Information Technology

State Profile (common across all sectors)

  • The state ranks 2nd by population and 3rd by geographical area.
  • As per 2011 census, Maharashtra had a population of 112 crs having a literacy rate of 82.3% and a sex ratio of 929 (Females over per thousand males).
  • It is one of the highly urbanized states of India having density of population as 365 (per sq. km).
  • Maharashtra is India’s largest state economy contributing ~15% to India’s GDP.
  • State is an Industrial Power House, contributing ~15.5% of India’s manufacturing, and ~15.7% of exports from the country.
  • Maharashtra’s logistics & infrastructure profile includes:
    • 720 kms long coastline covered by 2 major (JNPT & MBPT) and 48 non-major ports
    • National Highways (18,366 kms) and state highways (30,465 kms); ~99.2% of villages are connected in the state
    • Railway length of ~11,631 kms capturing 9% of country’s railway network
    • 4 international and 8 domestic airports are operational along with 2 upcoming airports at Navi Mumbai and Pune (Purandar)
    • State ranks 2nd in terms of electricity generation installed capacity
    • 2.23 MMTPA of warehousing capacity along with 1.03 MMTPA of cold storage capacity
  • The state boasts 292 industrial areas, 99 co-operative industrial estates, along with dedicated sectoral parks spread over 2.5 lakh acres land. In addition, state also has dedicated wine parks, silver parks, 9 SEZs, floriculture parks, food parks, textile parks and 27 IT parks.

Sector Highlights

India

  • Global IT Industry is estimated at USD 5 trillion in 2021. Most of the Global IT industry is focused in and around USA (32%); followed by the European Union (20%), the Asian region (14%), and Australia and New Zealand region (11%)
  • The industry has seen rapid growth in the recent few years further accelerated by COVID-19.The global IT Services Market size is estimated at USD 1.2 Tn in 2024 and is expected to reach USD 1.8 Tn by 2029.
  • India’s IT & ITeS industry revenues stood at USD 177 billion in 2018-19 with a growth rate of 6.1%.
  • The IT industry now delivers 8% of Indian GDP, contributes to over half of services exports, 50% of the Foreign Direct Investment (FDI) and employs more than 4.3 million people in 2020-21.
  • Government of India targets to build India as a USD 1 trillion digital economy by 2025
  • Indian IT-BPM industry (excluding e-commerce) is projected to be at USD 254 Bn, including exports of USD 200 Bn in FY2023-24
  • The Indian IT Services Market size is estimated at USD 195 Bn in 2024, contributing to ~16% market share in the world
  • The online gaming segment grew by 28% in 2021 to reach USD 1.9 Bn and it is expected to reach 3 times in value and reach USD 3.9 Bn by 2025
  • The Indian animation and VFX industry is worth USD 1.7 Bn in 2024 and this is to reach USD 100 Bn M&E Industry by 2030 . Indian share is less than 1% of the global market share
  • Indian Data Centre market is currently at ~ USD 6 Bn and is expected to reach USD 10 Bn growing at a CAGR of ~15% during 2022-27

Maharashtra

  • A major hub of technology & innovation. Since 1990s, the state has emerged as a key hub for IT &ITES, electronics, and captive business outsourcing industries.
  • The IT market size in Maharashtra is estimated at ~USD 48 Bn in 2024 (~19% of overall IT Industry in India)
  • Forging a competitive edge in domestic and global arenas. With a share of nearly 20% of the total exports MH has consistently ranked second in the country in terms of IT exports.
  • India’s most prominent Data Centre market with multiple cable landing stations and holds about 60% of the country’s DC footprint.
  • A leading destination for IT companies, with businesses proliferating beyond Mumbai, Pune, Thane to districts like Raigad, Nagpur, Aurangabad, Nasik, and Kolhapur.
  • Leading Motion Pictures Hub: Largest motion pictures producer in the country – 3rd highest (1076) no. of screens across the state.
  • With 295 AVGC studios Maharashtra hosts over 30% of AVGC studios across India.
  • Large Digital User Base: 13.5% of India’s total internet user base of the nation with 12.6 Cr cell phone connections.
  • 17% of India’s Tech Start Ups are in Maharashtra (9,524 Tech Start Ups)
  • Mumbai and Pune together host 20 universities for animation, VFX and gaming education.
  • 205 operational Private IT Parks employing ~0.8 Mn people and 37 operational Public IT Parks employing ~0.3 Mn people

Vision, Mission, Objectives

Vision:

To make Maharashtra a global IT &ITES destination and the Technology capital of India, moving towards innovative, equitable, inclusive and sustainable Technology Development.

