Shakti peethas
such as Kolhapur (Mahalakshmi Temple).
Numerous beaches, adventure tourism sites, amusement parks, and water parks also add to the tourism in the state.
[147]
State Government revenue and spending
[
edit
]
Article 246
[148]
of the
Indian Constitution
, distributes legislative powers including taxation, between the
Parliament of India
and the
State Legislature
.
[148]
The constitution does not have provision for the central government and the States to have concurrent power of taxation.
[149]
The tables below lists the thirteen taxes to be levied by the Central government and nineteen taxes by States including Maharashtra.
[149]
Central government of India
[
edit
]
SL. No.
|
Taxes as per
Union List
|
82
|
Income tax
:
Taxes on income other than agricultural income.
|
83
|
Custom Duty
: Duties of
customs
including
export
duties
|
84
|
Excise Duty
: Duties of
excise
on the following goods manufactured or produced in India namely (a)
Petroleum crude
(b)
high speed diesel
(c)
motor spirit
(commonly known as petrol) (d)
natural gas
(e)
aviation turbine fuel
and (f)
Tobacco
and tobacco products
|
85
|
Corporation Tax
|
86
|
Taxes on capital value of assets
, exclusive of agricultural land, of individuals and companies, taxes on capital of companies
|
87
|
Estate duty
in respect of property other than agricultural land
|
88
|
Duties in respect of succession to property
other than agricultural land
|
89
|
Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares and freight.
|
90
|
Taxes other than stamp duties on transactions in stock exchanges and futures markets
|
92A
|
Taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce
|
92B
|
Taxes on the consignment of goods in the course of inter-State trade or commerce
|
97
|
All residuary types of taxes not listed in any of the three lists of Seventh Schedule of Indian Constitution
|
[150]
State governments
[
edit
]
SL. No.
|
Taxes as per
State List
|
45
|
Land revenue, including the assessment and collection of revenue, the maintenance of land records, survey for revenue purposes and records of rights, and alienation of revenues etc.
|
46
|
Taxes on agricultural income
|
47
|
Duties in respect of succession to agricultural land.
|
48
|
Estate Duty in respect of agricultural land
|
49
|
Taxes on lands and buildings.
|
50
|
Taxes on mineral rights.
|
51
|
Duties of excise for following goods manufactured or produced within the State (i) alcoholic liquors for human consumption, and (ii) opium, Indian hemp and other narcotic drugs and narcotics.
|
53
|
Electricity Duty
:Taxes on the consumption or sale of
electricity
[151]
|
54
|
Taxes on sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), Natural gas aviation turbine fuel and alcohol liquor for human consumption but not including sale in the course of inter state or commerce or sale in the source of international trade or commerce such goods.
|
56
|
Taxes on goods and passengers carried by roads or on inland waterways.
|
57
|
Taxes on vehicles suitable for use on roads
.
|
58
|
Taxes on animals and boats.
|
59
|
Tolls
.
|
60
|
Taxes on profession, trades, callings and employments
.
|
61
|
Capitation taxes
.
|
62
|
Taxes on entertainment and amusements to be extent levied and collected by a panchayat or Municipality or a regional council or a district council.
|
63
|
Stamp duty
|
Goods and Services Tax
[
edit
]
The tax came into effect from 1 July 2017 through the implementation of the
One Hundred and First Amendment of the Constitution of India
by the
Indian government
. The GST replaced existing multiple taxes levied by the
central
and
state
governments.
It an
indirect tax
(or
consumption tax
) used on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.
Labour force
[
edit
]
As of 2015, 52.7% of the workers in the state were in the agriculture sector. 25.4% are of these were cultivators (land owners), while 27.3% were agricultural labourers.
[152]
The state has a significant interstate and intrastate migrant worker population. Out of state workers primarily come from states of
Uttar Pradesh
,
Bihar
,
Karnataka
, and
Rajasthan
. Migrant workers primarily find employment in the more developed regions of the state such Mumbai, Pune and Nashik metropolitan areas of western Maharashtra as well as to a lesser extent in the Aurangabad and Nagpur regions. Intrastate migrants also find opportunities in the regions mentioned above.
