On November 23, 2024, Maharashtra’s electorate delivered the most decisive state assembly verdict since 1995, handing the Bharatiya Janata Party (BJP)-led Mahayuti a landslide victory. This signifies not only a rejection of the instability that marred the 2019-2024 cycle but also a resounding call for robust governance.
Maharashtra has long attracted domestic and international investment, helped by its strategic location, infrastructure, and progressive policies. The state has carved out a niche in IT, electronics manufacturing, and automotive industries, positioning itself as one of India’s economic powerhouses. Thus, Maharashtra’s continued success directly impacts the national economy. The new government has a unique opportunity to leverage this mandate to steer the state toward a prosperous and inclusive growth trajectory.
Key economic centres (KECs) like Mumbai, Pune, and Nagpur have led the state’s economic charge. The ambitious NITI Aayog master plan aims to transform the Mumbai Metropolitan Region (MMR) into a global economic hub by 2030, doubling its Gross Domestic Product (GDP) from ₹12 lakh crore to ₹26 lakh crore. This vision, complemented by infrastructure projects such as the Atal Setu and the DB Patil International Airport near Navi Mumbai, underscores Maharashtra’s critical role in shaping India’s future.
The DB Patil International Airport, set for operationalisation in 2025, is poised to be a game-changer for the region. Expected to generate 400,000 job opportunities, the airport can catalyse a rise in the region’s overall economic activity. Additionally, the ₹58,000 crore connectivity plan announced for the MMR aims to integrate urban centres like Palghar, Raigad, Thane, and Navi Mumbai — areas that account for nearly a third of Maharashtra’s GDP. By linking these hubs through robust infrastructure, Maharashtra can ensure balanced regional development.
Despite its economic prowess, Maharashtra faces significant challenges. Mumbai, the country’s financial nerve centre, struggles with two critical issues: Expensive housing and inadequate infrastructure. With a price-to-income ratio of 40, Mumbai is one of the costliest real estate markets globally, making homeownership a distant dream for many. Additionally, the city lags in transport infrastructure, with only 50km of Metro network operational compared to 400km in Delhi. Expensive housing and inadequate transport reduce the city’s livability and impact its ability to attract talent.
By fast-tracking Metro projects, expressways, and slum redevelopment initiatives, the new government can address these issues effectively. Policies aimed at streamlining real estate approvals, reducing stamp duty, and promoting affordable housing will stimulate the sector and create a ripple effect on the economy. Urban regeneration through slum rehabilitation will rejuvenate ageing infrastructure while ensuring equitable housing solutions for all. Furthermore, prioritising urban renewal in critical areas of Mumbai and fostering connectivity through mega projects like the Navi Mumbai airport will bolster the city’s position as a global hub.
The state is uniquely poised to lead the Industry 4.0 revolution, leveraging technological advancements through favourable policies. In 2023, the state attracted ₹1.25 lakh crore in foreign direct investment (FDI)), surpassing the combined totals of Gujarat and Karnataka. During the first quarter of FY25, Maharashtra accounted for over 52% of India’s total FDI inflows, reaffirming its status as a preferred investment destination. The state’s new IT-ITES Policy 2023 introduces significant opportunities, particularly in emerging sectors like Industry 4.0 and AVGC (animation, visual effects, gaming, and comics). By allowing IT companies to establish tech parks anywhere in the state and offering subsidies such as 100% waivers on stamp duty and electricity charges, Maharashtra seeks to become India’s leading AVGC hub. A streamlined approval process through single window clearances will further accelerate project implementation.
The potential of these initiatives extends beyond economic gains. With nearly 10 million Generation Z voters in Maharashtra, the state can engage the youth by creating high-tech jobs and fostering innovation. A focus on Industry 4.0 can not only redefine Maharashtra’s economic trajectory but also inspire other states to follow suit, contributing to India’s global competitiveness.
Mandate 2024 in Maharashtra is not just a political moment — it is an opportunity to set a transformative agenda. By addressing pressing challenges in housing, infrastructure, and technological innovation, the state can emerge as a model of inclusive growth and sustainable development.
Piyush Zaware is a researcher at the University of Chicago. The views expressed are personal
