All values, unless otherwise stated, are in US dollars.
The economy of the state of Maharashtra is the largest in India.[15] Maharashtra is India's second most industrialised state contributing 20% of national industrial output. Almost 46% of the GSDP is contributed by industry. Maharashtra has software parks in many cities around the state, and is the second largest exporter of software with annual exports over ₹ 80,000 crores.[16]
Although highly industrialized, agriculture continues to be the main occupation in many regions of the state. 24.14% of the working age population is employed in agriculture and allied activities.[17]:18
Mumbai, the capital of Maharashtra and often described as the New York of India or Manhattan of India,[18] is the financial capital and the most populous city of India with an estimated city proper population of 12.5million (1.25crore).[19] The city is the entertainment, fashion, and commercial centre of India. Mumbai hosts the largest urban economy of any city in India. It is considered the financial capital of India with the headquarters of almost all major banks, financial institutions, insurance companies and mutual funds being based in the city. India's largest stock exchange Bombay Stock Exchange, established in 1875, is also located in the city.[20] More than 41% of the S&P CNX 500 conglomerates have corporate offices in Maharashtra.
Political and Economic History
Political history
Divisions of Maharashtra, along with their respective districts (With Palghar district formed in 2014 from the northern part of Thane district)
The British East India Company controlled Mumbai beginning in the 17th century, and used it as one of their main trading posts. The company slowly expanded areas under its rule during the 18th century. Their conquest of Maharashtra was completed in 1818 with the defeat of Peshwa Bajirao II in the Third Anglo-Maratha War.[21]
The British governed western Maharashtra as part of the Bombay Presidency. A number of the Maratha states persisted as princely states, retaining autonomy in return for acknowledging British suzerainty. The largest princely states in the territory were Nagpur, Satara and Kolhapur; Satara was annexed to the Bombay Presidency in 1848, and Nagpur was annexed in 1853 to become Nagpur Province, later part of the Central Provinces. Berar, which had been part of the Nizam's Hyderabad State, was occupied by the British in 1853 and annexed to the Central Provinces in 1903.[22] However, a large part called Marathwada remained part of the Nizam's Hyderabad Statee throughout the British period. The British ruled for more than a century and ruined the economy of the Maharashtra. After Indian independence in 1947, princely states and Jagirs of the Deccan States Agency, were merged into Bombay State, which was created from the former Bombay Presidency in 1950.[23] In 1956, the States Reorganisation Act reorganised the Indian states along linguistic lines, and Bombay Presidency State was enlarged by the addition of the predominantly Marathi-speaking regions of Marathwada (Aurangabad Division) from erstwhile Hyderabad state and Vidarbha region from the Central Provinces and Berar. The southernmost part of Bombay State was ceded to Mysore. In the 1950s, Marathi people strongly protested against bilingual Bombay state under the banner of Samyukta Maharashtra Samiti.[24][25] On 1 May 1960, a separate Marathi-speaking state of Maharashtra by dividing earlier bilingual Bombay State into the new states of Maharashtra and Gujarat.[26]
Economic history
Before British rule, the Maharashtra region was divided into many revenue divisions. The medieval equivalent of a county or district was the pargana. The chief of the pargana was called Deshmukh and record keepers were called Deshpande.[27][28] The lowest administrative unit was the village. Village society in Marathi areas included the Patil or the head of the village, collector of revenue, and Kulkarni, the village record-keeper. These were hereditary positions.[29] The village also used to have twelve hereditary servants called the Balutedar. The Balutedar system was supportive of the agriculture sector. Servants under this system provided services to the farmers and the economic system of the village. The base of this system was caste. The servants were responsible for tasks specific to their castes. There were twelve kinds of servants under Bara Balutedar[30][31][32] In exchange for their services, the balutedars were granted complex sets of hereditary rights (watan) to a share in the village harvest under a Barter system.[33] In the 1700s, the important cities of Maharashtra region were the trading port of Mumbai under the British, Pune as the de facto political and finincial capital under Peshwa rule,[34][35][36][37] and Bhosale ruled Nagpur. In the previous century, Aurangabad had been the most important city in the region as the seat of Mughal governors.
