Business Environment in Maharashtra

12. Business Environment in Maharashtra- 10 Best Corporate Leaders From Maharashtra - 2022

Maharashtra is the wealthiest state in India and still holds power to keep the title as it has kept its trade secrets open to the market. The environment in Maharashtra, from climatic conditions to the business environment, seems to be favorable as compared to other parts or regions of India, making it a better destination for having a business unit. 

Various companies have their corporate offices registered in Mumbai. Most of the Banks & Other Financial service providers have their HQ in Mumbai. Still, the question is unclear of ‘why Maharashtra is the favored destination to have a business?’

History  

Everyone in India has heard the name ‘Chatrapati Shivaji Maharaj’. He was a great Maratha king, strategist, warrior, and economist. His vision to make India’s land free from slavery and create “Hindavi Swaraj” was the core mission. While creating & expanding the Maratha Empire, Shivaji Maharaj had a concept of setting up or rebuilding an entire village under every fort to create a marketplace where the business trade could take-place in a safe environment. 

Safe passage for transporting goods and a safe marketplace to sell or purchase goods were the best business practices in that century. The business practice came a long way that propelled Maharashtra’s business environment to the highest level. Later, invasions from Europe and specifically British Raj raised the importance of then Bombay, currently Mumbai port. 

After Independence from Britishers in 1947, Maharashtra was established as an independent state in 1960. After its formation in 1962, the state government introduced the MIDC (Maharashtra State Development Corporation). Those who live in Maharashtra know how MIDC has been developing since its formation. MIDCs were created in every district of Maharashtra to ease the business establishment process to generate jobs and increase the standard of living of its people. The rest is history. 

Now, Maharashtra stands at the second-most position in industrial production and holds a dominant status in automobiles, electronics, heavy machinery, food processing, chemicals, and other manufacturing industries. 

Top Industries & Sectors 

Banking & Other Financial Services

As mentioned earlier, Mumbai, the capital city of the state, hosts the HQ of several Banks and other Financial institutes. India’s largest banks, SBI, Union Bank of India, Central bank, Axis bank, Bank Of India, ICICI Bank, etc have their HQs in Mumbai. Not just that, the Reserve bank of India has its head office in Mumbai. The stock exchanges, Bombay Stock Exchange (BSE) & National Stock Exchange(NSE) are located in Mumbai. 

Maharashtra is even one of the leading states in Co-operative & Rural banking services. 

IT sector 

The services sector accounts for more than 60% of the total GDP of Maharashtra’s economy. Out of which, the IT sector has a leading position. Pune and Mumbai’s IT parks and SEZs have attracted investors and employers to start their corporate services from these parks. Millions of jobs have been created due to this. 

Agriculture & Forestry

The agriculture sector still plays a crucial role in job creation and workforce employment compared to other sectors and industries. Maharashtra is one of the largest sugar cane producers in India. In recent times, sugar mills have been manufacturing sugar as-well-as hand sanitizers and up to a certain extent, bio-fuel. 

Milk and milk products are the ones that have a huge market demand. Various districts are involved in processing milk. Kolhapur, Pune, Satara, Ahmednagar are a few of the leading districts, that produce million of megatonnes of milk. 

Judgment 

A wealthy state with a fair population and a variety of business industries has a healthy environment to commence a business. Still here, we have a catch. Maharashtra has well-settled large capital businesses in its major cities. That creates strong competition between small companies and large ones. 

Small towns and rural areas have a strong market base that can be further covered by new enterprises that could possibly keep them sustained in the market for a long time. 

– Parag Ahire

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