Maharashtra accounts for almost 35.1% of India's automobile output by value and the state is a major hub for IT and ranks second after Karnataka in the export of IT products and IT-enabled services.
Prime Minister Narendra Modi in 2019 had set a target to make India a $5 trillion economy by 2024-25, but by the end of the first quarter of FY 2024-25, India is only set to breach the $4 Tn mark. But the top 5 Indian economies, 5 Indian states with highest GSDP - Maharashtra, Tamil Nadu, Gujarat, UP, Karnataka, are in a race with each other to become India’s first $1 Tn economy. But going by the current figures, it looks like Maharashtra is way ahead of the rest 4 and could become the first state to achieve the feat.
The economy of the state of Maharashtra is the largest in India. Maharashtra is India's second most industrialised state after Tamil Nadu contributing 20% of national industrial output. Almost 46% of the GSDP is contributed by industry in the states. As India’s GDP is about to surpass the $4 trillion mark, Maharashtra accounts for 13% of it.
Key Statistics:
- GSDP (2022-23): $435 billion
- GSDP (2024-25 projection): $510 billion (₹42 lakh 67 thousand crores or ₹42.67 trillion)
- Per capita income (2024-25 projection): ₹332,692 (US$4,000)
- India's current GDP: $2,700; 2024-25 projection: $2,845
- Highest FDI in India: 29%
- % of population living under multidimensional poverty: India - 11.28%; Maharashtra - 5.48%
- Unemployment rate: India - 8.1%; Maharashtra - 4.3%
Historical Context
Maharashtra has a rich history of economic development, dating back to the pre-British era. The region was a significant center of manufacturing and agriculture in the Indian subcontinent. The British East India Company established control over Bombay in the 17th century, and by the early 19th century, the British had expanded their rule over the region.
Prominent sectors in Maharashtra’s economy:
Agriculture and allied activities - 11.9%
Despite urbanization, agriculture remains a significant contributor to Maharashtra’s economy, providing livelihoods to a large segment of the population. The state predominantly cultivates millet, pulses, jowar, cotton, sugarcane, etc. In regions with high rainfall, crops like paddy, tobacco, and peanuts also thrive.
Industry and Manufacturing - 33.8%
The state possesses abundant mineral resources, including manganese, coal, and iron ore. The industrial sector, including the traditional sectors like textiles to modern industries such as IT, biotechnology, and pharmaceuticals, mining, and construction drives economic growth and employment generation in the state.
Services - 54.3%
Maharashtra’s service sector, dominated by trade, finance, real estate, and IT services, accounts for the largest share of GSDP, reflecting the state’s role as a commercial hub.
Key Industries:
- Automobiles: Maharashtra accounts for almost 35.1% of India's automobile output by value.
- IT and IT-enabled services: Maharashtra ranks second after Karnataka in the export of IT products and IT-enabled services, with significant contributions from cities like Mumbai and Pune.
- Pharmaceuticals: Maharashtra contributes 22% to India's total pharmaceutical and medical device production.
- Gems and jewelry: Maharashtra is a leader in the gems and jewelry industry, contributing 45% to India's overall output and 33% to its exports.
- Textiles and apparel: Maharashtra is one of the leading states in textile and apparel production, contributing 8% to India's total.
Additionally, to facilitate domestic and international trade, the state is well connected to all the major markets (domestic and international) with 3 international and 7 domestic airports, and has the largest network of National Highways with 17,757 km. The State’s coastline of 720 km and presence of 50 ports, 2 major and 48 non-major ports facilitate over 20% of the total cargo transport in India.
Maharashtra's strong infrastructure and diverse economic base make it well-positioned to achieve its goal of becoming the first state to reach a $1 trillion economy.
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