Maharashtra is the 3rd largest, and the 2nd most populated state in India. About 66% of Maharashtra’s population is in the working age group of 15-59 years. It is very well connected to all the major markets with 3 international airports (Mumbai, Pune, and Nagpur), and has extensive developed roadways and railways. The state’s coastline has 55 ports facilitates about 22% of total cargo transport in India.
The state attracted about 31% of the total FDI (Foreign Direct Investments) inflows in India during 2000-18. It contributed about 12% to the country’s GDP growth in 2017-18.
Maharashtra is an industrial leader attracting the FDI and other investment sectors.
It has a good presence of industrial clusters, especially Automobile, IT & ITES, Chemicals, Textiles, Tourism, Biotechnology & Pharmaceuticals, Food Processing, and Gems & Jewelry it offers a lucrative investment opportunity in these sectors.
Here’s why foreign investors are investing in Maharashtra;
The prominent key sectors attracting foreign investors in India are;
Textiles & Garments
Growth Drivers – Rising per capita income, organized retail landscape & e-Commerce, Favorable demographic trends, and changing lifestyles.
Investment – Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing $60 mn in the next 4 years
Food Processing
Growth Drivers – Agri-commodity hub, huge consumer base, Strong economy, and Conducive policies.
Investment – The Food Processing Park at Vinchur in Nashik district has attracted an investment of $150 mn, and it is expected to generate 5,400 jobs. A total of 15 food processing units have signed MoUs with the state government during ‘Magnetic Maharashtra’, global investors’ summit and exhibition.
Automobile
Growth Drivers – Growing income, ‘Youngest Nation’ by 2025, and Expanding R&D hub
Investment – JSW Energy plans to double its investment to $ 956.1 mn for its electric vehicle manufacturing unit they have has signed a MoU with Maharashtra.
Tourism and hospitality
Growth Drivers – Incredible India campaign, E-Tourist VISA facility, Special Tourism Zones (STZ), Medical tourism, and Coastal tourism.
Electronic Systems
Growth Driver – Digital media, Smart cities, Government cloud initiative, National Knowledge Network (NKN), and Ultra mega solar project.
IT
Growth Drivers – Skill development and R&D, The National Optical Fibre Network (NOFN), Digital India campaign, and Start-up revolution.
Biotechnology
Growth Drivers – Growing population, Rising economic prosperity and consciousness, and Strong skilled manpower pool.
Investment – 8 biotechnologies SEZ have been proposed with investment $738 mn creating 94000 jobs.
Gems & Jewellery
Growth Drivers – Traditional Domestic Demand, Rising Income Levels, Growing Middle-Class Population, Increasing Expenditure, and Growing Organized Retail Format.
Investment – London’s ultra-luxury jeweler for the super-rich, Faberge, owned by the world’s top emeralds and rubies-miner Gemfields Plc., has decided to enter India.
Here are the new and the modified policies and schemes by Maharashtra Government to attract FDI and smooth transaction are;
The driving policy change and the new schemes have attracted a large number of FDI and small & medium industries across Maharashtra. Making Pune one of the top industrial powerhouse in Maharashtra a large number of investors have invested here.