Economy of Maharashtra

Economy of Maharashtra
Skyline of Mumbai, the capital of Maharashtra, and the financial center of India[1][2]
GDP 27.96 lakh crore (US$410 billion) (2018-19 est.)[3]
GDP rank 1st
GDP growth
12% (2017-18 est.)[3]
GDP per capita
180,596 (US$2,600) (2017-18)[4]
GDP by sector
Agriculture 11.9%
Industry 33.6%
Services 54.5% (2016-17)[3]
Labour force by occupation
Agriculture 51%
Industry 9%
Services 40% (2015)[5]
Public finances
4.13 lakh crore (US$60 billion)
16.5% of GSDP (2018-19 est.)[3]
Revenues 2.88 lakh crore (US$42 billion) (2018-19 est.)[3]
Expenses 3.67 lakh crore (US$53 billion) (2018-19 est.)[3]

Maharashtra has the largest economy in India. It is third-most urbanised state with urban population of 45% of whole population. Each year, the Government of Maharashtra publishes the Economic Survey of Maharashtra to be tabled in the budget session of the State.[6]

Mumbai, the capital of Maharashtra and also the financial capital of India houses the headquarters of almost all major banks, financial institutions, insurance companies and mutual funds. India's largest stock exchange Bombay Stock Exchange, oldest in Asia, is located in the city. More than 41% of the S&P CNX 500 conglomerates have corporate offices in Maharashtra. After successes in the information technology in the neighbouring states, Maharashtra has set up software parks in Pune, Mumbai, Navi Mumbai, Nagpur and Nasik, Aurangabad and Latur. Maharashtra is the second largest exporter of software with annual exports of 18,000 crores and accounts for more than 30 per cent of the country's software exports, with over 1,200 software units based in the state.[7] Maharashtra ranks first nationwide in coal-based thermal electricity as well as nuclear electricity generation with national market shares of over 13% and 17% respectively. Maharashtra is also introducing Jatropha cultivation and has started a project for the identification of suitable sites for Jatropha plantations.[8] Ralegaon Siddhi is a village in Ahmednagar District that is considered a model of environmental conservation.[9]


YearGross 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[10]
2011 9,013,300

Mumbai is the major port in Maharashtra, which led to 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 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.


Maharashtra is India's leading industrial state contributing 13% of national industrial output. 64.14% of the people are employed in agriculture and allied activities. Almost 46% of the GSDP is contributed by industry.
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 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. Small scale industries have also come up in a big way in the state. 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.[11]

To attract industries to different areas of the state, the government of Maharashtra established Maharashtra Industrial Development Corporation (MIDC) in 1962. MIDC provides businesses with infrastructure such as land (open plot or built-up spaces), roads, water supply, drainage facilities etc. To date 233 areas have been developed around the state with emphasis on different sectors such as manufacturing, IT, pharmaceutical and wine.


Although Maharashtra is a highly industrialized state of India, agriculture continues to be the main occupation in the state. 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. Districts in Western Maharashtra on the Deccan plateau such as Pune and Ahmadnagar and the Marathwada region are particularly prone to drought.

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.[12]

Principal Monsoon crops include Rice, jwari, and Bajri. Other crops include Wheat, pulses, vegetables and onions.

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, and oranges are the main ones.

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,[13][14][15] Apart from sugar, Cooperatives play a crucial role in dairy,[16] 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..[17] 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.[18]



Tourism industry is also a major industry in Maharashtra with Aurangabad, Mumbai, Pune, ancient caves and monuments at Ajanta-Verul, Ellora, Elephanta and Karle-Bhaje, numerous forts including Raigad, Sinhgad, Rajgad, Shivneri, hill stations of Lonavala, Khandala, Mahabaleshwar, Matheran, Melghat tiger reserve being the popular tourist attractions. Religious tourism includes places such as Shirdi (Saibaba temple), Nanded (Gurdwara), Nagpur (Chityabhumi), Haji Ali Durgah and Siddhivinayak temple in Mumbai and Pandharpur (Vitthal-Rukmini temple). Numerous beaches, adventure tourism sites, amusement parks and water parks also add to the tourism potential of the state.[19]

Economy of main districts


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.[20][21][22] 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$580 million) in corporate taxes.[23] 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.[24] 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.[25]

As of 2015, Mumbai's metro area GDP (PPP) was estimated at $368 billion.[26] 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),[21] and five of the Fortune Global 500 companies are based in Mumbai.[27] 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).[25]

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.[28] 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.[25] 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.[29]

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.[30] 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.[31]

