Tata Strategic Management Group (TSMG) in association with the Maharashtra Economic Development Council (MEDC), have released a compendium – The Business Altitude: Rediscover Maharashtra – at the Golden Maharashtra Summit 2011.

The research consolidates the trends as well as future potential for key sectors for the economic growth in Maharashtra.

Tata Strategic put forth the global and Indian overview, the regulatory and policy framework across sectors such as manufacturing, infrastructure and services.

“Through the various sector report, we at Tata Strategic Management Group have shared the situation on the ground and also analysed the current as well as the future potential for the state,” TSMG's CEO, Mr Raju Bhinge, said at the launch of the report.

Growth potential

The report highlights the tremendous growth and investment potential in sectors such as the pharmaceutical and chemical industries, power and renewable energy sector, airports and ports development, retail and food and agro-products segments.

On the pharmaceutical industry, it said, “Factors such as large base of APIs and bulk manufacturing units, proximity to international market with world-class connectivity, availability of skilled manpower, R&D centres and training institutes and presence of all leading pharmaceutical companies are contributing to Maharashtra strongly emerging as the top destination in India.”

The Indian chemical industry has the potential to grow at 15 per cent per annum to reach $ 330 billion by 2020 and Maharashtra could aspire to double its share of India's chemical production to over 15 per cent over the next few years.

“Good availability of feedstock, proximity to several consumer industries and strong connectivity through port, road and rail network are the key strengths for chemical industry in Maharashtra,” it said.

The renewable energy potential in the state is in excess of 7.4 GW and only 34 per cent of the potential has been realised.

Increasing urbanisation and rising incomes will be the major growth drivers for the retail industry in Maharashtra and the mall space in Mumbai and Pune is expected to grow by 17 million sq ft by 2012, it said.

Development of tier II cities such as Nashik, Aurangabad, Solapur and Amravati are expected to see an increased penetration of organised retail, it said.

On airports and ports, it said that as many eight greenfield airports are expected to come up in the near future while six minor ports are earmarked for development by the Maharashtra Maritime Board through the PPP mode.

Highlighting the potential in food and agro products, the report said that Maharashtra's gross state domestic product from agriculture and livestock is at $9.3 billion, the third highest among all States.

Several schemes of the State Government aimed at promoting the sector makes Maharashtra an attractive destination for agri sector investment, it said.

With business travel expected to grow from $54 billion in 2009 to $120 billion in 2015, “Mumbai, being the financial capital, would stand to gain,” it added.

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