Maharashtra Aims For 50,000 Startups: Government committed to create supportive ecosystem

Maharashtra is setting its sights high, aiming to boost the number of startups to 50,000 in the near future. This ambitious goal was revealed by Industries Minister Uday Samant at the ASSOCHAM MahaMSMErashtra Empowerment Summit, highlighting the state’s proactive approach towards nurturing the startup ecosystem.

Samant stated, “The Union Government recently issued a list of startups from the last two years, out of which 8,300 are in Maharashtra, making it the number one state in the country.” The Maharashtra Government is committed to growing this number significantly, providing first-class support to companies ranging from MSMEs to large corporates.

Government Initiatives and Support

The Maharashtra government is keen on giving red carpet treatment not only to large overseas investors but also to smaller companies. “Earlier, companies with overseas investments received red carpet treatment, but today, even those with Rs 50,000 investments are treated with equal importance. Maharashtra’s top position in attracting foreign investment is due to this inclusive approach,” added Samant.

The focus on startups is accompanied by a need to monitor their sustainability. “It’s important to track whether startups continue to operate or close down. Analyzing the health of startups and understanding the challenges they face is crucial,” Samant emphasized.

Strengthening the MSME Sector

Rajendra Nimbalkar, IAS, Managing Director of the Maharashtra Small Scale Industries Development Corporation (MSSIDC), outlined the state’s strategic plans to bolster the MSME sector. The MSSIDC has submitted a strategic investment plan worth over Rs 730 crores under the Government of India’s Raising and Accelerating MSME Productivity (RAMP) Programme. The approved allocation of Rs 212.5 crores is the highest under RAMP, with the state government matching this amount to make a total programme size of about Rs 425 crores for the next 3 to 4 years.

• Key initiatives include:
  • Providing subsidized space and building online and digital marketing capacities for MSMEs.
  • Setting up Business Facilitation Centers in 12 district headquarters across the state.
  • Allocating around Rs 20 crores for capacity building and marketing promotions of MSMEs.

Industry Perspective

Anurag Agrawal, Co-Chair of ASSOCHAM’s National Council on WTO, Trade and Investment Council, highlighted the vital role of the manufacturing sector in India’s economy. “With 17% of the nation’s GDP, the manufacturing sector is essential. The government aims for 25% of economic output to come from manufacturing by 2025. India is on its way to becoming a global manufacturing hub, with the sector poised to reach USD 1 trillion by 2025-26 and USD 1 trillion in export revenues by 2030,” Agrawal said.

He also noted the significant contribution of MSMEs, which number around 63 million across India, contributing about 30% to the GDP and generating employment and export opportunities.

Emphasizing Innovation and Financial Support

Shantanu Bhadkamkar, Chairman of ASSOCHAM’s Maharashtra State Development Council, drew parallels with the robust SME sectors in Germany and Italy, emphasizing the importance of innovation. “Germany’s SMEs are the backbone of its economy, known for technological advancements. Similarly, Italy’s SMEs, some over 200 years old, excel in technology and creativity,” Bhadkamkar pointed out.

Umesh Kamble, Co-Chair of ASSOCHAM’s Maharashtra State Development Council, concluded the summit with a vision for Maharashtra achieving a 1 trillion-dollar economy, with the MSME sector playing a pivotal role. “Enhancing finance and innovation is key. Many MSMEs need to focus on innovation, and the government of Maharashtra is supporting this evolution with numerous innovation centers,” Kamble stated.