Maharashtra is now making a fast move to reach its big aim of a one-trillion-dollar economy by giving more power to its local areas. This new plan, happening right now, puts districts in charge of their own money growth, making them vital parts of the state’s huge money goals. This marks a big change in how the state plans to get rich, aiming for faster success by letting local leaders decide more about jobs and business. This push will change how money goes across the state, bringing big changes for all people.
State Aims for Economic Growth through Local Efforts
Maharashtra is undertaking a significant plan to reach a one-trillion-dollar economy by 2028. This ambitious goal is being pursued by giving more power to districts across the state. The state government has introduced a new plan called the ‘District Strategic’ plan. This plan aims to boost growth and bring in private money in new and growing industries at the local district level.
New Role for Local Officers
In a major change, the Maharashtra government has now asked District Collectors to help attract private money for new businesses. This is meant to support local business owners and create jobs. The state has created a detailed plan that gives specific growth targets to each District Collector. It also tells them which business areas to focus on in their districts. During a recent meeting with top state officials and District Collectors, Chief Minister Devendra Fadnavis set out these targets and goals for the next five years. For example, Nashik district has been given a 12% growth target and is asked to focus on tourism and transport. Jalgaon district has a higher growth target of 17% and will put its efforts into farm products and food processing businesses.
Solving Business Problems on the Ground
A key part of this new approach is to fix problems faced by existing factories and businesses. Many companies located in smaller towns have complained about poor road links to main highways and power cuts. These issues can damage their machines because of changing electricity levels. To deal with these concerns, Chief Minister Fadnavis has told District Collectors to use 25% of the money from the District Planning Development Committee (DPDC) funds. This money is to be used for improving services for existing industries. This includes buying new transformers for constant power supply, building local roads for easy movement. setting up storage places in villages for farm produce. One District Collector noted that a main instruction from the meeting was to help create new business owners by making it easier to get private money. Another government official called these ideas “new and different.” Previously, industrial departments and the Maharashtra Industrial Development Corporation (MIDC) were mainly responsible for helping industries. Now, District Collectors have been given more power to make decisions and bring in money for new businesses.
Boosting Growth in All Regions
Maharashtra’s economy was about $444 billion in the financial year 2022. It makes up 13% of India’s total economy. To reach the $1 trillion target by 2028, the state’s economy needs to grow by 14% to 15% each year. But, the state’s growth rate between 2014 and 2022 was about 8% to 9% per year. This means the state needs to speed up its growth. A report by the Economic Advisory Council (EAC) pointed out that 55% of the state’s total economic output comes from just seven districts. On the other hand, 18 districts contribute less than 20% of the total economic output. This shows a big difference in economic activity across the state. The report suggests that to grow faster, the state should reduce these differences between regions. The state government aims for a growth rate of 17. 13% per year to hit the $1 trillion mark by 2028.
Help from International Bodies
The World Bank has also promised to support Maharashtra’s efforts to grow its economy in various districts. This support is part of a larger plan to help districts grow their economies and become stronger. The project aims to create a system that encourages local business, improves services. builds better basic facilities. The World Bank’s “Maharashtra Strengthening Institutional Capabilities in Districts for Enabling Growth” operation will provide $188. 28 million. This money will help districts with planning and growth strategies. The investment will give districts the necessary insights, money. expert knowledge to make the best use of public funds for growth and job creation. It will also encourage private sector involvement by improving online government services for businesses, especially in the tourism industry. The World Bank loan has a repayment period of 15 years, with a grace period of 5 years.
Specific Goals of World Bank Support
The main aims of this World Bank supported plan include:
- Making local governments better at managing economic activities.
- Encouraging partnerships between public and private groups to bring in more money for local projects.
- Using data to make decisions about what is needed most at the local level.
- Making sure that everyone, including those in disadvantaged groups, benefits from economic activities.
Role of State Think Tank
The state-appointed think tank, Maharashtra Institution for Transformation (MITRA), is playing a key role in this economic plan. MITRA has set a target for the state’s total economic output to grow by 17. 55%. This is a big jump from the current average growth rate of 7. 85% over the last ten years. MITRA also aims to increase the amount of money invested in the state to 37% of the total economic output, up from the current 25%. According to MITRA’s estimates, if the state’s economy continues to grow at its current rate, it would take more than 12 years to reach the $1 trillion target. To hit the target by 2028, the growth rate needs to be significantly higher.
Overcoming Financial Challenges
Deputy Chief Minister Ajit Pawar, who is also the Finance Minister, has highlighted the need for careful management of money and more spending on basic services. He stated that the state government will need to work harder to put the policies into action to boost the economy. The state faces challenges like increasing costs for running the government and the rising demand for electricity, water, housing. transport as more people move to cities. But, the government hopes to manage these issues by seeing an increase in its tax and other income.
Industry Perspectives on Growth
The Maharashtra Industrial Development Corporation (MIDC) is crucial in building the necessary services, policies. business environment. The CEO of MIDC, P. Velrasu, stated that their plan involves expanding industrial areas through buying land and setting up new zones in places like Dighi–Mangaon, Chhatrapati Sambhajinagar, Nagpur. Gadchiroli. These zones will provide land that is ready for businesses to use. MIDC has identified crucial business areas such as computer chips, data centers, electric vehicles, new manufacturing, chemicals. medicines. They are creating special centers to encourage new ideas and investments in these areas. The “Magnetic Maharashtra” effort is also helping to reach out to investors and make it easier for them to invest in the state. The focus also includes using green technologies and managing waste efficiently in industrial areas. The MIDC aims to achieve the trillion-dollar mission by improving basic services, bringing in global investments, focusing on foreign direct investment. ensuring balanced growth across all regions. They also plan to support small and medium businesses and new startups by providing ready-to-use facilities and financial help.
| Key Economic Indicator | Current Status (FY22) | Target by 2028/2030 |
|---|---|---|
| State Economy Size (GDP) | $444 billion | $1 trillion |
| Annual Growth Rate (CAGR) | 8-9% (FY14-FY22) | 14-15% (EAC recommended) / 17. 13% (MITRA target) |
| Investment as % of GDP | 25% | 37% |
“The program will help strengthen the capacity of the district administrations to identify growth opportunities, facilitate private sector participation. use data for evidence-based planning and decision-making.” – Auguste Tano Kouamé, World Bank’s Country Director for India.
The overall vision for Maharashtra aims for higher and more balanced growth across all its districts, ensuring that all people living in these districts can take part in and benefit from this growth. 
