Administrative Divisions of Maharashtra:

• Maharashtra is divided into 36 districts, organized under 6 revenue divisions.

• These divisions are Mumbai, Pune, Nasik, Aurangabad, Amaravati, and Nagpur.

Key Features of the Maharashtra Economy:

1. Population:
   Maharashtra is the second most populous state in India, with a population of 11.24 crores as of 2011.
   

2. Geographical Area:
   It is the third-largest state in India in terms of geographical area, covering approximately 3.08 lakh sq. km.
   

3. Urbanization:
   Maharashtra is highly urbanized, with 45.20% of its population residing in towns and cities.
   

4. Sex Ratio:
   The state's sex ratio in 2011 was 929 females per 1000 males.
   

5. Literacy Rate:
   Maharashtra boasts a literacy rate of 82.3% as of 2011.
   

6. Economic Growth:
   According to the Economic Survey of Maharashtra for 2016-17, the state had the highest growth in Gross State Domestic Product (GSDP) and State Per Capita Income (SPCI) compared to other states.
   

7. Economic Characteristics:
   The state's economy is characterized by abundant natural resources, a skilled workforce, technological advancement, and developed infrastructure.
   

8. Preferred Destination:
   Maharashtra is a preferred destination for creativity, skill development, investment, and tourism.

These features make Maharashtra a significant player in India's economic landscape.

Economic development of MH:

(A) Agriculture Sector:

• Agriculture and allied activities are significant contributors to the economic development of Maharashtra.

• According to the Economic Survey of Maharashtra 2017-18, the share of agriculture and allied activities in the Gross State Value Added (GSVA) was 12.2% in 2016-17, which reflects a declining trend from 15.3% in 2001-02.

General Problems in the Agricultural Sector:

1. Decrease in Land Holdings:
   Smaller land holdings lead to lower farm productivity. Example: Fragmented land holdings in some regions make mechanized farming less viable.
   

2. Increase in Small and Marginal Farmers:
   The rising number of small and marginal farmers can limit their access to resources and modern farming practices. Example: Subdivision of ancestral farmland.
   

3. Excessive Chemical Use:
   Overuse of chemical fertilizers and pesticides can lead to soil degradation. Example: Continuous application of chemicals without soil testing.
   

4. Agricultural Indebtedness:
   Farmers often accumulate debts due to various factors, including crop failures and low income. Example: Loans taken for purchasing seeds and fertilizers.
   

5. Poor Land Reforms:
   Ineffective land reforms and adverse crop patterns can hinder agricultural growth. Example: Lack of proper implementation of land redistribution.
   

6. Dry Land and Inadequate Irrigation:
   Insufficient water resources, especially in dryland areas, limit crop cultivation. Example: Insufficient irrigation facilities in some parts of the state.
   

7. Lack of Capital:
   Many farmers lack access to capital to invest in modern farming practices. Example: Limited access to credit for purchasing machinery.
   

8. Improper Rural Development:
   Inefficient implementation of rural development plans can hinder the growth of the agricultural sector. Example: Lack of effective infrastructure development in rural areas.
   

9. Lack of Marketing Facilities:
   Inadequate marketing infrastructure affects farmers' ability to sell their produce. Example: Absence of well-functioning Agricultural Produce Marketing Committees (APMCs).
   

10. Impact of Climatic Changes:
    Changing weather patterns and climatic conditions pose a risk to agricultural productivity. Example: Unpredictable monsoons affecting crop yields.
    

Government Measures for Agricultural Development:

1. Seed Distribution:
   The government distributes quality seeds at reasonable rates to promote better crop yields.
   

2. Fertilizer and Pesticide Outlets:
   Increasing the number of outlets for fertilizer and pesticide distribution improves accessibility for farmers.
   

3. Irrigation Development:
   Efforts to develop irrigation facilities enhance water availability for agriculture.
   

4. Electrification:
   Electrification of agricultural pumps and the provision of 'electricity on demand' ensure a reliable power supply for farming.
   

5. Financial Assistance:
   The government provides financial assistance based on farmers' requirements.
   

6. Marketing Facilities:
   The establishment of Agriculture Produce Marketing Committees (APMCs), agro-export zones, horticultural training centers, and grading and packing facilities improve distribution and marketing.
   

