Economic geography of Maharashtra-Study Economy concepts for MPSC (2024)

Economic geography refers to the study of economic activities in an area and the factors affecting them. Maharashtra is the third largest state in the country and the second most populous among Indian states. Also, Mumbai is both the state capital of Maharashtra and the country's financial capital. Maharashtra is considered one of the most economically advanced states in India, so it becomes important to learn about its Economic geography of Maharashtra.

In this article, we will study in detail the Economic geography of Maharashtra which is a significant part of the MPSC Syllabus especially GS Paper 1 of prelims and GS Paper 4 of mains.

You can also study all topics of Geography for MPSC Exams with the Testbook MPSC coaching!

Key Sectors in Maharashtra

• With an investment of Rs. 18,000 crores (US$ 2.5 billion) in 2019-20, the Maharashtra Industrial Development Corporation (MIDC), CIDCO, and Software Technology Park of India created 37 public IT parks in the state.
• The Vehicle Scrappage Policy, a government-funded scheme, was begun in August 2021 to replace obsolete automobiles on Indian roads with modern and new vehicles. The state of Maharashtra is developing standard operating procedures (SOPs) for the establishment of digitized scrapping centers, which will be implemented soon.
• To cure ocular tumors, the Bhabha Atomic Research Centre (BARC) in Mumbai created the indigenous 'Ruthenium 106 Plaque' in December 2020.

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Maharashtra’s Contribution to India's GDP

• Maharashtra, located in western India, is one of the wealthiest states, with a thriving economy and a good infrastructure.
• Maharashtra is India's largest economy, with a GDP of $384 billion, accounting for 15% of the country's total.
• It also has one of the most developed automobile and auto component sectors in India, with Maharashtra accounting for over 35.1% of India's vehicle output by value.
• It is also India's most industrialized state. Maharashtra is also tops in terms of FDI inflows.
• Maharashtra, also regarded as the wealthiest state, provides approximately 15% of the country's industrial production and approximately 14% of its GDP.

Trade in Maharashtra

• According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows into Maharashtra totalled US$ 44,405.66 million between October 2019 and June 2022, accounting for 27.94% of total FDI inflows into India.
• During Magnetic Maharashtra 2.0 in June 2020, the state received investment offers worth Rs. 1.13 lakh crore (US$ 15.23 billion), with expected employment of more than 2.50 lakh.
• In FY23, the state's total exports were $31.65 billion (until August 2022). Maharashtra exported important commodities such as pearls, precious and semi-precious stones, gold and other precious metal jewellery, iron and steel, and pharmaceutical formulation.
• In May 2022, the Maharashtra state government signed Memorandums of Understanding (MOUs) with 23 multinational corporations to receive investments totalling Rs. 30,379 crores (US$ 3.91 billion).

Economy and Infrastructure

• Since the 1970s economic policies, the state's economy and infrastructure have grown significantly.
• Furthermore, state administrations have made significant contributions to the development and growth of the state's economy and infrastructure in terms of technical advancement and recognizing chances for investment, industrialization in rural areas, joint ventures and tie-ups, and so on.
• The state's economic infrastructure comprises airports, highways, railroads, power, telecommunications, and ports.
• Four international and seven domestic airports, two major and 53 minor ports, and a well-developed power supply grid all contribute to the state's economy.
• Education and training, health care, and tourism are all part of the social infrastructure.
• Pune, another city, has emerged as an educational hotspot. IT, electronics, and commercial outsourcing industries have thrived in recent years, providing a significant boost to the economy.
• The 'Bombay Stock Exchange,' India's largest and Asia's oldest stock exchange, is located in Mumbai.
• Maharashtra has surpassed Gujarat as the second largest software exporter, thanks to the establishment of software parks in Pune, Mumbai, Nashik, Aurangabad, and Kohlapur.

