Maharashtra is Now World’s 28th Largest Economy; On Track to Beat Singapore and Hit $1 Trillion by 2030 – Morgan Stanley
Mumbai, July 24, 2025: In a resounding endorsement of Maharashtra’s economic and policy prowess, global investment banking and research giant Morgan Stanley has declared the state as India’s growth engine in its latest report titled “Maharashtra Leading the Way”. The report places Maharashtra at the forefront of economic development in India, with projections indicating the state could achieve a GDP of US$1 trillion by 2030.
The report, published on July 22, 2025, is a comprehensive analysis of India’s leading states based on five key performance pillars—growth, fiscal performance, investment and infrastructure, socio-economic progress, and policy measures. Maharashtra emerges as the top-ranked state in all categories, thanks to a potent combination of visionary leadership, robust infrastructure investments, sound fiscal management, and strong social development indicators.
Maharashtra: A Powerhouse in the Making
Maharashtra currently has a Gross State Domestic Product (GSDP) of US$536 billion, making it India’s largest state by economic output and placing it on par with Singapore, the 28th-largest economy globally. The state contributes 13.7% to India’s GDP, and its capital Mumbai remains the financial nerve center of the nation.
Key economic highlights from Morgan Stanley’s report include:
- Per Capita GDP of US$4,192, 1.6 times the all-India average.
- Debt-to-GDP ratio at a low 18.5%, highlighting the state’s fiscal prudence.
- Leading FDI recipient, garnering US$19.6 billion (39.2% of India’s total FDI in FY2025).
- Second-largest exporter among Indian states with a 15.4% export share, trailing only Gujarat.
- Home to 730 Global Capability Centres (GCCs), accounting for 43% of India’s total GCCs.
Deputy Chief Minister Devendra Fadnavis, responding to the report, said:
“Maharashtra is leading the way! This extremely credible ranking stands as a testament to our policy and progress. Thank you, Morgan Stanley, for your confidence in our State and our competence.”
Services and Industry Drive Growth
Maharashtra’s economy has seen a strategic shift from agriculture to the services sector, which now dominates the state’s output. With rapid urbanization and growing digital infrastructure, the state has become a magnet for IT, banking, finance, and real estate industries.
At the same time, Maharashtra remains India’s leading producer of automobiles, auto parts, and pharmaceuticals, accounting for:
- 20% of national auto and auto parts production
- 16–17% of India’s medicines and health equipment
- 8–12% of textiles
Massive Infrastructure Push
Maharashtra’s aggressive investment in infrastructure is pivotal to its growth ambitions. Projects like the Mumbai Trans Harbour Link, Navi Mumbai International Airport, and Mumbai Metro expansion are transforming urban mobility and logistics.
Additionally, the upcoming Vadhavan port, located 140 km north of Mumbai, with an estimated handling capacity of 298 million metric tons, is poised to be a game-changer in scaling up India’s maritime trade.
A Model of Inclusive Development
The state’s progress isn’t limited to economic indicators. Morgan Stanley highlights Maharashtra’s efforts in:
- Education and healthcare
- Gender parity
- Regional equity
- Promotion of green energy and EV adoption
Despite these strides, the report acknowledges that challenges remain, including improving farm incomes, attracting more manufacturing, and addressing climate adaptation in urban planning.
Energy Transition and Sustainability
Maharashtra is also taking bold steps toward energy transition and sustainable development. It has introduced EV incentives, backed renewable energy projects, and launched initiatives to support semiconductor manufacturing. These policies aim to ensure long-term environmental and economic sustainability.
Maharashtra’s Glorious Journey Ahead
As India eyes becoming a $5 trillion economy, Maharashtra is setting the benchmark with its well-rounded, future-facing economic strategy. The Morgan Stanley report doesn’t just validate the state’s current leadership but also underlines its capability to sustain and scale it in the years ahead.
With a blend of strong governance, massive infrastructure investment, fiscal discipline, and social inclusion, Maharashtra is not just leading India—it is charting a global growth story of its own.
