India’s leading industrial state is Maharashtra – contributing 13% of national industrial output.
Some of the major industries in the state include – pharmaceuticals, petrochemicals, heavy chemicals, electronics, automobiles, engineering, food processing, textiles and plastics.
Maharashtra is the most favoured destination for industries, due to many reasons. Primarily because of its well-developed infrastructure, skilled workforce, strategic location with good transportation network, progressive sectorial policies, one of the best incentive policies and
much more. The Ease of Doing Business (EoDB) initiative by Government of Maharashtra aims
at fostering a conducive business environment for the new as well as existing businesses/
industries/ commercial establishments etc. Importantly, the state is also recognized as one of
the leading states in India in terms of smooth business facilitation and support paraphernalia.
There are many ways in which entrepreneurship can be practiced here. The three main types of entrepreneur opportunities include – franchises, developing new operations within an existing organization and forming a completely new one too. Opportunities in entrepreneurship can mean anything from working on small projects or the development of massive new enterprises.
There are many leading government initiatives and schemes for the state of Maharashtra.
Government Initiatives for MSME
The Ministry of MSME’s role is – to support states to promote entrepreneurship, employment,
and livelihood opportunities along with improving MSMEs’ competitiveness in the changing
economic environment. Mumbai, known as ‘The City of Dreams’ is the capital city of Maharashtra, and is also recognized as India’s financial hub and is home to mainline businesses. Prominently, Maharashtra has had the biggest FDI influx in the country between
2000 and 2020, with a GSDP of roughly $370 billion in 2020-21, which is the highest GDP
contribution by a state in India – all of which make Maharashtra a “land of numerous
Maharashtra has an estimated number of 47.78 lakh MSMEs which forms about 8% share of
the total MSMEs in the country. Out of this, 47.60 lakh are micro firms, and 0.17 lakh are small
A point to note is that Maharashtra operates a number of programs for MSMEs across the state, including credit and financial aid, skill development training, infrastructure advancements, marketing subsidy, technology and quality upgrades, and other services.
> Women Policy 2013 laid down by Ministry of Women and Child Development, Government of Maharashtra
This policy has articulated some provisions for encouraging entrepreneurship & employment
among women. Cooperative organizations run by women are given special concessions to
do business in textile, sugar factories, milk processing, fisheries, food processing etc. The
provisions are many and varied as follows:
- Special training is imparted to women for running small scale industries and to be self-
- Women entrepreneurs are given training in communication skills which is necessary for
- Special training and other necessary support will be given to women, to help them in
business agreements with international organizations.
- Renowned entrepreneurs are asked to give lectures to promote entrepreneurship among
- A financial corporation is established from which only women entrepreneurs will be
- Women’s credit societies are established – to encourage loans at low interest rates.
- In order to encourage women entrepreneur’s independent machinery is established,
single-window facility is provided for necessary applications, permits, approvals, financial
assistance, agreements with companies abroad etc.
- Provisions are made in order to reserve 10% plots for women entrepreneurs in
Maharashtra State Industrial Corporation (M.I.D.C.) as well as in upcoming industrial
- Required actions are taken to enhance women enterprises in CSR (Corporate Social
Responsibility) initiatives of private industries.
State Government Schemes
Here are some of the most attractive MSME schemes &financial incentives given to the MSMEs
by the state government of Maharashtra.
> Pradhan Mantri Mudra Yojana
The Pradhan Mantri Mudra Yojana (PMMY). provides MUDRA Loans (Micro-Units Development and Refinance Agency). Borrowers can get business loans varying from Rs.50,000 to Rs.10 lakh under this scheme, which is divided into three types: Sishu (Up to Rs. 50,000), Kishor (From Rs. 50,000 to Rs.5 lakh), and Tarun (From Rs. 5 lakh to Rs.10 lakh). MSMEs that are in the following industries can get a loan under the Pradhan Mantri Yojana scheme such as – agriculture, service-based firms, food production enterprises, handcraftsmen, self-employed entrepreneurs, small scale manufacturers, truck owners, restoration and repair stores, shopkeepers.
> Stand Up India Scheme
In order to begin a greenfield firm, the Stand Up India Scheme supports bank loans between 10 lakh and 1 crore to a minimum of one scheduled caste or scheduled tribe, borrower, and at least one female per bank branch. It is largely, firms in the trading, service and manufacturing sectors that can get this loan. In non-individual firms, a minimum of 51 % of the shares and stake need to be held by an SC/ST or female entrepreneur.
> Pradhan Mantri Employment Generation Program
This scheme is executed by the Khadi and Village Industries Commission (KVIC), which serves as the national nodal body. State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks operate the scheme in the respective states.
In such circumstances, KVIC distributes government assistance through specified banks for
ultimate direct disbursement to the recipients or entrepreneurs. In the business or service
sector, the maximum project or unit price is Rs. 10 lakhs, whereas it is Rs. 25 lakhs in the
manufacturing field. https://www.msmex.in/learn/maharashtra-government-initiatives-for-msme/
> National Entrepreneurship Network (NEN)
National Entrepreneurship Network (NEN) was established in 2003 and is Wadhwani Foundation’s flagship initiative. This network was co-founded by IIT-Bombay, IIM-Ahmedabad, BITS-Pilani, SP Jain Institute of Management & Research-Mumbai, and Institute of Bioinformatics and Applied Biotechnology – Bangalore. Its mission is to enhance and support the high growth of entrepreneurs, by creating entrepreneurship as a catalyst for job creation and economic growth in India.
> Prime Minister’s Employment Generation Programme
Under this programme entrepreneurs who are SC/ST/OBC/minority/women/ex-servicemen/physically handicapped are provided with a loan of 95% of the project cost in order to give financial assistance from public sector banks, regional rural banks or IDBI. Project cost comprises capital asset cost and working capital. Any individual above the age of 18 years is eligible for the scheme provided they have passed class VIII. https://www.indiafilings.com/learn/maharashtra-subsidy-schemes/
> Seed Money Scheme (SMS)
Under this scheme soft loan in the form of equity is provided to unemployed persons – to encourage them to become entrepreneurs. This loan will help them to meet part of their financial requirements, for applying for a bank loan. Who is eligible to avail of this scheme? Any individual who has a plan of establishing an industry or service business with a project cost of up to Rs 25 lacs, and is residing in Maharashtra. The entrepreneur must be unemployed and domiciled in the state of Maharashtra for the last 15 years and should be between the age group of 18 to 50 years.
> Mahasamruddhi Mahila Sashaktikaran Scheme
The Maharashtra government has recently launched a scheme to empower the women of the state. The name of the scheme is Mahasamruddhi Mahila Sashaktikaran Scheme. In rural areas, women face many issues and government wants to help women to live a healthy life. It was launched on International Women’s day which was on 8 March 2021 the scheme was launched by Maharashtra Rural Development Minister Hasan Mushrif.
The Mahasamruddhi Mahila Sashaktikaran Scheme is a women empowerment scheme. Who are the beneficiaries of the scheme? Women from rural areas.