Mission:

  • To ensure Maharashtra as the most preferred destination for investment and innovation among global IT&ITES enterprises through Strategic Policy Interventions, Development of Competitive Advantage and Enabling Business Environment.
  • To strengthen the leadership position in IT&ITES Sector in India.
  • To further accelerate IT &ITES investment flows to the State for sustainable and balanced Regional Development.
  • To promote Intellectual Property creation, innovation, and technology commercialization for new Technology products/Services especially for indigenous products developed in Maharashtra.
  • Becoming Destination of Choice for Global companies by significantly increase in investments inflows in emerging technologies with a focus on developing associated support ecosystems.
  • To develop a robust IT &ITES and Emerging Technology talent pool, which is highly employable, skilled and spurs the growth of the sector in Maharashtra

Objective :

  • To attract new investment of INR 95,000 Crore towards IT &ITES sector in the State
  • To Create new 3.5 million jobs opportunities through IT &ITES sector in the State. For that, increase the skill development by 15% per annum for developing highly employable, talented and quality manpower.
  • To achieve export of INR 10,00,000 Crore through IT &ITES sector in the State.

Policy Initiatives and Incentives

Decentralization of IT/ITES Segments: The policy promotes the dispersal of IT/ITES activities to Tier 2 and Tier 3 cities, aiming to develop new IT hubs in regions like Nashik, Nagpur, and Chhatrapati Sambhaji Nagar.

Focus on Emerging Technologies: The policy emphasizes the development and adoption of emerging technologies such as AI, IoT, blockchain, and robotics. This includes support for innovation and upskilling of the workforce.

Integrated IT Townships: The policy encourages the development of Integrated Information Technology Townships (IITT) with reduced minimum area requirements and mixed-use land allocations to support IT/ITES activities. The Policy also encourages walk to work as a practice.

Continuous Industry Status: IT services are granted continuous industry status, allowing operations to run 24/7, ensuring a stable working environment.

Support for Start-ups and Innovation: The policy includes initiatives to foster start-ups and innovation through hubs like the Maharashtra Hub (M-Hub), which provides an integrated ecosystem for collaboration among corporations, government, investors, mentors, and academia.

Unified Single Window System: This system streamlines approvals and clearances for IT/ITES projects, making it easier for businesses to set up and operate in Maharashtra. The MAITRI and MAHITI Portals exemplify the government’s commitment to enhancing Ease of Doing Business in the state.

GoM to set up Critical Infrastructure Fund for developing road connectivity, power infrastructure & drainage line in IT Parks.

Annual 15% skilling target has been set up to create highly employable, talented and quality manpower.

Key Fiscal Incentives:-

Common to all IT/ ITeS units

  • Exemptions: 50%-100% Stamp Duty Exemption, Electricity Duty Exemption
  • Concessional Assistance: Power Supply at industrial rate, Property Tax at par with residential rates
  • Assistance to units on Reimbursement basis: Power Rationalization Benefit, Certification Assistance, Market Development Assistance, Patent Related Assistance, Rental Assistance

Data Centres

  • Subsidy: Power Tariff Subsidy

Emerging Technologies

  • Subsidy: Power Tariff Subsidy, Capital Subsidy
  • Assistance: Recruitment Assistance

AVGC

  • Subsidy: Power Tariff Subsidy, Capital Subsidy
  • Assistance: Recruitment Assistance, Skill Development Assistance
  • Grants: Grants for Events and Competitions

Key Non-Fiscal Incentives:-

Common to all IT/ ITeS units

  • Power Through Open Access
  • Essential Service Status
  • EoDB: Single Window Clearance (MAITRI, MAHITI), Setting Up in Any Zone
  • M-Hub – CoE for Innovation and Entrepreneurship

Data Centres

  • 24/7/365 Power Supply
  • Relaxed Parking Norms
  • Dial before Dig service
  • Infrastructure status
  • Facilitation to establish captive power farms
  • Provision of deemed distribution licenses

Emerging Technologies and AVGC

  • Intellectual Property Protection Facilitation for Emerging Technologies and AVGC.
  • Global Joint Ventures and International promotion for AVGC Units.

Permission to set up Integrated IT Townships, Private IT Parks and IT & ITeS units across all zones including residential zones, no development zones and green development zones declared by the State.

Enabling Ecosystem (Wizard, Incentive Calculator, Single Window, MAITRI Cell)

Key Players in the State