Under the British rule (1818-1947), different parts of the present day state were ruled under different systems of government, their economic development also reflected this difference. Although the British originally regarded India as a place for the supply of raw materials for the factories of England, by the end of the 19th-century a modern manufacturing industry was developing in the city of Mumbai.[38] The main product was cotton and the bulk of the workforce in these mills was[39] from Western Maharashtra, but more specifically from the coastal Konkan region.[40][41][42] The completion of The Hyderabad-Godavari Valley Railway in 1896, with a 391 miles (629km) line from Hyderabad city to Manmad Junction opened the Nizam ruled Marathwada region to growth of industry. In the early twentieth century, the cotton industry held an important place in Nizam's Hyderabad Government as the largest export of Hyderabad State. In 1889, a cotton spinning mill and a weaving mill were erected in Aurangabad, employing a total of 700 people. In Jalna alone there were 9 cotton ginning factories and five cotton presses, with two more ginning factories at Aurangabad. The area of cultivated land under cotton in 1914 was three million acres (12,000km2) in Hyderabad state, with most of the cotton being grown in the Marathwada districts, where the soil was particularly well suited to it.[43] In 1914 69,943 people were employed in cotton spinning, sizing, and 517,750 in weaving, cotton ginning, cleaning, and pressing. The wages paid were good, but the cost of living in Marathwara rose significantly due to the rise of the cotton industry, the uncertainty of rainfall, and availability of credit from money lenders.[44]
After the formation of Maharashtra, the state government established the Maharashtra Industrial Development Corporation (MIDC) in 1962 to spur growth in other areas of the state. In the decades since its formation, MIDC has acted as the primary industrial infrastructure development agency of the government of Maharashtra. Since its inception, MIDC has established at least one industrial area in every district of the state.[47] The areas with biggest industrial growth were the Pune metropolitan region and areas close to Mumbai such as Thane district and Raigad district.[48]
Maharashtra was a pioneer in the development of Agricultural Cooperative Societies after independence. In fact, it was an integral part of the then Governing Congress party's vision of 'rural development with local initiative'. A 'special' status was accorded to the sugar cooperatives and the government assumed the role of a mentor by acting as a stakeholder, guarantor and regulator,[49][50][51] Apart from sugar, Cooperatives played a crucial role in dairy,[52] cotton, and fertiliser industries. Support by the state government led to more than 25,000 cooperatives being set up by 1990s in Maharashtra.[53]
In 1982 the State Government under Vasantdada Patil liberalised the Education Sector. This led to hundreds of private colleges and universities, including many religious and special-purpose institutions being set up in the state.[54] Politicians and leaders involved in the huge cooperative movement in Maharashtra were instrumental in setting up the private institutes[55][56]
After the 1991 economic liberalization, Maharashtra began to attract foreign capital, particularly in the information technology and engineering industries. The late 1990s and first decade of the 21st century saw huge development in the Information Technology sector, and IT Parks were set up in Aundh, and Hinjawadi areas of Pune.[57]
Although its population makes Maharashtra one of the country's largest energy users,[58][59] conservation mandates, mild weather in the largest population centres and strong environmental movements have kept its per capita energy use to one of the smallest of any Indian state.[60] The high electricity demand of the state constitutes 13% of the total installed electricity generation capacity in India, which is mainly from fossil fuels such as coal and natural gas. There are large coal production facilities in Chandrapur district.[61] The Vidarbha region of the state is known to have significant coal reserves.[62]Mumbai High, the offshore oilfield165 kilometres (103mi) off the coast of Mumbai accounted for a significant percentage crude oil production in India.[63][64][65]
Nuclear and renewable sources such as Hydroelectricity, Wind, solar, and biomass make a smaller contribution to electricity generation capability in the state.[66] A number of sugarmills use bagasse cogeneration to produce electricity for the mill use and surplus for the grid.[67]
Maharashtra is the largest power generating state in India, with installed electricity generation capacity of 44 thousand MW.[59] The state forms a major constituent of the western grid of India, which now comes under the North, East, West and North Eastern (NEWNE) grids of India.[58] Maharashtra Power Generation Company (MAHAGENCO) operates thermal power plants.[68] In addition to the state government-owned power generation plants, there are privately owned power generation plants that transmit power through the Maharashtra State Electricity Transmission Company, which is responsible for transmission of electricity in the state.[69]
There are a number of hydroelectric projects, particularly in western Maharashtra districts of Pune, Satara and Kolhapur for electricity generation. Koyna Hydroelectric Project in satara district is the largest by generation capacity in the state. The state also has a good potential for wind generated electricity, and is one of the leading states in generating wind power.[70]
Mahavitaran is responsible for distribution of electricity throughout the state by buying power from Mahanirmiti, captive power plants, other state electricity boards and private sector power generation companies.[60] Some areas of Mumbai get their electricity from private sector companies such as Brihanmumbai Electric Supply and Transport, Tata Power and Adani Electricity Mumbai Limited are electricity distributors.
Agriculture
Sorghum farm at Chinawal village in MaharashtraSugarcane weighing at a Cooperative Sugar mill in Maharashtra, India.Paddy field near the village of Dhakti Jui in the Konkan regionPloughing in Yavatmal district
Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry, and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry, and related activities.[71][72]
Although Maharashtra is a highly industrialized state of India, agriculture continues to be the main occupation in the state.[17]:18 Since most of the cultivable land is still rain-fed, the Southwest Monsoon season between June and September is critical to the food sufficiency and quality of life in the state. Therefore, the agricultural calendar of Maharashtra and other parts of India is governed by Monsoon. Any fluctuations in the time distribution, spatial distribution or quantity of the monsoon rains may lead to conditions of floods or droughts causing the agricultural sector to adversely suffer. This has a cascading effect on the secondary economic sectors, the overall economy, food inflation and therefore the overall quality and cost of living for the general population. Many areas in Western Maharashtra on the Deccan plateau such as eastern Pune district, Solapur, Sangli, Satara and Ahmadnagar and the Marathwada region are particularly prone to drought. Just like rest of India, land holdings tend to remain small and the percent of marginal farmers (landholding of less than 1.0 hectare (2.5 acre)) was 43%. The average holding over all size groups was under three hectares.[73] Recent years have seen a huge increase in farmers committing suicide in Maharashtra because of indebtedness resulting from monsoon failure, climate change, and at times cost of growing crops being higher than the market price.[74][75][76][17] The cause for suicide has been linked in some studies to inability to loans mostly taken from banks and NBFCs to purchase expensive seeds and fertilizers, often marketed by foreign MNCs.[77]
