“The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.”

Several factors are involved in this question and the answer to it. Maharashtra no doubt leads in attracting industrial investments but its earlier monopoly is now over. Other states, too, have been making efforts to create industry-friendly atmosphere and have succeeded in their endeavour. Karnataka, Tamil Nadu, Gujarat, Odisha and Uttar Pradesh have proved this on the basis of their welcome policies for industries. Various exemptions and facilities drive any investor’s decision to select a venue to park his unit. Maharashtra will have to examine its track record on this scale in view of its industrial promotion policy. Thus, Maharashtra has remained at the top spot industrially but will have to face competition to retain this position.

Maharashtra has been the preferred destination for foreign direct investment (FDI). Despite Covid pandemic, FDI in Maharashtra was Rs.3,29,000 crore or 28 percent of the total FDI in India between October 2019 and June 2022. This was followed by Karnataka (23 percent), Gujarat (19 percent) and Delhi area (13 percent). The statistics has been based on RBI reports. Though Maharashtra remains at the top, its overall share in FDI has shrunk because of the efforts of some other states to attract FDI.

Industrial climate in the country has undergone so many changes over the last decade that almost no state is averse to inviting investments. That is the reason the slice of each has become dependent upon the concessions and facilities offered by that particular state. It is a fact that Maharashtra is seen way below on this count. Expectedly, some of the investment is lured to other states as a result of this factor. Major states like Karnataka and Gujarat, Tamil Nadu and Telangana have overtaken Maharashtra already on account of their aggressive campaigning.
If we consider the situation in Maharashtra, the most notable industrial complexes are the IT Park at Hinjawadi and the Auto Hub at Chakan near Pune. A greenfield airport in that belt is still on paper. The Pune-Nasik rail link has just been sanctioned and shall require around five years for commissioning. The picture in other regions of the state is not too optimistic either. Some industrial activity is seen in and around Aurangabad though there is hardly any industrial investment in other areas of Marathwada region. The MIHAN project at Nagpur has been moving at a snail’s pace.. In short, Maharashtra has not been able to attract mega projects the way Gujarat has done if we review the last decade.

The factor considered most responsible for the sluggish march of Maharashtra is the Covid pandemic. But the Vedanta-Foxconn fiasco has led to a rethink. The other factor is the political instability in the state. Ever since the last assembly election in 2019 and in view of the uncertainty created by the recent developments, no new major private investment has arrived. Projects like chemical parks, textile parks or drug parks have not come up for various reasons. However, other states have been receiving new projects with open arms.

It is always said that the leadership of Maharashtra lacks in influencing the Union government. However, now that there is a double-engine regime in power, the state needs to take determined steps to exploit this opportunity. Union minister Narayan Rane heads the MSME ministry and hence can be helpful to supplement the state’s initiative. Deputy chief minister Devendra Fadnavis had been proactive as chief minister between 2014 and 2019 to accelerate industrialisation across Maharashtra. He was able to convince Delhi to some extent about the urgency to bring FDI in the state. The Covic pandemic and the MVA rule witnessed some major setback on this front. The loss of the Vedanta—Foxconn project to Gujarat was culmination of this atmosphere as talks to bring it in Maharashtra had been going on for fairly long time. However, rather than lamenting the loss, it is imperative to restructure the policy mechanism so that investor-friendly confidence is restored.
Some of the key factors that impact industrial development are the land availability, water and power tariff, their 24×7 supply, the ease of doing business and above all, the political will. These challenges have been highlighted afresh by the Vendanta-Foxconn episode. Chief minister Eknath Shinde and Fadnavis will have to dwell with due seriousness to generate confidence among potential investors so that the flow of investments and FDI resume at the earliest.

The proverbial red tape is another major impediment. In the realm of fast changing technology, it is necessary to reorganise the industry department of the state government by injecting young blood so that decision-making and implementation become prompt. At the same time, developing trained manpower is going to be a formidable challenge.

In conclusion, it may be said that timely completion of major infrastructure projects, including power plants and irrigation facilities, will change the situation in Maharashtra. It is earnestly hoped that the Shinde-Fadnavis rule will bring some good news to make the celebration of Diwali-2022 more meaningful.