[153]
Income and poverty
[
edit
]
Organized labour
[
edit
]
Economy of regions
[
edit
]
Maharashtra is divided into six divisions for administrative purposes viz. Amravati, Nagpur, Aurangabad, Konkan, Nashik, and Pune. These divisions broadly coincide with Vidarbha (Amravati & Nagpur divisions), Marathwada (Aurangabad), Western Maharashtra (Pune and Nashik divisions), Konkan (Excluding Mumbai Metropolitan region), and Mumbai Metropolitan region. Mumbai metropolitan region and Western Maharashtra are economically the most developed regions and account for the greatest proportion of the state's GDP. The Marathwada region is the least developed region mainly because it previously belonged to the princely state of Hyderabad.
Mumbai Metropolitan area
[
edit
]
Mumbai is India's largest city (by population) and is the financial and commercial capital of India as it generates 6.16% of the total GDP.
[154]
[155]
[156]
It serves as an economic hub of India, contributing 10% of factory employment, 25% of industrial output, 33% of
income tax
collections, 60% of
customs duty
collections, 20% of central
excise tax
collections, 40% of India's
foreign trade
and
?
4,000 crore
(US$480 million) in
corporate taxes
.
[157]
Along with the rest of India, Mumbai has witnessed an economic boom since the liberalisation of 1991, the finance boom in the mid-nineties and the IT, export, services and outsourcing boom in the 2000s.
[158]
Although Mumbai had prominently figured as the hub of economic activity of India in the 1990s, the
Mumbai Metropolitan Region
is presently witnessing a reduction in its contribution to India's GDP.
[159]
As of 2015
[update]
, Mumbai's metro area GDP (PPP) was estimated at $368 billion.
[160]
Many of India's numerous conglomerates (including
Larsen & Toubro
,
State Bank of India
(SBI),
Life Insurance Corporation of India
(LIC),
Tata Group
,
Godrej
and
Reliance
),
[155]
and five of the
Fortune Global 500
companies are based in Mumbai.
[161]
This is facilitated by the presence of the
Reserve Bank of India
(RBI), the
Bombay Stock Exchange
(BSE), the
National Stock Exchange of India
(NSE), and financial sector regulators such as the
Securities and Exchange Board of India
(SEBI).
[159]
Until the 1970s, Mumbai owed its prosperity largely to textile mills and the seaport, but the local economy has since then diversified to include
finance
,
engineering
, diamond-polishing,
healthcare
and information technology.
[162]
The key sectors contributing to the city's economy are: finance, gems & jewellery, leather processing, IT and
ITES
, textiles, and entertainment.
Nariman Point
and
Bandra Kurla Complex
(BKC) are Mumbai's major financial centres.
[159]
Despite competition from
Bangalore
,
Hyderabad
and
Pune
, Mumbai has carved a niche for itself in the information technology industry. The Santacruz Electronic
Export Processing Zone
(SEEPZ) and the International Infotech Park (
Navi Mumbai
) offer excellent facilities to IT companies.
[163]
State and central government employees make up a large percentage of the city's workforce. Mumbai also has a large unskilled and semi-skilled self-employed population, who primarily earn their livelihood as hawkers, taxi drivers, mechanics and other such
blue collar
professions. The port and shipping industry is well established, with
Mumbai Port
being one of the oldest and most significant ports in India.
[164]
Dharavi
, in central Mumbai, has an increasingly large recycling industry, processing recyclable waste from other parts of the city; the district has an estimated 15,000 single-room factories.
[165]
Mumbai has been ranked sixth among top ten global cities on the billionaire count with 28
[166]
and 46,000 millionaires, with total wealth around $820 billion
[167]
48th on the
Worldwide Centres of Commerce Index
2008,
[168]
seventh in the list of "Top Ten Cities for Billionaires" by
Forbes
magazine (April 2008),
[169]
and first in terms of those billionaires' average wealth.
