Based on an ambitious target set by Devendra Fadnavis to achieve a trillion-dollar economy by 2025, Maharashtra’s first global investor summit, Magnetic Maharashtra, was launched in 2018.
Investment is the prime factor that drives economic growth, and if the investment comes in the form of FDI, gains are much more. FDI (foreign direct investment) means the inflow of foreign exchange, technology, knowledge, skills, and expertise/know-how. With India becoming the bright spot in the FDI circuit, its states are racing to grab the investments. Maharashtra, steered by the initiatives of the Dy. CM Fadnavis has regained its top position as the FDI destination, attracting the highest FDI in India for the second consecutive year. According to the Department for Promotion of Industry and Internal Trade (DPIIT), Maharashtra received FDI worth Rs 1,25,101 crore in 2023-24, surpassing Gujarat and Karnataka.
Widely considered a man of development, Devevendra Fadnavis believes that development and investment complement each other. Development of infrastructure and the ease of doing business result in higher investments. At the same time, more investment pumps in more capital for further developments. After taking over the rein in 2014, Fadnavis pegged his focus on developing the infrastructure and streamlining the policies and facilities to attract domestic and foreign investments. On one hand, he initiated the landmark infrastructure project Nagpur-Mumbai Super Expressway, MIHAN, metro rail projects in Nagpur and Pune, and Mumbai Metro expansions, etc., he gave the order to start all infrastructure and development projects, shelved by the previous government.
Magnetic Maharashtra
In 2018, the Fadnavis government launched a mega investor summit, namely ‘Magnetic Maharashtra.’ This was Maharashtra’s first Global Investor Summit on the lines of the Make in India initiative. The summit is conceptualized on four main pillars: Employment, Sustainability, Infrastructure, and Future industries. Foreign investments are considered crucial for India to overhaul its infrastructure sector, such as ports, airports, and highways to boost growth. Through the ‘Make in India’ campaign, the government is intensely engaging with states to improve ease of doing business, as it would greatly help in attracting foreign investors.
The ‘Magnetic Maharashtra: Convergence 2018’ event was planned to spotlight important sectors including manufacturing, infrastructure, textiles, food processing, defense production, and electronics. These sectors, including Information Technology, Food Processing, Logistics centers, Electronic centers, and Automobile sectors along the Delhi-Mumbai Industrial Corridor (DMIC), were chosen for potential global collaborations. Investment Pooler of Maharashtra Devendra Fadnavis revealed the official logo and website for this significant investment exhibition. Additionally, the Maharashtra Fintech Policy was introduced to draw in investments of $2 billion, employing a distinctive strategy to establish five defense manufacturing hubs near military installations across the state.
Speaking to the news agency IANS before the summit, Maharashtra Chief Minister Devendra Fadnavis mentioned, “Maharashtra has taken a new path in enhancing the state’s industrial production. This is clear from various reports from well-known financial institutions that rank the state as leading the others in Ease of Doing Business, and also data like half of India’s infrastructure development is happening in Maharashtra.”
Magnetic Maharashtra 1.0
Inaugurated by Prime Minister Modi, the 3-day Global Invest Summit (18-20th February 2018) held in Mumbai ended up fetching investment of Rs. 12 Lakh 10 Thousand Crore or Rs. 12.1 trillion (US$140 billion) for Maharashtra through 4,106 MoUs. In addition, investments totaling 3 lakh 91 thousand crore rupees were sanctioned through 104 different types of MoUs signed between Maharashtra and central government entities. Of these investments, 5.48 trillion rupees were allocated to hyperloop, electric vehicles, logistics, textiles, gems, and jewelry; 3.85 trillion rupees were dedicated to the housing sector; and 1.60 trillion rupees were invested in the energy sector.
Magnetic Maharashtra 2.0
The second edition of the summit. Magnetic Maharashtra 2.0 was held in June 2020 amid the COVID-19 pandemic. 12 MOUs with investments worth ₹5101 crore were signed.