Irrigation facilities are being extended so that agriculture could be made less dependent upon rain water. Maharashtra has by far the largest number of Dams in India. Despite that, the net irrigated area totalled only 33,500square kilometres or about 16% of cultivable land in 2009.[78][79]
Principal Monsoon crops include millets such as jwari, Bajri, and Finger millet. These have been grown in the region for thousands of years.[80] In the high rain fall areas of Konkan and the eastern foothills of the Sahyadri mountains, different varieties of rice are cultivated. Other crops include Wheat, pulses, vegetables and onions. Maharashtra lags behind in the productivity of all the crops as compared to the Indian national averages, which itself is way behind the averages of some of the other progressive countries of Europe and Asia.[81]
The state is a significant producer of milk. The milk is primarily obtained from Water buffalo, crossbred cattle, and indigenous cattle respectively. Unlike some southern states in India, in Maharashtra water buffalo and indigenous cattle account for bulk of milk production. The Pandharpuri is a popular buffalo breed in the state. Zebu and Gir are popular dairy cattle. Jersey and Holstein are the European breeds used for crossbreeding indigenous cattle. Although half of the milk is consumed by the owners, the other half is marketed and processed through a combination of small-scale vendors, private companies and dairy cooperatives.[83] Cattle is extensively used for agricultural work.the popular breeds for that include Khillar, Deoni, Gaolao, Red Kandhari and Dangi. These breeds offer good draught power capacity, heat tolerance, disease resistance, adaptability to harsh agro-climatic conditions and ability to survive and perform under scarce feed and fodder.[84]
Maharashtra was a pioneer in the development of Agricultural Cooperative Societies after independence. In fact, it was an integral part of the then Governing Congress party's vision of 'rural development with local initiative'. A 'special' status was accorded to the sugar cooperatives and the government assumed the role of a mentor by acting as a stakeholder, guarantor and regulator,[85][50][51] Cooperatives play a crucial role in dairy,[52] cotton, and fertiliser industries. The members of the respective society include all farmers, small and large, supplying their produce to the processing mill, dairy etc.[86] As with dairy and sugar, cooperatives play a significant part in marketing of fruit and vegetables in Maharashtra. Since the 1980s, the amount of produce handled by Cooperative societies has increased exponentially. Common fruit and vegetables marketed by the societies include products such as bananas, mangoes, grapes, onions and many others.[87] Over the last fifty years, the local sugar mills and other cooperative bodies have played a crucial part in encouraging political participation and as a stepping stone for aspiring politicians.[50]
Maharashtra with a coastline of 720km is one of the leading states in India in marine fish production. Major fish landing centres are New Ferry Wharf, Sassoon Dock and Versova, situated in Mumbai metropolitan area, and they account for nearly 60% of the state fish landings. In year 2017–18, the production was 475,000 metric tons from fish caught in the Arabian sea off coastal Konkan region of the state.[91][92]
As part of its sustainability efforts, the state has started a project for the identification of suitable plantation sites for Jatropha, a drought resistance plant.[93][94] The village of Ralegaon Siddhi in Ahmednagar District is heralded as a sustainable model of village development.[95]
An embroidery unit, one of the many small scale industrial companies, in Dharavi, Mumbai.
Maharashtra is India's leading industrial state contributing 18.4% of national industrial output in 2013. Almost 46% of the GSDP is contributed by industry.[96][97] Western Maharashtra around the metropolitan areas around Mumbai and Pune account for a significant percentage industrial output.
To attract industries to different areas of the state, the government of Maharashtra established Maharashtra Industrial Development Corporation (MIDC) in 1962. MIDC facilitates manufacturing business by creating Special economic zones that have infrastructure such as land (open plot or built-up spaces), roads, water supply, drainage facilities, etc.[98][99] To date, 233 areas have been developed around the state with an emphasis on different sectors such as manufacturing, IT, pharmaceutical and wine.
Maharashtra has had a long history in textiles with Mumbai being the original home of India's textile mills. Solapur, Ichalkaranji, Malegaon and Bhiwandi are some of the cities known for the textile industry today. Pharmaceuticals, petrochemicals, heavy chemicals, electronics, automobiles, engineering, food processing, and plastics are some of the major industries in the state. Maharashtra is renowned for the production of three-wheelers, jeeps, commercial vehicles and cars, syntheticfibers, cold rolled products and industrial alcohol. Pune is emerging as one of the largest automobile hubs in the country. The state capital Mumbai and the Mumbai Metropolitan Region has historically been the most industrialized area in the state. Industrial development in the state is largely concentrated in the Pune Metropolitan Area, Nashik, Aurangabad and Nagpur. The six important industries in the state are cotton textiles, chemicals, machinery, electricals, transport, and metallurgy.[100]
Chemical and pharmaceutical Industry
Information and Media
Shahrukh Khan, one of the biggest stars of Mumbai film industry.
Maharashtra is a prominent location for the Indian entertainment industry, with many films, television series, books, and other media being set there.[101] Mumbai is the largest centre for film and television production and a third of all Indian films are produced in the state. Multimillion-dollar Bollywood productions, with the most expensive costing up to ₹1.5 billion (US$18million), are filmed there.[102]Marathi film used to be previously made primarily in Kolhapur, but now are produced in Mumbai.
Telecommunications
Construction and real estate
Service Sector
National Stock Exchange of India in Mumbai
The Service sector dominates the economy of Maharashtra, accounting for 61.4% of the value addition and 69.3% of the value of output in the state.[103] The service sector includes traditional fields such as education, health, transport, real estate, banking and insurance as well as newer sectors such as information technology.