[170]
As of 2008
[update]
, the Globalization and World Cities Study Group (GaWC) has ranked Mumbai as an "Alpha world city", third in its categories of
Global cities
.
[171]
Mumbai is the third most expensive office market in the world, and was ranked among the fastest cities in the country for business startup in 2009.
[172]
Pune Division
[
edit
]
Pune metropolitan region
[
edit
]
As one of the largest cities of India and major centre of learning with several colleges and universities, Pune has emerged as a prominent location for
IT
and manufacturing. Pune has the eighth largest metropolitan economy
[173]
and the sixth highest per capita income in the country.
[174]
Automotive companies such as
Bajaj Auto
,
Tata Motors
,
Mahindra & Mahindra
,
Mercedes-Benz
,
Force Motors
(Firodia-Group),
Kinetic Motors
,
General Motors
,
Land Rover
,
Jaguar
,
Renault
,
Volkswagen
, and
Fiat
have set up greenfield facilities near Pune, leading
The Independent
to cite Pune as India's "Motor City".
[175]
The
Kirloskar Group
, was the first to bring industry to Pune by setting up Kirloskar Oil Engines Ltd. in 1945 at Kirkee in Pune. The Group was originally set up in
Kirloskarwadi
.
[176]
Kirloskar Brothers Limited
(One of India's largest manufacturer and exporter of pumps and the largest infrastructure pumping project contractor in Asia
[177]
[178]
), Kirloskar Oil Engines (India's largest
diesel engine
company
[179]
), Kirloskar Pneumatics Co. Ltd., and other
Kirloskar
companies are based in Pune.
The Hinjawadi IT Park (officially called the Rajeev Gandhi IT Park) is a project started by
MIDC
to house the IT sector in Pune. When completed, the Hinjawadi IT Park is expected to encompass an area of about 2,800 acres (11 km
2
). The estimated investment in the project is
?
600 billion
(US$7.2 billion).
[180]
To facilitate economic growth, the government made liberal incentives in its IT and
ITES Policy, 2003
and leased properties on MIDC land.
[181]
The IT sector employs more than 4 lakh people. Software giant
Microsoft
intends to set up a
?
7 billion
(US$84 million) project in
Hinjawadi
.
[181]
Pune Food Cluster development project is an initiative funded by the
World Bank
. It is being implemented with the help of
SIDBI
, Cluster Craft to facilitate the development of the fruit and vegetable processing industries in and around Pune.
[182]
[183]
Pune has also emerged as a new startup hub in India with tech startups like Pubmatic, Firstcry.com, Storypick.com, TripHobo,
[184]
TastyKhana.com (acquired by Foodpanda),
[185]
Swipe setting up base in Pune.
[186]
NASSCOM
in association with
MIDC
have started a co-working space for city based startups under its '10,000 startup' initiative at Kharadi MIDC.
[187]
It will incubate startup such as Kandawale from OhMyDealer in first batch.
The
Meetings, Incentives, Conferencing, Exhibitions
trade is expected to get a boost once the Pune International Exhibition and Convention Centre (PIECC) completes in 2017. The 97-hectare PIECC will boast a
seating capacity
of 20,000 with a floor area of 13,000 m
2
(139,931 sq ft). It will have seven exhibition centres, a convention centre, a golf course, a five-star hotel, a business complex, shopping malls, and residences. The US$115 million project is developed by the Pimpri-Chinchwad New Town Development Authority.
[188]
Nowadays a growing number of automotive dealerships are springing up all over the city. They include luxury car makers like
Jaguar Land Rover
,
Mercedes-Benz
,
BMW
,
Audi
, and motorcycle manufacturers like
Kawasaki
,
KTM
,
Benelli
,
Ducati
,
BMW
and
Harley Davidson
.
