What factors are contributing to Maharashtra losing significant projects to Gujarat in the 2024 elections?

The finance sector has shown a preference, natural or politically nudged, towards the Gujarat International Finance Tec-City, or GIFT City, near Ahmedabad

The town of Bhiwandi, situated about two hours away from Mumbai, has historically been renowned as a major center for power looms. Its prominence grew following the closure of textile mills in Mumbai during the early 1980s. Despite its dusty and infrastructurally deficient environment, Bhiwandi continued to attract investments in looms and skilled workers, establishing itself as India’s largest hub for yarn production according to a 2014 survey.

Over the past decade, Bhiwandi's trajectory has been a blend of success and challenges, mirroring the experiences of numerous towns driven by small and medium enterprises (SMEs). Initially boasting nearly 14 lakh looms in 2007-08, the number dwindled to around six lakhs post-demonetization and pandemic upheavals. Although these looms still employ a significant workforce, their wages remain modest at approximately ₹20,000 per month.

In parallel with its textile heritage, Bhiwandi witnessed a surge in warehouse construction, particularly on its outskirts, transforming into a hub for massive storage facilities utilized by global entities like Amazon. This expansion, along with the development of logistics and e-commerce sectors, was primarily driven by local entrepreneurial initiatives rather than substantial government involvement or planning.

Despite these industrial advancements, Bhiwandi grapples with persistent issues such as inadequate infrastructure and limited connectivity to Mumbai. In contrast to the substantial support and attention lavished on industrial corridors like the Delhi-Mumbai Industrial Corridor, Bhiwandi's progress relied heavily on local enterprise.

While manufacturing continues to thrive independently of government support, the services sector, particularly in major cities like Mumbai and Pune, has experienced robust growth. This sector encompasses IT-enabled services, media, healthcare, education support systems, trade, financial services, and more, contributing significantly to the state's GDP.

However, Maharashtra faces challenges in maintaining its status as a preferred investment destination, with competition from states like Gujarat, Tamil Nadu, and Karnataka intensifying. Recent instances, such as major projects relocating to Gujarat, underscore the need for proactive strategies to attract and retain investments.

Additionally, Maharashtra's diminishing share of India's invested capital and the decline in trade union movements reflect broader economic and political shifts. Fostering growth beyond well-established cities like Mumbai, Thane, Pune, and Nashik remains crucial to address regional disparities and promote balanced urban development.

In essence, Bhiwandi's evolution from a textile powerhouse to a diversified industrial and logistical hub encapsulates broader trends shaping Maharashtra's economic landscape, necessitating strategic planning and proactive measures to sustain growth and competitiveness in the evolving national and global economic scenarios.