7. Awareness Programs:
   Creating awareness about agricultural information through mass media helps make farming a more profitable business.

(B) Industrial Sector:

• Maharashtra is an industrially advanced state and plays a significant role in its economic development.

• The industrial sector in Maharashtra has the potential to absorb excess labor from the farming sector, diversify markets, and generate higher incomes and productivity.

• According to the Annual Survey of Industries (ASI) 2016-17, the industrial sector of Maharashtra holds the top position, with an 18% share in the Net Value Added (NVA).

• It has also been a preferred choice for both domestic and foreign investors.

Foreign Direct Investment (FDI):

• FDIs are individuals or companies from one country invest in businesses or assets in another country to gain ownership, make profits, and support economic growth.

• In the early 1990s, India began liberalizing norms governing foreign direct investment (FDI) in specific sectors, with the Liberalization Act of 1991 opening the path for FDI.

• Maharashtra has consistently ranked as the number one investment destination in India and has led in terms of FDI inflow in the country.

General Problems in the Industrial Sector:

1. Delays in Government Procedures:
   Lengthy bureaucratic policies/procedures can lead to project delays, affecting overall industrial growth.
   
   Example: Approval processes for setting up new industries.
   
   

2. Lack of Skill Development Opportunities:
   The absence of adequate skill development opportunities can limit the workforce's ability to adapt to evolving industrial needs.
   
   Example: Limited access to vocational training programs.
   
   

3. Lack of Updated Technology:
   Outdated technology can hinder industrial competitiveness and productivity.
   
   Example: Reliance on traditional manufacturing processes.
   
   

4. Lack of Infrastructural Facilities:
   Inadequate infrastructure, such as transportation and utilities, can hamper industrial operations.
   
   Example: Insufficient transportation links to reach markets.
   
   

5. Lack of Motivation for New Entrepreneurs:
   Discouraging factors like complex regulatory requirements can discourage new entrepreneurs from entering the industrial sector.
   
   Example: Cumbersome registration and compliance processes.
   
   

6. Lack of Development Programs:
   The absence of government programs to support industrial growth can stifle entrepreneurship.
   
   Example: Limited access to financial incentives for startups.
   
   

7. Regional Imbalance:
   Regional disparities in infrastructure and development can lead to unequal industrial growth across the state.
   
   Example: Disproportionate industrial development between urban and rural areas.

Measures undertaken by the Government for industrial development:

1. Single Window Cell:
   The government initiated a single window cell to streamline and expedite clearances for existing and prospective investors. This reduces bureaucratic delays.
   

2. Maharashtra Industry, Trade, and Investment Facilitation Cell (MAITRI):
   MAITRI offers consolidated online information about the investment process, making it easier for investors to navigate regulatory requirements.
   

3. Incentives for Small-Scale Industries:
   Awards for export performance and space rent subsidies are provided to small-scale industries to encourage their participation in international exhibitions.
   

4. Special Economic Zones (SEZs):
   The creation of SEZs aims to boost industrial growth by providing favorable conditions for export-oriented industries.
   

5. Maharashtra State Industrial Cluster Development Programme (MSICDP):
   Implemented across the state, MSICDP focuses on developing small, medium, and micro enterprises to encourage industrial growth in various regions.

(C) Services Sector:

• The Service Sector in Maharashtra encompasses various industries, including insurance, tourism, retail banking, education, and social services.

• It involves the provision of services to both businesses and final consumers.

• The service sector plays a pivotal role in Maharashtra's economy, as it is the largest employment generator and the fastest-growing sector.

• Its contribution to the Gross State Domestic Product (GSDP) surpasses that of other sectors, accounting for 54.5% in 2017-18.

Infrastructure:

• Infrastructure is a fundamental requirement for economic development in Maharashtra.

• A robust infrastructure forms the cornerstone for the state's overall socio-economic growth.

• It serves as a magnet for attracting investments and gives Maharashtra a competitive edge over other states.

• The availability of adequate infrastructure is indispensable for achieving rapid and sustainable economic growth.