Maharashtra is one of the leading states in cooperative urban and rural banking. The state's urban cooperative banks in 2007 accounted for 40% of the sector in India and majority of the deposits.[105][106][107]
The retail scenario in the state consists of both organized and unorganized sectors. The organized sector includes supermarkets, hypermarkets, departmental stores, malls and other privately owned retail chains. The unorganized includes mainly the family owned and operated local grocery stores, convenience stores, vegetable markets, and hawkers.[108] The unorganized sector dominates retail trade and is preferred by the consumers.[109] Online shopping is becoming popular in India with Maharashtra, and particularly the city of Mumbai, leading the nation.[110]
Education and Training
The literacy rate in the state was 88.69% in 2011. Of this, male literacy stood at 92.12% and female literacy 75.75%.
Primary and secondary level
Students at a state-run primary school in Raigad district.
Maharashtra schools are run by the state government or by private organisations, including religious institutions. It is mandatory for local authorities to provide primary education under state law. However, secondary education is an optional duty.[citation needed][111][112] Public primary schools in the rural and urban are run by the area Zilla Parishad or the municipal corporations respectively. Private schools are run mainly by education trusts and are required to undergo mandatory inspection by the concerned authorities. Private schools are eligible for financial aid from the state government.[113]
Maharashtra has 24 universities with a turnout of 160,000 Graduates every year.[119][120] The University of Mumbai, is the largest university in the world in terms of the number of graduates and has 141 affiliated colleges.[121] According to prominent national rankings, many Maharashtra colleges and universities are ranked among highest in India.>[122][123] Maharashtra is also home many autonomous institutes as Indian Institute of Technology Bombay.[124] Most of these autonomous institutes are ranked the highest in India and have very competitive entry requirements. Pune has historically been known as a center for higher education and has been referred to as the "Oxford of the East" . In 2006, it was reported that nearly 200,000 students from across India study in Pune at nine universities and more than a hundred educational institutes.[125][126] The state has hundreds of other private colleges and universities, including many religious and special-purpose institutions. Most of the private colleges were set up in the last thirty years after the State Government of Vasantdada Patil liberalised the Education Sector in 1982.[54] Although private, the government plays a regulatory role in the operations of these colleges. Politicians and leaders involved in the huge cooperative movement in Maharashtra were instrumental in setting up many private institutes[127][128] The growth of IT clusters in the state has led to a corresponding increase in setting up engineering colleges to cater for the demand for skilled labor in areas where the clusters are located such as Pune.[129]
Panjabrao Deshmukh Krishi Vidyapeeth (Agricultural university) at Akola
The state also has four agricultural universities located in different regions of state.[130] There are also many regional universities that higher education needs at the district levels of the state. Apart from this, there are a number of deemed universities in the state.[131] There are also local community colleges with generally more open admission policies, shorter academic programs, and lower tuition[citation needed].
*Vocational training
There are a total of 416 ITIs and 310 ITCs with an intake of approximately 1,50,000 (1,13,644 in ITIs and 35,512 in ITCs) students. The state has 416 post-secondary school industrial training institutes (ITIs) run by the government and 310 Industrial Training Centres (ITC) run by private entities that offer vocational training in numerous trades such as construction, plumbing, welding, automobile mechanic etc. Successful candidates receive the National Trade Certificate.[132] In 2012 approximately 1,50,000 (1,13,644 in ITIs and 35,512 in ITCs) students were enrolled in programs run by these organizations.[133]:32
Mumbai has been the major port in Maharashtra with flourishing trade and industrial development since 17th century A.D. Major national highways, railways pass through state, aiding in fast movement of goods and people. The state has also added to the road network connecting district places to major trading ports and cities. Mumbai, Pune and Nagpur are the major airports in the state. Mumbai's Chhatrapati Shivaji Maharaj International Airport was recorded as the busiest single runway airport in the world. Two new airports, one each in Navi Mumbai and Pune are proposed to be constructed.
*Road Transport
NH3, the highway that connects Mumbai and Nashik
The state has a large, multi-modal transportation system with the largest road network in India.[134] In 2011, the total length of surface road in Maharashtra was 267,452km;[135] national highways comprised 4,176km[136] and state highways 3,700km.[135] Other district roads and village roads provide villages accessibility to meet their social needs as well as the means to transport agricultural produce from villages to nearby markets. Major district roads provide a secondary function of linking between main roads and rural roads. Almost 98% of villages are connected via the highways and modern roads in Maharashtra. Average speed on state highways varies between 50 and 60km/h (31–37mi/h) due to heavy presence of vehicles; in villages and towns, speeds are as low as 25–30km/h (15–18mi/h).[137] The national highways get funding from the central government, however, state highways and local roads rely on the state government. Lack of funding has led Maharashtra government to rely on the private sector to fund state highways.[138]
The Maharashtra State Road Transport Corporation (MSRTC) provides economical and reliable passenger road transport service in the public sector.[139] These buses, popularly called ST (State Transport), are the preferred mode of transport for much of the populace. Hired forms of transport include metered taxis and auto rickshaws, which often ply specific routes in cities.
Indian government owned Indian Railways runs Rail network in Maharashtra as well as the rest of the country. The state is well-connected to other parts of the country with a railway network spanning 5,983km between four Railways.[140][141]
The Konkan Railway, a subsidiary of the Indian Railways based in CBD Belapur, Navi Mumbai that serves the Konkan coastal region of Maharashtra and continues down the west coast of India.
The rail network is used for carrying freight and people but a greater percentage of freight is carried by trucks than by rail.
