The Maharashtra government aims to achieve the ambitious target of doubling the state’s GDP to $1 trillion by the end of this decade, a senior official has said.
The BJP-led Mahayuti alliance recently secured a landslide victory in the Maharashtra Assembly elections and will retain power in the state. The new government is set to be formed on December 5.
At $1 trillion, Maharashtra’s GDP would surpass the current GDP of Singapore, Switzerland, Belgium, Sweden, the UAE, and Thailand, among others. The new government seeks to achieve a 14 per cent compound annual growth rate (CAGR), increasing GDP from the current $500 billion to $1 trillion. This growth would raise per capita GDP in the state to $6,500 from the current $3,300.
In a meeting organised by Jefferies between institutional investors and senior state government officials, Kaustubh Dasve, joint secretary and officer on special duty to Maharashtra Deputy Chief Minister Devendra Fadnavis, outlined the vision to double the state’s GDP.
The plan includes increasing the share of manufacturing by 5 percentage points to 21 per cent of state GDP by the end of the decade. The government has identified 16 industries where Maharashtra has a competitive edge and six sunrise industries, including electric vehicles and semiconductors, to boost employment and avoid full automation.
With Mumbai as a financial centre and Pune as an IT hub, the state’s services sector accounts for 59 per cent of GDP, which the government plans to maintain. Officials said they intend to persuade large global capability centres (GCCs) to set up in Pune and seek investments in city infrastructure, such as metro rail projects and airports.
The state will also advance power sector reforms. It initiated the grid separation of electricity in 2017 to reduce cross-subsidisation losses between industry and agriculture. The process is nearing completion and will allow the state to offer industrial power tariffs of Rs 5.50–6 per unit—a reduction of Rs 2 per unit—making it highly competitive among Indian states. Additionally, the government plans to increase power generation capacity from 45 GW to 84 GW over the next five years.
More From This Section
GOP lawmaker seeks to impose robust tariffs on Indian ceramic tile imports
Sustainability measures in trade adding to economic uncertainties: Govt
Rupee recovers losses after hitting new intraday low of 84.76 per dollar
Premium
EPFO's investible corpus more than doubled in 5 years to Rs 24.75 trillion
Premium
India's market capitalisation-to-GDP ratio third-highest despite correction
Improving the “speed of travel” will also be a priority. The government’s focus for Mumbai includes expanding coastal roads and metro lines, developing the new airport as a growth hub, and completing the high-speed rail project.
Defending the women’s income transfer scheme, officials stated that it accounts for less than 10 per cent of the state’s $60 billion in revenues. The government does not plan to raise taxes and will instead rely on growth to fund its initiatives.
Maharashtra continues to lead in attracting foreign direct investment (FDI), securing 31 per cent of cumulative FDI equity inflows—$78 billion—from October 2019 to June 2024. Karnataka was the second-highest with $53 billion, followed by Gujarat at $40 billion.
Maharashtra growth agenda
？ Double the state’s GDP by the end of the decade
？ Increase the share of manufacturing in GDP by 5 percentage points
？ Double per capita GDP to $6,500 from $3,300
？ Promote key industries, including EVs and semiconductors
？ Reduce industrial power tariffs
Also Read
BJP legislature party leader will be finalised by new MLAs: Vijay Rupani
Anmol Bishnoi main conspirator in Baba Siddique's murder: Mumbai Police
Maharashtra caretaker CM Eknath Shinde briefly hospitalised, discharged
Markadwadi's DIY polls: This Maha village to hold re-vote after ECI results
Police deployed after Maha villagers urge 're-election' with ballot papers