Maharashtra state has the wealthiest economy in India. According to some previous data issued in the public domain that reveals Maharashtra’s GSDP stood at ₹26.62 Trillion in 2020-2021AE. CAGR is increasing at 6.42% from 2105-16 to 2020-2021AE.
India’s financial and Maharashtra’s state capital city Mumbai is a commercial hub that evolved into one of the prominent global financial hubs. The state is engaged in multiple industries and dominates Automobile, IT, Electronics, Pharmaceuticals, Bio-Technology, Education, Entertainment, Finance, and Import-Export industries.
Competing with other States & Union Territories of India, Maharashtra stands at the topmost position in terms of revenue and GDP. Being the second most industrialized state in India, Maharashtra contributes upto 20% of the total national industrial output. Agriculture is still one of the prominent sectors in the state with around 24% of the working-age population employed in agriculture and its allied business.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), from October 2019 to March 2021, FDI inflows into Maharashtra amounted to US$23.43 billion, or 28% of the whole FDI inflow. During Magnetic Maharashtra 2.0 in June 2020, the state favored the investment proposal of Rs 1.13 lakh crore (US$15.23 billion) and expected more than 2.5 million jobs.
The state’s total exports were $58.41 billion in FY21. Maharashtra exported precious goods such as pearls, precious and semi-precious stones, medicinal and chemical preparations, gold and other decorative metal products, automobiles & vehicles, and iron ore.
Maharashtra’s economy has a strong base of industries and sectors spread across the region favorable for the same.
The three primary parts of Maharashtra’s GDP are Agriculture, Industry & Services.
Historically, India has divided its economy and GDP and followed them into three sectors: agriculture, industry, and services. Agriculture includes crops, horticulture, the dairy and animal industries, aquaculture, fishing, fish farming, beekeeping, forestry, and related activities.
Although Maharashtra is a highly industrialized state in India, agriculture remains the state’s main occupation. Because most of the land is arable because it is still raining, the southwest monsoon season between June and September is critical to the state’s food and livelihood. Therefore, the agricultural calendar of Maharashtra and other parts of India follows the monsoon. Any change in the temporal distribution, spatial distribution, or amount of rainy seasons can lead to floods or droughts, leading to the suffering of the agricultural sector. This has a cascading impact on the secondary sectors of the economy, the general economy, food inflation, and thus the overall quality and cost of living for the general population.
This is a sector where the vast majority of the population use to perform their job. The industry basically means a manufacturing unit or plant that runs multiple operations to manufacture or process particular goods or items.
Maharashtra has a rich history of having textile mills, where Mumbai was the HQ of India’s mills. Bhiwandi, Ichalkaranji, Malegaon, and Solapur are among the major textile industries today. Other than these, Pharmaceuticals, Automobiles, Electronics, Chemicals, Engineering, Food processing, Heavy machineries, Paper & Paper products are the sectors that contribute at large in Maharashtra’s industry segment.
The services sector holds the dominant position where it contributes around 55-60% to Mahrashtra’s GDP. This sector is a mix of traditional and modern services.
Banking & Finance services hold the highest position in the state as it caters to Asia’s oldest stock exchange, BSE. Not just that, India’s major banks have their HQ in Mumbai. The Reserve bank of India has its head office in Mumbai with NSE, India’s second prominent stock exchange.
The tourism sector has its own identity that comes hand-in-hand with the transport industry that has four ways of commuting: Road, Rail, Air, and Water.
– Parag Ahire