The BJP-led Mahayuti alliance has swept Maharashtra’s state assembly elections, winning 230 out of 288 seats. As per the election commission, BJP has won 132 seats, Shiv Sena won 57, while the NCP got 41 seats, recording a voter turnout of 65.02% in the state.
But what does this decisive hold on political power mean for Maharashtra’s economy and India Inc‘s future?
According to Emkay Research, Maharashtra’s recent capex performance reached 2.4% of GSDP in FY24, but with the increased welfare commitments by the government, sustaining and expanding this level of capex will be challenging.
For FY25, the report projects that capital expenditure could be cut by around 0.4-0.5% of GSDP to manage the additional fiscal pressure brought on by enhanced social spending. This reallocation is primarily driven by the Mahayuti government’s promises, including the increase in aid under the Ladki Bahin Yojana, which alone could lead to an annualised increase in expenditure from Rs 460 billion (1.1% of GSDP) to Rs 644 billion (1.5% of GSDP). Here is what Mahayuti alliance plans to achieve in their tenure henceforth:
Maharashtra to be USD 1 Trn Economy by 2028
BJP’s economic agenda is to make Maharashtra a USD 1 trillion economy by 2028. The manifesto brings light to the “Make in Maharashtra” initiative to enhance industrial output and innovation, aiming to establish the state as a global hub for fintech, artificial intelligence (AI), and aerospace.
It highlighted, “Maharashtra will be established as the global capital for fintech and AI, with the country’s first dedicated AI university to foster research, innovation, and development.”
What is in for India Inc?
The manifesto promised to simplify regulations under the proposed Ease of Doing Business Act and establish dedicated incubation centers to foster entrepreneurship.
Mahayuti also plans to establish Chhatrapati Shivaji Maharaj Akanksha Kendras in every district of Maharashtra. These centers will act as hubs for startups and entrepreneurs, offering co-working spaces, incubation facilities, and mentorship opportunities. The aim is to create 10 lakh new entrepreneurs across the state and a comprehensive Skill Census to analyse the gaps in workforce skills and align them with industry requirements.
The creation of new industrial districts in Jalgaon, Solapur, and Amravati, along with initiatives like One District One Product, could decentralise economic activity, driving growth across regions.
Promise of 25 Lakh Job Creation
The Mahayuti government promises to create 25 lakh new jobs across various sectors, focusing on providing employment to the youth.
The BJP-led alliance also aims to create 50 lakh lakhpati didis (wealthy women entrepreneurs) by establishing industrial clusters for self-help groups (SHGs). These clusters, backed by a revolving fund of Rs 1,000 crore, will help women turn into successful entrepreneurs.
One of the flagship initiatives is the Ladki Bahin Yojana, aimed at empowering women across the state. Under this scheme, the financial assistance provided to women will be increased from Rs 1,500 to Rs 2,100 per month, coupled with financial literacy training to strengthen their economic independence.
However, a report by Emkay cautions that these promises, while politically advantageous, could heighten fiscal pressure. The increase in welfare spending, such as the enhancement of the Ladki Bahin Yojana, is expected to push the state’s fiscal deficit-to-GSDP ratio from 3.0% to 3.15% in FY25, potentially leading to cuts in capital expenditure.
The manifesto promises 5,000 kilometers of modern expressways, like the Mumbai-Pune Expressway and the Samruddhi Mahamarg, along with a 1,000-kilometer metro network in cities like Mumbai and Pune by 2034.
The party also pledges to integrate various infrastructure projects under its MahaGatiShakti initiative to enhance connectivity across roadways, railways, and industrial corridors.
The manifesto further emphasised, “Within 100 days of forming the Government, we will present ‘Vision Maharashtra 2029’ to accelerate economic and social development.”
Maharashtra to be the centre of aeronautical manufacturing
The BJP also plans to transform cities like Nagpur, Pune, and Nashik into centers of aeronautical and space manufacturing, positioning Maharashtra as a leader in advanced technologies. These policies aim to attract global investors while creating opportunities for local entrepreneurs.
