Strong reform momentum is expected to further accelerate infrastructure development in Maharashtra, India’s largest state economy with a gross state domestic product (GSDP) of USD 536 billion, according to a recent report by US-based financial giant Morgan Stanley.

The state is advancing its leadership through significant infrastructure spending and policy measures, including streamlined single-window clearances aimed at improving ease of doing business. Maharashtra is recognised for having one of the best connectivity infrastructures in the country.

With an ambition to build state-of-the-art infrastructure that is environmentally, economically, and socially sustainable, Maharashtra continues to consolidate its position as a development leader. Contributing 13.7 per cent to India’s GDP, it has retained its status as the top-ranked state for nearly five decades.

“Maharashtra is the world’s 28th-largest economy. It leads India in multiple areas and appears set to maintain its position through progressive leadership, constructive policies, massive infrastructure investment, and social projects. Maharashtra could approach a USD 1 trillion GDP by 2030,” the report stated.

Currently, 30 mega infrastructure projects are in progress to boost economic growth and improve connectivity. These include metro rail networks in Pune, Mumbai, and Nagpur (USD 21.8 billion), the Navi Mumbai International Airport (USD 2.4 billion), the Vadhvan Port (USD 8.8 billion), and key highway developments.

Maharashtra's share of national highways rose from 6.8 per cent in FY14 to 12.6 per cent in FY24, despite accounting for only 9.4 per cent of India’s land area. The state is also developing an integrated metro system for efficient intra-city transport across major cities.

The state’s 720-kilometre-long Arabian Sea coastline is home to major ports such as Mumbai Port and Jawaharlal Nehru Port Authority, along with several minor ports, all contributing significantly to trade. The upcoming Vadhvan Port, a greenfield project in Palghar District, is valued at Rs 762 billion and is expected to handle 298 million metric tonnes annually while generating one million employment opportunities.

To ensure stable infrastructure financing, the government has launched the Maha InvIT platform—an infrastructure investment trust aimed at supporting road and bridge projects.

Maharashtra’s fiscal health remains strong, with outstanding debt projected at 18.5 per cent of GSDP in FY25, among the lowest in the country. This fiscal prudence positions the state well for sustained capital expenditure and infrastructure investment.

However, the report also highlighted challenges, including regional disparities in growth, environmental concerns, and urban issues such as air pollution, traffic congestion, and climate change risks.

News source: Business Standard