MAHARASHTRA MAHARASHTRA MAHARASHTRA MAHARASHTRA

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2
ND
LARGEST STATE, LITERATE, URBANIZED
 308,000 sq kms, west coast to central India
 110 m people, more than most countries
% %  42% Urban, against India’s 28%
 Young, 67% below 34 years Young, 67% below 34 years
 Literacy 77% (India: 65%), sharp increase in
female literacy in last decade
INDIA’S PACE SETTER
 Led economic and social change in India
 From 1970s: employment guarantee
 Bringing people together in production
cooperatives
 Heavy investment in infrastructure, HRD
 Promoted private enterprise, partnerships
INDIA’S ECONOMIC POWERHOUSE
 India’s largest economy: 13% of National
I P C it I 45% hi h Income, Per Capita Income 45% higher
 9% average growth in last 4 years
 Slowdown, 08-09: 6.7%, high by world
standards
 Maturing economy: services contribute 62%,
growing at over 10%... growing at over 10%...
 Built on strong industry base (25%)
INDIA’S ECONOMIC POWERHOUSE
 11//5 5th th in in value value of of industrial industrial output output value value and and net net
value value added added
 India’s India’s largest largest employment employment provider provider (total, (total, and and India s India s largest largest employment employment provider provider (total, (total, and and
non non- -farm) farm)
 Over Over 40 40%% of of India’s India’s fiscal fiscal receipts receipts  Over Over 40 40%% of of India s India s fiscal fiscal receipts receipts……
 Few Few natural natural advantages, advantages, but but industries industries based based
on on coal, coal, iron iron ore, ore, manganese, manganese, bauxite bauxite and and
limestone limestone expanding expanding
INDUSTRIAL DIVERSITY, DEPTH
 Leads Leads in in value value of of output output in in 15 15 out out of of 25 25 Industry Industry
segments segments segments segments
 Major Major industries industries: : auto auto and and components, components,
machinery machinery food food products/processing products/processing basic basic machinery, machinery, food food products/processing, products/processing, basic basic
metals, metals, pharma, pharma, gems gems && jewellery, jewellery, IT IT
 “A “A factory factory in in Maharashtra Maharashtra employs employs 16 16%% more more
capital capital and and 2 2%% more more labour, labour, but but produces produces 37 37%%
t t t t dd dd dd 51 51%% l ” l ” more more output output and and adds adds 51 51%%more more value” value” (ASI) (ASI)
PACKAGE SCHEME OF INCENTIVES
 Since Since 1964 1964,, incentives incentives to to new new industry, industry, higher higher
in in less less developed developed areas areas
 Subsidy Subsidy linked linked to to VAT VAT payments, payments, capital capital yy yy
investment, investment, employment employment (in (in low low HDI HDI areas) areas)
 Electricity Electricity Duty Duty Stamp Stamp Duty Duty exemptions exemptions Electricity Electricity Duty, Duty, Stamp Stamp Duty Duty exemptions exemptions
 Customised Customised package package for for Mega Mega Projects, Projects, with with
ll i t t i t t l t l t large large investment investment or or employment employment
INDUSTRIAL MEGA PROJECTS
 169 industrial Mega Projects approved 169 industrial Mega Projects approved
$$ since June ‘05, Rs. 1,40,826 cr inv ($ 30 bn) since June ‘05, Rs. 1,40,826 cr inv ($ 30 bn)
proposed, 213,000 employment proposed, 213,000 employment p p p y p p p y
 Spread across State: 109 in newly Spread across State: 109 in newly
d l i d l i developing areas developing areas
 Inspite of slowdown, 35 in 08 Inspite of slowdown, 35 in 08- -09 09
 38 in 09 38 in 09--10 so far, commitments in first 9 10 so far, commitments in first 9
th l t l t FY th l t l t FY months equal to last FY months equal to last FY
INDUSTRIAL MEGA PROJECTS
 High implementation rate: 41 already in High implementation rate: 41 already in
production including GM VW Hyundai production including GM VW Hyundai production, including GM, VW, Hyundai, production, including GM, VW, Hyundai,
LG, CanPack, Rieter LG, CanPack, Rieter
 39 under construction, 50 now have land 39 under construction, 50 now have land
 Recently global leaders like POSCO Recently global leaders like POSCO  Recently, global leaders like POSCO, Recently, global leaders like POSCO,
Bridgestone, addl inv by VW, GM, LG Bridgestone, addl inv by VW, GM, LG
Electronics Electronics
LEADS IN PROJECT INVESTMENT
 $$ 118 118 bn bn investment investment planned planned or or under under
ti ti 66 743 743 i f i f i d t i l i d t i l th th j t j t execution, execution, 66,,743 743 infra, infra, industrial, industrial, other other projects, projects,
including including public public (Projects (Projects Today, Today, Nov Nov 09 09))
 Followed Followed by by AP, AP, Orissa, Orissa, Gujarat Gujarat and and TN TN
 11//5 5 of of India’s India’s fresh fresh investment investment (Apr (Apr––June June 09 09))
 Implementation Implementation rate rate 51 51%% 22--12 12 %%age age points points Implementation Implementation rate rate 51 51%%,, 22--12 12 %%age age points points
above above leading leading States, States, rising rising trend trend
MOST GLOBALLY CONNECTED STATE