(1) Economic Infrastructure:

• Economic infrastructure focuses on facilitating the production and distribution of goods and services, which are crucial for economic development.

Measures for the development of economic infrastructure:

1. Increasing Installed Capacity of Electricity Generation:
   Enhancing the state's electricity generation capacity to meet the growing demand.
   

2. Rural Electrification and Network Improvement:
   Expanding electricity access in rural areas, improving electrical networks, and promoting energy conservation.
   

3. Modified Direct Benefit Transfer Scheme for LPG Consumers:
   Implementing schemes that directly transfer benefits to LPG consumers in the state, promoting efficiency.
   

4. Road Development Plan (2001-2021):
   Implementing a comprehensive road development plan with a goal to develop 3.37 lakh kilometers of road infrastructure.
   

5. Metro Railway Initiatives:
   Initiating metro railway projects in major cities like Mumbai and Nagpur.
   

6. Maharashtra Port Development Policy:
   Formulating a policy for the integrated development of ports in the state. The state government supports the Sagarmala program, which is a central government initiative for port-led development.
   

7. Internet Connectivity:
   Maharashtra had a substantial internet subscriber base of 5.45 crore as of September 30, 2017, the highest among all states.

(2) Social Infrastructure:

• Social infrastructure is equally important as it improves the quality of human life and contributes to economic development.

• It empowers people with the ability to produce knowledge and enhance their well-being.

• Social infrastructure encompasses areas like literacy programs, education, public health, housing, drinking water, and sanitation.

Measures undertaken to develop Social Infrastructure:

• Education:
  Education is a fundamental human need and a cornerstone of socio-economic development. In India, there are four levels of education: primary, secondary, higher secondary, and higher education.

• Primary Education:
  Maharashtra has implemented the Right to Education (RTE) for children aged 6-14, ensuring free and compulsory education under the Sarva Shiksha Abhiyan (SSA). The State government allocated `19,486 crores for primary education in 2016-17.

• Secondary and Higher Secondary Education:
  The Rashtriya Madhyamik Shiksha Abhiyan (RMSA) was initiated in 2009 to enhance the quality and accessibility of secondary education.
  In 2016-17, the State government allocated `16,089 crores for secondary and higher secondary education.
  

• Higher Education:
  Maharashtra focuses on expanding opportunities in higher education to create a technically skilled workforce crucial for economic development.
  
  The state has 22 state universities, including those specializing in agriculture, health sciences, veterinary science, technology, and general courses.
  
  To meet the challenges of liberalization, privatization, and globalization, the state enacted the Maharashtra Public Universities Act, 2016, emphasizing academic autonomy and excellence in higher education.
  
  Maharashtra was the first state to receive a Rashtriya Uchchatar Shiksha Abhiyaan (RUSA) grant of `20 crore for setting up innovation and technology transfer hubs.
  

Other Initiatives:

1. Inclusive Education:
   Addressing the needs of differently-abled children with special educational programs.
   

2. Girls' Education:
   Promoting girls' education through schemes like free education up to higher secondary levels, free ST bus service for rural school-going girls, and providing bicycles to needy girls within a 5 km radius of schools.
   

3. Adult Literacy:
   Encouraging adult literacy through innovative schemes like 'Each one Teach one' and 'Sakshar Bharat Abhiyan' with community participation.
   

4. Tribal Education:
   Introducing residential Ashram Schools in tribal areas, offering free accommodation, food, uniforms, educational materials, and other concessions for tribal students.
   The state has 556-aided Ashram Schools, and government hostels are available at division, district, and taluka levels to support tribal students pursuing higher education.

Health Services:

• Maharashtra's healthcare infrastructure includes 1814 primary health centers and 360 community health centers as of March 31, 2017.

• The government prioritizes strengthening health systems in both rural and urban areas through the National Rural Health Mission (NRHM) and National Urban Health Mission (NUHM).

• These programs address health determinants like sanitation, hygiene, nutrition, and safe drinking water.

Three-Tier Health Infrastructure:

• Maharashtra has established a three-tier health infrastructure to provide comprehensive health services:
  

  • Primary Tier:
    This level comprises Primary Health Centers and Community Health Centers to address basic healthcare needs at the grassroots level.
    

