Make In Maharastra - Part - 4

Maharashtra Industry Overview

Part 4

'Make in India- Promoting entrepreneurship & Innovation'


Maharashtra is one of the leading industrial states and occupies dominant position in the manufacturing sector of the country. Some of the key industries in Maharashtra include Pharmaceuticals, Biotechnology, IT and ITeS, Electronics, Engineering, Auto & Auto Components, Oil & Gas, Food & Agro Processing, Gems and Jewelry, Banking, Financial Services and Insurance (BFSI) and Textiles.

INTRODUCTION


Although manufacturing activity has grown steadily over past few years, Maharashtra has seen a steady decline in fresh investments. From August 1991 to October 2014, 18,709 industrial proposals with an investment of Rs 10,63,342 crore were approved in Maharashtra. Out of these, 8,376 projects (44.8%) with an investment of Rs2,54,784 crore (23.9%) and proposed employment of 10.95 lakh were commissioned and 2,115 projects with an investment of Rs 88,086 crore and proposed employment of 3.03 lakh are under execution. Of the total proposals received in the country, the State’s share in number of proposals & investment is about 18 per cent and 10 per cent respectively

Foreign Direct Investment

Since August, 1991 to March, 2012, in all 4,246 Foreign Direct Investment (FDI) projects were approved. Of these, 45 per cent were commissioned and 10 per cent are under execution. USA & Mauritius are the two main countries investing in industrial sector of the State with 14 and 13 per cent share respectively in total FDI. In a remarkable achievement, FDI worth INR 25,000 crore has been received by Maharashtra in the last 8 months ending July 2015.

Exports from Maharashtra

The main products exported from the State are gems & jewellery, software, textiles, readymade garments, cotton yarn, metal & metal products, agro-based products, engineering items, drugs & pharmaceuticals and plastic & plastic items. Exports from Maharashtra and India are given below:

Policy reforms to ensure ‘Ease of doing business’

The initiatives taken by the state government under the ‘Make in Maharashtra’ programme have been detailed below – 1. Policy reforms to ensure ‘Ease of doing business’ – Rigid and inconsistent policies impede industrial growth. Simplified /

Transparent procedures/ policies, along with faster decision making enable faster industrial development. Though Maharashtra has always been a preferred destination for investors, it faced some issues in the absence of ease of doing business due to its inconsistent policies, bureaucratic delays and corruption. However, in the last one year, the state government has attracted investment by changing several norms to ensure ease of doing business in the State.

Key ‘Make in Maharashtra’ Sectors

The state government is seeking to attract more investments in defense, manufacturing, engineering, IT/ITeS and electronics, food processing and textiles. Some of the sectors which are line with the centre’s ‘Make in India’ campaign and promise significant growth potential have been mentioned below -


Defense manufacturing – Maharashtra has the necessary eco-system necessary for setting up defense equipment related industries. The state is home to some domestic companies involved in defense sector like Bharat Forge, Tata, and Larsen & Toubro. Recently, Bharat Dynamics (manufacturer of ammunitions and missile systems) has decided to invest INR 800-1,000 crore in the state to manufacture short-range missiles. It is relatively easier for foreign investors to collaborate with these companies, since FDI is restricted to 49% in the defense sector. In fact, some foreign companies in the defense sector have already approached the state government and are scouting for suitable locations in this regard. In February 2015, the USD 2.5-billion, Pune-based Kalyani Group entered into a joint venture with Israel's second-largest defense company Rafael Advanced Defense Systems Ltd to manufacture high technology systems for India's defense sector


IT/ITeS –IT/ITeS sector in the state is growing at a fast pace accounting for around 30 per cent of the country’s software exports from 1,200 software units present in the state. This has largely been possible on account of the state government’s focus on providing IT-related infrastructure, fiscal incentives to IT units and an institutional framework for the IT sector. The major IT/ITeS clusters include Greater Mumbai, Pune, Thane and Nasik. Pune is the leader in Business Process Outsourcing (BPO) services. Some of the prominent IT parks in the state include Talawade, Hinjewadi and Kharadi IT Parks in Pune, Millennium Business Park (MBP) in Navi Mumbai, Nagpur IT Park and Deogiri Infotech Park in Aurangabad

THANK YOU

Email: [email protected] Call Us: +91 124 4754550

www.resurgentindia.com

Read full report on: http://blog.resurgentindia.com/make-in-india-promoting-entrepreneurship-innovation/

mailto:[email protected]

Make In Maharastra - Part - 4

Business

Transcript of Make In Maharastra - Part - 4