India's States: A Federal Economy
Maharashtra and Mumbai: India's Financial Centre
How Maharashtra became one of India's largest state economies, the role of Mumbai as the country's financial and entertainment capital, and the state's internal divides.
Maharashtra is one of India’s largest state economies, contributing a large share of national GDP. At its heart is Mumbai, India’s financial capital.
Mumbai’s role
- Finance: Mumbai hosts the Reserve Bank of India, the Securities and Exchange Board of India, the Bombay Stock Exchange, founded in 1875, and the National Stock Exchange, along with headquarters of major banks and companies.
- Entertainment: Mumbai is the centre of the Hindi film industry.
- Port and trade: Jawaharlal Nehru Port near Mumbai is one of India’s busiest container ports.
- Services and corporate headquarters.
Beyond Mumbai
- Pune is a major centre for automobiles, IT and education.
- Nashik, Aurangabad, now Chhatrapati Sambhajinagar, and Nagpur have industrial and service sectors.
- Agriculture: Maharashtra is a major producer of sugarcane, cotton, onions and fruits.
Internal divides
Maharashtra has large regional inequalities. Mumbai, Pune and western Maharashtra are much richer than regions like Vidarbha and Marathwada, which face drought, farm distress and lower incomes. Farmer suicides in Vidarbha and Marathwada have drawn national attention.
Urban challenges
Mumbai faces high housing costs, crowded transport and large informal settlements. Dharavi, one of Asia’s largest informal settlements, is also a hub of small industries, such as recycling, leather and pottery. Plans to redevelop Dharavi have been debated for years.
A company in Chennai wants to raise money by listing shares. It works with investment banks in Mumbai, files documents with SEBI in Mumbai, and lists on exchanges headquartered in Mumbai. Much of India's financial activity flows through a few square kilometres of one city.
Maharashtra's average income hides deep divides between prosperous urban western regions and drought-prone rural regions facing farm distress.
- Maharashtra is one of India's largest state economies.
- Mumbai is India's financial capital, hosting the RBI, SEBI and major stock exchanges.
- Pune and other cities add automobiles, IT and industry.
- Large regional divides separate western Maharashtra from Vidarbha and Marathwada.
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