*Passenger rail
Nagpur - Bhusawal SF Express
There are multiple train services that connect major cities of India to cities in Maharashtra, for example, the Mumbai Rajdhani Express, the fastest rajdhani train, connects the Indian capital of New Delhi to Mumbai.[142] There are also many services that connect cities within Maharashtra such as the Deccan Queen connecting Mumbai with Pune. The Maharashtra Express service which connects the city of Kolhapur in southwestern Maharashtra to Gondia in Northeast Maharashtra holds the current record for the longest distance covered in one state as its entire run of 1,346km (836mi) is entirely within Maharashtra. Thane and CST are the busiest railway stations in India,[143] the latter serving as a terminal for both long-distance trains and commuter trains of the Mumbai Suburban Railway.
Maharashtra also has suburban railway networks in Mumbai and Pune that carry around 6.4 million passengers every day using the same tracks that are used by long-distance passenger and freight trains.[144]
*Sea ports
The two principal sea ports, Mumbai Port and JNP (also called Nhava Sheva), which is also in the Mumbai region, are under the control and supervision of the government of India.[145] Roughly one of every four shipping containers passing through India is loaded or unloaded at JNP, The flow of containers has roughly tripled between 2003 and 2023, reaching the equivalent of 6.4 million 20-foot boxes last year.Despite this volume, by the standards of the world's largest ports — many of them in China — JNP remains a small operation.[146] There are around 48 minor ports in Maharashtra.[147] Most of these handle passenger traffic and have a limited capacity. None of the major rivers in Maharashtra are navigable and so river transport does not exist in the state.
Tourism is a major industry in Maharashtra with areas around Aurangabad, Mumbai and Pune. Places of interest include ancient caves and monuments at Ajanta, Ellora, Elephanta and Karle-Bhaje, numerous mountain forts from the Maratha empire era such as Raigad, Sinhagad, Rajgad, Shivneri, Panhala, British era hill stations such as Lonavala, Khandala, Mahabaleshwar, and Matheran, tiger reserves such as Melghat, Nagzira, and Tadoba, and national parks such as Navegaon Bandh.
Religious tourism includes places such as Shirdi (Saibaba temple), Nashik (Hindu holy place), Nanded (Gurdwara), Nagpur (Dikshabhomi), Siddhivinayak temple and Haji Ali Dargah in Mumbai and Pandharpur (Vitthal-Rukmini temple) as well as the five Jyotirlingas out of eleven and Shakti peethas such as Kolhapur (Mahalakshmi Temple).
Numerous beaches, adventure tourism sites, amusement parks, and water parks also add to the tourism in the state.[151]
The constitution does not have provision for the central government and the States to have concurrent power of taxation.[153] The tables below lists the thirteen taxes to be levied by the Central government and nineteen taxes by States including Maharashtra.[153]
Land revenue, including the assessment and collection of revenue, the maintenance of land records, survey for revenue purposes and records of rights, and alienation of revenues etc.
46
Taxes on agricultural income
47
Duties in respect of succession to agricultural land.
48
Estate Duty in respect of agricultural land
49
Taxes on lands and buildings.
50
Taxes on mineral rights.
51
Duties of excise for following goods manufactured or produced within the State (i) alcoholic liquors for human consumption, and (ii) opium, Indian hemp and other narcotic drugs and narcotics.
53
Electricity Duty:Taxes on the consumption or sale of electricity[155]
54
Taxes on sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), Natural gas aviation turbine fuel and alcohol liquor for human consumption but not including sale in the course of inter state or commerce or sale in the source of international trade or commerce such goods.
56
Taxes on goods and passengers carried by roads or on inland waterways.
The Goods and Services Tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments. It is an indirect tax (or consumption tax) used on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.
Labour force
As of 2015, 52.7% of the workers in the state were in the agriculture sector. 25.4% are of these were cultivators (land owners), while 27.3% were agricultural labourers.[156] The state has a significant interstate and intrastate migrant worker population. Out of state workers primarily come from states of Uttar Pradesh, Bihar, Karnataka, and Rajasthan. Migrant workers primarily find employment in the more developed regions of the state such Mumbai, Pune and Nashik metropolitan areas of western Maharashtra as well as to a lesser extent in the Aurangabad and Nagpur regions. Intrastate migrants also find opportunities in the regions mentioned above.[157]
Income and poverty
The income of the population of maharashtra is steadfast and growing, which mainly contributes about 45% of the total GDP of India.
Organized labour
Economy of regions
Divisions of Maharashtra
Maharashtra is divided into six divisions for administrative purposes viz. Amravati, Nagpur, Aurangabad, Konkan, Nashik, and Pune. These divisions broadly coincide with Vidarbha (Amravati & Nagpur divisions), Marathwada (Aurangabad), Western Maharashtra (Pune and Nashik divisions), Konkan (Excluding Mumbai Metropolitan region), and Mumbai Metropolitan region. Mumbai metropolitan region and Western Maharashtra are economically the most developed regions and account for the greatest proportion of the state's GDP. The Marathwada region is the least developed region mainly because it previously belonged to the princely state of Hyderabad.
