With the appointment of a new CM in Maharashtra, the state is up for newer and better changes. With the current economic conditions in the state, the new government is expected to boost the growth.
On June 29, Maharashtra’s former Chief Minister, Uddhav Thackrey resigned. On the next day, June 30, Eknath Shinde, a political leader from Shivsena took an oath as the new CM for the state. The former CM had been appointed in November 2019 and was in position till June 2022. During this period he made many political as well as economic changes in the state. After two years of the pandemic and other economic pressures, he handled the state very efficiently. He managed the recovery of the industrial sector, agricultural sector, service sector as well as foreign investments in the state. Through various initiatives by the Government, the rate of recovery was rapid.
During the two years of the pandemic, the state’s economic growth had shrunk by 7.6 percent. The economic growth has bounced back, as the lockdown was eased in the state. The expected growth rate for the state for FY 2021-22 is positive 12.1 percent. This growth is expected to surpass the pre-pandemic levels. Currently, Maharashtra contributes 20 percent of the national output of the country and is the second most industrialized state in the country. In the Gross State Domestic Product (GSDP) the contribution of the industrial sector is recorded at 46 percent. This has taken place because of the various Government schemes and contracts. As of March 2022, Maharashtra has the highest number of approved projects in the country. These projects mainly include industrial projects and initiatives by private companies in collaboration with the government.
Natural Resources in Maharashtra
Maharashtra’s economy is the largest in the country, with the financial capital located at its coast. This has been possible due to the abundance of natural resources in the state. The state is located on the western coast and has an excellent port which enables ease of trade. The access is easier and more convenient which encourages more and better production. The state has the availability of skilled labor with developed infrastructure. The Sahyadri range serves as a source for various minerals which are used in manufacturing. Manganese, Iron Ore, Limestone, and common salt.
Agriculture
Due to the availability of natural resources, agriculture has flourished in the state and is one of the most productive sectors. Kharif and Rabi crops are grown in abundance in the state. Horticulture is practiced on a large scale. Many districts are famous for their fruits, like Nashik for Grapes, Nagpur for Oranges, and Ratnagiri for mangoes. These fruits are not only traded within the country but also outside the country through the Mumbai Port.
Industrial Sector
Post-independence and after the formation of the state Maharashtra Industrial Development Corporation (MIDC) was formed. The formation of this corporation was done to expand and control industrial activities in the state. It was established in 1962. MIDC built the infrastructure in the state and ensured that every district has at least one industrial area under the corporation. Currently, there are 233 operating industrial areas in the state. This initiative by the government has helped in the rapid growth and development.
Uddhav Thackrey had mentioned during the budget meeting in March 2022 that the state is aimed at making it a $1 trillion economy. This would be the first state to hit the $1 trillion mark in the country. After this announcement, the government approved many new schemes and policies to make it count. The various schemes include Production Linked Incentive (PLI), Bhabha Atomic Research, Vehicle Scrappage Policy, Skill development programs, etc.
The role of the new government; CM Eknath Shinde along with deputy CM Devendra Fadanvis is to smoothen the implementation of these schemes. Bring to action newer initiatives for faster and better development. New CM, Eknath Shinde was the Minister of Urban Development, he has actively worked in the public works with the Government of India. His earlier responsibilities included working on infrastructural development. With his experience in the development of the state, it is expected that he will bring into action decisions that will help Maharashtra to be a $1 trillion economy soon.
