MAHARASHTRA GATEWAY TO INDIA

GATEWAY TO INDIA November 2017

Table of Content Executive Summary....3 Advantage Maharashtra.5 State Vision..6 Maharashtra An Introduction..7 Annual Budget 2014 15... 20 Infrastructure Status...21 Business Opportunities.... 39 Doing Business in Maharashtra..68 State Acts & Policies.... 77

EXECUTIVE SUMMARY (1/2) Highest contribution to India s GDP Maharashtra s GSDP at current prices was US$ 300.51 billion in 2015-16 and accounted for 12.98% of India s GDP, the highest among all states. Highest FDI in India Total FDI in the state during April 2000 to June 2017 stood at US$ 104.4 billion 1, the highest among all states in India. Largest Container Port Jawaharlal Nehru Port is the largest port in India in terms of container traffic. During 2017-18 (up to September 2017), the port handled 32.69 million metric tonnes of traffic. India s financial and educational hub The state s capital, Mumbai, is the commercial capital of India and has evolved into a global financial hub. The city is home to several global banking and financial service firms. Pune, another major city in the state, has emerged as the educational hub. Source: Central Statistics Office, Economic Survey 2015-16, Department of Industrial Policy & Promotion, Indian Port Association, 1 Including Daman & Diu and Dadra & Nagar Haveli 3

EXECUTIVE SUMMARY (2/2) Significant production of sugarcane and pomegranate Maharashtra is one of the largest producers of sugarcane and pomegranate in the country. Sugar production is expected to reach 7.34 million tonnes in 2017-18. During 2016-17, the production of pomegranates was recorded to be 1.44* million tonnes. Industrial powerhouse Maharashtra is the most industrialised state in India and has maintained the leading position in the industrial sector in the country. The state is a pioneer in small scale industries and boasts of the largest number of special export promotion zones. Strong cotton production Maharashtra is among the leading producers of cotton in India. The state produced 8.9 million bales of cotton during 2016-17. Source: As per 1 st advance Estimates Source: Ministry of Agriculture, News Articles, Economic Survey 2015-16 4

ADVANTAGE: MAHRASHTRA 2015-16 Trade and commerce hub of India Policy incentives 2015-16 GSDP of the state was US$ 300.51 billion The city of Mumbai is known as the trade and commerce capital of India. It is also the financial centre of India. Maharashtra has emerged as a key hub for IT and ITeS, electronics and captive business outsourcing industries. The Government of Maharashtra has several policies in place to set up the right kind of business climate. These policies aim to motivate investors to invest into various sectors in the state, thereby contributing to the overall development of the economy. Per capita GSDP was US$ 2,545 Advantage Maharashtra Rich pool of skilled labour Facilitating infrastructure Maharashtra has a literacy rate of 82.3% and is home to world class educational and IT institutions. The state has a large base of skilled and industrial labour, making it an ideal destination for knowledge based and manufacturing sectors. The state has a well developed social, physical and industrial infrastructure. Apart from four international and seven domestic airports, the state has two major and 53 minor ports. It also has a well developed power supply grid. Maharashtra's infrastructure sector has grown significantly over the last decade, with a substantial rise in the number of industrial clusters and Public Private Partnership (PPP) projects. Source: Government of Maharashtra 5

STATE VISION Focus on growth of the manufacturing sector. Creating conducive growth environment. Establishing technical universities for skill development. Providing scholarships to pursue professional courses. Promoting sustainable development in agriculture by integrating schemes of water shed development, use of technology, enhancing processing capacity and skill development. Agriculture Industrial sector Vision Skill development GSDP growth US$ 50.6 billion allocated to accelerate economic growth by implementing specially designed growth oriented policies. Promotion of agri-business through PPP for Integrated Agricultural Development (PPP-IAD) and develop market linkages of horticulture. Tourism Infrastructure Promote religious, adventure and heritage tourism. Training workers in the organised and unorganised sectors related to tourism. 6,026 km of national highway projects. Developing ports by investing approximately US$ 2.4 billion. Source: Confederation of Indian Industry 6

FACT FILE The most commonly spoken language in the state is Marathi. Konkani, Hindi and English are the other prominent languages. Parameters Capital Maharashtra Mumbai Geographical area (lakh sq. km) 3.08 Source: Maps of India Maharashtra is situated in the western region of the country. The state shares borders with Gujarat, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Karnataka, Goa and the Union Territory of Dadra and Nagar Haveli. On its west is the Arabian Sea. Mumbai, Pune, Nagpur, Thane, Nasik, Solapur, Kolhapur, Sangli, Aurangabad, Amravati and Ratnagiri are some of the major cities of Maharashtra. India's main stock exchanges, capital market and commodity exchanges are located in Mumbai. Administrative districts (No) 36 Population density (persons per sq. km) 365 Total population (million) 118.1 Male population (million) 61.2 Female population (million) 56.9 Sex ratio (females per 1,000 males) 929 Literacy rate (%) 82.3 Source: National Portal of India, Economic Survey 2015-16 7

IN FIGURES (1/2) Parameter Maharashtra All states Source Economy 2015-16 2015-16 GSDP as a percentage of all states GSDP 14.49 100.0 Central Statistics Office GSDP growth rate (%) 9.9 8.71 Central Statistics Office Per capita GSDP (US$) 2,545 1,546 Central Statistics Office Physical Infrastructure Installed power capacity (MW) 42,329.60 331,117.58 Central Electricity Authority, as of October 2017 Wireless subscribers (No) 94,648,944 1,186,790,005 Internet subscribers (million) 35.47 422.2 National highway length (km) 7,434.79 100,087.08 Telecom Regulatory Authority of India, as of July 2017 Telecom Regulatory Authority of India, as of July 2017 NHAI, Roads and Building Department- Government of India Major and minor ports (No) 2 + 53 13+187 India Ports Association 2015 Airports (No) 11 125 Airports Authority of India 8

IN FIGURES (2/2) Parameter Maharashtra All states Source Social Indicators Literacy rate (%) 82.3 73.0 Census, 2011 Birth rate (per 1,000 population) 15.9 20.4 SRS Bulletin, September 2017 Investment Cumulative FDI equity inflows (US$ billion) 1 104.415 342.52 Department of Industrial Policy & Promotion, April 2000 to June 2017 Industrial Infrastructure Operational PPP projects (No) 219 1,565 Operational SEZs (No) 27 204 DEA, Ministry of Finance, Government of India, July 2017 Ministry of Commerce & Industry, Department of Commerce, June 2017 Note: 1 Combined FDI inflows for Maharashtra, Dadra & Nagar Haveli and Daman & Diu, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 9

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 110.3 129.5 1059 170.1 163.4 1225 180.5 1585 1500 1633 230 250.7 243.7 244.9 264.8 2053.0 2208 2118 2,101 2,242 300.5 2,545 ECONOMIC SNAPSHOT GSDP GSDP of Maharashtra at current prices (in US$ billion) Per capita GSDP (US$) 350 CAGR 10.54% 3000 CAGR 9.16% 300 2500 250 200 150 2000 1500 100 1000 50 500 0 0 At current prices, GSDP* of Maharashtra was US$ 300.51 billion in 2015-16. GSDP of the state grew at a CAGR of around 10.54% from 2005-06 to 2015-16. The state s per capita GSDP^ at current price was US$ 2,545 in 2015-16. The per capita GSDP of Maharashtra grew at a CAGR of 9.16% between 2005-06 and 2015-16. Note: GSDP - Gross State Domestic Product, CAGR Compound Annual Growth Rate, GSDP* - State Budget 2016-17, Per Capita GSDP^ - calculated using GSDP million US$/ Population in million Source: Central Statistics Office, Advanced Estimates provided by Directorate of Economics and Statistics of Maharashtra 10

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 99 116.7 951 1104 153.9 146.9 162.5 1434 1349 1471 208.4 1860 227.1 220.4 221.2 2000 1915 1897.7 2,013.8 238 263.60 2,432 ECONOMIC SNAPSHOT NSDP NSDP of Maharashtra at current prices (in US$ billion) NSDP per capita of Maharashtra at current prices (in US$) 300 CAGR 10.29% 3000 CAGR 8.91% 250 2500 200 2000 150 1500 100 1000 50 500 0 0 At current prices, NSDP # of Maharashtra was US$ 263.6 billion in 2015-16. Maharashtra s NSDP # grew at a CAGR of around 10.29% from 2005-06 to 2015-16. At current price, the state s per capita NSDP & was US$ 2,232.5 in 2015-16. The per capita NSDP of Maharashtra grew at a CAGR of 8.91% between 2005-06 and 2015-16. Note: NSDP - Net State Domestic Product, CAGR Compound Annual Growth Rate, NSDP # - Geometric mean of YoY calculation from 2004-05 to 2014-15, per capita NSDP & - calculated using NSDP million US$/Population in million Source: Central Statistics Office, Based on Advanced Estimates provided by Directorate of Economics and Statistics of Maharashtra 11

ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP Over 2015-16, the tertiary µ sector contributed 64.53% to the state s GSDP at current prices, followed by the secondary µ sector with a contribution of 25.84%. At a CAGR of 15.8%, the tertiary sector has been the fastest growing among the three sectors from 2004-05 to 2015-16. Growth was driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The secondary sector grew at a CAGR of 13.5% between 2004-05 and 2015-16. The growth in secondary sector was driven by growth in manufacturing, construction and electricity, gas & water supply industries. 100% 90% 80% 70% 60% 50% Percentage distribution of GSDP 59.58% CAGR 64.53% 15.8% The primary µ sector expanded at a CAGR of 13.7% between 2004-05 and 2015-16. Agriculture is the major contributor in the growth of the primary sector followed by forestry and fishing. 40% 30% 29.61% 13.5% 25.84% The World Bank in January 2017 will fund the state Government project namely Climate Resistant Agriculture to reclaim 5 lakh hectares saline lands, spread in 1,000 villages. The World Bank will contribute US$ 416.484 out of the US$594.97 joint project. 20% 10% 0% 10.18% 13.7% 9.63% 2004-05 2015-16 Primary Sector Secondary Sector Tertiary Sector Note: Sector-wise % share of GSDP µ -Geometric mean of YoY calculation from 2004-05 to 2014-15 Source: Central Statistics Office, Based on Advanced Estimates provided by Directorate of Economics and Statistics of Maharashtra 12

2012-13 2013-14 2014-15 2015-16 2016-17 2380.2 2649.2 2651.2 1673.9 1726.9 18378.3 19719.8 24265.2 24277.0 21668.7 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (1/2) Sugarcane, cotton, onion, soya bean, banana, jowar (sorghum) & rice are some of the key agricultural products of Maharashtra. Total food grain production in the state stood at around 15.1 million tonnes in 2016-17. In July 2017, the state government extended the date to disburse an advance payment of US$ 155.21 to farmers as financial assistance to the needy farmers till August 31, 2017. As per the Agriculture Marketing and Farmer Friendly Reforms Index, the state secured the top position in pursuing farmer friendly policies during 2016. Area ( 000 hectares) and production ( 000 MT) of horticulture crops in Maharashtra 25000.0 20000.0 15000.0 Crop Annual production 2016-17 ( 000 tonnes) Sugarcane 50,644 Soya bean 4,616 Groundnut 262 Sunflower seed 5 Jowar 2,235 Rice 3,654 Wheat 1.405 Bajra (millets) 869 Maize 3,485 Total food grains 15,096 Total oilseeds 4,932 Total pulses 3,272 10000.0 5000.0 0.0 Area Production Source: Economic Survey of Maharashtra, 2016-17, Indian Horticulture Database 13