Mumbai is India's largest city (by population) and is the financial and commercial capital of India as it generates 6.16% of the total GDP.[158][159][160] It serves as an economic hub of India, contributing 10% of factory employment, 25% of industrial output, 33% of income tax collections, 60% of customs duty collections, 20% of central excise tax collections, 40% of India's foreign trade and ₹4,000 crore (US$480million) in corporate taxes.[161] Along with the rest of India, Mumbai has witnessed an economic boom since the liberalisation of 1991, the finance boom in the mid-nineties and the IT, export, services and outsourcing boom in the 2000s.[162] Although Mumbai had prominently figured as the hub of economic activity of India in the 1990s, the Mumbai Metropolitan Region is presently witnessing a reduction in its contribution to India's GDP.[163]
Until the 1970s, Mumbai owed its prosperity largely to textile mills and the seaport, but the local economy has since then diversified to include finance, engineering, diamond-polishing, healthcare and information technology.[166] The key sectors contributing to the city's economy are: finance, gems & jewellery, leather processing, IT and ITES, textiles, and entertainment. Nariman Point and Bandra Kurla Complex (BKC) are Mumbai's major financial centres.[163] Despite competition from Bangalore, Hyderabad and Pune, Mumbai has carved a niche for itself in the information technology industry. The Santacruz Electronic Export Processing Zone (SEEPZ) and the International Infotech Park (Navi Mumbai) offer excellent facilities to IT companies.[167]
State and central government employees make up a large percentage of the city's workforce. Mumbai also has a large unskilled and semi-skilled self-employed population, who primarily earn their livelihood as hawkers, taxi drivers, mechanics and other such blue collar professions. The port and shipping industry is well established, with Mumbai Port being one of the oldest and most significant ports in India.[168]Dharavi, in central Mumbai, has an increasingly large recycling industry, processing recyclable waste from other parts of the city; the district has an estimated 15,000 single-room factories.[169]
Mumbai has been ranked sixth among top ten global cities on the billionaire count with 28[170] and 46,000 millionaires, with total wealth around $820 billion[171] 48th on the Worldwide Centres of Commerce Index 2008,[172] seventh in the list of "Top Ten Cities for Billionaires" by Forbes magazine (April 2008),[173] and first in terms of those billionaires' average wealth.[174]As of 2008[update], the Globalization and World Cities Study Group (GaWC) has ranked Mumbai as an "Alpha world city", third in its categories of Global cities.[175] Mumbai is the third most expensive office market in the world, and was ranked among the fastest cities in the country for business startup in 2009.[176]
As one of the largest cities of India and major centre of learning with several colleges and universities, Pune has emerged as a prominent location for IT and manufacturing. Pune has the eighth largest metropolitan economy[177] and the sixth highest per capita income in the country.[178]
The Kirloskar Group, was the first to bring industry to Pune by setting up Kirloskar Oil Engines Ltd. in 1945 at Kirkee in Pune. The Group was originally set up in Kirloskarwadi.[180]Kirloskar Brothers Limited (One of India's largest manufacturer and exporter of pumps and the largest infrastructure pumping project contractor in Asia[181][182]), Kirloskar Oil Engines (India's largest diesel engine company[183]), Kirloskar Pneumatics Co. Ltd., and other Kirloskar companies are based in Pune.
The Hinjawadi IT Park (officially called the Rajeev Gandhi IT Park) is a project started by MIDC to house the IT sector in Pune. When completed, the Hinjawadi IT Park is expected to encompass an area of about 2,800 acres (11km2). The estimated investment in the project is ₹600 billion (US$7.2billion).[184] To facilitate economic growth, the government made liberal incentives in its IT and ITES Policy, 2003 and leased properties on MIDC land.[185] The IT sector employs more than 4 lakh people. Software giant Microsoft intends to set up a ₹7 billion (US$84million) project in Hinjawadi.[185]
World Trade Centre in Pune, Maharashtra
Pune Food Cluster development project is an initiative funded by the World Bank. It is being implemented with the help of SIDBI, Cluster Craft to facilitate the development of the fruit and vegetable processing industries in and around Pune.[186][187]
Pune has also emerged as a new startup hub in India with tech startups like Pubmatic, Firstcry.com, Storypick.com, TripHobo,[188] TastyKhana.com (acquired by Foodpanda),[189] Swipe setting up base in Pune.[190]NASSCOM in association with MIDC have started a co-working space for city based startups under its '10,000 startup' initiative at Kharadi MIDC.[191] It will incubate startup such as Kandawale from OhMyDealer in first batch.
The Meetings, Incentives, Conferencing, Exhibitions trade is expected to get a boost once the Pune International Exhibition and Convention Centre (PIECC) completes in 2017. The 97-hectare PIECC will boast a seating capacity of 20,000 with a floor area of 13,000m2 (139,931sqft). It will have seven exhibition centres, a convention centre, a golf course, a five-star hotel, a business complex, shopping malls, and residences. The US$115million project is developed by the Pimpri-Chinchwad New Town Development Authority.[192] Nowadays a growing number of automotive dealerships are springing up all over the city. They include luxury car makers like Jaguar Land Rover, Mercedes-Benz, BMW, Audi, and motorcycle manufacturers like Kawasaki, KTM, Benelli, Ducati, BMW and Harley Davidson.