Vidarbha
[
edit
]
Vidarbha
's economy is primarily agricultural, with the addition of forest and mineral wealth.
An international cargo hub project, the
Multi-modal International Cargo Hub and Airport at Nagpur
, (MIHAN), has been developed.
[189]
[190]
MIHAN will be used for handling heavy cargo coming from South-East Asia and Middle-East Asia. The project will also include a
?
100 billion
(US$1.2 billion)
Special Economic Zone
(SEZ)
[191]
for information-technology companies. This will be India's biggest development project.
[192]
Gondia
,
Yavatmal
,
Chandrapur
,
Akola
,
Amravati
and
Nagpur
are the major cities of the region. Nagpur is a central hub for business and healthcare. Nagpur is the winter capital, a sprawling metropolis and the third largest city of the state after Mumbai and Pune. Nagpur is also called Orange city for the huge orange producing area surrounding the city. It also has the largest timber market of Asia.
Amravati is known for film distributors and cloth markets.
Chandrapur
has a thermal power station which is one of the biggest in India and some other heavy industries such as paper (
BILT
Ballarpur), steel (MEL from
Steel Authority of India
, etc.), cement (
UltraTech Cement
,
Ambuja Cements
,
ACC Limited
, Manikgarh Cement, Murli Cement) industries and numerous coal mines.
[193]
Nashik Division (Nashik and Northern Maharashtra)
[
edit
]
Nashik division includes districts of Ahmadnagar, Nashik, Jalgaon, Nandurbar and Dhule in North Western Maharashtra.Apart from Nashik district, all the other districts in the division have been designated the 250 most backward districts in India and have received additional funding from the Indian government for development purposes.
[194]
Nashik is the largest city in this region.
[195]
Nashik division cities have been included in Smart city project by Central Government of India
[196]
[197]
[198]
as an important node in the US$90 billion Delhi Mumbai Industrial Corridor Project.
[199]
[200]
Economy of Nashik district is mainly driven by manufacturing, pharmaceuticals,
[201]
[202]
and engineering industry.
cash crops
agriculture is important in the areas surrounding the city.
[203]
There are main five industrial zones under
Maharashtra Industrial Development Corporation
(MIDC)
[204]
in Nashik district.
[205]
[206]
[207]
A diverse range of privately owned manufacturing giants have their plants and units in the city and surrounding areas.Nashik area is also a hub for many government run printing,
[205]
[206]
defence research, and manufacturing facilities.This includes aircraft, artillery,
[208]
Apart from manufacturing, Nashik is also emerging as an investment destination for Information Technology companies.
[209]
[210]
Nashik has a textile industry.
National Bank for Agriculture and Rural Development
[211]
has selected Yeola Block for development of
Paithani
Cluster.
[212]
In recent decades, Nasik region has emerged as Wine Capital of India
[213]
with 45 local wineries and vineyards.
[214]
[215]
Many vineyards have achieved international recognition as Nashik Valley wines. The wines and the grapes grown in the area have received geiographical indications.
[216]
These vineyards are also developing the tourism related to wine testing and vineyards. Nashik is also known as a main
exporter of pomegranates, and grapes
[217]
and onions.
[218]
Ahmadnagar district has one of the largest concentration of
Cooperative Sugar mills
in Maharashtra.Jalgaon district is known for its Bananas and Brinjal.Both crops have received
Geographical indication
.
Marathwada
[
edit
]
The word "
Marathwada
" has been used since the times of the Nizams. The region coincides with the Aurangabad Division of Maharashtra. Since the establishment of the state of Maharashtra in 1960 and later that of MIDC, new industrial development has taken place in Marathwada region however it is concentrated mainly around the district of Aurangabad. The remaining six districts of the region have not benefited to any great extent in the process of industrialization. The main reason for such uneven development was the better
infrastructure facilities available in Aurangabad city in relation to other districts and places in the region.
[219]
See also
[
edit
]
Bibliography
[
edit
]
References
[
edit
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