NITI Aayog Boosts Mumbai GDP to $300B by 2030

31 Aug 2023 CW Team

A representative from the Maharashtra planning department stated that the NITI Aayog has pinpointed 20 cities that will play a pivotal role in propelling the nation's growth towards achieving the ambitious goal of a $5 trillion economy. The spokesperson emphasized that while states have historically concentrated on land use and physical planning, the concept of an economic masterplan has been largely overlooked. The NITI Aayog is now taking up this responsibility for these 20 cities, with the initial phase including MMR, Surat, Varanasi, and Visakhapatnam.

During the meeting, BVR Subramanyam, the CEO of NITI Aayog, announced that the organization will present the detailed economic masterplan within the next four months. The state government has also formed a committee comprising senior officials to oversee the plan's execution.

The spokesperson further highlighted Maharashtra's well-trained workforce and robust infrastructure, including ongoing projects such as the Mumbai Trans Harbour Link, coastal highway, and Samruddhi expressway, which are expected to become operational soon. Once last-mile connectivity is established, MMR is poised for rapid growth, resulting in increased job opportunities and the potential for attracting industries like information technology and the automotive sector.

Chief Minister Ekanath Shinde expressed optimism that the state's goal of achieving a $1 trillion economy can be realized through MMR's growth. Shinde acknowledged Prime Minister Narendra Modi for selecting MMR as one of the four pilot cities for the growth hub initiative, and he announced the formation of a dedicated team of senior officials to facilitate the masterplan's success. The masterplan is anticipated to elevate the state's contribution to the country's GDP beyond the current 13%.

The MMR's GDP surpasses that of several countries, including Portugal, Saudi Arabia, Malaysia, Israel, and Chile. The population of MMR is projected to exceed 27 million by 2030. Over the past five years, the region has maintained a growth rate ranging between 5% and 5.5%. To achieve the anticipated growth in the next seven years, an investment of $150 billion is required. Subramanyam emphasized in a presentation that the urbanization rate of several states, including Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Punjab, is projected to surpass 50% by 2030, necessitating economic capabilities in their cities.

NITI Aayog has urged a concentrated focus on sectors like hospitality, tourism, construction, financial services, education, health, logistics, and transport to drive holistic development. V Radha, an additional secretary at NITI Aayog, highlighted that while city masterplans are common, the unique economic plan for MMR seeks to unlock the cities' potential through well-informed policies. Radha emphasized that MMR is well-positioned for growth, given the nearing completion of major projects like the second airport and Mumbai Trans Harbour Link. The concerted efforts should ensure that these projects become profitable assets for MMR's economic progress.

The NITI Aayog is set to create a comprehensive economic blueprint for the Mumbai Metropolitan Region (MMR) in order to enhance the city's gross domestic product from the current $140 billion to $300 billion by 2030. This development comes after a meeting between Maharashtra's Chief Minister, Eknath Shinde, and high-ranking officials from the Centre's public policy think tank. A representative from the Maharashtra planning department stated that the NITI Aayog has pinpointed 20 cities that will play a pivotal role in propelling the nation's growth towards achieving the ambitious goal of a $5 trillion economy. The spokesperson emphasized that while states have historically concentrated on land use and physical planning, the concept of an economic masterplan has been largely overlooked. The NITI Aayog is now taking up this responsibility for these 20 cities, with the initial phase including MMR, Surat, Varanasi, and Visakhapatnam. During the meeting, BVR Subramanyam, the CEO of NITI Aayog, announced that the organization will present the detailed economic masterplan within the next four months. The state government has also formed a committee comprising senior officials to oversee the plan's execution. The spokesperson further highlighted Maharashtra's well-trained workforce and robust infrastructure, including ongoing projects such as the Mumbai Trans Harbour Link, coastal highway, and Samruddhi expressway, which are expected to become operational soon. Once last-mile connectivity is established, MMR is poised for rapid growth, resulting in increased job opportunities and the potential for attracting industries like information technology and the automotive sector. Chief Minister Ekanath Shinde expressed optimism that the state's goal of achieving a $1 trillion economy can be realized through MMR's growth. Shinde acknowledged Prime Minister Narendra Modi for selecting MMR as one of the four pilot cities for the growth hub initiative, and he announced the formation of a dedicated team of senior officials to facilitate the masterplan's success. The masterplan is anticipated to elevate the state's contribution to the country's GDP beyond the current 13%. The MMR's GDP surpasses that of several countries, including Portugal, Saudi Arabia, Malaysia, Israel, and Chile. The population of MMR is projected to exceed 27 million by 2030. Over the past five years, the region has maintained a growth rate ranging between 5% and 5.5%. To achieve the anticipated growth in the next seven years, an investment of $150 billion is required. Subramanyam emphasized in a presentation that the urbanization rate of several states, including Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Punjab, is projected to surpass 50% by 2030, necessitating economic capabilities in their cities. NITI Aayog has urged a concentrated focus on sectors like hospitality, tourism, construction, financial services, education, health, logistics, and transport to drive holistic development. V Radha, an additional secretary at NITI Aayog, highlighted that while city masterplans are common, the unique economic plan for MMR seeks to unlock the cities' potential through well-informed policies. Radha emphasized that MMR is well-positioned for growth, given the nearing completion of major projects like the second airport and Mumbai Trans Harbour Link. The concerted efforts should ensure that these projects become profitable assets for MMR's economic progress. See also: Niti Aayog reveals underperformance of Guwahati Smart CityNITI Aayog seeks consultant to evaluate the operation of NHAI