Transcript Maharashtra - Gateway to India
MAHARASHTRA
The Gateway to India
LARGE, LITERATE AND URBANIZED
India’s 2nd largest State
308,000 sq kms, from coast to central India
110 m people (9%), more than most countries
42% Urban, against India’s 28%
Young, 67% below 34 years
Literacy 77% (India: 65%), sharp increase in female literacy in last decade
INDIA’S ECONOMIC POWERHOUSE
India’s largest economy: 13% of National Income
Per Capita Income 45% higher 9% average growth in last 4 years (slowdown, 08-09: 6.7%, high by world standards )
INDIA’S ECONOMIC POWERHOUSE
Maturing economy: growing services (62%), strong industry base (25%)
4.8% industrial growth 08-09 ( 7.5% in 07-08) …
…But services continue to grow at over 10%
INDIA’S ECONOMIC POWERHOUSE
1/5th of country’s industrial output value and net value added
14% of all factory employment India’s largest employment provider (total, and
non-farm) Over 40% of India’s fiscal receipts
INDUSTRIAL DIVERSITY, DEPTH
Since 1991 delicensing, highest no. of industrial proposals, largest employment
Leads in value of output in 15 out of 25 Industry sectors … …including auto and components, machinery,
food products, basic metals, etc High productivity:
“A factory in Maharashtra employs 16% more capital and 2% more labour, but produces 37% more output and adds 51% more value” (ASI)
INDUSTRIAL MEGA PROJECTS
159 industrial Mega Projects approved since June, 05…
…of which 35 in 08-09, 27 more upto August, 09 inspite of slowdown
Rs. 1,37,000 cr investment proposed, 2.04 lakh new jobs expected
(+ GFH, 2 other ‘prestigious’ projects)
INDUSTRIAL MEGA PROJECTS
41 in production, including GM, VW, Hyundai, LG, CanPack, Rieter, GM (19 in backward areas)
39 under construction, 35 have obtained land
Latest entrants include global leaders like POSCO (South Korea), GM expanding
LEADS IN PROJECT INVESTMENT
Rs 504,272 cr investment planned or under execution, 6,152 infra, industrial, other projects
(Projects Today, September 09)
Followed by AP, Orissa, Gujarat, WB and TN
1/5 of India’s fresh investment (Apr–June 09)
Implementation rate 51%, 2-12 %age points above leading States, rising trend
MOST GLOBALLY CONNECTED STATE
Since 1991, 23% of FDI into India, highest share: 4,133 approvals, Rs. 82,000 cr
17% of Foreign Technical Collaborations
India’s leading exporter, over 25% share…
Competitive business, enabling environment
MOST GLOBALLY CONNECTED STATE
146 approved SEZs, highest in India
54 notified: 10 have started development, units eastablished in 14 SEZs so far
64 units employment already set up, 65,000 actual
MIDC, MADC and CIDCO also major players, alone or with leading private partners
PEOPLE POWER…
13% of India’s engineering colleges, 1/5th of management colleges, spread across State
Over 200,000 annual student intake in professional, technical and related institutions
Innovative industry partnerships with ITIs, polytechnics
…AND SOME OTHER STRENGTHS
Strong, improving, expanding infrastructure: old strengths, new plans
MIDC: largest industrial infra provider, supplies water to several cities/towns also
Mumbai: world’s 6th largest metropolitan area, India’s most cosmopolitan city, among world’s top 10 Financial Centres
POLICIES
Mega Project Policy 2005
Industrial, Investment & Infrastructure Policy 2006
Package Scheme of Incentives 2007, stress on backward areas, employment
POLICIES
BT Policy 2001 “Maharashtra now has 33% share of BT industry, followed by Karnataka” (BioSpectrum) - New incentives for private BT Parks
IT & ITES Policy 2003 - 8 x export increase, now 2 nd to Karnataka - 63 private IT Parks started, 1.42 lakh jobs - New Policy 2009 announced
POLICIES
Wine Policy 2001 - 10 x increase in wine production, 90% share - Recent VAT reduction, extension of excise exemption
SEZ Policy 2001
Draft SEZ & Designated Areas law, awaiting Central approval
WHAT OTHERS SAY
Ranked ahead of Brazil, Italy, Korea, South Africa and Russia
(IMD Switzerland’s ‘World Competitiveness Report 2006’)
“India’s most competitive State” (
‘Businessworld’ 23.2.09, with Institute for Competitiveness, Gurgaon)
WHAT OTHERS SAY
“Largest project investment, high and increasing implementation rate”
(‘Projects Today’)
“Maharashtra tops Indian States, best industrial climate for investment” (followed by Gujarat, TN and AP) (
‘New Media’, with Indicus Analytics, July 2009)
WHAT OTHERS SAY
“Most favoured destination in 08-09: 20.6% of institution-financed private corporate capex (followed by Gujarat, Orissa and AP)”
(Reserve Bank of India, August 09)
3 x increase, up from 3r d place in 07-08
SOME ISSUES
Land acquisition, resettlement
Real estate costs in prime areas
Employment to ‘local’ people
Balanced regional development
Strengthening infrastructure, tailoring PPP models
SOME ISSUES
Improving ease of doing business
Impact of global financial crisis, economic slowdown
Inter-agency coordination, Centre and State
ROLE OF CHAMBER
Interface between companies and State agencies
Feed members’ experience into State policy and procedures
Anticipate future problems and opportunities, with State-level focus