Maharashtra is the perfect example of how India’s economic growth has
been uneven and concentrated in just a few geographical pockets.
On one hand, you have Mumbai, dubbed the financial capital of the
country and has promoted surrounding ring of development just outside
the city limits, and on the other, you have a region like Vidarbha,
notorious for poor growth and suicides by farmers.
Indeed, Maharashtra has the highest share of foreign direct investments over 2000-2011 and farmer suicides in the country.
At a Ficci conference in Mumbai on Wednesday, the industry body and
Yes Bank released a report highlighting the key areas the state
government needed to focus on to promote more balanced growth. Combining
the report’s recommendations with some of the major themes at the
conference, here are nine things that Maharashtra must do to promote
even growth and jobs.
Spread growth through the state: Currently,
Maharashtra’s growth has been concentrated in few places like Mumbai,
Thane and Pune. The government needs to economically develop Tier II
cities like Nagpur, Nasik and even smaller towns like Sangli, Miraj,
Kolhapur, Amravati, Solapur etc.
Develop transport links: Greater investments in
transport facilities will also help in spreading growth across the
state. Where will the funds come from? Some experts at the convention
thought that instead of spending huge sums on a metro project in a large
city, money should be spent on smaller public transport projects in
towns. Any surplus cash could also be used to provide better job
opportunities in these towns.
Develop industrial infrastructure: Along with
communication, industrial infrastructure in crucial. For example,
Maharashtra is one of the largest power-consuming states in India.
Greater investments in transport facilities will also help in spreading growth across the state. AFP
Arvind Singh, managing director, Maha Transco, pointed out that large
generation of power by private producers has to be matched by an
increase in transmission and distribution capacities through both
private and public initiatives. Chief minister Prithviraj Chavan said
power generation was never an issue for the state; the real problem has
been with tariffs and cross-subsidising policies that have left
public-sector distribution companies bleeding.
Land acquisition and environmental clearances have also been a big
hurdle to development. A council of policy advisors could help in this
respect.
Decentralise: A few experts thought the government
needed to hive off decision making to smaller civic bodies such as Gram
Panchayats to get better results.
Abhay Pethe, an urban economics and regional development expert from
Mumbai University, noted that so far, Maharashtra had not decentralised
powers as should have been done under a democratic system.
Improve productivity in agriculture: Farmer suicides
have been a big problem for Maharashtra. In his inaugural speech at the
conference, P Chavan, said the government had clearly not done enough
for dryland farming and irrigation in the state.
Of course, agriculture alone might not provide high levels of income
to farmers, which is why the Ficci-Yes Bank report points out the
importance of getting people involved in agri-businesses like
horticulture.
Develop medium, small and micro enterprises: At the
Ficci conference, Chavan acknowledged that the Maharashtra government
had failed to kick start small- and medium-industries in the state. The
new Industrial Policy of Maharashtra rightly places emphasis on this
sector. Being important for employment generation, medium- and small-
scale industries must be given help in accessing funds, technical and
advisory support and access to new markets.Arun Firodia, chairman,
Kinetic engineering, drew attention to industries like horticulture and
food processing as major hubs for development.
Improve the tourism potential: Developing tourism
was recognised as a prime goal for the Maharashtra government by Ficci.
Tushar Pandey, country head, strategic initiatives — government and
advisory, Yes Bank, thought eco tourism could be a good strategy; under
this, locals could become stake holders in tourism projects. Except for
Shirdi and Ajanta-Ellora, tourist interest has generally followed
industrial development in Maharashtra. For its part, Maharashtra Tourism
Development Corporation (MTDC) has also started entering districts
and resorted to micro planning in tourism in districts.
Develop skills among residents: Vijay Mahajan,
chairman, Basix group, and one the pioneers of microfinance in India,
said agricultural training and developing training centres throughout
the state are extremely important. The significance of building skills
and imparting proper training to make good use of human capital cannot
be over emphasised.
Manufacturing: Chief minister Chavan said the state
needed to act as a facilitator for private industrial investments. Uday
Phadke, principal advisor (Finance), Mahindra & Mahindra, said that
while Mumbai offers a conducing atmosphere for mega projects and
investments, getting regulatory clearances and execution delays continue
to prove problematic. The co-ordination among ministries leaves much to
be desired as well. These problems must be resolved if manufacturing
has to develop in the state.