  • Secondary Tier:
    It includes sub-district hospitals and district hospitals, equipped to handle more complex healthcare cases.
    

  • Tertiary Tier:
    At the highest level, Maharashtra boasts well-equipped medical colleges and super-specialty hospitals located in major cities. These institutions provide advanced and specialized medical care to residents.

Tourism in Maharashtra:

Tourism industry overview:

• Maharashtra is a popular tourist destination, attracting visitors from various Indian states and abroad.

• To boost tourism, the government introduced the Maharashtra Tourism Policy in 2016.

Objectives of the Tourism Policy:

1. Leading Tourist Destination:
   The policy aims to position Maharashtra as a leading tourist destination by 2025.
   

2. Attraction of Investments:
   It seeks to attract investments totaling `30,000 crore into the tourism sector.
   

3. Employment Generation:
   The policy intends to create one million additional jobs within the tourism industry.

Maharashtra Tourism Development Corporation (MTDC):

• The MTDC serves as the key implementing agency for the state's tourism policy.

• MTDC organizes various events, including the Ellora Festival and Elephanta Festival, to showcase the state's cultural and historical richness.

• MTDC has introduced the 'Mahabhraman' scheme, consolidating diverse experimental projects like agro-tourism, village tourism, food tourism, safaris, and tribal lifestyle experiences under one umbrella.

Hospitality in MH:

Hospitality Industry Overview:

• The hospitality industry encompasses a wide array of sectors, making it broader and more diverse than many other industries.

• In Maharashtra, the hospitality industry has experienced significant growth, primarily due to the flourishing tourism sector.

• A key defining characteristic of the hospitality industry is its unwavering focus on customer satisfaction.

Hotel Industry:

• The hotel industry is a crucial component of the broader hospitality sector.

• Maharashtra features a range of hotels, from budget to luxury, to accommodate the diverse needs of tourists and travelers.

Transportation Services:

• Many forms of transportation catering to tourists are an integral part of the hospitality industry in Maharashtra.

• This includes airlines, cruises like the Mumbai-Goa cruiseship, and luxury train services such as the Deccan Odyssey.

Diverse Services:

• Restaurants, event management, and general tourism services play significant roles in this sector, collectively contributing to the overall hospitality experience for visitors.

Entertainment:

Entertainment Industry Overview:

• India holds the distinction of producing the largest number of films in the world, making the entertainment industry a vital part of the nation's culture and economy.

• Maharashtra, particularly Mumbai, plays a significant role in the Indian entertainment sector, contributing to its growth and global impact.

Employment Generation:

• The entertainment industry in Maharashtra is a significant source of employment for a large number of individuals.

• Cities like Kolhapur have gained recognition for their contributions to regional films.

Mumbai: The Bollywood Hub:

• Mumbai, often referred to as 'Bollywood,' is globally renowned as the heart of the Indian film industry.

• Bollywood is influential not only in India but also on the global stage, impacting the worldwide film industry.

(D) Co-operative Movement in Maharashtra:

• The cooperative movement is widely regarded as one of Maharashtra's most significant contributions to the country's development.

• It is an effective tool for fostering economic progress in rural areas and improving the socio-economic conditions of underprivileged individuals.

• Cooperative societies, by their very nature, promote essential values such as self-help, democracy, equality, and solidarity.

It expanded into various sectors:

• Agro Processing:
  Co-operatives expanded to process fruits, like turning local oranges into jams.
  

• Agro Marketing:
  Farmers collectively sold vegetables to local markets for better prices.
  

• Sugar Co-operatives:
  Sugar co-operatives manage sugarcane cultivation and sugar production.
  

• Fisheries Co-operative Societies:
  These co-operatives invest in boats and equipment for higher fish catches.
  

• Co-operative Dairy Societies:
  They help local dairy farmers process and market milk and products like cheese.
  

• Textiles:
  Co-operatives diversified into the textile industry, manufacturing fabrics and clothing.
  

• Housing Societies:
  They engage in building affordable housing complexes.
  

• Consumer Stores:
  Co-operatives operate local grocery stores offering a variety of consumer products.