Maharashtra continues to hold its position as India’s leading industrial investment destination, with nearly 70–75% of investment agreements signed since 2022 already taking shape on the ground. Maharashtra Industrial Development Corporation (MIDC) CEO P. Velarasu shared this progress during an interaction at the FPJ Dialogue on Wednesday, stressing that the state remains a preferred hub for both emerging and established industries.
Early Industrialisation Gave Maharashtra a Long-Term Lead
Velarasu noted that Maharashtra’s early transition from a predominantly agricultural economy to an industrial-focused framework helped cement its leadership position. However, he cautioned that other states are rapidly upgrading infrastructure and aggressively competing for investments.
“When other states were doing agriculture, industrialisation started here. Over time, other states developed infrastructure and started attracting industries. Even today, we are the top in the country,” he said.
Competition Rising as Other States Catch Up
He added that while Maharashtra still leads, the gap between the leading states is narrowing.
“States like Tamil Nadu, Gujarat, Karnataka and Madhya Pradesh are also doing well. Maharashtra must remain more careful in the future to maintain its number one position in industrialisation.”
‘Companies Don’t Shift Because of Politics, But Feasibility’
Refuting claims that major companies are moving from Maharashtra to Gujarat, Velarasu clarified that multinational corporations make decisions based on comparative feasibility.
“These big-ticket industries do not go to just one state. They evaluate where they get more concessions and better business conditions. Many of them set up multiple units across different states,” he said, citing examples like Foxconn.
70–75% of Davos MOUs Now Under Implementation
Responding to questions on the World Economic Forum (Davos) investment commitments, Velarasu explained that implementation takes time due to procedural steps involving land allocation, concessions and infrastructure.
“Now we can proudly say around 70 to 75 percent of the MOUs are already implemented,” he added.
Digital Transparency Boosts Investor Access
Highlighting digital governance initiatives, Velarasu said Maharashtra now has over 300 MIDC industrial estates, and details of available industrial land have been uploaded onto an online portal. Investors can apply directly without intermediaries.
“This avoids broker involvement. After launching the platform two months ago, we have received around 5,500 applications,” he said.
Policy to Revive Sick Units in the Works
Velarasu acknowledged the presence of “sick industries”—units unable to operate profitably. The government is preparing a policy to buy back such units and reallocate them to business groups willing to run them sustainably.
Massive Land Bank to Support Future Industrial Growth
To strengthen infrastructure, the state currently holds 2 lakh acres of industrial land and is in the process of acquiring an additional 35,000 acres.
Environmental Concerns May Lead to Land-Use Conversion Policy
Addressing concerns in industrial belts such as Taloja and Dombivli, Velarasu admitted that relocation is challenging due to high capital investments and liabilities.
“We are thinking of a policy where industries can shift to new zones and be allowed to convert their existing land for residential use. That will benefit both investors and residents, but the policy is still under review.”
New Clusters Emerging in Eastern Maharashtra
He highlighted new industrial clusters, particularly in Eastern Maharashtra, where steel manufacturing is gaining momentum.
“We have notified 25,000 acres of land in Nagpur, Chandrapur and Gadchiroli. Companies like JSW and Laxmi are coming there,” he said.
Defence Manufacturing Sees Sharp Growth
Defence manufacturing has surged, especially after Operation Sindoor, boosting demand for domestic equipment.
“The state has declared 3–4 defence corridors in Nashik, Ahilyanagar, Amravati and Nagpur. About 10,000 acres of land are being purchased for the sector, including buffer zones for testing long-range defence equipment,” he said.
As Maharashtra gears up for its next phase of industrial expansion, Velarasu expressed confidence that policy reforms, digital transparency and infrastructure growth will help the state maintain its lead amid intensifying national competition.
Budget Advertisement: To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