 Competitive Competitive business, business, enabling enabling environment environment
 Since Since 1991 1991,, 23 23%% of of FDI FDI approvals, approvals, highest highest
share share:: 44 133 133 approvals approvals US US $$18 18 bn bn share share:: 44,,133 133 approvals, approvals, US US $$18 18 bn bn
 53 53%% share share of of actual actual FDI FDI inflows inflows in in 08 08--09 09
 17 17%% of of foreign foreign technical technical collaborations collaborations
MOST GLOBALLY CONNECTED STATE
 27 27%% share share of of India’s India’s exports exports
 146 146 approved approved SEZs SEZs highest highest in in India India  146 146 approved approved SEZs, SEZs, highest highest in in India India
 58 58 SEZs SEZs notified, notified, 14 14 operational operational
 Partnership Partnership agreements agreements with with Ontario, Ontario, Quebec, Quebec,
Veneto, Veneto, Geonggi, Geonggi, Okayama Okayama provinces provinces
 Mumbai Mumbai:: relationship relationship with with Stuttgart, Stuttgart, Yokohama Yokohama Mumbai Mumbai:: relationship relationship with with Stuttgart, Stuttgart, Yokohama Yokohama
cities cities since since last last 40 40 years years
PEOPLE POWER
 250,000 skilled people each year from 250,000 skilled people each year from
professional, technical and related institutions professional, technical and related institutions
I ti i d t t hi 164 ITI I ti i d t t hi 164 ITI  Innovative industry partnerships, 164 ITIs Innovative industry partnerships, 164 ITIs
‘adopted’ by industry in last 2 years ‘adopted’ by industry in last 2 years
 700 Vocational Training Providers for school 700 Vocational Training Providers for school
dropouts, workers with low formal education dropouts, workers with low formal education
MORE PEOPLE POWER NEEDED
 Apprenticeship training, Apprenticeship training,
curriculum upgradation, curriculum upgradation,
skill assessment, skill assessment,
placements… placements…
 …partnerships with US, …partnerships with US,
Australian, Swiss Australian, Swiss ,,
institutions in technical institutions in technical
education education
STRONG, IMPROVING INFRASTRUCTURE
 First First State State to to build build highways highways on on PPP PPP basis basis g y g y
 720 720 kms kms coastline, coastline, 2 2 major major ports ports (JNPT (JNPT handles handles
56 56%% of of India’s India’s container container traffic) traffic)
 66 smaller smaller ports ports being being developed developed on on PPP PPP basis basis 66 smaller smaller ports ports being being developed developed on on PPP PPP basis basis
 Private Private jetties, jetties, major major Shipyard Shipyard project project
STRONG, IMPROVING INFRASTRUCTURE
 22
nd nd
highest highest tourist tourist arrivals arrivals;; 44 international international
airports, airports, 11//3 3 of of India’s India’s international international traffic traffic
 Regular Regular air air services services to to 88 places places across across State State  Regular Regular air air services services to to 88 places places across across State State
 Greenfield Greenfield airports airports planned planned at at Pune, Pune, Navi Navi
Mumbai, Mumbai, 15 15 smaller smaller airports airports being being expanded expanded
 Nagpur Nagpur: : International International Passenger Passenger && Cargo Cargo Hub Hub
linked linked with with airport airport and and SEZ SEZ pp
I di ’ I di ’ hi h t hi h t th l th l 22
dd
hi h t hi h t bl bl
STRONG, IMPROVING INFRASTRUCTURE
 India’s India’s highest highest thermal, thermal, 22
nd nd
highest highest renewable renewable
power power generation, generation, supply supply overtaken overtaken by by rapid rapid
economic economic growth growth
 No No power power cuts cuts for for large large industry, industry, 24 24xx77 electricity electricity
supply supply in in Mumbai Mumbai and and other other major major cities cities pp y pp y jj
 New New power power projects, projects, State State support support to to private private
generation, generation, sharp sharp reduction reduction in in T&D T&D losses losses::
 Power Power self self--sufficiency sufficiency by by 2012 2012 Power Power self self--sufficiency sufficiency by by 2012 2012
MAHARASHTRA INDUSTRIAL DEVELOPMENT
CORPORATION (MIDC)
Largest Industrial Infrastructure Provider In India
CORPORATION (MIDC)
Set up under separate law, land acquisition
230 I d t i l E t t 55 000 h powers, 230 Industrial Estates, over 55,000 ha
 Doubling of land bank underway g y
 Water supply, own dams, supplies water to
several cities and towns also
 One-stop shop for industry  One-stop shop for industry
12 Ai t / Ai t i d l i 6 ith
MIDC
 12 Airports / Airstrips, developing 6 with
private players
 Specialized Parks, including JVs: IT, BT,
Fl i lt F d P i T til Floriculture, Food Processing, Textiles,
Wine, Gems & Jewellery, Chemicals, SEZs
 Partnerships for natural gas provision in
industrial estates
MUMBAI: INDIA’S BUSINESS CAPITAL
 World’s 6
th
largest metropolitan region, India’s
most cosmopolitan city, 5% of India’s GDP p y,
 BSE & NSE: over 70% of stock volumes
 90% of merchant bank activities,
commodities transactions from NCDEX & MCX commodities transactions from NCDEX & MCX
 HQs of RBI, SEBI, most FIIs, banks
 Bollywood: more films than Hollywood!