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 5.0 7.0 9.1 9.0 8.0 7.7 7.7 10.5 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 64.16 50.08 81.90 69.65 86.73 75.38 69.23 91.53 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION (2/2) An amount of US$ 63.81 million has been allocated to the state for 2017-18, under the National Agricultural Development Scheme (RKVY). The state government also proposed establishment of organic farming research & training centres across four universities related to agriculture for the endorsement of organic farming in the state. During 2016-17, the state recorded production of 5,851.30* thousand MT of onion. 100.00 80.00 60.00 40.00 20.00 0.00 Sugarcane production in Maharashtra (million MT) Vegetable production in Maharashtra ( 000 MT) Vegetable 2013-14 2014-15 2015-16 2016-17* Onion 5,864 5,361 6,529 5851 Potato 370 370 251 543 Tomato 1,200 1,200 977 977 12.0 10.0 8.0 Sugar production in Maharashtra (million MT) Production of pomegranates in Maharashtra ( 000 MT) 6.0 2013-14 945 2014-15 1,313 4.0 2.0 0.0 2015-16 1,486 2016-17* 1,437 Note: * As per 1 st advance estimates Source: Department of Agriculture & Co-operation, Ministry of Agriculture 14

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 12,431 8,249 9,553 9,511 19,654 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the DIPP, cumulative FDI inflows 1 in the state of Maharashtra during April 2000 to June 2017 stood at US$ 104.4 billion. During 2017 (up to September), 255 investment intentions worth US$ 3.88 billion have been proposed in the sate, making up 16.78 per cent of all the proposals in India. FDI equity inflows 1, 2008-09 to 2016-17 (US$ million) 20,000 15,000 10,000 5,000 6,097 6,361 6,361 3,420 - Approved and commissioned industrial projects for major Industries (1991-92 to 2015-16- up to October 2015) Industry Approved proposals Commissioned Projects No. Investment (US$ billion) No. Investments (US$ billion) Metallurgical 1,909 15.43 935 5.61 Chemicals & fertilizers 2,839 9.15 1,386 3.40 Textile 1,998 7.64 933 2.59 Electrical & electronics 1,174 3.43 683 1.19 Sugar 1,532 5.87 235 1.28 Processed food 1,046 3.09 440 0.88 Note: 1 Includes Maharashtra, Dadra & Nagar Haveli and Daman & Diu Source: Department of Industrial Policy & Promotion, Economic 15

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(¹) 44.0 49.15 48.1 47.8 67.6 64.9 73.9 76.9 84.0 ECONOMIC SNAPSHOT S EXPORT TRENDS (1/2) In FY17 (1), Maharashtra s exports totalled to around US$ 44.02 billion. Major products exported from the state are gems and jewellery, software, textiles, readymade garments, cotton yarn, metal and metal products, agro-based products, engineering items, drugs and pharmaceuticals, and plastic and plastic items. 90.0 80.0 Exports trends (US$ billion) Maharashtra is the largest producer of sugar in India. In May 2015, the Government of Maharashtra, approved a subsidy of US$ 16.7 per ton (up to the extent of 800,000 tonnes) for the exports of raw sugar. 70.0 60.0 In November 2015, Maharashtra sugar mills entered into a deal with neighbouring markets such as Sri Lanka and Bangladesh, etc., for exporting 2 lakh MT of white sugar. As per the announcement made by the state government in September 2015, Maharashtra is expected to export 4 million tonnes of sugar during 2015-16. 50.0 40.0 30.0 Coca Cola, a major soft drink producing giant will be procuring oranges from Vidarbha, Nagpur for producing juices, that would be sold worldwide. The production would take place at its Butibori plant 20.0 10.0 0.0 Note: 2016-17 (1) : up to November 2016 Source: Economic Survey of Maharashtra, 2016-17 16

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 ECONOMIC SNAPSHOT S EXPORT TRENDS (2/2) Maize exports from Maharashtra ( 000 MT) Pulses exports from Maharashtra ( 000 MT) 900 800 700 600 500 400 300 200 655 768 664 526 300 250 200 150 100 142 176 284 150 157 100 0 103 124 50 0 78 Dairy product s exports from Maharashtra (thousand MT) 50.0 40.0 30.0 20.0 10.0 0.0 4.7 21.8 39.5 11.2 6.0 7.1 Source: APEDA, (1) From April - August 2015 17

STATE BUDGET 2017-18 Department Expenditure (US$ billion) School Education 7.6 Urban Development 3.1 Rural Development and Water Conservation 2.8 Home 2.6 Public Works 2.3 Water Resources 1.9 Industries, Energy and Labour 1.8 Tribal Development 1.4 Public Health 1.3 Agriculture 1.2 Others 18.23 Note: Exchange rate = 0.0155 Source: State Budget 2017-18 18

2012-13 2013-14 2014-15 124 250.50 391 PHYSICAL INFRASTRUCTURE ROADS (1/2) The state is well connected to its six neighbouring states and other parts of India through 18 national highways. The 94.5 km long Mumbai-Pune expressway is India's 1st 6-lane, concrete, high speed, tolled expressway, which connects the state capital & financial hub, Mumbai, with the neighbouring industrial hub, Pune. In December 2015, the state government approved an elevated road project on Ghodbunder Road from Gaimukh for a proposed investment of US$ 132.7 million, construction of a 3rd bridge on Thane creek at Vashi with a proposed investment of US$ 132.7 million, an elevated road at Bhiwandi-Kalyan-Shil Phata with a proposed investment of US$ 431.3 million, 4-lane Vakan-Pali- Khopoli road at a proposed investment of US$ 82.94 million & an underground tunnel between Thane & Borivali. The state government plans to construct a new proposed 8-lane highway, between Mumbai & Nagpur, in which concept of land pooling will come into play. The project is worth US$6.84 billion and would be requiring 10000 hectares of land. In June 2017, the state government approved numerous projects for boosting the development in cities like Mumbai, Thane and Pune. Projects approved include Versova-Bandra Sea Link worth US$ 1.12 billion, Bandra-Worli Sea Link project worth US$ 293.77 million, Thane creek bridge-3 worth US$ 115.36 million, widening of the Mumbai-Pune Expressway to 8 lanes from the existing 6 lanes between Lonavala & Khalapur worth US$ 713.61 million and many more. 400 350 300 250 200 150 100 50 0 Road type National highway length completed (km) Source: Economic Survey of Maharashtra, 2015-16, NHAI Road length (km) (as of 2016-17) National highways 7,438 State highways 38,510 Major district roads 50,844 Other district roads 58,116 Village roads 145,881 Source: Economic Survey of Maharashtra, 2016-17, NHAI 19

2013-14 2014-15 2015-16¹ 33.80 58.52 82.55 PHYSICAL INFRASTRUCTURE ROADS (2/2) Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 with the objective of connecting eligible rural habitants. Until 2015, about 419,971 km of road network has been completed across India, of which road length of 22,214 km was completed in Maharashtra. In November 2015, the 785-meter long Vanjarpatti flyover in Bhiwandi was inaugurated and constructed over a part of extended Mumbai Urban Infrastructure Project (MUIP) As per budget 2017-18, the state government proposed an outlay of US$ 15.38 million for acquisition of land, special subsidy package, etc. under the MIHAN project. In November 2016, the government approved two and four-laning of three highway stretches - NH-930, NH-211 (New NH-52) and NH- 211 (New NH-52) in Maharashtra. Expenditure on road works under Pradhan Mantri Gram Sadak Yojana in Maharashtra (US$ million) 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 Source: NHAI, Note: 1 Up to October 2015 Pradhan Mantri Gram Sadak Yojana (PMGSY)`(2015-16- up to July 2015) Habitations connected 10,724 Length completed 34,852.06 Source: PMGSY 20

PHYSICAL INFRASTRUCTURE RAILWAYS The rail transport system of Maharashtra is very well developed. The state is well-connected to other parts of the country with a railway network spanning 6,103 km (including 378 km of Konkan Railway). Central Railways has introduced special superfast weekly trains to Shirdi from Lokmanya Tilak Terminus and Dadar stations. During 2015-16, the state government initiated work on the stage of Phase-I CBD Belapur-Pendhar-Taloja MIDC-Kalamboli- Khandeshwar-Navi Mumbai International Airport corridor, which is expected to be accomplished by 2017. Work on the 11.1 km long Belapur-Pendhar road is under progress. As per budget 2017-18, the state government allocated US$ 109.2 million for boosting the execution of Nagpur to Pune metro rail project and for the further development of Mumbai Metro line. A total of US$ 1.61 billion was raised for the Mumbai Urban Transport Project III (MUTP III) which includes development of an elevated link between Airoli and Kalwa, helping passengers to avoid interchanging at Thane. The government has passed resolution to form Maharashtra Railway Infrastructure Development Company Ltd (MRIDC), being a joint partnership between state government & Railway Ministry. The MRIDC shall have a working mandate on Railway projects in January 2017. The government in February 2017, has sanctioned construction of 7 new railway lines & several other projects, including Chhatrapati Shivaji Terminus-Panvel fast elevated corridor, worth US$4.64 billion. The Railway budget 2017, which came jointly with the Union Budget, has apportioned US$ 5.72 billion for suburban rail projects & ongoing projects in the state of Maharashtra. Metro/mono rail projects Mumbai Metro Rail Project Phase IIA : Dahisar-D.N. Nagar (18.6 km) Phase III: Colaba-Bandra- SEEPZ (33.5 km) Phase IV: Wadala- Ghatkopar-Thane- Kasarwadavli (32 km) Phase VII: Andheri (E)- Dahisar (E) (16.5 km) Mumbai Mono Rail Project Project cost (US$ million) 979.22 3,534.37 2,917.81 948.37 Current status /implementation period Initiated from February 2016 Tendering for civil works in progress Report on feasibility study submitted Appointment of interim consultant is in progress Source: Economic Survey of Maharashtra, 2015-16, State Budget 2016-17, MMRDA: Mumbai Metropolitan Region Development Authority Wadala to Chembur & Sant Gadge Maharaj Chowk (Jacob circle) to Wadala (20 km) 375.80 Phase I: complete, Phase II: 99% work completed 21

PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) There are seven domestic and four international airports functioning in Maharashtra. Domestic flights operate from Mumbai, Pune, Nagpur, Aurangabad, Kolhapur, Juhu and Nanded, whereas international flights operate from Mumbai, Nagpur, Pune and Aurangabad. Mumbai airport is one of the busiest airports in India. During 2015-16, the state government proposed to establish an additional airport through PPP, in around four phases at Navi Mumbai with a view to minimize overcrowding at Mumbai International Airport. For this purpose, an amount of US$ 2.55 billion has been proposed by the Government of Maharashtra. The first phase of the project is expected to be executed by 2019. As per budget 2017-18, the state government proposed an amount of US$ 7.6 million for the enhancement of airports (Solapur, Shirdi, Chandrapur, Karhad, Akola, Amaravati, etc) under the Airport Development Authority of Maharashtra. In May 2017, the Mumbai airport recieved environmental clearance for US$ 520.6 million expansion plan, which will allow it to ferry 50 million passengers by 2020. International airport Domestic airport Source: AAI (Airports Authority of India) 22

PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) Domestic airport Passengers ( 000 thousand) Aircraft movement ( 000) Freight ( 000 MT) 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 Mumbai 252.1 300.5 327.1 195.4 220.2 224 207.7 209.0 234.9 Pune 40.7 51.8 65.1 32.6 38.7 44.6 27.4 31.8 34.6 Nagpur 13.6 15.2 17.8 13.5 12.6 14.6 5.6 6.0 6.7 Aurangabad 4.2 2.9 3.2 4.1 3.7 3.8 1.3 1.4 1.43 International airport Passengers (l 000 thousand) Aircraft movement ( 000) Freight ( 000 MT) 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 Mumbai 114.30 116.24 124.4 74.09 76.38 80.56 486.54 496.24 547.37 Pune 1.01 2.40 2.56 1.12 2.04 2.12-0.01 - Nagpur 0.44 0.74 1.09 0.54 0.84 1.4 0.44 0.43 0.41 Source: AAI (Airports Authority of India) 23

PHYSICAL INFRASTRUCTURE PORTS Along a coast line of 720 km, there are two principal ports: Mumbai Port Trust (MbPT) and Jawaharlal Nehru Port Trust (JNPT). In addition, there are 53 minor ports. During 2016-17, up to February 2017, total traffic handled at the two major ports in Maharashtra was recorded at 1,137.65 lakh tonnes, of which JNPT accounted for 561.92 lakh tonnes while, Mumbai port handled around 575.73 lakh tonnes of port traffic. The non-major ports of Maharashtra collectively handled passenger traffic of around 113.57 passengers and cargo of 170.33 lakh tonnes, during 2015-16, till November 2015. Operational ports statistics For major ports Traffic handled (lakh MT) For minor ports Traffic handled (lakh MT) 2013-14 2014-15 2015-16 1 2016-17 1 1,215.17 1,254.6 1147.03 1137.65 2012-13 2013-14 2014-15 2015-16 1 241.98 247.74 96.43 Not available Minor Ports in Maharashtra Manori Harnai Kalyan Dabhol Thane Palshet Versova Borya Bandra Jaigad Trombay Tiwri-Varoda Ulwa-Belapur Purnagad Panvel Jaitapur Mora Vijaydurg Mandwa Deogad Karaja Achara Thal Malvan Rewas Niwti Bankot Vengurla Kelshi Redi Sriwardhan Kiranpani Dharamtar Ratnagiri Kumbharu Dighi Dahanu Tarapur Nawapur Satpati Kelwa-Mahim Arnala Datiware Uttan Bassein Bhiwandi Alibag Revdanda Borli / Mandla Nandgaon Murud-Janjira Rajpuri Mandad Source: India Ports Association, 1 From April 2016 to February 2017 24

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18* 22,645.00 26,142 30,354 34,005 38,551 40,589 41,410 42,119 PHYSICAL INFRASTRUCTURE POWER As of October 2017, the state had a total installed power generation capacity of 42,329.60 MW. Installed power capacity (MW) Thermal power contributed 30,598.43 MW to the total installed power generation capacity, followed by renewable power, hydropower and nuclear power with contributions of 7,709.33 MW, 3,331.84 MW and 690 MW, respectively. 45,000 40,000 The private sector was the biggest contributor to the total installed thermal power generation capacity in Maharashtra with a capacity of 20,795.67 MW, followed by 13,900.96 MW under state utilities and 7,422.43 MW under central utilities. 35,000 30,000 The state government also proposed a new scheme for improving electricity distribution system in the state. As per the budget 2016-17, an investment of US$ 45.98 million has been projected by the government for this new scheme. 25,000 20,000 In order to intensify the capacity of renewable energy sources in the state, the state government has professed a new energy policy, for which an investment of US$ 69.66 million has been proposed. 15,000 10,000 5,000 0 Note: *As of August 2017 Source: Central Electricity Authority 25

PHYSICAL INFRASTRUCTURE TELECOM According to Telecom Regulatory Authority of India (TRAI), Maharashtra had 94.65 million wireless subscribers and 1.84 million wireline subscribers, as of July 2017. By the end of July 2017, 20,401,359 subscribers had submitted requests for mobile number portability in Maharashtra. Moreover, the tele-density in Maharashtra stood at 109.99% as of July 2017. As of May 2017, the state recorded 150,377 new telephone wireless connections of Idea, 141,374 new wireless connections of Vodafone and 11,807 new wireless connections of Bharti Airtel. Performance status of NOFN project (as of April 2016) No. of GPs in Phase-I 12,055 (1) Telecom Infrastructure (As of July 2017) Wireless subscribers 94,648,944 Wireline subscribers 1,839,379 Internet subscribers* (million) 35.47 Post offices 12,859 2 Tele density (in %) 110.26 Source: Telecom Regulatory Authority of India, February 2015, India Post, Ministry of Communications and Information Technology, 1 As of June2017 Major telecom operators in Maharashtra Pipe laid (km) 14,214 Cable laid (km) 25,220 (1) GPs for which cable laid 11,857 (1) No. of GPs Lit 150 (1) Note: As of August 2017 Bharat Sanchar Nigam Limited (BSNL) Mahanagar Telephone Nigam Limited (MTNL) Bharti Airtel Idea Cellular Vodafone Essar Reliance Communications Tata Teleservices Aircel Limited Source: Telecom Regulatory Authority of India 26

DEVELOPMENT PROJECTS: URBAN & SOCIAL INFRASTRUCTURE (1/2) Under JNNURM, 2 schemes, namely, Basic Services to Urban Poor (BSUP) & Integrated Housing & Slum Development Programme (IHSDP) have been implemented by Maharashtra Housing & Area Development Authority. During 2017-18, the state government allocated US$ 169.2 million for Maharashtra Suvarn Jayanti Nagrothan Mahaabhiyan, which is being implemented in the state for creating basic urban amenities across various municipal councils & townships. As of November 2015, Mahindra Life Space Developers Ltd bought a land in Maharashtra with the objective of developing a housing project aiding urbanisation in the state. In addition, the Maharashtra government is considering to aid the affordable housing concept with opening up of land parcels & plots that would lie under no development zones. For this, the government is planning to constitute Housing for all by 2022 policy for the urban population. As per Budget 2017-18, the state government has proposed an outlay of US$ 109.2 million in order to boost the development of metro rail projects in Nagpur, Pune and Mumbai. In Budget 2016-17, for Maharashtra Fire Safety Mission in the state, an amount of US$ 4.58 million has been proposed by the state government. Under the Accelerated Irrigation Benefit Program (AIBP), the Centre released the 2nd & the biggest instalment of US$ 111.01 million to the Maharashtra government, to speed up construction of 26 dams. The state is set to receive a total of US$ 51.94 million as a part of the AIBP, until 2020. In March 2017, under the Prime Minister s Irrigation Scheme, the government has allocated US$ 1.22 billion for the farmers, to start numerous irrigation projects while representing the Budget 2017. Out of the total amount, a partial amount of US$ 418.27 million has been allocated for water resources. Mother Dairy plans to revamp an old plant in Nagpur & set up a new plant in Bhiwandi with an investment of around US$ 22.31 million, in Maharashtra. In April 2017, the state government has decided to support small and marginal farmers by investing US$ 3.78 billion in agriculture and irrigation schemes. All projects undertaken in the allocated budget would be completed in 2017-18, and the irrigation potential generated would be for1.4 million hectares of land. Source: Department of Environment, Government of Maharashtra, JNNURM, Ministry of Urban Development 27

DEVELOPMENT PROJECTS: URBAN & SOCIAL INFRASTRUCTURE (2/2) Urban Infrastructure Projects under JNNURM Project name Amount (US$ million) Project name Amount (US$ million) Revised in BSUP scheme for construction of 219 Dus in Panch Zopda and Gopal Nagar slums in Nagpur, Maharashtra 1.76 Integrated Civic Infrastructure Development Project (ICIDP) Phase. I, Nagpur, Maharashtra 20.04 BSUP scheme for construction of 279 Dus in Jat Tarodi slum in Nagpur,. Maharashtra 2.06 Revised DPR for "Construction of 1,694 Houses at four locations of Nagpur City for Rehabilitation of Urban/Poor under JNNURM - BSUP- PPP scheme - Nagpur". 19.36 Revised BSUP scheme for construction of 456 Dus in 5 slums of North Nagpur in Nagpur, Maharashtra. 2.53 Implementation of Integrated Housing Projects (788 Dus) under BSUP at Nanded City. Dist. Nanded, Maharashtra. 5.38 Revised BSUP scheme for construction of 365 Dus in Gopal Nagar and Bh. Anand Kausalyayan Nagar slums in Nagpur Maharashtra 4.45 Implementation of Integrated Housing projects (958 Dus) under BSUP at Nanded City. Distt. Nanded, Maharashtra 6.97 Revised BSUP scheme for construction of 630 Dus in Savitribai Phule Nagar slum in Nagpur, Maharashtra 6.21 Implementation of Integrated Housing Projects (1183 Dus) under BSUP at Nanded city. Dist. Nanded, Maharashtra 8.87 Revised BSUP scheme for construction of 1017 Dus in Indira Nagar, Indiramata Nagar, Wanjara and Bokar nagar (4 slums) slums in Nagpur, Maharashtra 9.44 Implementation of Integrated Housing projects (1567 Dus) under BSUP at Nanded City. Distt. Nanded, Maharashtra 11.84 Source: Department of Environment, Government of Maharashtra, JNNURM, Ministry of Urban Development 28

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS Project name PPP type Sector Stage Project cost (US$ million) 4 laning Pune - Shirur Road (BOT) Transport Operation and maintenance stage 16.04 Hydro Electric Power (Waghur) Project (BOT) Energy Under construction 1.10 Hydel Power (Vajra - III) Project (BOT) Energy Operation and maintenance stage 1.10 Hydro Electric Power (Urmodi) Project (BOT) Energy Under construction 2.20 Hydro Electric Power (Upper Vaitarna) Project (BOT) Energy Under construction 2.20 School Building (Waddhamna) Project (DBOOT) Social and commercial infrastructure Under construction 1.32 Hydro Electric Power (Temghar) Project (BOT) Energy Under construction 2.93 Water Supply Scheme (Tuljapur) (O&M) Water sanitation Hydro Electric Power (Parseoni) Project - Package 2 (BOT) Energy Operation and maintenance stage Operation and maintenance stage 7.61 3.23 Hydro Electric Power (Telbeila) Project (BOT) Energy Under construction 14.67 Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, DBOOT: Design-Build-Own-Operate-Transfer, O&M: Management Contract 29

DEVELOPMENT PROJECTS: SEZs (1/3) Navi Mumbai Special Economic Zone (NMSEZ) is the agency responsible for the supervision and execution of SEZs in the state. As of April 2017, the state has 28 operational SEZs in the state across diversified sectors including textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs, etc. Some of the operational SEZs in Maharashtra Name/Developer Location Primary Industry Maharashtra Airport Development Company Ltd. (MIHAN SEZ) Mihan,Nagpur Multi product SEEPZ Special Economic Zone Mumbai Electronics and gems and jewellery Maharashtra Industrial Development Corporation Aurangabad Engineering Wipro Ltd. Maharashtra Industrial Development Corporation Maharashtra Industrial Development Corporation Khed Economic Infrastructure Pvt. Ltd. Maharashtra Pune Nanded Pune Computer/electronic software Computer/electronic software Chemicals & pharmaceuticals Engineering & electronics Maharashtra Industrial Development Corporation Satara Engineering Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone 30

