Rediscover Maharashtra

Maharashtra Economic Development Council (MEDC) released a compendium The Business Altitude - Rediscover Maharashtra at the Golden Maharashtra Summit 2011. The research carried out by Tata Strategic Management Group (TSMG), consolidates the 'trends' as well as 'future potential' for the economic growth in key sectors across Maharashtra. It puts forth the Global and Indian overview, the regulatory and policy framework across sectors such as manufacturing (auto, chemicals and pharma), infrastructure (civil aviation, ports, power) and services (BFSI, media and entertainment, IT and ITES).

Chemical
The report emphasises how the Indian chemical industry has a potential to grow at 15% per annum to reach US $ 330 billion by 2020. Increasing domestic demand — driven by strong growth outlook of key consumer industries like automotive and construction — is expected to be the key growth driver. Good availability of feedstock, proximity to several consumer industries and strong connectivity through port, road and rail network are the key strengths for chemical industry. However, the industry also faces some challenges including limited presence in high value chemical segments and power shortage.Maharashtra could aspire to double its share of India's chemical production to 15% over the next few years.

Energy
The report says "Maharashtra has the highest generation installed capacity among states. It also points out that though the renewable energy potential in Maharashtra is in excess of 7.4 GW, only 34% of this potential is realised. This, coupled with conducive policies, underlines huge potential for investments in Maharashtra.

Pharma
Indian pharmaceutical industry is expected to grow at a CAGR of 18% over the next 5 years, the report points out and adds Maharashtra accounts for approximately 18% of the country's output of pharmaceuticals by value. "Factors like proximity to international market with world class connectivity, availability of skilled manpower, R&D centres and training institutes and presence of all leading pharmaceutical companies are contributing to Maharashtra emerging as the top destination in India," says the report.

Air transportation
It also mentions how passenger traffic at major airports has been growing at over 29% and cargo traffic at 7% (2006-09). "Eight greenfield airports in Solapur, Latur, Baramati, Yavatmal, Ratnagiri, Shirdi, Sindhudurg and Navi Mumbai expected to come up in the future," the report points out.

Retail
The report also credits increasing urbanisation and rising incomes for being major growth drivers for retail industry in Maharashtra. "The mall space in Mumbai and Pune is expected to grow by 17 million sq ft by 2012," says the report. "Development of tier-2 cities like Aurangabad, Solapur, Amravati and others are expected to see an increased organised retail penetration" adds the report.

Food & Agro
Maharashtra's gross state domestic product from agriculture and livestock is at $9.3 billion, the third highest among all Indian states, says the report. According to it, "Maharashtra is a significant contributor to India's production of key fruits and vegetables. It has largest share in national production for onion (29%), grapes (51.3%), cashewnut production (32.7%)." It also points out how the state has the third largest share in marine fish production, with a contribution of around 13% and sixth largest in terms of milk production, with around 7% of total milk produced contributed by the state.The report stresses that more schemes like the package scheme of incentives are needed to make Maharashtra a more attractive destination for agri-sector investment.

Tourism
The report says domestic tourist arrivals in Maharashtra grew at 13.7% from 2001 to 2009 and is expected to grow at a similar pace in the future and adds that business travel is expected to grow to $120 billion in 2015. "Shortage of budget hotels provides many investment opportunities for players," it suggests.