Changing times, new challenges

Murali Gopalan Updated - June 08, 2014 at 06:57 PM.

There is no question that Maharashtra will continue to be the centre of gravity for some years, but the time has come to put things in order.

Road to success: An aerial view of the Bandra-Worli Sea Link in Mumbai, which is an absolute time-save for travel connecting the western suburbs with south Mumbai. Photo: Paul Noronha

Not so long ago, the western part of India largely meant Bombay (as it was called then) to make your money, and then Goa to blow it up.

Then there was Poona where folks moved to as their retirement abode.

How times have changed since then! Bombay is history and Mumbai has taken over. Likewise, the Pune of today is young and energetic, even while retaining its old world charm.

And, well, Goa could just end up becoming tomorrow's urban catastrophe, though tourists continue to come by the thousands to chill out on its beaches.

There is also a new kid on the block — Gujarat that is giving the monarch, Maharashtra, a run for its money.

Big names like Peugeot and Ford are heading there to make cars that will be sold in India and exported to different parts of the world.

Nobody could have envisaged this years ago. Maharashtra was the El Dorado where people made a beeline for with their dreams of making it big. Mumbai is the address of the biggest stars in Hindi cinema and home to some of the top names in corporate India.

Bollywood rules

Nothing has changed. Bollywood continues to thrive in Mumbai, while the Tatas, Birlas and Ambanis are key parts of the landscape. The spirit of entrepreneurship is as strong as ever, but the chinks are beginning to show.

Every part of Mumbai is bursting at its seams. Trains are overcrowded, roads have seen better days, traffic is nothing short of a nightmare and homes are simply out of reach for the common man.

Neighbouring Pune is now an auto hub and its residents include some of the top names like Volkswagen, General Motors, Bajaj Auto and Mahindra & Mahindra.

Yet, infrastructure continues to be an area of concern, and it is here that Gujarat is hoping to score brownie points and attract new investors. There is no question that Maharashtra will continue to be the centre of gravity for some years, but the time has come to put things in order. For some time in the mid-1990s, it looked as if it had lost its way with some real big projects such as Ford, Hyundai, ISB (Indian School of Business) moving South.

Things were quickly set right with new investment policies which did the trick in getting the next flush of entrants to Maharashtra.

Chakan, Ranjangaon and Talegaon were the new auto hubs, while Hinjewadi was the IT nerve centre.

Infrastructure

The mood was buoyant once again except that infrastructure was just not keeping pace with the changes.

Availability of power became a big issue in factories, while road connectivity still remained a challenge in certain parts of the State. The impression gaining ground within industry circles was that decision making was slow which was causing this level of inaction.

In contrast, Gujarat was being perceived as being quick and nimble. A case in point was the Tata Nano project which, four years ago, was rudderless in West Bengal.

Gujarat was quick to seize the opportunity and laid down the red carpet for the Tatas. The speed of decision making on the Nano left India Inc speechless. It was also the spur for others to follow suit into Gujarat.

Peugeot was tipped for Tamil Nadu but chose to be Tata Motors' neighbour in Sanand.

The same was true for Ford whose first plant was near Chennai, but decided on Gujarat for its critical second phase of growth in India.

Now, market leader Maruti, has decided to put up its new plant in this part of the country.

Investments

So, where does all this leave Maharashtra? It still scores in terms of investments and the staggering profiles of its industry residents, but cannot take this advantage for granted.

The good part is that areas like Nagpur promise plenty in the long-term. Plans are under way to improve connectivity across the State which means that things will only get better from now.

Published on December 22, 2011 18:30