Economic potential in the Indian states is different, and each state has its GDP contribution towards the country’s economy. Its is quite remarkable that out of all the states, several of which compete for the title of the richest. If you ask what is the richest state in India, Maharashtra proves to be one. Many people come here to fulfill their dreams.
Maharashtra’s Economic Capital
One of the most important states in western part of India, Maharashtra boasts of having the economic capital of India – Mumbai. This live wires city is famous as the ‘City of Dreams’ and is a dominant commercial, financial and entertainment city. The sky scrapers that characterize the Mumbai skyline points towards the states economic power house.
Apart from Mumbai, other major cities in the Maharashtra state include; Pune, Nagpur and Nashik which are industrial power houses of the country contributing to the state’s GDP. The state has good infrastructure, skilled human resource and location which makes it to be home to many multinationals boosting the economy.
Principal Forces Determinative of Maharashtra’s Prosperity
Several factors have contributed to Maharashtra’s position as India’s richest state:
- Strong Industrial Base: The state has a very vibrant industrial base and economic hub and industries in the state range from automobile, information technology, pharmaceuticals, textiles and engineering amongst others.
- Financial Hub: This makes financial transaction convenient due to the fact that Mumbai is financial capital of India. The answer of what is the richest state in India, known as Maharashtra is enriched by a fascinating city of Mumbai. This also is home to the headquarters of many of the worlds banks, financial institutions and stock exchanges BSE among them. These strengths provide a favorable operating environment for business, foster a skilled labor force and ultimate global investors’ friendly infrastructure. Apart from Mumbai, another city, Pune, is setting as a new tech and Financial city. Such state government led programs like Mumbai Fintech Hub add to the advantage of Maharashtra in terms of being an important global financial hub.
- Service Sector Dominance: We establish that the service sector remains significant in the generation of new employment opportunities especially in Information Technology (IT) and IT-enabled services.
- Skilled Workforce: The state boasts of huge number of educated people such as engineers, doctors, IT experts etc., who help in further growth of economy of the state.
- Favorable Government Policies: Some of the policies include; Investment policies for the business and others to encourage entrepreneurship among the people of the state.
Of course, it is obvious today that Maharashtra is in the leadership, but it is necessary to emphasize that other states, including Gujarat, Tamil Nadu, and Karnataka, among others, are also in growth and are already providing a significant share of India’s gross domestic product.
Hence, the industrial growth, financial strength, availability of skilled human capital makes Maharashtra as one of the richest state in India. It will be useful to look at the further development of the economy and whether other states will be able to counter Maharashtra.
