The Maharashtra government has unveiled an ambitious plan to attract massive investments into its manufacturing and services sectors, setting the stage for unprecedented economic growth. P Anbalagan, Secretary (Industries) for the Maharashtra government, announced that the state aims to unlock investments worth $850 billion under its New Industrial Policy 2025.
Vision for a Trillion-Dollar Economy
Speaking at the Confederation of Indian Industry's Manufacturing Summit 2025 in Mumbai, Anbalagan revealed that the state's vision for achieving a $1 trillion economy by 2030 will be primarily powered by emerging sectors ranging from electric vehicles to semiconductors. This strategic focus represents a significant shift toward future-ready industries that can position Maharashtra as a global manufacturing hub.
The event witnessed active participation from prominent industrialists who emphasized the need for minimal government interference to foster greater competitiveness and growth. The consensus among business leaders highlighted the importance of creating an enabling environment rather than restrictive regulations.
Industrialists Call for Tariff Reforms
R Dinesh, executive chairman at TVS Supply Chain Solutions, articulated a nuanced perspective on tariffs, stating that "Tariffs should be used not as a weapon, but as an enabler." He emphasized that tariffs should only be employed to safeguard key strategic sectors such as semiconductors and should be implemented carefully, perhaps to bridge the cost of doing business for limited periods.
Jamshyd Godrej, managing director of Godrej & Boyce, pointed to the stark disparity in tariffs between various sectors as detrimental to both growth and competitiveness. "When tariffs are low, the disparity doesn't become a barrier to competitiveness. The disparity which currently exists actually doesn't encourage greater competitiveness and innovation," he observed.
Historically, the government has maintained high tariffs for foreign players in sectors including automobiles and auto components, agriculture, and metals to protect domestic industries and promote growth. However, industrialists now argue for a more balanced approach that encourages global competitiveness.
Quality Control and Market Dynamics
On the topic of Quality Control Orders, Godrej advocated for market-driven quality standards. "The market should decide which is a quality product and which is not, and the government cannot intervene and create a nanny state in everything to do with manufacturing," he stated. He highlighted the contradiction in saying the market will decide while having bureaucrats make these determinations.
The New Industrial Policy 2025 represents a comprehensive approach to industrial development that balances protection of domestic interests with the need for global integration. By targeting specific high-growth sectors and addressing regulatory concerns, Maharashtra positions itself as a frontrunner in India's industrial transformation journey.
The successful implementation of this policy could potentially create millions of jobs, boost exports, and establish Maharashtra as a preferred investment destination globally. The state's strategic focus on future technologies while addressing current regulatory challenges demonstrates a forward-looking approach to economic development.
