Facing paucity of funds, state woos investments | Mumbai news
MUMBAI: With the state struggling with a financial crunch, the budget presented by finance minister Ajit Pawar for the year 2025-26 has a significant section devoted to showcasing efforts to attract more investments. The minister announced the unveiling of a new industrial policy that aims to attract investments worth ₹40 lakh crore and create 50 lakh jobs over a period of five years.
He also stated that separate policies will be announced for the space and defence manufacturing sectors, electronics, gems and jewellery, micro, small, and medium enterprises, as well as for the circular economy, while new labour rules will be framed as per the new labour code of the central government.
In his budget speech, Pawar also announced development of a ‘Growth Hub’ in the Mumbai Metropolitan Region (MMR), under which a new economic development centre of international standards will be established at seven locations – Bandra-Kurla Complex (BKC), Kurla-Worli, Wadala, Goregaon, Navi Mumbai, Kharghar and Virar-Boisar.
“The objective is to increase the size of the economy of Mumbai Metropolitan Region from the current 40 billion dollar to 300 billion dollar by 2030, and to 1.5 trillion dollar by 2047,” he declared.
This is in addition to establishing an innovation city in Navi Mumbai. “Innovation City will be established in 250 acre of land in Navi Mumbai to provide employment opportunities to the youth and to ensure that the state leads in new initiatives,” Pawar informed the state assembly.
The state government is also looking to reduce the power tariff for the industries sector. The same was indicated by Pawar in his budget speech when he informed that the Maharashtra State Electricity Distribution Company (Mahavitaran) has submitted a proposal to the Maharashtra Electricity Regulatory Commission (MERC) to fix electricity rates for the next five years. “It is estimated that electricity purchase costs will be reduced by ₹1.13 lakh crore over the next five years due to energy sector planning and the procurement of low-cost green energy. This is expected to make industrial electricity rates in the state lower compared to other states,” he said.
Promotion of investment is also one of the seven points of the action plan directed by the chief minister Devendra Fadnavis to prepare for the first 100 days of the Mahayuti 2.0 government. Speaking to the press, the chief minister emphasised that Mumbai is the fintech and startup capital, making it the right time to expand business hubs in and around the city. “MMR alone has the capability to become a 1.5 trillion dollar economy, making it a significant contributor to the state’s economic expansion,” he remarked.
The finance minister’s budget speech also pointed out that the state has always been at the forefront of industrial development and ranks first in the country in terms of Foreign Direct Investment. It signed Memorandum of Understanding (MoUs) with 63 companies in January 2025, during the World Economic Forum (WEF) held in Davos. An investment of over ₹15 lakh crore is expected in the near future through these agreements, which is estimated to create around 16 lakh employment opportunities.
The minister also touched on the Maoist-infested Gadchiroli district which, he said, is rapidly emerging as a ‘steel hub.’ “In Davos, investment agreements worth ₹21,830 crore were signed for Gadchiroli district alone, which will generate around 7,500 jobs. A network of mining highways is also being developed to improve transportation in the district with works worth approximately ₹500 crore to be undertaken in the first phase,” he declared.
