Maharashtra’s Strategic Blueprint for Industrial Growth
The Government of Maharashtra unveiled an ambitious roadmap through the Maharashtra Industries, Investment & Services Policy 2025, aimed at supporting the State’s aspiration to become a trillion-dollar economy and a trusted global investment hub. The policy focuses on smart manufacturing, large scale employment generation, sustainability, self-reliance, inclusive growth, and a predictable, investor friendly business environment.
The policy positions Maharashtra as a “Global Business Destination” (GBD) with a targeted investment inflow of USD 850 billion. This comprises USD 500 from the manufacturing sector and USD 350 billion from the services sector. In addition, the policy targets USD 150 billion in manufacturing exports during the policy period.
Beyond investment targets, the policy introduces structural and institutional reforms.
Institutional Reforms and Policy Framework
A key structural reform under the policy is the establishment of “Invest Maharashtra”, a seamless investment facilitation platform integrating investable projects across all sectors of the State’s economy. This initiative, along with the creation of dedicated Commissionerates for Industries, MSMEs, and Services, is intended to strengthen institutional capacity and support the vision of Viksit Maharashtra 2047.
The policy will remain in force for five years from the date of notification, i.e., 31 December 2025, or until a subsequent policy is notified, whichever is earlier.
This policy will also serve as a strategic tool for Maharashtra’s global investment outreach, including its participation in the World Economic Forum 2026, highlighting the State’s ability to translate ambition into measurable outcomes through scale, speed, and policy certainty. Maharashtra continues to attract significant foreign direct investment, with a strong focus on emerging sectors while simultaneously strengthening traditional manufacturing industries.
Institutional Reforms and Policy Framework
While the Industrial Policy of 2019 played a pivotal role in maintaining Maharashtra’s leadership in industrial investment, the 2025 Policy introduces distinct and differentiated incentives for manufacturing and select service sector units, reflecting the changing structure of the economy.
The policy applies to
- 16 priorities and thrust manufacturing sectors, including Advanced Materials, Aerospace & Defense, and Chemicals & Petrochemicals, etc.
- 13 priority service sectors such as Information Technology & Information Technology enabled Services (ITeS), Tourism & Hospitality, and Legal services, etc.
To promote balanced regional development, the policy adopts an area-wise classification framework, categorizing districts and regions based on parameters such as industrial development, infrastructure availability, investment inflows, and employment generation.
Under this framework
- Higher fiscal incentives are extended to less developed and backward areas classified under Group D & D+.
- Developed and urban areas receive calibrated incentives, primarily focused on employment linked benefits and service sector support
This differentiated approach enables the State to attract investment across all regions, while consciously directing manufacturing led growth towards underdeveloped areas.
Eligibility and Investment Thresholds
Eligibility under the policy is linked to new investments made during the policy period.
For manufacturing units, eligibility is determined based on eligible fixed capital investment, which includes expenditure on
- Land (within prescribed limits)
- Building
- Plant and machinery
- Other related capital assets
For service sector units, eligibility is primarily linked to operational investment and employment generation, rather than capital-intensive fixed assets
In cases of expansion or diversification, only the incremental investment over the existing base is considered, subject to prescribed conditions. Further, incentives are computed only up to the maximum permissible eligible investment, which acts as a ceiling for incentive calculation without restricting the actual quantum of investment.
Fiscal Incentives under the Policy
The policy offers a comprehensive basket of fiscal incentives, including
| Category | Nature of Incentive |
|---|---|
| SGST based Incentives | Refund/reimbursement of SGST paid |
| Capital Subsidy | Subsidy on eligible fixed capital investment (mainly for manufacturing & MSMEs) |
| Employment-linked Incentives | Incentives linked to generation of new employment, including local employment |
| EPF/ESIC Support | Reimbursement/support of employer’s statutory contributions (mainly services & MSMEs) |
| Interest Subsidy | Interest subsidy on term loans for eligible units |
| Stamp Duty Exemption | Exemption or reimbursement of stamp duty on land/lease/registration |
| Rental/Lease Subsidy | Rental support for eligible service sector units (IT/ITES, GCCs, startups) |
| Fortune 500 companies | For 12 emerging districts, the State Government may offer land at a highly subsidized rate of INR1 per acre. |
In addition to fiscal incentives, the policy introduces several enabling initiatives
| Category | Nature of Incentive |
|---|---|
| Ease of Doing Business | Single window clearances through MAITRI 2.0 |
| Fast-track Approvals | Time bound approvals and deemed approvals |
| Institutional Support | Facilitation through Invest Maharashtra |
| Skill Development Support | Skilling, upskilling and industry linked training support |
| Innovation & R&D Support | Promotion of R&D center, innovation hubs and knowledge based industries |
| Aftercare Services | Handholding, grievance redressal and post investment support |
| Other Incentives | For Women and SC/ST categories, an additional incentive of 5% to 20% will be provided, depending on the location. |
Given the above, from an investment perspective the below factors are critical
- Location selection is critical, as incentives are closely linked to area classification.
- While entities may invest beyond the prescribed eligible investment ceiling, incentives are restricted to the notified limits.
- Existing entities proposing expansion or diversification must ensure incremental investment and additional employment generation to qualify for benefits under the policy.
The Maharashtra Policy marks a decisive shift towards an integrated, future ready economic framework. By combining manufacturing strength with services led growth, regional equity, and strong institutional support, the policy positions Maharashtra to sustain its leadership in investment attraction while progressing steadily towards its trillion-dollar economy ambition.