 $$ 60 60 bn bn ‘Mumbai ‘Mumbai Makeover’ Makeover’ plan plan:: PPP PPP in in project project
MUMBAI METROPOLITAN REGION
 $$ 60 60 bn bn ‘Mumbai ‘Mumbai Makeover’ Makeover’ plan plan:: PPP PPP in in project project
planning, planning, investment, investment,
execution execution
-- urban urban transport transport
-- roads, roads, railways railways
-- water water supply supply water water supply supply
-- sanitation sanitation
power power -- power power
-- rental rental housing, housing, urban urban regeneration regeneration
 Work Work on on Sea Sea Link, Link, Metro, Metro, Mono Mono- -Rail Rail started, started,
Innovation Innovation Park Park planned planned
DFC & DELHI-MUMBAI INDUSTRIAL CORRIDOR
 Dedicated Dedicated Delhi Delhi--Mumbai Mumbai rail rail
Freight Freight Corridor Corridor Freight Freight Corridor Corridor
 Around Around DFC, DFC, Delhi Delhi- -Mumbai Mumbai
Industrial Industrial Corridor Corridor region region:: Industrial Industrial Corridor Corridor region region::
Mumbai Mumbai to to Nashik, Nashik, Pune, Pune,
Aurangabad Aurangabad
 Detailed Detailed project project planning planning for for PPP PPP
logistics, logistics, economic economic clusters, clusters,
connectivity, connectivity, physical physical && social social connectivity, connectivity, physical physical && social social
infrastructure infrastructure projects projects
POLICIES
 Grape Processing Policy 2001
- 10 x increase in wine production, 90% share
- National Grape Processing Board at Pune
 Bio-Technology Policy 2001
- “Maharashtra now has 33% share of BT
i d t f ll d b K t k ” (‘09) industry, followed by Karnataka” (‘09)
- New incentives for private BT Parks
- BT Virtual Resource Centre launched with CII, ,
Pune University (’09)
POLICIES
 IT & ITES Policy 2003, 2009
8 t i 2
nd
t K t k - 8 x export increase, now 2
nd
to Karnataka
- 72 private, 36 public IT Parks
90% of IT/BPO business in 7 centres in - 90% of IT/BPO business in 7 centres in
India, incl Mumbai, Pune
- Largest market for IT products and internet - Largest market for IT products and internet,
highest pool of IT professionals
- Emerging Maharashtra centres: Nagpur, Emerging Maharashtra centres: Nagpur,
Nashik, Aurangabad
POLICIES IN MAKING
 SEZ & Designated Areas law, following
SEZ Policy 2001
 Agro Industries, Food Processing Policy g g y
- India’s largest horticulture producer
L di f d i St t - Leading food processing State
 Textile Policy
 Policy framework for Infrastructure PPP
IMPROVING EASE OF DOING BUSINESS
 Among 5 States in ‘E-Biz’ Project
 VAT: 100% e-registration, filing of
returns and payments returns and payments
 Property registration computerised,
‘anywhere-anytime’ registration next
 Integrated E-Governance project Integrated E Governance project
WHAT OTHERS SAY
 “India’s most competitive State” (BusinessWorld,
Institute of Competitiveness, Feb 09)
 “Maharashtra tops Indian States, best
industrial climate for investment” (followed by
G j t TN d AP) Gujarat, TN and AP) (‘New Media’, with Indicus Analytics,
J uly 2009)
WHAT OTHERS SAY
 Reserve Bank of India: “Most favoured
destination in 08-09: 20.6% of institution-
financed corporate capex (followed by financed corporate capex (followed by
Gujarat, Orissa and AP)” (August, 09)
 “3 x increase in investment over 07-08”
MAHARASHTRA MAHARASHTRA MAHARASHTRA MAHARASHTRA
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