DEVELOPMENT PROJECTS: SEZs (2/3) In addition to operational SEZs, as of September 2017, Maharashtra Some of the SEZs with formal approvals had 11 SEZs with valid in-principle approvals, 57 SEZs with formal approvals and 49 SEZs with notified approvals. Name/Developer Location Primary Industry Maharashtra Industrial Development Corporation Limited MIDC Syntel International Private Limited Serum Bio-pharma Park Maharashtra Industrial Development Corporation Maharashtra Industrial Development Corporation Maharashtra Industrial Development Corporation Wokhardt Infrastructure Development Limited Pune Pune Pune Latur Nanded Auranga bad Auranga bad IT/ITeS IT/ITeS Pharmaceuticals & biotechnology Agro-processing Pharmaceuticals Engineering & electronics Pharmaceutical Hiranandani Builders Mumbai IT/ITeS New Found Properties and Leasing Pvt. Ltd. EON Kharadi Infrastructure Private Limited Thane Pune IT/ITeS IT/ITeS Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone 31

DEVELOPMENT PROJECTS: SEZs (3/3) Some of the SEZs with valid in-principal approvals Name/Developer Location Primary Industry Mumbai SEZ Limited Gujarat Positra Port Infrastructure Ltd Multi-product Gitanjali Gems Limited Nanded, Maharashtra Gems and jewellery ISPAT Industries Limited Raigad District, Maharashtra Multi-product Gitanjali Gems Limited Aurangabad, Maharashtra Gems and jewellery Gitanjali Gems Limited Nagpur, Maharashtra Multi-product Maharashtra Airport Development Company Limited Nagpur, Maharashtra Power Gitanjali Gems Limited Nashik, Maharashtra Multi-services Redi Port Ltd. Post Redi, district Sindhudurg, Maharashtra FTWZ Quippo Infrastructure Raigarh Maharashtra Engineering Source: Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone 32

SOCIAL INFRASTRUCTURE EDUCATION During 2015-16, Maharashtra s education infrastructure comprised 21 universities, 105,489 primary schools, 25,013 secondary & higher secondary schools. Primary schools had 16,017 thousand students enrolled during the year, of which 7,509 thousand were girls, with 515 thousand teachers. Secondary schools in the state had 6,414 thousand enrolled students, of which 2,920 thousand were girls, with 221 thousand teachers. Government of Maharashtra is focusing on education of girls in the state. Various schemes such as Kasturba Gandhi Balika Vidyalaya, Ahilyabai Holkar Scheme & Attendance Allowance Scheme have been introduced for promoting girl education in the state. As per budget 2016-17, the state government allocated an amount of US$ 20.99 million for the National Secondary Education Mission which was initiated by the central government, in association with the state government, and aims at delivering quality education to all students undergoing secondary education. Further, the state government also decided to digitise all public libraries approved by the government, with an allocated amount of US$ 2.62 million during 2016-17. In addition, an outlay of US$ 113.04 million for Sarv Shiksha Abhiyan has been proposed by the central & state governments, collectively. As of February 2017, a total of 18,225 schools had completed their self assessments, which is the 1 st stage of the new accreditation system Shaala Siddhi 2016, adopted by all states in India. Education infrastructure (2015-16) Institution No. of Institution Student Enrollment Primary schools 105,489 16,017 Secondary and higher secondary schools Engineering colleges (diploma, graduate and post-graduate) Industrial training institutes (itis) 25,013 6,414 1,093 346,515 824 134,767 Architecture colleges 74 3,763 Arts, science, commerce & law colleges 2,249 961,576 Pharmacy 486 29,371 Literacy rate (%) in Maharashtra, 2015-16 Overall 82.3 Male 88.4 Urban 88.7 Female 69.9 Rural 77 Source: Economic Survey of Maharashtra, 2015-16, State Budget 2016-17, Census 2011 33

SOCIAL INFRASTRUCTURE HEALTH Health infrastructure (2015-16 (1) ) State level hospitals 490 District hospitals 23 Mobile medical units 13 Sub-district hospitals with capacity of 50 beds Sub-district hospitals with capacity of 100 beds Community health centres 458 Rural hospitals/cottage hospitals 360 Primary health centres 1,811 Sub-centres 10,580 General hospitals 4 Orthopedic hospital 1 Super specialty hospitals 2 Mental health institutes 4 Women hospitals 11 TB hospitals 4 58 28 Health indicators of Maharashtra (As of September 2015) Doctor to patient ratio 1: 27,790 (1) Registered doctors 148,575 (1) Birth rate (per thousand persons) 16.5 Death rate (per thousand persons) 6.2 Infant mortality rate (per thousand live births) Life expectancy at birth (years) (2015-16) Male (2016-20) 69.9 Female (2016-20) 73.7 As per budget 2017-18, an outlay of US$ 1.27 billion has been proposed by the state government for Public Health Department. Moreover, for increasing the coverage of insurance being provided to beneficiaries in the state, the state government proposed an allocation of US$ 45.82 million during 2016-17. 24 Health and family welfare training institution 8 Source: Ministry of Health and Family Welfare, Government of India, Economic Survey of Maharashtra, 2015-16, (1) Until Dec 2015 34

CULTURAL INFRASTRUCTURE Cricket is the prominent sport in Maharashtra. Other popular sports are hockey & tennis. The state has a number of sports stadiums located in Mumbai, Pune & Nagpur. The most well-known ones are the Wankhede Stadium & the Brabourne Stadium in Mumbai, the Nehru Stadium in Pune & the Vidarbha Cricket Association (VCA) Stadium in Nagpur. The state has a number of entertainment centres & multiplexes. The most famous entertainment centres include Essel World in Thane. The state is also home to almost all major multiplex chains in the country, including PVR Cinemas, Big Cinemas & Fun Cinemas. The state has a number of religious places, including the Siddhi Vinayak temple (Mumbai), Shirdi, Nasik & Sach Khand Shri Huzur Gurdwara (Nanded). The Gateway of India, Ajanta Ellora caves, Daulatabad Fort & Khandala are the main tourist destinations in the state. The Sahara Stadium in Pune has been built with modern outlook & state-of-the-art facilities; the stadium has a seating capacity of 36,000. In 2016, the state government formulated a new policy- "Maharashtra Tourism Policy 2016" & allocated US$ 43.53 million for the policy in order to intensify basic amenities across various tourist spots in the state. Under the New Sports Policy 2012, the Government of Maharashtra plans to set up public gyms at district sports complexes or municipal gardens. In November 2016, the state played host to Global Citizen Festival India, one of the biggest musical events in the country. Source: Maharashtra Tourism, Government of Maharashtra 35

AMRUT AND SMART CITIES On the basis of population and the number of statutory towns, the Government of India shortlisted 9 cities, namely, Amravati, Aurangabad, Greater Mumbai, Kalyan-Dombivali, Nagpur, Nashik, Navi Mumbai, Pune, Solapur & Thane under the Smart City project. In November 2015, the UK government selected 2 cities of Maharashtra, that is, Pune & Amravati to develop as smart cities. The agreement is expected to boost the Indo-UK trade. As per budget 2016-17, the state government launched a scheme for smart city for delivering eco-friendly & ecological urban life to the state s citizens. Among the first selected 20 states, Pune & Solapur are also included. Moreover, the state government has also decided to develop other 8 smart cities in the state as well. In Budget 2017-18, the state and central allocated a sum of US$ 246.1 million towards this programme. Nagpur Smart cities slected in Maharashtra Cities Population Area (sq. km) Literacy rate Pune 9,429,408 15,643 86.15% Nagpur 4,653,570 9,892 88.39% Nashik 6,107,187 15,530 82.31% Aurangabad 3,701,282 10,107 79.02% Solapur 951,118 148.9 82.80% Thane 1,818,872 147.00 89.41% Pimpri-Chinchwad 1,727,692 171.51 89.22% Nashik Bhiwandi Aurangabad Mumbai Pune 36

KEY INDUSTRIES The resources, policy incentives, infrastructure and climate support investments in the state. Maharashtra Agro Industries Development Corporation, founded in 1965, is responsible for development of agro-based units in the state. MIDC is responsible for the development of industrial infrastructure. Maharashtra Small Scale Industries Development Corporation was formed in 1962 to provide new orientation and strength to the development of small-scale industries in the state. Its main objective is to aid, counsel, assist, finance, protect and promote interests of small industries. The Government of Maharashtra is promoting the development of several Special Economic Zones (SEZs) across Maharashtra for sectors such as IT/ITeS, pharmaceuticals, biotechnology, textile, automotive & auto components, gems & jewellery and food processing. Till July 2015, the state has 25 operational SEZs, of which the majority share is contributed by IT/ITeS, engineering and electronics segment. Key Industries in Maharashtra Pharmaceuticals Biotechnology IT and ITeS Electronics Engineering Auto & auto components Establishment of MSME units Year MSME units Oil & gas Food & agro processing Gems and jewellery Banking, financial services and insurance (BFSI) Textiles Investment (US$ million) Employment (lakh) 2007-08 10,244 348.46 1.39 2008-09 11,682 503.36 1.71 2009-10 11,896 462.57 1.50 2010-11 14,496 849.83 1.87 2011-12 15,606 678.74 2.07 2012-13 16,136 833.33 2.06 2013-14 19,814 971.28 2.48 2014-15 36,992 1,096.85 3.50 2015-16 (1) 20,220 624.81 1.66 Source: Economic Survey 2015-16, MAIDC - Maharashtra Agro Industries Development Corporation, (1) Up to September 2015 37

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 19.21 20.09 23.76 25.71 23.12 22.97 25.12 2011-12 2012-13 2013-14 2014-15 2015-16 18.29 20.04 23.24 25.41 27.27 FINANCIAL SECTOR (1/7) At current prices, the contribution of the banking and insurance sector to the GSDP of the state increased at a CAGR of 10.54% between 2005-06 and 2015-16. At constant prices, the contribution of banking and insurance sector in the GSDP of the state increased at a CAGR of 4.57% between 2008-09 and 2014-15. In May 2017, Indiavesh Capital announced to invest US$ 3.82 million in Maharashtra-based micro lender M Power Micro Finance to drive its expansion plans. Aggregate deposits and credit of scheduled commercial banks in Maharashtra stood at US$ 282.3 billion and US$ 314.7 billion respectively, in Q1 2017-18. Deposits and credit of scheduled commercial banks in Maharashtra by bank group (January to March 2017) Gross State Value Added by Financial Services at current prices (US$ billion) 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Banking and insurance contribution to GSDP at constant prices (in US$ billion) Bank group No. of banking offices Deposits (US$ million) (1) Employment ( 000 thousand) Rural 3,032 9,871.17 8,068.62 Semi-urban 2,790 19,886.37 10,336.21 30.00 25.00 20.00 15.00 10.00 5.00 Urban 1,397 18,441.02 12,851.99 - Total 7,199 48,198.56 31,256.81 ( 1) Note: As of March 2016, exchange rate = 0.0155 Source: Reserve Bank of India, Maharashtra Economic Survey 2015-16 38

Total Public Sector Banks Private Sector Banks State Bank Group Foreign Banks in India Total Public Sector Banks Private Sector Banks White Label ATMs Foreign Banks in India 23,321 25,835 Total Public Sector Banks Private Sector Banks State Bank Group Foreign Banks in India Total Public Sector Banks Private Sector Banks State Bank Group Foreign Banks in India 19,099 21,574.00 FINANCIAL SECTOR (2/7) ATMs deployed in Maharashtra, June 2014 ATMs deployed in Maharashtra, June 2015 20,000 15,000 10,000 5,000-6,811 7,502 4,473 313.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00-8,749 8,053 4,481.00 291.00 ATMs deployed in Maharashtra, June 2016 ATMs deployed in Maharashtra, June 2017 25,000 20,000 15,000 10,000 5,000-9,449 8,920 4,683 269.00 30,000 25,000 20,000 15,000 10,000 5,000-14,487 9,383 1,721 244.00 Source: Reserve Bank of India 39