Steps undertaken by Devendra Fadnavis to attract investments
- Maharashtra leads in investment opportunities
Maharashtra’s Gross Domestic Product (GDP) represents roughly 14.2% of the total GDP of India and draws in nearly 30% of the foreign direct investment (FDI) that India receives. It plays a significant role in contributing to India’s industrial output, accounting for about 15% of the total. Furthermore, Maharashtra is India’s leading exporter, holding a 17.3% share of the country’s exports. The state boasts strong infrastructure, featuring 5 international and 13 domestic airports, 2 major and 53 minor seaports, and the nation’s largest capacity for power generation. Maharashtra is home to 289 industrial complexes covering an area of 2 lakh acres. Moreover, the state has specialized sectoral parks for wine, silver, floriculture, food, and textiles. Additionally, Maharashtra is home to 27 IT parks and 9 Special Economic Zones (SEZs).
- Improved ease of doing business
In 2016, the Directorate of Industries introduced Maharashtra Industry, Trade, and Investment “MAITRI” to support and guide investors interested in investing in Maharashtra. The MAITRI platform, which serves as the State Single Window System for the various Government-to-Business (G2B) approvals needed for industrial setup in Maharashtra, has successfully processed more than 290,000 applications to date. Investors have access to 119 services across 15 departments through the MAITRI portal. The Maharashtra Industry, Trade, and Investment Facilitation Act, “MAITRI Act,” came into effect on July 3, 2023, marking a significant step towards making Maharashtra more business-friendly and boosting the state’s position in trade and investment.
- Creating policies to increase industrial networks
The Maharashtra Government has implemented policies tailored to each sector to draw in investments by offering support and rewards. These sector-specific policies also emphasize the importance of enhancing skills, with the government covering a part of the expenses related to employee training and development. The Maharashtra Government has introduced specialized policies for the IT and Export sectors in 2023. Furthermore, the Government is in the process of creating dependable policies for Leather goods and footwear, the Circular Economy, and Micro, Small, and Medium Enterprises (MSME). A new and improved policy for the logistics sector was developed, with a state-wide master plan. This master plan features logistics nodes at the district level, large hubs, and multi-modal logistics parks, aimed at enhancing the logistical infrastructure of Maharashtra and lowering transportation costs.
- Boosting the MSME eco-system
Maharashtra boasts over 34 lakh registered MSMEs employing over 1.37 crore people. The state’s initiatives, focused on women, have boosted the number of women involved in setting up MSMEs, with women leading over 19%. The Raising and Accelerating MSME Performance (RAMP) scheme, a project backed by the World Bank, targets to assist over 1,00,000 MSMEs and encourage both new and existing MSMEs in Maharashtra.
- Boosting exports and promotion of the ODOP scheme
Maharashtra currently holds the second spot in India for export volume. To further enhance export performance, the state is developing 37 focused industrial clusters based on One District One Product (ODOP), which will include 8,814 industrial units. Maharashtra has launched an extensive program to support the ODOP scheme by setting up the ODOP Facilitation Centre to identify certified sellers/exporters of ODOP goods and to work closely with Export Promotion Councils (EPCs) to boost state exports. Maharashtra’s government is pushing forward with new technologies for industrial growth and progress The Maharashtra Government is pushing the envelope on job readiness and future skills by offering rewards to firms that employ individuals in high-demand, specialized roles. This category includes jobs like AI research scientists, solution architects, data scientists, optical scientists, embedded solutions engineers, among others. These rewards are designed to foster the development of advanced skills within the workforce. Mumbai stands at the top in India for data center capacity, and it is projected to keep its lead in the future with the number of projects underway. Backing the AVGC and Emerging Technologies Sectors: The state government has implemented both financial and non-financial measures to bolster the Animation, Visual Effects, Gaming, and Comics (AVGC) and Emerging Technologies sectors, which include AI-ML, Big Data, Robotics, and more. These measures are aimed at improving the skill pool, creating shared workspaces, providing funding, and facilitating recruitment in these key sectors.