the gateway to india maharashtra. indias 2nd largest state 308,000 sq kms, from coast to central...

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MAHARASHTRAMAHARASHTRA

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

LARGE, LITERATE AND URBANIZED

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

INDIA’S ECONOMIC POWERHOUSE

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 DIVERSITY, DEPTH

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

INDUSTRIAL MEGA PROJECTS

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

LEADS IN PROJECT INVESTMENT

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 already set up, 65,000 actual

employment

MIDC, MADC and CIDCO also major players,

alone or with leading private partners

MOST GLOBALLY CONNECTED STATE

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

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

…AND SOME OTHER STRENGTHS

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 2nd 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

POLICIES

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 3rd place in 07-08

WHAT OTHERS SAY

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

SOME ISSUES

Interface between companies and State

agencies

Feed members’ experience into State policy

and procedures

Anticipate future problems and opportunities,

with State-level focus

ROLE OF CHAMBER

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MAHARASHTRA MAHARASHTRA