FINANCIAL SECTOR (3/7) Scheduled commercial banks in Maharashtra Reserve Bank of India Reserve Bank of India (RBI) was founded in 1935 and is recognised as India's central banking institution. RBI also controls the monetary policy of the Indian rupee. RBI is headquartered in Mumbai, Maharashtra and has 19 regional offices and nine sub offices. Monetary authority, supervision of the financial systems, foreign exchange management and currency issuing are the major functions of the Reserve Bank of India. State Bank of India Foundation year: 1956 (owned by Government of India) Banking services: Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management Total assets: US$ 420 billion; Total income: US$ 32.75 billion (2016-17) Headquarters & employees: Headquartered in Mumbai with over 300,000 employees Website: www.sbi.co.in Bank of India Foundation year: 1906 (state owned commercial bank) Banking services: Commercial banking, retail banking, private banking, asset management, mortgages, credit cards Total assets: US$ 97.21billion; Total income: US$ 7.15 billion (2016-17) Headquarters & infrastructure: Bank is based in Mumbai with over 4,500 branches and over 1,000 ATMs all over India Website: www.bankofindia.com Source: Reserve Bank of India, Bank websites 40

FINANCIAL SECTOR (4/7) Scheduled commercial banks in Maharashtra Union Bank of India Foundation year: 1919 (owned by Government of India) Banking services: Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management, agriculture loan Total assets: US$ 70.34 billion; Total income: US$ 5.94 billion (2016-17) Headquarters & Employees: Bank is based in Mumbai with over 28,000 employees and more than 4,000 ATMs Website: www.unionbankofindia.co.in Bank of Maharashtra Foundation year: 1935 (the bank has the largest network of branches in Maharashtra and is a public sector bank) Banking services: Loans, credit cards, savings, investment vehicles, insurance, investment banking, mortgage loans, private banking etc. Total assets: US$ 24.73 billion; Total income: US$ 2.11 billion (2016-17) Headquarters & infrastructure: Based in Pune, and reaches out to 15 million customers with 2,000 branches in 29 states Website: www.bankofmaharashtra.in Central Bank of India Foundation year: 1911 (one of oldest commercial banks owned by the government) Banking services: Core banking services are loans, credit cards, savings, investment vehicles, and insurance, investment banking, mortgage loans, private banking etc. Total assets: US$ 51.75 billion; Total income: US$ 4.27 billion (2016-17) Headquarters & infrastructure: Headquartered in Mumbai with over 4,000 branches in 27 Indian states and 270 extension counters Website: www.centralbankofindia.co.in Source: Reserve Bank of India, Bank websites 41

FINANCIAL SECTOR (5/7) Scheduled commercial banks in Maharashtra Dena Bank Foundation year: 1938 Banking services: Investment banking, consumer banking, commercial banking, retail banking, private banking, asset management, pensions, mortgages, credit cards Total assets: US$ 20.12 billion; Total income: US$ 1.77 billion (2016-17) Headquarters & infrastructure: Bank is based in Mumbai, with over 1,400 branches and more than 100 ATMs Website: www.denabank.com Yes Bank Foundation year: 2004 Banking services: Corporate and institutional banking, commercial banking, investment banking, retail banking, finance marketing Total assets: US$ 33.38 billion; Total income: US$ 3.19 billion (2016-17) Headquarters & Infrastructure: Bank is based in Mumbai, with more than 550 branches and 1,255 ATM s Website: www.yesbank.in Deutsche Bank India Foundation year: 1980 Banking services: Private and business banking, corporate banking and securities, global transaction banking and asset & wealth management Headquarters & employees: Bank is based in Mumbai, with more than 9,500 employees in 16 cities Website: www.db.com/india Source: Reserve Bank of India, Bank websites 42

FINANCIAL SECTOR (6/7) Scheduled commercial banks in Maharashtra Citibank India Foundation year: 1902 Banking services: Credit cards, debit cards, loans, investments, NRI banking and private baking Headquarters & employees: Bank is based in Mumbai, with over 7,500 employees. The bank has 44 branches in 31 cities and 700 ATMs across the country Website: www.citibank.co.in HDFC Bank Foundation year: 1994 Banking services: Investment banking, investment management, wealth management, private banking, corporate banking, private equity, finance and insurance, consumer banking, mortgages, credit cards Total assets: US$ 134.08 billion; Total income: US$ 12.67 billion (2016-17) Headquarters & employees: Bank is based in Mumbai, with more than 69,065 employees Website: www.hdfcbank.com IDBI Bank Foundation year: 1964 (10th largest bank in the world) Banking services: Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management, agriculture loan Total assets: US$ 55.41 billion Total income: US$ 4.96 billion (2016-17) Headquarters & infrastructure: Bank is based in Mumbai with over 15,000 employees and 2,000 ATMs. Website: www.idbi.com Source: Reserve Bank of India, Bank websites 43

FINANCIAL SECTOR (7/7) Scheduled commercial banks in Maharashtra ICICI Bank Foundation year: 1994 Banking services: Credit cards, consumer banking, corporate banking, finance and insurance, private banking Headquarters & employees: Bank is based in Mumbai, with over 67,857 employees. Website: www.icicibank.com Source: Reserve Bank of India, Bank websites 44

MUMBAI AS FINANCIAL HUB OF INDIA (1/2) Mumbai is the capital of the state of Maharashtra and the financial capital of India. The city houses a majority of the headquarters of large corporates and financial institutions in the country. In addition, major stock exchanges, commodity exchanges and capital markets of India are situated in Mumbai. During 2015-16, Mumbai accounted for 20.1% of the GVA of Maharashtra. Till September 2015, the number of micro, small and medium enterprises (MSMEs) in Mumbai totalled 244,000, providing employment to about 2.92 million individuals. According to Maharashtra Industrial Development Corporation (MIDC), there are 305 industrial units in Mumbai. About US$ 648 million has been invested by the corporation for various projects in Mumbai, providing employment to about 50,000 people in the area. The government has also commenced work for setting up a special economic zone (SEZ) in Nhava Sheva, Navi Mumbai. The project is being developed by Jawaharlal Nehru Port Trust (JNPT) and is planned by L&T Infrastructure Engineering Limited. The project will be developed on EPC mode with a total expected private investment of about US$ 534.68 million. The zone is being developed on 277.38 hectares of land and is directly accessible via Mumbai Goa Highway- NH4B and SH 54. It is expected to generate direct and indirect employment opportunities for about 150 thousand people. The project was granted environmental clearance on 5th December, 2014. L&T Infrastructure Engineering submitted detailed plans for the project to the government on 31st March, 2015. Since then, activities such as levelling of the area and initiation of tender process for the wall protecting the SEZ (Phase-1) have commenced. Source: Maharashtra Economic Survey 2015-16; Jawaharlal Nehru Port Trust 45

MUMBAI AS FINANCIAL HUB OF INDIA (2/2) Further, the Government is setting up the Delhi-Mumbai Industrial Corridor (DMIC) with the help of the Government of Japan, which has agreed to lend US$ 4.5 billion for this project. Seven nodes are in the development stage for the Phase-1 of the project, which is expected to greatly boost India s manufacturing sector. The Government of Maharashtra sent a memorandum to the 13th Finance Commission to support the growth of Mumbai s infrastructure and develop it as an international finance centre. In addition to providing US$ 1.59 million to the Government of Maharashtra for developing the infrastructure of Mumbai as a part of (JNNURM), the Government of India has released US$ 26.63 million for the funding of Mumbai Metro to improve the transport infrastructure of Mumbai. In November 2015, apex industry body ASSOCHAM launched Maharashtra-Goa Regional Development Council, with an aim to develop Mumbai as International Finance Centre and Mumbai-Pune-Nashik region as the Silicon Valley of India. The Council is expected to aid sustainability of two major states. The Mumbai Metro Rail Phase II A, from Dahisar to D.N. Nagar covering 18.6 km with project cost of US$ 979.22 million, commenced in February-2016 and is likely to be completed by March 2019. Phase III of the project, Colaba-Bandra-Seepz covering 33.5 km with a project cost US$ 3534.37 million is expected to be completed by 2020-21. General consultant has been appointed and tendering for civil work is in progress for this phase. Preliminary work is in progress for the Mumbai Trans Harbour link and Multi-Modal Corridor from Virar to Alibaug. Work on the projects commenced in 2011 & 2010 and are expected to be completed by 2021 & 2019, respectively. Source: Maharashtra Economic Survey 2015-16 46

KEY INDUSTRIES PHARMACEUTICALS AND BIOTECHNOLOGY (1/3) Major opportunities have emerged in the pharmaceutical sector, primarily in the areas of contract research, contract manufacturing and clinical trials. The state has a well developed laboratory, research and development infrastructure and a strong resource pool. In August 2015, one of the leading pharmaceutical companies Nutra Plus started the commercial production of therapeutic and analgesic products in its Tarapur plant. The Maharashtra state government aims at giving a boost to the pharmaceutical sector in the state and improve research activities with development of skilled man power. Hence, the government plans to establish National Institute of Pharmacy Education and Research at Nagpur. The land for the project was allotted in December 2016. From August 1991 to October 2015, a total of 854 projects with an investment of US$ 2448.5 million have been approved for the pharmaceutical industry in the state. Of these 496 projects with investment of US$ 663.15 million have commenced. Source: Maharashtra Industrial Development Corporation, MSME: Micro, small and medium enterprises 47

KEY INDUSTRIES PHARMACEUTICALS AND BIOTECHNOLOGY (2/3) Biotechnology & Pharmaceutical SEZs in Maharashtra Sector Status Serum Bio-Pharma Park Pharmaceuticals & Biotechnology Operational Maharashtra Industrial Development Corporation Pharmaceuticals Operational Wockhardt Infrastructure Development Limited Pharmaceuticals Formal approval granted Mahindra and Mahindra Limited Biotechnology Formal approval granted International Biotech Park Ltd Biotechnology Formal approval granted Inspira Infra (Aurangabad) Ltd. (formally Ajanta Project (India) Ltd.) Pharmaceuticals Formal approval granted Inspira Infra (Aurangabad) Ltd. (formally Ajanta Project (India) Ltd.) Biotechnology Formal approval granted Saloni Business Park Private Limited Biotechnology Formal approval granted Veritas Infrastructure Development Limited Biotechnology Formal approval granted SEZ Bio-Tech Services Private Limited Biotechnology Formal approval granted Registered BT units (upto October 2016) BT units Total units Investment (US$ million) Employment Registered LOI Registered LOI Registered LOI MSME 50 15 43.3 29.8 872 338 Large 16 7 185.8 88.1 712 931 Source: Maharashtra Industrial Development Corporation, Economic Survey 2015-16 48

