Maharashtra’s Journey to a $1 Trillion Economy

Every year on May 1st, Maharashtra Day, also called Maharashtra Diwas, is observed to mark the state’s creation in 1960 when it was split off from the former Bombay State. On May 1, 1960, the Bombay State was divided between the linguistic states of Maharashtra and Gujarat, leading to the creation of the state of Maharashtra on this day. Maharashtra Day is observed as a public holiday in the state and is widely celebrated with immense enthusiasm.

Maharashtra Day: History

The history of Maharashtra is diverse, covering the Maratha Empire’s rule from the 17th to the 19th century. The Bombay Presidency, which included portions of modern-day Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, and Karnataka, was established following India’s independence in 1947. As the need for linguistically-based states increased, the State Reorganisation Act was created in 1956. As a result, on May 1, 1960, the Bombay State was divided into Maharashtra and Gujarat in accordance with the Act’s provisions.

Significance and Celebrations

Maharashtra Day is widely celebrated with great excitement and enthusiasm, and it has enormous historical significance for the state. It’s a moment to celebrate the achievements of the state and people’s cultural heritage. Parades, cultural events, and flag-hoisting rituals at government buildings, universities, and schools take place throughout the day.

The state government also grants prizes and accolades to deserving people in disciplines including science, literature, and the arts. Held in Shivaji Park in Dadar, Mumbai, the Maharashtra Day celebration features colourful processions featuring parading bands, floats, and traditional dancers.

It’s also an opportunity to consider Maharashtra’s achievements in fields like industry, education, and agriculture. On this day, we get the chance to honour the state’s rich cultural legacy and commemorate its accomplishments.

Maharashtra Day: Chasing the Dream of a $5 trillion Indian Economy

Maharashtra is getting ready to go to Davos for the annual meeting of the World Economic Forum. The state administration of Maharashtra set an ambitious target a year ago: to become the country’s first $1 trillion economy state. Not only is it on track now, but it’s advancing rapidly.

For Maharashtra, the 2023 Davos meeting was a pivotal moment. It saw investments come in at a level never seen before—roughly ₹1.4 lakh crore. This inflow of funds was more than just monetary; it was a strong validation of Maharashtra’s potential for expansion and advancement.

Since then, substantial advancements have been made. A large number of projects that have been projected to cost more than ₹1 lakh crore have been given land, and many of them are now in different phases of development. This suggests that Maharashtra’s economic progress is supported by the public and private sectors.

In 2023, the Maharashtra state government formed the Economic Advisory Council in an effort to further accelerate the economic trajectory. The main goal of this council, which consists of 21 leaders from various industries, is to analyse possibilities and pinpoint the factors required to meet Maharashtra’s economic goals. The council’s operations are directed by the ‘Panchamrut’ holistic growth plan, which gives farmers, women, tribal people, infrastructure development, jobs, and environmentally friendly practices first priority. This strategy ensures that everyone is included in the wave of progress, leaving no one behind.

With its advantageous location, Maharashtra is well-positioned to spearhead India’s aspiration of becoming a $5 trillion economy. The state is recognised for its unmatched industrial strength, especially in the MSME sector. Leading the way in manufacturing and knowledge-based industries, Maharashtra is the state with the most Special Economic Zones (SEZs).

The state’s economy is driven by a young and highly trained labour population, a thriving economy with a GDP of over ₹450 billion, strong connectivity, and an increasing digitisation trend. Over 30 lakh people were employed by Maharashtra, which led the way in official job creation in the fiscal year 2022–2023.

Maharashtra has also become a major centre for a number of sectors, such as electronics, textiles, food processing, IT and ITeS, automobiles and auto components, and tourism. It is anticipated that the IT-ITeS Policy 2023, which permits IT businesses to build technology parks anywhere in the state with significant subsidies, would draw ₹95,000 crore ($11.5 billion) in investment and create 35 lakh quality employment opportunities.

Considering that agriculture is the foundation of the economy, the state government has set aside almost ₹30,000 crore for programs aimed at promoting sustainable farming. 1.15 crore farmers have benefitted from programmes like the PM Kisan Samman Nidhi Yojana and Namo Shetkari Mahasamman Nidhi Yojana, which give all farmers an annual honorarium of ₹12,000 each. To protect farmers’ livelihoods, an additional ₹60,000 crore has been set up for Marathwada, including irrigation projects in areas vulnerable to drought.

The development of infrastructure is yet another important aspect of Maharashtra’s success story. The state has excellent infrastructure, which stimulates industrial growth and advances the state’s economy as a whole. Several transformative projects are underway, including the Navi Mumbai International Airport, Mumbai Trans-Harbour Link, Coastal Road, and the Mumbai-Delhi Expressway, which are targeted for completion in 2024.

Maharashtra also pledged projects totalling ₹46,000 crore for the electric vehicle (EV) and renewable energy (RE) sectors at the Davos conference last year. There are planned investments of ₹75,000 crore in solar, wind, hydrogen, and green ammonia. Across the state, 20,000 gram panchayats will have solar power projects installed.

Maharashtra continued to be the most popular investment destination in Q1 2023–24 (₹36,634 crore) and Q2 2023–24. With land reforms, fiscal incentives, and single-window clearance for 44 industry-related clearances across 16 agencies, the state is dedicated to creating a business-friendly climate.

Maharashtra will reach unprecedented heights as a result of the state’s revision of all sectoral policies and its industrial vision. Maharashtra’s success story reflects not just the state’s economic growth but also the resilience, creativity, and dedication of its people. Maharashtra enters Davos 2024 with the assurance that its goal of building a $1 trillion economy by 2028 is not just a promise but a reality in the making.

Conclusion

Maharashtra Day recalls the state’s establishment on May 1, 1960, following the Bombay State’s separation. It is a passionate display of Maharashtra’s accomplishments and culture. As seen by its efforts in sustainable farming, infrastructure development, and industrial expansion, the state is ideally positioned to spearhead India’s $5 trillion economic ambition. Maharashtra is drawing large investments and hopes to reach a $1 trillion economy by 2028. The goal becomes attainable as it moves toward Davos 2024, demonstrating the people’s determination and commitment.