Vidarbha's economy is primarily agricultural, with the addition of forest and mineral wealth. An international cargo hub project, the Multi-modal International Cargo Hub and Airport at Nagpur, (MIHAN), has been developed.[193][194] MIHAN will be used for handling heavy cargo coming from South-East Asia and Middle-East Asia. The project will also include a ₹100 billion (US$1.2billion)Special Economic Zone (SEZ)[195] for information-technology companies. This will be India's biggest development project.[196]
Gondia, Yavatmal, Chandrapur, Akola, Amravati and Nagpur are the major cities of the region. Nagpur is a central hub for business and healthcare. Nagpur is the winter capital, a sprawling metropolis and the third largest city of the state after Mumbai and Pune. Nagpur is also called Orange city for the huge orange producing area surrounding the city. It also has the largest timber market of Asia. Amravati is known for film distributors and cloth markets. Chandrapur has a thermal power station which is one of the biggest in India and some other heavy industries such as paper (BILT Ballarpur), steel (MEL from Steel Authority of India, etc.), cement (UltraTech Cement, Ambuja Cements, ACC Limited, Manikgarh Cement, Murli Cement) industries and numerous coal mines.[197]
Map of Nashik Division which includes districts of Ahmadnagar, Nashik, Jalgaon, Nandurbar and Dhule
Nashik division includes districts of Ahmadnagar, Nashik, Jalgaon, Nandurbar and Dhule in North Western Maharashtra.Apart from Nashik district, all the other districts in the division have been designated the 250 most backward districts in India and have received additional funding from the Indian government for development purposes.[198]
Nashik is the largest city in this region.[199] Nashik division cities have been included in Smart city project by Central Government of India[200][201][202] as an important node in the US$90 billion Delhi Mumbai Industrial Corridor Project.[203][204] Economy of Nashik district is mainly driven by manufacturing, pharmaceuticals,[205][206] and engineering industry. Cash crops agriculture is important in the areas surrounding the city.[207] There are main five industrial zones under Maharashtra Industrial Development Corporation (MIDC)[208] in Nashik district. [209][210][211] A diverse range of privately owned manufacturing giants have their plants and units in the city and surrounding areas.Nashik area is also a hub for many government run printing,[209][210] defence research, and manufacturing facilities.This includes aircraft, artillery,[212]
Apart from manufacturing, Nashik is also emerging as an investment destination for Information Technology companies.[213][214]
In recent decades, Nasik region has emerged as Wine Capital of India[217] with 45 local wineries and vineyards.[218] Many vineyards have achieved international recognition as Nashik Valley wines. The wines and the grapes grown in the area have received geiographical indications.[219] These vineyards are also developing the tourism related to wine testing and vineyards. Nashik is also known as a main exporter of pomegranates, and grapes[220] and onions.[221] Ahmadnagar district has one of the largest concentration of Cooperative Sugar mills in Maharashtra.Jalgaon district is known for its Bananas and Brinjal.Both crops have received Geographical indication.
The word "Marathwada" has been used since the times of the Nizams. The region coincides with the Aurangabad Division of Maharashtra. Since the establishment of the state of Maharashtra in 1960 and later that of MIDC, new industrial development has taken place in Marathwada region however it is concentrated mainly around the district of Aurangabad. The remaining six districts of the region have not benefited to any great extent in the process of industrialization. The main reason for such uneven development was the better infrastructure facilities available in Aurangabad city in relation to other districts and places in the region.[222]
Swaminathan, R.; Goyal, Jaya (2006). Mumbai vision 2015: agenda for urban renewal. Macmillan India in association with Observer Research Foundation.
Kelsey, Jane (2008). Serving Whose Interests?: The Political Economy of Trade in Services Agreements. Taylor & Francis. ISBN978-0-415-44821-5.
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Maharashtra is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to the southeast and Chhattisgarh to the east, Gujarat and Madhya Pradesh to the north, and the Indian union territory of Dadra and Nagar Haveli and Daman and Diu to the northwest. Maharashtra is the second-most populous state in India.
Aurangabad, officially known as Chhatrapati Sambhaji Nagar, is a city in the Indian state of Maharashtra. It is the administrative headquarters of Aurangabad district, Maharashtra and is the largest city in the Marathwada region. Located on a hilly upland terrain in the Deccan Traps, Aurangabad is the fifth-most populous urban area in Maharashtra after Mumbai, Pune, Nagpur and Nashik with a population of 1,175,116. The city is known as a major production center of cotton textile and artistic silk fabrics. Several prominent educational institutions, including Dr. Babasaheb Ambedkar Marathwada University, are located in the city. The city is also a popular tourism hub, with tourist destinations like the Ajanta and Ellora caves lying on its outskirts, both of which have been designated as UNESCO World Heritage Sites since 1983. Other tourist attractions include the Aurangabad Caves, Devagiri Fort, Grishneshwar Temple, Jama Mosque, Bibi Ka Maqbara, Himayat Bagh, Panchakki and Salim Ali Lake. Historically, there were 52 Gates in Aurangabad, some of them extant, because of which Aurangabad is nicknamed as the "City of Gates". In 2019, the Aurangabad Industrial City (AURIC) became the first greenfield industrial smart city of India under the country's flagship Smart Cities Mission.
Central Railway is one of the 19 zones of Indian Railways. Its headquarters is in Mumbai at Chhatrapati Shivaji Maharaj Terminus. It has the distinction of operating the first passenger railway line in India, which opened from Mumbai to Thane on 16 April 1853.
Nashik ) is a city in the northern region of the Indian state of Maharashtra. Situated on the banks of the river Godavari. The population of Nashik city is around 2.2 million and is emerging as one of the fastest-growing cities in India. Nashik is located about 165 km (103 mi) northeast of the state capital Mumbai, and about 210 km (130 mi) north of Pune. The Mumbai-Pune-Nashik region is called the "Golden Triangle of Maharashtra". With its high agricultural production, Nashik is dubbed the Napa Valley of India and the "Wine Capital of India" as more than half of India's vineyards and wineries are located here. Around 90% of all Indian wine comes from the Nashik Valley. Nashik is one of the Hindu pilgrimage sites of the Kumbh Mela, which is held every 12 years.