KEY INDUSTRIES PHARMACEUTICALS AND BIOTECHNOLOGY (3/3) Key Players GlaxoSmithkline Pharmaceuticals Ltd GlaxoSmithkline Pharmaceuticals, established in 1924, is one of the oldest players in the Indian pharmaceuticals industry. In Q1 FY2018, the company earned US$ 93.4 million in revenues. The company produces medicines that treat major diseases such as asthma, virus control, infections, mental health, diabetes and digestive conditions. The company is also a leader in the important areas of vaccines and is developing new treatments for cancer. Cipla Ltd Cipla is one of the major Indian companies in the pharmaceuticals sector, with total income from operations in Q1 FY2018 valued at US$ 412.9 million. It is also one of the oldest players in the sector. The company has manufacturing units at Vikhroli (Mumbai) and Patalganga. Wockhardt Ltd Wockhardt, headquartered in Mumbai, is a major player in the integrated healthcare segment. The company s market presence covers formulations, biopharmaceuticals, nutrition products, vaccines and Active Pharmaceutical Ingredients (APIs). The company s total income from operations stood at US$ 67.6 million in Q1 FY2018. Wockhardt has set up a global scale biopharmaceuticals manufacturing park, the Wockhardt Biotech Park, in Aurangabad. This state-of-the-art complex comprises six dedicated manufacturing facilities, and is designed according to USFDA and EMEA standards. Lupin Ltd Lupin is one of the significant players and primarily derives its revenue from formulations. Total net sales of the company in Q1 FY2018 were valued at about US$ 384.5 million. The company has manufacturing plants at Tarapur and Aurangabad. The company is waiting for an approval from the Food and Drugs Authority to start commercial operations in Mihan-SEZ, Nagpur. USFDA: US Food and Drug Administration, EMEA: Europe, The Middle East and Africa 49

KEY INDUSTRIES IT/ITeS AND ELECTRONICS (1/4) IT is one of the top notch sectors in the state, with maximum thrust, development and investment. Over 2014-15, Maharashtra accounted for around 30% of the country s software exports with the help of 1,200 software units present in the state. The Government of Maharashtra is focusing on providing IT-related infrastructure, fiscal incentives to IT units and an institutional framework for the IT sector. The prime IT/ITeS clusters are in Greater Mumbai, Pune, Thane, and Nasik. Pune is the leader in Business Process Outsourcing (BPO) services. During 2015-16, the Directorate of Information Technology made 156 online services available through Aaple Sarkar portal under the Maharashtra Public Services Rights Act, 2015. During 2016, Government of Maharashtra came up with a new policy - Electronics Policy 2016, which aims at achieving a turnover of US$ 12 billion for the ESDM industry and is assisting in targeted expansion of ESDM sector to cross US$ 2 billion, through 2020. The government has launched WiFi services, which will connect 500 hotspots across Mumbai, under the smart city project. By May 2018, the government is planning to extend the free WiFi services across 1200 hotspots. Investment in science, technology and environment sector in Maharashtra Year Cost (outlay) US$ million 2011-12 6.19 2012-13 4.42 2013-14 5.64 2014-15 9.47 2015-16 10.23 2016-17 16.92 Source: Maharashtra Industrial Development Corporation, News Articles, Economic Survey 2015-16 50

KEY INDUSTRIES IT/ITeS AND ELECTRONICS (2/4) During 2016-17, Maharashtra Industrial Development Corporation (MIDC), CIDCO and Software Technology Park of India cumulatively developed 37 public IT parks and approved 472 IT parks. Of the total 487 IT parks, 170 parks are already operational with an overall investment of US$ 586.4 million and US$ 1,589.85 million has been proposed for the remaining 317 IT park projects that are in the processing phase. Prominent information technology parks in Maharashtra Prominent information technology parks in Maharashtra District Number of IT parks (2016-17) Pune 172 Greater Mumbai 162 Talawade IT Park, Dehu-Moshi Road, Pune. Millennium Business Park (MBP), Navi Mumbai Hinjewadi IT Park Phase I, Hinjewadi, Pune Hinjewadi IT Park Phase II, Hinjewadi, Pune Kolhapur IT Park, Kolhapur Sangli IT Park, Vishrambag, Sangli Nagpur IT Park, Nagpur Deogiri Infotech Park, Aurangabad Kharadi IT Park, Kharadi, Pune Thane 140 Nagpur 5 Nashik 5 Aurangabad 3 Wardha 1 Total 487 Source: Maharashtra Industrial Development Corporation, state economic survey 2016-17 51

KEY INDUSTRIES IT/ITeS AND ELECTRONICS (3/4) Government initiatives Additional floor space index for IT parks and recreational, residential and other support facilities would be provided. Eligible IT-ITeS units covered under the Package Scheme of Incentives (PSI) would be exempted from the payment of electricity duty. IT units would be supplied with power at industrial rates. Property tax shall be levied on IT/ITeS units at par with residential rates. VAT on the sale of IT products would be generally charged at a minimum floor rate. Development of Mumbai-Pune-Nashik as Silicon valley of India, that is, an IT innovation hub under Maharashtra-Goa Regional Development Council Source: Maharashtra Industrial Development Corporation, News Articles 52

KEY INDUSTRIES IT/ITeS AND ELECTRONICS (4/4) Key Players Accenture IBM Accenture is a global management consulting, technology services and outsourcing company, with around 259,000 people serving clients in more than 120 countries. The company has several development centres across India. It has major operating centres in Mumbai and Pune. In 2017 (for the nine months ending May 2017), the company earned revenues of US$ 27.12 billion. IBM is one of the biggest IT solutions and product firms having presence across the globe. The company has a significant presence in India, with centres in Pune. It recorded revenues of US$ 37.44 billion for six months ending February 2017. Capgemini Capgemini is a global IT major headquartered in Paris, France, and operates in more than 40 countries. The company generated revenues of US$ 7.38 billion in H1 2017. The company provides solutions across all verticals in the industry. It has software centres in Mumbai, Navi Mumbai and Pune. In February 2014, the company opened a new facility at Pune with a seating capacity of 2,800 persons, adding to the 4,000 people it employs at its Pune campus. It is also looking to increase its workforce in the state. Infosys Technologies Ltd Infosys is a well-known IT giant, with development centres across India. The company generated revenues of US$ 9.2 billion in 2016-17. The company has a development centre at Wakad, Pune, and also a BPO centre in the city. Infosys had been allotted land in Mihan-SEZ, Nagpur,and was expected to start construction work in July 2014. In the first phase the company will invest US$ 78.8 million to accommodate 5,000 software professionals. 53

KEY INDUSTRIES ENGINEERING (1/2) Maharashtra occupies an important place in both the production and export of engineering goods from the country. The engineering industry in the state is highly diversified and produces a large range of machine parts, from industrial machinery to industrial castings and forgings. The industry, which was initially concentrated in the Mumbai-Pune belt, has spread all over the state with the major production centres in Nagpur, Aurangabad, Nasik and Kolhapur. The major engineering items of production and export in Maharashtra are textile mill machinery, machinery for sugar, cement and chemical plants, food processing machinery, construction machinery, tractors, electric power machinery, transmission line towers, automobiles and ship building. BHEL is setting up a new power equipment fabrication plant at Bhandara in the Vidharba region of Maharashtra. The greenfield unit is being set up by the company with an initial investment of US$ 92 million and will provide direct employment to about 700 people. It is setting up a silicon solar cell at Sakoli in the Bhandara district and also plans to set up a solar photo-voltaic cell unit in the state. 54

KEY INDUSTRIES ENGINEERING (2/2) Key Players Larsen & Toubro Limited (L&T) is a diversified Indian conglomerate with interests in engineering and construction. The company earned US$ 2.14 billion in revenues during Q1 FY 2018. Larsen & Toubro Ltd (L&T) L&T is one of the oldest running companies with headquarters in Mumbai. The company has manufacturing facilities at Mumbai and Ahmednagar. Greaves Cotton is one of the oldest and well-diversified engineering companies in India. Its core products include diesel/petrol engines, pump sets, construction equipment and gensets. Greaves Cotton Ltd The company has manufacturing facilities at Chakan, Chinchwad, Chikalthana, Shendra and Waluj. The company earned US$ 62.5 million in revenues in Q1 FY 2018. Siemens Group Siemens Group is a leading inventor, innovator and implementer of leading-edge technology-enabled solutions operating in the core business segments of industry, energy and healthcare. The company is based in Navi Mumbai. In 2013-14 (October 2013 to September 2014), Siemens India earned US$ 407.82 million as total income from operations in Q1 FY 2018. ABB ABB is one of the leading engineering companies in the world. The ABB group operates in around 100 countries and employs about 130,000 people. The company offers an extensive array of products and services within power and automation technologies. ABB operations in India include 12 manufacturing facilities, with over 10,355 employees. The company has a manufacturing facility in Mumbai. In Q1 FY 2018, ABB India Ltd earned revenues of US$ 342.1 million from operations. 55

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 7.74 6.82 6.79 4.20 6.82 8.83 8.90 KEY INDUSTRIES TEXTILES (1/2) Maharashtra contributes about 11.4% to India s textiles and apparels output. Maharashtra is the largest cotton producer in India with largest area under cultivation for cotton. The textile industry is the largest employer in Maharashtra and contributes around 28% to India's total exports. Textile parks, aimed to provide world-class infrastructural components for the textile sector and enhance productive capacity, are being set up in Maharashtra to maintain its leadership position in textile exports and production. Some of the textile parks are the Nardhana Textile Park in Dhule, Butibori (Nagpur) Textile Park and Ambernath Textile Park. the state government plans to set up 11 new textile parks in the state. In July 2017, Maharashtra government proposed to set up an integrated textile park in Malegaon over 345 hectares of land. As per budget 2016-17, the state government is aiming at setting up new textile units across the state s cotton growing areas. Moreover, the government has also proposed an investment of US$ 40.48 million during 2016-17, for the existing and upcoming textile projects across Vidharbha, Norhern Maharashtra and Marathwada. The Government of Maharashtra is planning to set up a garment park in Solapur, with an investment of US$ 44.62 million to generate employment in the surrounding areas. Cotton (lint) production in Maharashtra (million bales) 9.00 6.00 3.00 - Raw silk production (in tonnes) Year Volume 2012-13 97 2013-14 122 2014-15 221 2015-16 274 2016-17 (1) 142 Note: 2016-17 (1) : Up to December 2016 Source: Central Silk Board, Economic Survey, 2015-16, 2016-17 56

KEY INDUSTRIES TEXTILES (2/2) Key Players Raymond Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of global conglomerate Raymond Group. It generated revenues of US$ 91.5 million in Q1 FY 2018. Raymond was the first in 1959 to introduce a polywool blend in India to creating the world's finest suiting fabric the Super 240s made from superfine 11.6 micron wool. The Bombay Dyeing and Manufacturing Company Limited s textile products include bedding range, bedding accessories, bath linen, hotel linen and industrial fabrics. Bombay Dyeing S. Kumars Product range also consists of bed sheets, bed covers, quilts, duvet covers, dohars, bed in bag sets, blankets, pillow cases, cushion covers, shams, cushions, pillows and bed decor sets, pool towels, bath towels, hand towels and face towels. The company generated revenues of US$ 91.1 million in Q1 FY 2018. S. Kumars is one of India's leading textile and apparel companies. With expertise in multi-fibre manufacturing, the company has extended its presence in multiple product categories from fabrics to apparels and home textiles. Its brands include Reid & Taylor, Belmonte, S.Kumars, Uniformity By Belmonte, Carmichael House and Stephens Brothers. Siyaram Silk Mills, incorporated in 1978, is a leading producer of blended fabrics in India. Siyaram s The company is one of the most renowned vertically integrated textile companies in the country. It operates the widest range of latest machinery in its eco-friendly plants at Tarapur, Daman and Mumbai. The company earned US$ 49.32 million in revenues in Q1 FY2018. 57