Mumbai has been ranked sixth among top ten global cities on the billionaire count with 28[32] and 46000 millionaires, with total wealth around $820 billion[33] 48th on the Worldwide Centres of Commerce Index 2008,[34] seventh in the list of "Top Ten Cities for Billionaires" by Forbes magazine (April 2008),[35] and first in terms of those billionaires' average wealth.[36] As of 2008, the Globalization and World Cities Study Group (GaWC) has ranked Mumbai as an "Alpha world city", third in its categories of Global cities.[37] 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.[38]


As one of the largest cities of India and major centre of learning with several colleges and universities, Pune is emerging as a prominent location for IT and manufacturing. Pune has the eighth largest metropolitan economy [39] and the sixth highest per capita income in the country.[40]

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".[41]

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.[42] Kirloskar Brothers Limited (One of India's largest manufacturer and exporter of pumps and the largest infrastructure pumping project contractor in Asia[43][44]), Kirloskar Oil Engines (India's largest diesel engine company[45]), 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 being 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 km2). The estimated investment in the project is 600 billion (US$8.7 billion).[46] To facilitate economic growth, the government made liberal incentives in its IT and ITES Policy, 2003 and leased properties on MIDC land.[47] The IT sector employs more than 70,000 people. Software giant Microsoft intends to set up a 7 billion (US$100 million) project in Hinjawadi.[47]

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.[48][49]

Pune has also emerged as a new startup hub in India with tech startups like Pubmatic,,, TripHobo,[50] (acquired by Foodpanda),[51] Swipe setting up base in Pune.[52] NASSCOM in association with MIDC have started a co-working space for city based startups under its '10,000 startup' initiative at Kharadi MIDC.[53] 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 m2 (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$115 million project is developed by the Pimpri-Chinchwad New Town Development Authority.[54] Nowadays a growing number of automotive dealerships are springing up all over the city. They include luxury car makers like Jaguar Land Rover, Mercedes Benz, BMW, Audi, and motorcycle manufacturers like Kawasaki, KTM, Benelli, Ducati, BMW and Harley Davidson. GDP ($US) : 68 billion


Nagpur is the winter capital, a sprawling metropolis and the third largest city of the Indian state of Maharashtra after Mumbai and Pune. It has been proposed as one of the Smart Cities in Maharashtra. Nagpur is also called Orange city for its huge orange production in the surrounding area. It is also largest timber market of ASIA, Nagpuri timber is world-famous for its superior quality.


Today, Nashik is a fast growing city of India and has been recognized as a metro city. Economy of the city is mainly driven by manufacturing and engineering industry and highly progressive agriculture in lands surrounding the Nashik. Auto giants includes Bosch, M and Mahindra and manufacturers of original equipment (OEMs) includes Samsonite, VIP, CEAT etc. have their manufacturing units in the city and have generated a large network of engineering ancillary and auto component distributors. The city is a hub of pharmaceutical with fem and Glaxo S. Kline. Lately, Nasik is known as Napa Valley of India, local brand of wine include Zampa, and Sula has international recognition. Contemporary works are on to highlight the growth of rose farming of export quality and wine market in the city. There are two main government industry established one is thermal power unit (Eklahare) and other is Printing press of national treasury (security press of India at Nashik street). There are main five industrial zones in the city such as Ambad, Satpur, Igatpuri, Dindori and Sinnar. There are many sugar mills in the city and also known as a main exporter of pomegranates and white onions. GDP ($US) : 1.9 billion


The city was a major silk and cotton textile production centre. A fine blend of silk with locally grown cotton was developed as Himroo textile. Much of the silk industry has vanished over time, but some manufacturers have managed to keep the tradition alive. Paithani silk saris are also made in Aurangabad. The name of this cloth is derived from Paithan town. In 1889 a cotton-spinning and weaving mill was erected in Aurangabad city, which employed 700 people. With the opening of the Hyderabad-Godavari Valley Railways in the year 1900 several ginning factories were started. In the Jalna alone there were 9 cotton-ginning factories and 5 cotton-presses, besides two ginning factories at Aurangabad and Kannad, and one oil- press at Aurangabad. The total number of people employed in the cotton-presses and ginning factories in the year 1901 was 1,016. [1] Until 1960, Aurangabad languished as a city, remaining industrially backward. In 1960, the region of Marathwada was merged with Maharashtra . The industrial development of the Marathwada region began, propelled through designated backward area benefits. Growth began when the Maharashtra Industrial Development Corporation (MIDC) began acquiring land and setting up industrial estates. Aurangabad is a now classic example of efforts of a state government towards the balanced industrialisation of the state. [2] Major Industrial areas of Aurangabad are Chikhalthana MIDC, Shendra MIDC and Waluj MIDC. GDP ($US) : 840 million

See also



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