Industrial Development

• Maharashtra is India's most industrialized state, accounting for 23% of the national economy.
• More than 60% of the Population of Maharashtra works in agriculture or other vocations that are indirectly related to agriculture. In Maharashtra, the sugar business is a cooperative that includes farmers.
• The following industries have had significant inflows:
  • Real estate and infrastructure,
  • Computer hardware and software,
  • Telecommunications,
  • Services,
  • Motor vehicles,
  • Pharmaceuticals.
• The state has a rich history in textiles as well. The main industries in Maharashtra are poultry development, dairy development, chemical and associated products, electrical and non-electrical machinery, and petroleum and allied products.
• Auto components are well-known in Aurangabad and Pune. Chappals (footwear) in Kolhapur, cotton seeds in Akola, pharmaceuticals in Aurangabad, power looms in Malegaon, Bhivandi, and Nagpur, and many more factors contribute to the state's status as the most industrialized area.
• The state accounts for 35% of the country's vehicle industry, and Mumbai, its capital, has transformed into a financial powerhouse, with numerous worldwide banks and financial firms establishing headquarters there.

Agriculture

Maharashtra is a leading agricultural state. Maharashtra accounts for around 52% of total Jowar cropping in India. Other states with substantial Jowar production include Andhra Pradesh, Karnataka, and Tamil Nadu. It is without a doubt one of the most profitable crops in India.

• Maharashtra's principal food crops are mangoes, grapes, bananas, oranges, wheat, rice, jawar, bajra, and legumes.
• The most important oil seed crops are groundnut, sunflower, and soyabean. Cotton, sugarcane, turmeric, and vegetables are key cash crops.
• The state is a national leader in onion production. It is quickly becoming a major horticultural state in the country.
• Groundnut, cotton, sugarcane, turmeric, and tobacco are all cash crops. The total irrigated area used for crop cultivation is 33,500 square kilometers.
• The food processing businesses in Maharashtra are quite rudimentary.
• Maharashtra is a large producer of floriculture products, having over 4000 hectares under different flowers.

Also, study Soil in Maharashtra here!

Major Ports

There are 12 main ports in India: Kolkata port, Paradip port, Vizag port, Kamarajar port, Chennai port, Tuticorin port, Cochin port, New Mangalore port, Mormugao port, Mumbai port, Jawaharlal Nehru port, Kandla port.

Jawaharlal Nehru Port Trust (JNPT)

• The main port in Mumbai is called Jawaharlal Nehru Port Trust (JNPT), and it has three berths, private container terminals, and a twin-berth liquid cargo jetty. A strong presence among the top 30 ports in the world, this port offers marine (night navigation, pilotage, and vehicle traffic management) and shipping (container services and routes) services.

Mumbai Port Trust

• It consists of three wet docks, four jetties for carrying petroleum products, storage, anchorage, bunkering, watering facilities, and pilotage.
• This is Mumbai's natural major port and it manages 10.44% of all seaborne cargo that is regulated by large ports in India.

Maharashtra Maritime Board (MMB)

• This Nodal Agency manages and develops maritime and coastal activities in Maharashtra, including inland water transport systems, huge port terminals, freight jetties, and shipyards. Mora, Bandra, Ratnagiri, Venugurla, and Rajpuri are among the port groupings.

Also, study the Administrative Divisions of Maharashtra here!

Film and Television Industry

• Mumbai is home to numerous film, television, and music studios, as well as production companies.
• The Film and Television Institute of India (FTII) in Pune is a film school that teaches all genres of filmmaking.
• The Indian film industry is the world's second oldest and one of the fastest growing.

Animal Husbandry

• Animal husbandry, dairying, and fishing are vital to the state economy and are inextricably related to agriculture.
• Livestock rearing for eggs, milk and milk products, leather and flesh, and wool is an essential employment for the majority of the state's residents.
• The majority of the state's agriculture business is largely reliant on rainfall. Irrigation facilities are being expanded, and many dams are being utilized.
• Animal husbandry is extremely vital to the rural economy.

Tourism

• Maharashtra has various attractions for tourists from all over the world. The area is well-known for caverns dating back to the first century BC.
• Cave architecture evolved through the carving of rocks to create halls known as Viharas, Chaityas (pillared halls), and sculptures by Buddhists, Hindus, and Jains.
• Mumbai is one of the state's most popular tourist destinations.