KEY INDUSTRIES CHEMICALS, OIL AND GAS, ENERGY (1/2) Maharashtra has a strong presence in the petrochemicals, and oil and gas sectors. Mumbai, Nagothane, Rabale and Patalganga are major petrochemical hubs, while Thane, Mumbai, Pune and Wardha are chemical hubs. Use of chemical fertilisers in Maharashtra Year Total input ( 000 tonnes) Per hectare consumption (kg) Opportunities primarily exist in the areas of polymers & plastics, fertilisers and synthetic yarns. Key competitive strengths of the state in this industry are the strong upstream and downstream linkages for raw materials and products. Bombay High accounts for over 50% of the country's oil & gas production. In August 2015, Indraprastha Gas Ltd invested US$ 31.51 million in Maharashtra Natural Gas Ltd (MNGL). The purpose of the investment is to enhance the city gas distribution business of the company in Maharashtra. In August 2015, the state government announced plans to establish a grid-connected canal top solar power project in the state at Jalgaon. The project will feature a 7.5 MW solar photovoltaic power plant which will be established on the left bank canal of the dam. As per the new energy policy of the state, the government is planning to establish 14,400 MW of fresh grid-connected capacity by 2019-20. As of October 2017, the state had an installed capacity of 30,598.43 MW under thermal energy; 690 MW under nuclear energy; 3,331.84 MW under hydro and 7,709.33 MW under renewable energy sources. 2011-12 6580 155.2 2012-13 5470 116.1 2013-14 5990 119.4 2014-15 6013 125.9 2015-16 5963 122.5 2016-17 6467 122.3 Under the State Budget 2016-17 the government had planned an investment of US$ 119.77 million for electricity generation projects. Outlay of US$ 69.66 million has been set for adding capacity under non-conventional energy sources. Source: Commissionerate of Agriculture, GoM, Economic Survey 2015-16 58

KEY INDUSTRIES CHEMICALS, OIL AND GAS, ENERGY (2/2) Key Players Oil and Natural Gas Corp Oil and Natural Gas Corporation ranks as one of the leading oil and gas Exploration and Production (E&P) companies in the world in the terms of asset value. The company s consolidated revenue from operations stood at US$ 12.09 billion in 2016-17. The company has a production facility at Uran (Navi Mumbai) and the corporate office is in Mumbai. It plans to invest US$ 810 million to build a new gas based fertiliser plant and it would invest US$ 945.6 million for redevelopment of its Mumbai High (North) oil and gas field in the state of Maharashtra. Hindustan Petroleum Corp Ltd Hindustan Petroleum Corporation Limited (HPCL) is one of the Navratna Public Sector Units (PSUs). It is a major refining and oil retailing company in India. HPCL s standalone total income was US$ 33.48 billion in 2016-17. It has an oil refining unit on Mumbai s west coast. Bharat Petroleum Corp Ltd Bharat Petroleum Corporation Limited (BPCL) is engaged in the marketing and distribution, refining, trading and exploration of petroleum. The company s standalone revenues stood at US$ 16.33 billion between April 2015-September 2015. BPCL has a refinery in Mumbai. Reliance Industries Ltd Reliance Industries Limited, is the largest private sector firm in India and ranks 99th on the Fortune 500 list based on revenues. The company s standalone revenues was US$ 51.25 billion for 2016-17. The company has diversified interests in energy, retail, textiles, petrochemicals, infotel and SEZs. Reliance Industries Limited has manufacturing facilities at Nagothane, Nagpur and Pathalganga in Maharashtra. 59

KEY INDUSTRIES AUTO AND AUTO COMPONENTS (1/3) Maharashtra accounts for approximately 35.1% of the country s output of automobiles by value. The major automobile centres in the state include Pune, Nasik, Aurangabad and Nagpur. Pune is the largest auto hub of India with over 4,000 manufacturing units in the Pimpri-Chinchwad region alone. Pune is home to large players like Bajaj Auto Limited, Daimler Chrysler Limited, Tata Motors, etc. Nasik is home to one of India's largest multi-utility vehicle manufacturers Mahindra & Mahindra Limited. In September 2015, Maharashtra government received an application from Mercedes Benz, regarding an investment plan of US$ 305.53 million to upgrade its manufacturing capacity at Pune plant, which manufactures around 40,000 to 80,000 units of luxury cars per year. The company is also planning to start exports from this facility to neighbouring, ASEAN and South African countries by 2020-21. The domestic utility maker Mahindra has been planning to invest US$ 1.22 billion for enlarging its automotive or manufacturing plants in Maharashtra. Investment of US$ 992.98 million will be made at the company s Nashik plant and while, investment of US$ 229.15 million would be done in the Chakan unit. The total amount will be invested by Mahindra over a span of more than seven years. In August 2016, Mahindra Intertrade, a part of Mahindra Group entered into a partnership with MSTC, a Government of India enterprise, to set up the country's first auto shredding and vehicle recycling unit. Gujarat and Maharastra have been short listed for setting up the facility, with the operations likely to commence by early 2018. Automotive hubs in Maharashtra 60

KEY INDUSTRIES AUTO AND AUTO COMPONENTS (2/3) In July 2015, the Maharashtra state government announced plans to finalise the deal with Chrysler for setting up a jeep production facility at Ranjangaon in Aurangabad. The overall investment expected in the first year is US$ 281.88 million and US$ 563.69 million is to be invested over the next six years. The first Jeep made at the plant was unveiled in May 2017. ARAI, India's premier automotive R&D, testing and certification organisation is in Pune. It is India s first Auto Cluster Development and Research Institute is in Maharashtra. Investment opportunities in the auto sector Partnership and alliances for auto component sector Vehicle retailing Low cost vehicles Cvs to benefit from increasing infrastructure activity and heightened international interest Diversification in two wheeler segment Design centers Auto financing R&D Category wise numbers of a few categories of motor vehicles on the road in Maharashtra Vehicle Type 2016 2017 (1) Motor-cycles, scooters & mopeds 19,881.5 21,476.7 LMV (cars, jeeps, station wagons & taxis) 4,074.8 4,433.4 Auto rickshaws 726.1 744.2 Buses (stage carriages, contract carriages, school buses & PSV) 115.5 127.7 Tractors 603.6 639.2 Goods vehicles {Articulated/Multiaxel vehicles, trucks & lorries, tankers, delivery vans (3 & 4 wheelers), etc. 1,422.8 1,505.2 Note: 2016 (1) provisional, LMV Light Motor Vehicles PSV - Public Service Vehicles, ARAI - Automotive Research Association of India Source: Economic Survey, 2016-17, 61

KEY INDUSTRIES AUTO AND AUTO COMPONENTS (3/3) Key Players Bajaj Auto Ltd Bajaj Auto is a major Indian automobile manufacturer. The company is the world's fourth-largest two- and three-wheeler manufacturer with an income of of US$ 837.2 million in Q1 FY 2018. The company manufactures and exports scooters, motorcycles and auto rickshaws. The company is based in Pune with a regional office at Akurdi and manufacturing plants in Chakan (Pune, manufactures motorcycles) and Waluj (near Aurangabad, manufactures motorcycles and three-wheelers). Tata Motors Limited is a multinational corporation headquartered in Mumbai, India. It acquired British automotive brands Jaguar and Land Rover in 2008. The company is the world s fourth-largest truck and bus manufacturer. Consolidated revenue of the company was US$ 1.4 billion in Q1 FY 2018. Tata Motors Ltd The company has an auto manufacturing and assembly unit at Pune. The Pune unit is spread over two geographical regions Pimpri (800 acres) and Chinchwad (130 acres). Formerly known as Bajaj Tempo, Force Motors is a part of Firodia Enterprise that manufactures Multi Utility Vehicles (MUVs), tractors, Sports Utility Vehicles (SUVs) and Light Commercial Vehicles (LCVs). Force Motors Ltd Matador was a popular LCV manufactured by Force Motors. The company has a manufacturing unit in Pune. The company generated consolidated income of US$ 114.5 million in Q1 FY 2018. Mahindra and Mahindra is one of the major auto manufacturers of India. The company generated US$ 1.78 billion of income from operations in Q1 FY2018. Mahindra and Mahindra Ltd The company s products include tractors, SUVs and LCVs. It has manufacturing facilities at Mumbai, Pune, Nagpur and Nasik. 62

2012-13 2013-14 2014-15 2015-16 77.50 86.85 98.50 107.81 KEY INDUSTRIES TOURISM (1/2) Maharashtra is a major trade and tourist destination of India, attracting thousands of tourists from across the world every year. It is the fourth most visited state of India. Tourist arrivals in Maharashtra (million) There are many temples in Maharashtra, some of them being hundreds of years old, constructed in a fusion of architectural styles borrowed from north and south India. Maharashtra has its own folk music. Folk musical programmes, such as Gondhal, Lavani, Bharud and Powada, are popular, especially in rural areas. 120.00 100.00 The state is home to the Hindi film industry Bollywood, which produces the largest number of films globally. Maharashtra has a score of pilgrimage destinations, ranging from the ones that revolve around mythology (e.g., Nasik; Warkar and Pune) and those celebrating the achievements of religious leaders and reformers (Shirdi, Haji Ali shrine) to new age pilgrimage destinations such as the Osho Commune at Pune. Nasik is one of the four sites of the Kumbh Mela, which is held once in every 12 years. The city is known as the place where Lord Ram spent 14 years in exile. Maharashtra is the first state to declare a tourism district for tourism development. Sindhudurg is the first district in Maharashtra to be declared as a tourism district. 80.00 60.00 40.00 20.00 The state has launched Unlimited Maharashtra advertising campaign through newspapers and television channels to attract tourists during summer vacations. A half-hour ferry ride across Mumbai harbor takes visitors to view the superbly carved 1,300 years old cave temple on the little island of Elephanta, a favourite picnic spot. 0.00 Source: Ministry of Tourism, Government of India 63

KEY INDUSTRIES TOURISM (2/2) In 2014-15, 94.12 million domestic tourists and 4.38 million foreign tourists visited the state of Maharashtra, whereas, in 2013-14, 82.7 million domestic tourists & 4.15 million foreign tourists visited Maharashtra. In 2016 the numbers were, 166 million domestic tourists and 4 million foreign tourists. In 2016, the Government of Maharashtra formulated a new policy on Tourism- Maharashtra Tourism Policy 2016, which aims at minimizing delays as well as replication of redundancies & information & enhancing the application process efficiency. An amount of US$ 43.53 million was allocated by the government to boost basic amenities being provided across tourist spots. In March 2017, the state government has sanctioned US$ 52.25 million for the development of Elephanta Caves. The fund includes US$ 14.85 million from the Maharashtra Tourism Development Corporation, while US$ 37.40 million is to be raised through public private partnership. In June 2017, Airbnb, an alternative accommodations company, signed a MoU with Maharashtra Tourism Development Corporation on a revenue sharing basis, to become the official accommodation partner for the state for its network of homestays in India. As per 2016-17 budget, the state government announced the following plans : Aurangabad has been affirmed as a tourist district in the state & the government has decided to offer special attention towards the uplifting of tourism in Verul, Sulibhanjan, Mhaismal & Khultabad. The state government is also undergoing various steps for improving safety measures across the beaches for ensuring security of people As per budget 2017, government has decided to develop well known tourist and pilgrimage centres like Mahurgad (Nanded), Jyotibhacha Dongar (Kolhapur), Lonar Sarovar (Buldana), Sindhudurg and Raigad Forts. Required financial support will be provided as necessary. 64

