Home » Maharashtra to increase the share of services sector from 49% to 65%: CM Fadnavis

Maharashtra to increase the share of services sector from 49% to 65%: CM Fadnavis

Maharashtra to increase the share of services sector from 49% to 65%: CM Fadnavis
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Maharashtra has always led the countrys industrial development scenario and continues to attract the largest quantum of investments  both domestic and foreign. The State has established strengths in every sector including engineering, automobiles and auto components, chemicals, drugs and pharmaceuticals, textiles, information technology and biotechnology. It offers the finest infrastructure, excellent educational facilities, quality trained manpower, a professional work ethic and a conducive business environment. A wide variety of horticultural crops are also grown in the State, making it a major producer of oilseeds, rice, cotton, sugarcane, etc. In addition, the rich heritage, trade, culture, history and growing economy of the State are the major tourist attractions.

Recently, the state has signed 4,106 memorandums of understanding (MoUs) involving an investment of more than Rs 12.10 trillion which will help create more than 3.6 million jobs. Apart from the 3.6 million jobs that 4,106 investment proposals promise to create, the approved investment of Rs 3.91 trillion that government agencies would make would generate more than 2 lakh jobs.

Devendra Fadnavis, Chief Minister, Maharashtra said that the State has always been the growth engine, contributing 15 per cent in gross domestic product. The State is one of the highest exporters, and has one of the largest IT hubs of India. He further emphasised that as India is eyeing to become a $5 trillion economy, Maharashtra will the major contributor in spearheading this dream. He said, A road map was created by the State for the trillion dollar economy. The services sector plays an important role in this roadmap. And, we are driving our efforts on taking the services sector in Maharashtra from the current level of 10 per cent to 15 per cent. "During the panel session, Fadnavis said, "The service sector in the State’s GDP is 49 per cent and we will take it 65 per cent by 2025." On employment scenario, Fadnavis was very much vocal on the untilisation of the available skilled manpower to the investors.

He said, Large scale manpower is available in the State. It will be used properly in the services sector. Presently, the share of the services in the services sector is 30 per cent.

That said, as the country has adopted going digital and being digital, he deliberated that in the future, there will be digital services and digital manufacturing economies. This will propel large scale employment opportunities. Knowing this, Maharashtra has created a suitable eco system and Maharashtra is the first State in the country to do this.

A step in this direction, he mentioned, We have recently inaugurated artificial intelligence system and became the only State in India to declare its FINTEC policy and this will play be an important part of making Maharashtra a financial capital city. In the meantime, the State has also announced different policies for the industry. The State has also announced IT and ITES polices and will make a township for it. According to the Chief Minister, the state has already received two proposals. Apart from the manufacturing sector, these days, startups are also taking lead in creating jobs. Since the base of the sector is based on innovation ideas, these ideas are transforming lives of many in the country and state as well. Young start-up strategies are giving new ideas to young people. Through this policy, there will be a large amount of investment in the services sector, logistics and agriculture, Fadnavis announced at GES 2018.

Apart from announcing various policies, the Maharashtra government is paying a lot of attention on Ease of Doing business in order to avail unrealistic services to the industry. This has resulted the State in jumping various points in the World Bank Rankings.

That apart, the State is also the first in unlocking potential of industrial parks by converting Mumbai SEZ to a non-SEZ by creating Navi Mumbai Industrial Park. Meanwhile, another feather in the States cap, CM announced that Maharashtra is now the only State to have an independent public cloud policy.

We have set an example for other states by creating a virtual data centre than physical. To add more, Maharashtra has received investment intention from more than 5,000 fintec companies, which will fetch 2.5 lakh jobs attracting Rs 50 billion. Meanwhile, the State will cooperate with Amazon for data services. To attract large investments in the service sector, ecosystems have been created in the State for logistics and 12 service areas.

On tourism, Jaykumar Rawal, Minister of Tourism & Employment Guarantee Scheme, Government of Maharashtra, said that the in the coming years, the State will drive Indias economy and tourism sector would be playing a major part in $1 trillion economy. That said, in the coming months, according to Rawal, the State will open its door to the private sector for redevelopment of forts and the government will come out with a heritage policy soon.

During the panel session, Rawal announced that since the State has huge land bank, it is opening its door to other countries to participate and invest in Maharashtras tourism sector.

During the panel discussion on what are the key aspects Maharashtra must adapt to achieve $1 trillion dream, Vinayak Chatterjee, Co-founder, Feedback Infrastructure, suggested that the state government must define industries as the mindset is all about manufacturing, other than services.

On achieving 65 per cent growth in services, Chatterjee mentioned that the domestic market will support the State at certain level, but for a quantum jump, the State must consider export of the servicing industries. He also suggested to redefine the role of EXIM bank.

On how efficiently media can contribute to state’s growth, Maneck Davar, Vice Chairman of Services Export Promotion Council (SEPC), said, We will take SEPC to a new height and will create an environment for investors to invest in India. However, he was vocal about suggesting the state government on focusing on issues like soft power as the city of Mumbai attracts lot of migrants from other states.

On concluding note, Chandrajit Banerjee, Director General, CII, said, If Maharashtra becomes $1 trillion economy, can India become $5 trillion dollar, and suggested that Mumbai should be services capital of the country apart from financial.

RAHUL KAMAT

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