Maharashtra’s $1-Trillion Push: Driving India’s $5-Trillion Economy Quest

Maharashtra must accelerate its growth significantly to achieve its target of becoming India's first trillion-dollar sub-national economy by the end of the decade, according to state industry secretary P Anbalagan. The state's current economy is estimated at around $600 billion.

Placing the state's target alongside India's broader goal of becoming a $5-trillion economy by 2030 and a developed nation by 2047, Anbalagan emphasized that Maharashtra's trajectory broadly mirrors national trends but will require a sharper push.

The state is heavily investing in infrastructure, with a series of road, port, and logistics projects across Mumbai, Pune, Nashik, Chhatrapati Sambhaji Nagar, and Nagpur. One of the most ambitious projects is the proposed Vadhavan Port north of Mumbai, which is expected to significantly expand container handling capacity on the western coast. This port is projected to be substantially larger than the existing Jawaharlal Nehru Port. However, the success of such projects will depend on timelines and execution, Anbalagan noted.

Connectivity projects linking industrial regions to ports and freight corridors are being developed to reduce congestion in Mumbai and improve cargo movement. Multimodal logistics corridors and expressways connecting Mumbai with Delhi, Ahmedabad, Nashik, Pune, and Goa are aimed at redistributing traffic and encouraging industrial activity in adjoining regions. Land acquisition approvals for several of these projects have been secured, though large-scale infrastructure rollouts typically face execution and financing challenges.

Maharashtra contributes roughly 15% of India's exports and has consistently been among the largest recipients of foreign direct investment, accounting for nearly one-third of inflows over the past two-and-a-half decades. The services sector dominates the state's economic profile, contributing about 64% of output. Approximately 700,000 graduates enter the workforce annually, a factor the government believes strengthens the investment proposition.

A key plank of Maharashtra's pitch to investors is policy continuity. Regardless of political changes, the state has sought to maintain consistency in industrial policies and honor investment commitments. The Maharashtra Industrial Development Corporation continues to play a central role by providing industrial land and common infrastructure such as water supply and effluent treatment facilities. The state plans to add about 150,000 acres of industrial land over the next one to two years, with 50,000 acres already notified.

Mining and steel are expected to be important components of the next growth phase. The state has signed investment commitments that could translate into steel production of up to 50 million tonnes over the next decade. About 30-35% of this is expected to be green and speciality steel, reflecting a broader push toward sustainable manufacturing. Gadchiroli is being positioned as a future steel hub, though it remains to be seen how quickly investments materialize in relatively underdeveloped districts.

The government is also promoting investments in advanced technology sectors, including semiconductors and quantum computing, offering capital subsidies in certain cases to reduce investor risk. Such incentives, officials argue, are necessary to compete with other Indian states and global destinations.

Over the past 13 months, Maharashtra has signed investment intents worth approximately ₹45 lakh crore, with an additional ₹10 lakh crore in the pipeline. While these figures underscore investor interest, actual project grounding and capital deployment will be the true test.