Why are foreign investors pursuing to invest in Maharashtra?

Why are foreign investors pursuing to invest in Maharashtra?
Aug 09, 2018

Maharashtra is the 3rd largest, and the 2nd most populated state in India. About 66% of Maharashtra's population is in the working age group of 15-59 years. It is very well connected to all the major markets with 3 international airports (Mumbai, Pune, and Nagpur), and has extensive developed roadways and railways. The state’s coastline has 55 ports facilitates about 22% of total cargo transport in India.

The state attracted about 31% of the total FDI (Foreign Direct Investments) inflows in India during 2000-18. It contributed about 12% to the country's GDP growth in 2017-18.

Maharashtra is an industrial leader attracting the FDI and other investment sectors.

It has a good presence of industrial clusters, especially Automobile, IT & ITES, Chemicals, Textiles, Tourism, Biotechnology & Pharmaceuticals, Food Processing, and Gems & Jewelry it offers a lucrative investment opportunity in these sectors.

Here’s why foreign investors are investing in Maharashtra;

The prominent key sectors attracting foreign investors in India are;

Textiles & Garments

Growth Drivers – Rising per capita income, organized retail landscape & e-Commerce, Favorable demographic trends, and changing lifestyles.

Investment – Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing $60 mn in the next 4 years

Food Processing

Growth Drivers – Agri-commodity hub, huge consumer base, Strong economy, and Conducive policies.

Investment – The Food Processing Park at Vinchur in Nashik district has attracted an investment of $150 mn, and it is expected to generate 5,400 jobs. A total of 15 food processing units have signed MoUs with the state government during ‘Magnetic Maharashtra’, global investors’ summit and exhibition.

Automobile

Growth Drivers – Growing income, 'Youngest Nation' by 2025, and Expanding R&D hub

Investment – JSW Energy plans to double its investment to $ 956.1 mn for its electric vehicle manufacturing unit they have has signed a MoU with Maharashtra.

Tourism and hospitality

Growth Drivers – Incredible India campaign, E-Tourist VISA facility, Special Tourism Zones (STZ), Medical tourism, and Coastal tourism.

Electronic Systems

Growth Driver – Digital media, Smart cities, Government cloud initiative, National Knowledge Network (NKN), and Ultra mega solar project.

IT

Growth Drivers – Skill development and R&D, The National Optical Fibre Network (NOFN), Digital India campaign, and Start-up revolution.

Biotechnology

Growth DriversGrowing population, Rising economic prosperity and consciousness, and Strong skilled manpower pool.

Investment – 8 biotechnologies SEZ have been proposed with investment $738 mn creating 94000 jobs.

Gems & Jewellery

Growth Drivers – Traditional Domestic Demand, Rising Income Levels, Growing Middle-Class Population, Increasing Expenditure, and Growing Organized Retail Format.

Investment – London’s ultra-luxury jeweler for the super-rich, Faberge, owned by the world’s top emeralds and rubies-miner Gemfields Plc., has decided to enter India.

New and modified policy and scheme in Maharashtra to attract FDI and smooth transaction are;

The driving policy change and the new schemes have attracted a large number of FDI and small & medium industries across Maharashtra. Pune is top industrial powerhouse in Maharashtra a large number of investors have invested here.

Source – https://www.investindia.gov.in/state/maharashtra

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