EMPLOYMENT OPPORTUNITIES & EMPOWERMENT Till December 2016, a total of 488 mega projects were sanctioned by the state government with an outlay of US$ 58.91 billion. Due to these projects, employment opportunities for a total of 420,000 people are expected to be created. Further, a total employment of 1.66 lakh has been recorded across 20,220 MSMEs with an investment of US$ 624.80 million till September 2016. As per budget 2016-17, for upgradation of State Employment Guarantee Scheme and Mahatma Gandhi Rural Employment Scheme in the state, the Government of Maharashtra has projected an outlay of US$ 12.22 million, of which US$ 422.95 million is towards the central share and US$ 107.69 million is towards the state share. These schemes are being executed in the state for providing the required job opportunities across rural areas. In April 2017, the state government decided to give reservation to physically disabled people in jobs in its newly drafted policy. The government will also ensure that physically disabled people would be given equal employment opportunities in the government as well as private jobs. Moreover, the state government would also siphon three% of funds from budget reserved to provide facilities to the physically disabled people. Source: State Budget 2016-17, Economic Survey, 2015-16, 2016-17 65

SINGLE WINDOW CLEARANCE MECHANISM (1/3) The Government of Maharashtra provides single-window clearance to all units to reduce the average time required for establishment of such units and issue various clearances required for setting up of industries at a single point. The government has taken following steps for setting up committees at various levels: District-level committee under the chairmanship of the District Collector for proposals from SSI units. State-level committee under the chairmanship of Development Commissioner (Industries) for MSI/LSI units. Mega projects committee under the chairmanship of Secretary (Industries) for mega projects and FDI proposals. A Common Application Form (CAF) to be evolved for every applicant seeking to set up an industry and/or expansion unit and development of information system/software to process such applications online. Representatives of the concerned departments from whom the clearances are required to be the members of or invitees on the district, state and mega projects committees. The final decision will be given as far as possible within 30 days of receipt of dully filled CAFs. In order to provide the people of state with one stop portal for information, services and consents electronically under Industrial Policy 2013, the government is focussing on provisions for SWC system. 66

SINGLE-WINDOW CLEARANCE MECHANISM (2/3) Agency Description Land Department- Services Fire Department- Services Engineering - Water Department- Services MIDC services Engineering - Drainage Department- Services Engineering - Power Department- Services SPA Department- Services Technical Advisor Department- Services IT SEZ Department- Services Directorate of Industries - Services Labour Department- Services Airport Authority of India - Services Non-MIDC services Public Works Department - Services Ministry of Corporate Affairs - Services Food and Drug Administration - Services Maharashtra Coastal Zone Management Authority - Services Directorate General of Foreign Trade - Services Source: Maharashtra Industrial Development Corporation 67

SINGLE-WINDOW CLEARANCE MECHANISM (3/3) Agency Description Maharashtra State Electricity Distribution Company Limited - Services Income Tax Department - Services Department of Sales Tax - Services Industrial Safety & Healthy Directorate - Services Boiler Inspectorate - Services Non-MIDC services Municipal Corporation of Greater Mumbai Services Central Board of Excise & Customs - Services Employee Welfare - Services Weights and Measures - Services Bureau of Indian Standards - Services Maharashtra Pollution Control Board - Services Petroleum and Explosives Safety Organization - Services Source: Maharashtra Industrial Development Corporation 68

KEY INVESTMENT PROMOTION OFFICES (1/3) Agency Description Contact information Directorate of Industries The work of the Directorate of Industries, Maharashtra state, is mainly confined to the development and progress of large-scale, small-scale and cottage industries in the state. The Department of Industries was reorganised and the Directorate of Industries was formed in August 1960. Control of cottage industries was transferred to the Directorate of Industries with effect from 1st December, 1960. It also assists in the formulation and implementation of various policies and promotional schemes. Development Commissioner of Industries Government of Maharashtra Directorate of Industries New Administrative Building, 2nd Floor, Opposite Mantralaya, Mumbai Maharashtra-400 032 Phone: 91-22-22028616 didci@maharashtra.gov.in 69

KEY INVESTMENT PROMOTION OFFICES (2/3) Agency Description Contact information Maharashtra Agro Industries Development Corporation Limited (MAIDC) The objective of the company is to make available to the farmers of Maharashtra standard quality fertilisers, pesticides, agro engineering implements & animal feed to the extent required & at the time of requirement & at competitive rates. Maharashtra Agro Industries Development Corporation Limited (MAIDC) has also been designated as the state nodal agency by Ministry of Food Processing Industries, Government of India. In its role as state nodal agency, it scrutinises & forwards various proposals of entrepreneurs under different schemes of assistance from the Government of India. It also helps entrepreneurs in preparing projects, selecting the area, etc. Krushi Udyog Bhavan Dinkarrao Deasi Marg, Aarey Milk Colony Goregaon (East), Mumbai- 400065, Maharashtra, India Phone: 91-22-29272027 Email: md@maidcmumbai.com Website: www.maidcmumbai.com 70

KEY INVESTMENT PROMOTION OFFICES (3/3) Agency Description Contact information MIDC s objectives are: Maharashtra Industrial Development Corporation (MIDC) To achieve balanced industrial development of Maharashtra with an emphasis on developing parts and underdeveloped parts of the state. Help in infrastructural development of each and every district in Maharashtra. Facilitate entrepreneurs in setting up industries at various locations. MIDC is an agent of the state government for carrying out activities of acquisition and disposal of land, provision of infrastructure facilities and providing other services to industrial centres. Udyog Sarathi Mahakali Caves Road, Andheri (E) Mumbai-400 093 Phone: 91-22-26870052/54/73 Fax: 91-22-26871587 Email: feedback@midcindia.org Website: www.midcindia.org 71

KEY APPROVALS REQUIRED (1/2) Approvals and clearances required Department Prior to setting up the unit Registration Allotment of land/shed Development Authority Permission for land use Industrial Development Authorities No-objection certificate under the Water Act, 1974 and the Air Act, 1981 Pollution Control Board Approval for construction activity and building plan Development Authority No-objection certificate Fire Department Provisional Trade Tax registrations Registration under Central Sales Tax Act, 1956 Central and State Excise Departments 72

KEY APPROVALS REQUIRED (2/2) Approvals and clearances required Respective departments Before commencement of production No-objection certificate under the Water Act, 1974 and the Air Act, 1981 No-objection certificate Permanent Trade Tax registration under Central Sales Tax Act, 1956 Registration under Central Sales Tax Act, 1956 Pollution Control Board Fire Department Central and State Excise Departments After commencement of production/activity Registration Industries Department Timelines for approvals and clearances Department Issuance of allotment order Possession of plot/shed Building plans approval Grant of water connection Urban land ceiling permission Timeline 15 days 7 days 15 days 10 days 10 days Source: Economic Survey of Maharashtra 2014-15 73

COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Land (per sq m) Commercial: US$ 0.2 to US$ 1,158.3 Industrial: US$ 0.2 to US$ 579.2 Maharashtra Industrial Development Corporation (MIDC) Power (per kwh) Domestic: 4.5-16 cents Commercial: 11.7-23.5 cents Agricultural: 4.3 cents Industrial: 8.8-19.97 cents Economic Survey 2015-16 Labour (per day) US$ 1.2 to US$ 6 Ministry of Labour and Employment, Government of India, Wage Rates July 1, 2015 to Dec 31, 2015 5-star hotel room (single occupancy, per night) US$ 97-US$ 220 Maharashtra Tourism Development Corporation As per the World Bank and Department of Industrial Policy and Promotion (DIPP) report - Assessment of State Implementation of Business Reforms 2016, the state ranked 10 th in the Ease of Doing Business Index. 74

STATE ACTS & POLICIES (1/4) Objectives Designate Tourism as a priority sector since it holds the potential to usher in economic development and generate high employment opportunities in Maharashtra. Maharashtra Tourism Policy 2016 Achieve sector growth of 10% per annum and share of 15% in GSDP through tourism and tourism related activities. Generate fresh investments in the tourism sector to the tune of US$ 4.58 billion by 2025. Create 1 million additional jobs in the tourism sector by 2025 Read more Maharashtra IT/ITeS Policy 2015 To attract IT investments across the State, and incentivize IT industry at all district headquarters in the State by providing additional incentives and continue to provide usual incentives as per the IT / ITES Policy 2009 To promote the development of special fields of application of IT such as animation, visual effects, gaming and comics. Read more Maharashtra Renewable Energy Policy 2015 To increase power production from renewable sources by 14,400 MW and from solar power projects by 7,500 MW. From renewable sources, power generation of 5000 MW is targeted from wind power projects, 1000 MW from sugarcane waste/agricultural remedial projects, 400 MW from small hydro projects, 300 MW from agricultural waste power generation projects and 200 MW from industrial waste power generation projects The policy progress would be headed by the Principal Secretary, Energy Read more 75

STATE ACTS & POLICIES (2/4) Objectives Organic Farming Policy 2013 To promote and encourage organic farming in Maharashtra by allocating a minimum 10% of the land for organic faming activity To provide organic pesticides and fertilizers and increase the awareness amongst farmers about organic faming through lectures Read more Industrial Policy of Maharashtra 2013-2018 To attract investment of US$ 82.946 billion by the end of 2018 and create 2 million job opportunities To focus on the areas of Maharashtra that are less developed in comparison with mainstream industrially developed areas and retain the state as industrial investment leader Read more Housing Policy 2013-2018 To generate low income housing by making it mandatory for private developers, with residential plot sizes of 4,000 square metres and above, to reserve 20% of the land for low income groups The reserved land or constructed flats would be handed over to the state housing agency, Maharashtra Housing and Area Development Authority (MHADA) Read more Textile Policy of Maharashtra, 2011 17 To lay special emphasis on raising processing units at various levels, from cotton to manufacturing textiles, to assure long term development by giving support to the industries associated with manufacturing of textiles Read more e-governance Policy of Maharashtra - 2011 To develop the e- governance sector of the state and take it towards m- governance, by enabling the citizens to avail the services online To enable the government to function more efficiently and develop a paper less environment Read more 76

STATE ACTS & POLICIES (3/4) Objectives State Port Policy 2010 To develop six non major ports in Maharashtra by developing greenfield ports, multi-purpose jetties and cargo terminals, in order to aid import and export and coastal shipping of goods Read more Tourism Policy 2006 To promote tourism and develop hospitality infrastructure with private sector participation in the state for a period of ten years or until substituted by new policy To encourage public-private partnership (PPP) mode for development of tourist destinations Read more Special Economic Zone (SEZ) Policy 2002 To help in the growth of SEZs (duty free enclave) in the state in order to promote rapid industrial development and job opportunities To attract foreign & domestic investments for infrastructure development in the state Read more Child Development Policy 2002 To emphasise on child development of orphans, destitute, homeless and deviated in a planned, structured and disciplined manner To aid prevention of sexual exploitation and trafficking of children To provide free education and entertainment facilities Read more Water Policy 2002 To focus on optimal use of water resources coupled with sustainable development, in order to provide economic and social benefits to the people of the state. Read more 77

STATE ACTS & POLICIES (4/4) Objectives Maharashtra Biotechnology Policy 2001 To develop and make the state biotechnology industry globally competitive, the government announced various fiscal and non fiscal incentives for biotechnology units To develop infrastructure, that is biotechnology parks and research bases Read more Grapes Processing Industry Policy 2001 To develop grape processing industry in the state, and creating better employment opportunities To encourage wine industry be setting up wine parks in the state Read more 78

EXCHANGE RATES Exchange rates (Fiscal Year) Year INR equivalent of one US$ 2004-05 44.81 2005-06 44.14 2006-07 45.14 2007-08 40.27 2008-09 46.14 2009-10 47.42 2010-11 45.62 2011-12 46.88 2012-13 54.31 2013-14 60.28 2014-15 60.28 2015-16 65.46 2016-17 67.09 Q1 2017-18 64.46 Q1 2017-18 64.29 Source: Reserve Bank of India 79

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