Why Are Foreign Investors Pursuing To Invest In Maharashtra?


Maharashtra is the 3rd largest, and the 2nd most populated state in India. About 66% of Maharashtra’s population is in the working age group of 15-59 years. It is very well connected to all the major markets with 3 international airports (Mumbai, Pune, and Nagpur), and has extensive developed roadways and railways. The state’s coastline has 55 ports facilitates about 22% of total cargo transport in India.

The state attracted about 31% of the total FDI (Foreign Direct Investments) inflows in India during 2000-18. It contributed about 12% to the country’s GDP growth in 2017-18.

Maharashtra is an industrial leader attracting the FDI and other investment sectors.

It has a good presence of industrial clusters, especially Automobile, IT & ITES, Chemicals, Textiles, Tourism, Biotechnology & Pharmaceuticals, Food Processing, and Gems & Jewelry it offers a lucrative investment opportunity in these sectors.

Here’s why foreign investors are investing in Maharashtra;

The prominent key sectors attracting foreign investors in India are;

Textiles & Garments

Growth Drivers – Rising per capita income, organized retail landscape & e-Commerce, Favorable demographic trends, and changing lifestyles.

Investment – Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing $60 mn in the next 4 years

Food Processing

Growth Drivers – Agri-commodity hub, huge consumer base, Strong economy, and Conducive policies.

Investment – The Food Processing Park at Vinchur in Nashik district has attracted an investment of $150 mn, and it is expected to generate 5,400 jobs. A total of 15 food processing units have signed MoUs with the state government during ‘Magnetic Maharashtra’, global investors’ summit and exhibition.


Growth Drivers – Growing income, ‘Youngest Nation’ by 2025, and Expanding R&D hub

Investment – JSW Energy plans to double its investment to $ 956.1 mn for its electric vehicle manufacturing unit they have has signed a MoU with Maharashtra.

Tourism and hospitality

Growth Drivers – Incredible India campaign, E-Tourist VISA facility, Special Tourism Zones (STZ), Medical tourism, and Coastal tourism.

Electronic Systems

Growth Driver – Digital media, Smart cities, Government cloud initiative, National Knowledge Network (NKN), and Ultra mega solar project.


Growth Drivers – Skill development and R&D, The National Optical Fibre Network (NOFN), Digital India campaign, and Start-up revolution.


Growth Drivers – Growing population, Rising economic prosperity and consciousness, and Strong skilled manpower pool.

Investment – 8 biotechnologies SEZ have been proposed with investment $738 mn creating 94000 jobs.

Gems & Jewellery

Growth Drivers – Traditional Domestic Demand, Rising Income Levels, Growing Middle-Class Population, Increasing Expenditure, and Growing Organized Retail Format.

Investment – London’s ultra-luxury jeweler for the super-rich, Faberge, owned by the world’s top emeralds and rubies-miner Gemfields Plc., has decided to enter India.

New and modified policy and scheme in Maharashtra to attract FDI and smooth transaction are;

The driving policy change and the new schemes have attracted a large number of FDI and small & medium industries across Maharashtra. Pune is top industrial powerhouse in Maharashtra a large number of investors have invested here.

Source – https://www.investindia.gov.in/state/maharashtra

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