• The film industry, Gateway of India, Marine Drive, Juhu Beach, Essel World, Siddhi Vinayak Temple, Haji Ali Dargah, Mani Bhawan, Jahangir Art Gallery, and other attractions are available.
• Numerous dams in significant towns, including Khadakwasla and Panshet Dam in Pune, Appu Ghar and Baneshwar in Pune, Ajanta and Ellora caves in Aurangabad, Bhahmagiri in Nashik, and many others.
• Maharashtra, with its rich historical and cultural history, has enormous potential for tourist expansion, and the state has plans to increase basic infrastructure amenities at major tourism locations for long-term development. Its proposals for new private investment would generate numerous direct and indirect job opportunities for local citizens.
• The ancient caves of Ajanta, Ellora, and Elephanta, as well as various forts, hill stations, religious tourism, beaches, and adventure tourism, all generate a solid economic return for the state.
• In 2019, Maharashtra received 149.2 million domestic visitors and 5.5 million international visitors (foreign).
• The state government is now revitalizing the tourism sector following COVID by developing new tourist attractions and upgrading existing ones.

Transport Network

• Road and rail travel dominate transportation in Maharashtra. Because of its well-developed rail network, Mumbai, India's commercial hub, uses less energy for transportation than other metropolitan cities.
• In comparison to other Indian cities, Mumbai's passenger transportation sector is dominated by public transportation (rail and bus) and dominated by private transportation.
• It is worth noting that Mumbai is the only city in India where the proportion of passenger rail travel equals that of vehicle transport.
• The Bombay Electric Supply and Transport Undertaking (BEST), a road-based public sector undertaking, operates a passenger transportation system without government subsidies.

Road Network

• The road network is one of the most important infrastructure aspects for any region's progress.
• Roads not only allow people to use public transportation at low cost, but they also aid in smoothing inter-regional inequalities in commodities availability and, as a result, lower price dispersion across areas.
• The establishment of a national highway network is critical to the development of a state.
• National highways connect states to other trading centers and ports in the country and are the first tier of the road development plan (in a multimode transport system).
• The government spent 5.2% of its budget on roads and bridges in the State Budget 2021-22, which is greater than the average allocation by states (4.3%) for roads and bridges (Rs. 22,608 crores or US$ 3.06 billion has been earmarked for road and bridge building).

Special Economic Zone (SEZ)

The Special Economic Zone in Maharashtra is the best-situated SEZ in the country. Maharashtra has had significant infrastructure development in terms of roads, railroads, airports, and seaports because it is the most industrialized state in India. Industries have benefited more from these aids.

The Special Economic Zones in Maharashtra benefit from being adjacent to air and sea freight connections, which would boost industrial exports from India.

Maharashtra Special Economic Zone comprises of-

• Santacruz Electronics Export Processing Zone
• Navi Mumbai Special Economic Zone
• Maha Mumbai Special Economic Zone

Government of Maharashtra SEZ Policy

The development of industries within the State of Maharashtra is the primary goal of the government's SEZ policy.

• Focus Areas of the Maharashtra government's SEZ policy are on:
  • A system that uses a single window to grant licenses and approvals for things like environmental protection and human resources.
  • Exemptions from various local and state taxes, levies, and tariffs that are related to dealings with special economic zones.
  • The waivers of registration charges and stamp obligations
  • The expedient methods of acquiring land for the creation of the special economic zone.

• Issues of the Government of Maharashtra SEZ Policy are-
  • Taxes levied by the State Government of Maharashtra
  • Legal system
  • Supply of power
  • Supply of water
  • Environmental issues
  • Registration of IT-enabled services and SSI

Conclusion

Maharashtra, which contributes 20% of the nation's industrial production, is the most industrialized state in India. The industrial sector contributes around 46% of the GSDP. With annual exports of more than 80,000 crores, Maharashtra is the second-largest software exporter and has software parks in numerous locations throughout the state. That is because it is the state in India with the second-highest population. Measuring GDP per capita might be a better way to identify the richest state.

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