The City and Industrial Development Corporation of Maharashtra (CIDCO) is an Indian city planning agency and richest government authority in India which is formed and controlled by the Government of Maharashtra. CIDCO was formed on 17 March 1970 under the Indian Companies Act of 1956; its purpose at the time of its creation was to develop a satellite town to Mumbai, Maharashtra, and now functioning as New Town Development Authority (NTDA) and Special Planning Authority (SPA) of Government of Maharashtra for development of new towns by planning and developing entire urban infrastructure, providing municipal services, executing large scale infrastructure projects including Navi Mumbai International Airport and the Navi Mumbai Metro. CIDCO also launched India's first smart city project. CIDCO has ownership of all plots in new cities, underutilised funds about Rs 40,000 crore and reserved Land Bank; which makes CIDCO the richest government authority.
Baramati ([baːɾamət̪iː]) is a city, a tehsil and a municipal council in Pune district in the state of Maharashtra, India. The city is about 100 km southeast of the city of Pune and about 250 km from Mumbai.
Chakan is a city and municipal council in Pune district of the Indian state of Maharashtra. The Chakan is also part of Pune Metropolitan Region Development Authority. Chakan is one of the largest automobile and manufacturing hub of India. Being developed as a hub for manufacturing and logistics by MIDC, Chakan is home to some of the biggest names in automobile manufacturing: Volkswagen, Bajaj Auto, Mercedes Benz, Hyundai, and more. Chakan is often referred to as the "Automobile Hub of India". The Independent referred Chakan as India's "Motor City". The city is about 30 km from the city of Pune and 140km from Mumbai.
Jalna is a city in Jalna district in the Aurangabad Division, or Marathwada region, of the Indian state of Maharashtra. It was part of Hyderabad State as a tehsil of Aurangabad district, before Jalna district was formed effective 1 May 1981.
The Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) is an airport project for Dr. Babasaheb Ambedkar International Airport, Nagpur. It is the biggest economical development project currently underway in India in terms of investments. The project aims to exploit the central location of Nagpur and convert the present airport into a major cargo hub with integrated road and rail connectivity.
Kolhapur Airport, officially named as Chhatrapati Rajaram Maharaj Airport, is a domestic airport serving the city of Kolhapur, Maharashtra, India. It is situated at Ujlaiwadi, 9 km (5.6 mi) southeast from the city. It is operated by the Airports Authority of India (AAI).
Maharashtra attracts tourists from other Indian states and foreign countries. It was the second most visited Indian state by foreigners and fifth most visited state by domestic tourists in the country in 2021. Aurangabad is the tourism capital of Maharashtra.
The city of Nagpur is strategically located in central India. It has a vast railway network and its road network is well-maintained to avoid congestion. There are 4 modes of transportation in Nagpur. Nagpur is connected to India's four major metropolitan areas by road, rail and air. Auto rickshaws operate in most parts of the city, and are the main form of hired transport.
The Maharashtra Legislative Council or Maharashtra Vidhan Parishad is the upper house of the bicameral legislature of Maharashtra state in western India.
Latur is a city and headquarters of Latur district in the Maharashtra state of India. The city is a tourist hub surrounded by many historical monuments, including Udgir Fort and Kharosa Caves. The most spoken language in Latur is Marathi. The city's quality of education attracts students from all over Maharashtra. It is a drought prone area with acute water shortage in its city and rural areas. The economy is agriculture intensive, but in recent years is also dependent on Educational sector and its allied activities. Industrial development is minimal in the district. Latur is 43 kilometers from the epicenter of the devastating 1993 Latur earthquake.
Maharashtra Airport Development Company Limited abbreviated as (MADC), is a Special Purpose Company constituted in 2002 by the Government of Maharashtra (GoM) to plan, construct, operate and maintain airports in the State. The government has entrusted MADC the task of developing three `greenfield' and six `brownfield' airports, and a heliport at Gadchiroli. MADC was also to play a lead role in the planning and implementation of the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project,
The city of Aurangabad was a major silk and cotton textile production centre. A fine blend of silk with locally grown cotton was developed as Himroo textile. Much of the silk industry has vanished over time, but some manufacturers have managed to keep the tradition alive. Paithani silk saris are also made in Aurangabad. The name of this cloth is derived from Paithan town.
Modern education was introduced to Maharashtra region during the 19th century by British colonial administration. Census of 2011 showed literacy rates in the state for males and females were around 78% and 67% respectively. Education at different levels in the state is provided by the state, government supported charities, or private institutions. There are also a number of institutes offering vocational training.
Maharashtra is a state in western India. It is the country's second-most-populous state and third-largest state by area. Maharashtra is bordered by the Arabian Sea on the west, Gujarat and the Union territory of Dadra and Nagar Haveli on the northwest, Madhya Pradesh on the north and northeast, Chhattisgarh on the east, Karnataka on the south, Telangana on the southeast and Goa on the southwest. The state covers 307,731 km2 (118,816 sq mi), or 9.84 percent of India's total area.
Khed City is an Industrial park near Pune, India. With an area of over 4200 acres, Khed city is a joint venture between Kalyani group and MIDC.
The first case of the COVID-19 pandemic in the Indian state of Maharashtra was confirmed on 9 March 2020.
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7.81 in poverty (2022) [9] 
35.0 medium (2012) [10] 
0.688 medium (2021) (12th)
18.14% of GSDP (2022–23 est.) [14] 
