Maharashtra has historically been the industrial powerhouse of India, contributing significantly to the country’s manufacturing output, exports, and employment generation. To further strengthen this position and attract large-scale domestic and international investments, the Government of Maharashtra introduced the Maharashtra Industries, Investment and Services Policy 2025.
This policy provides a comprehensive framework of incentives, financial assistance, and regulatory support designed to encourage new industrial investments, promote advanced manufacturing technologies, and generate employment across the state.
By offering targeted benefits for industries located in less-developed regions and prioritizing high-technology sectors, the policy aims to create a balanced and sustainable industrial ecosystem.
Why Maharashtra Remains a Preferred Investment Destination
The state offers several structural advantages, including:
- Strategic geographic location with access to major domestic and international markets
- Well-developed industrial infrastructure, including industrial corridors, logistics hubs, and ports
- Large skilled workforce and strong educational institutions
- Robust supply chain networks across multiple sectors
- Proximity to financial institutions and capital markets
Cities such as Mumbai, Pune, Nashik, Nagpur, and Aurangabad have become major industrial and technology hubs, attracting investments in sectors such as automobiles, pharmaceuticals, electronics, and information technology.
The new policy builds on these advantages while addressing regional disparities in industrial development.
Vision of the Policy
The policy focuses on building a future-ready industrial ecosystem centred on smart manufacturing, sustainability, inclusivity, and regional balance.
Key long-term objectives include
- Increasing the industry’s share of Gross Value Added (GVA) from 25% in 2024 to 30% by 2047.
- Supporting the registration of 1 crore MSMEs.
- Driving higher per capita income growth across the state
These targets reflect the state’s ambition to position Maharashtra as a global manufacturing and innovation hub.
Eligibility Criteria for Incentives
To qualify for incentives under the policy, businesses must satisfy several key requirements.
1. Eligible Units
The policy applies to:
- New manufacturing units starting operations after 31 December 2025, or
- Existing units expanding capacity with at least 25% additional Fixed Capital Investment (FCI).
2. Location Requirements
The unit must be located in eligible talukas in Maharashtra, categorised as:
A/B – Developed regions
C/D/D+ – Less developed or backward regions
Projects located in less developed districts may receive higher incentives.
A division-wise summary of these classifications across Maharashtra districts is provided in the table below, which outlines the broad distribution of developed and underdeveloped regions for ease of reference.
| Division | Key Districts (Examples) | Notable Classification Insight |
| Konkan | Mumbai, Thane, Palghar, Raigad, Ratnagiri, Sindhudurg | Mumbai fully in Group A; mix of MMR and non-MMR regions |
| Pune | Pune, Solapur, Satara, Sangli, Kolhapur | PMR-based classification (@ within PMR, $ outside PMR) |
| Nashik | Nashik, Ahmednagar, Dhule, Nandurbar, Jalgaon | Mostly Group B & C spread, with rural-heavy districts |
| Chhatrapati Sambhajinagar | Aurangabad, Jalna, Beed, Latur, Nanded | Includes No Industry District: Hingoli |
| Amravati | Amravati, Akola, Washim, Buldhana, Yavatmal | Predominantly Group C & D regions |
| Nagpur | Nagpur, Bhandara, Gondia, Wardha, Chandrapur, Gadchiroli | Nagpur urban in Group A; No Industry District: Gadchiroli |
3. Employment Requirement
At least 80% of direct employees must be residents of Maharashtra.
4. Investment and Employment Commitment
Companies must maintain the committed investment levels and employment generation throughout the incentive eligibility period.
5. Application Process
Applications for incentives are submitted through the MAITRI single-window portal, simplifying approvals and compliance processes.
Classification of Industries Under the Policy
The policy classifies projects based on investment size and employment generation, ensuring appropriate incentives for businesses of different scales.
MSME Classification (Manufacturing)*
- The maximum FCI needed is ₹125crs for all the Taluka Groups.
*MSMEs (Manufacturing):
Micro: Investment ≤₹2.5 crore.
Small: Investment > ₹2.5 crore to ₹25 crore.
Medium: Investment > ₹25 crore to ₹125 crore
Special LSI Criteria*
(*In INR crore)
|
Taluka Group |
Min FCI needed |
Min Jobs needed |
| A/B | 750 | 1000 |
| C | 500 | 750 |
| D | 350 | 500 |
| D+ | 250 | 200 |
| Vidarbha/etc. | 200 | 150 |
| No-Industry/etc.** | 150 | 125 |
*Special LSI stands for Special Large-Scale Industries. These are strategically important manufacturing projects exceeding MSME thresholds (post-2025 MSMED Act updates, i.e., FCI above ₹125 Cr max) but below Mega thresholds, qualifying for enhanced incentives like 40-100% FCI cap over 7-9 years based on location.
Mega/Ultra-Mega Criteria*
(*In INR crore)
| Taluka Group | Mega Min FCI needed | Mega Min Jobs needed | Ultra Mega Min FCI needed | Ultra Mega Min Jobs |
| A/B | 1500 | 2000 | 4000 | 4000 |
| C | 1000 | 1500 | 3000 | 3000 |
| D | 750 | 1000 | 1500 | 2000 |
| D+ | 500 | 750 | 1250 | 1500 |
| Vidarbha/etc. | 350 | 500 | 1000 | 1000 |
| No-Industry/etc.** | 200 | 350 | 750 | 750 |
*Mega and Ultra-Mega industries are defined as transformative, high-capital investment projects that receive customised incentive packages approved by a Cabinet Sub-Committee. These projects are categorised based on Fixed Capital Investment (FCI) and Direct Employment Generation.
Service sector criteria- Minimum Direct Jobs
| Taluka Group | MSME | Large | Mega | Ultra- Mega |
| A/B | 350 | 750 | 1500 | 3000 |
| C | 250 | 500 | 1000 | 2000 |
| D | 150 | 350 | 750 | 1500 |
| D+ | 125 | 200 | 500 | 1000 |
| Vidarbha/etc. | 100 | 150 | 350 | 400 |
| No-Industry/etc.** | 50 | 125 | 250 | 350 |
*There is no minimum FCI needed for services, unlike the Manufacturing sector. The eligibility is only based on the minimum number of jobs generated.
** No Industrial Area refers to designated, highly underdeveloped districts or regions lacking established industrial infrastructure. These typically include the least industrialised parts of Maharashtra, such as areas in the Vidarbha, Marathwada, and parts of the North Maharashtra regions.
Incentives Available Under the Policy
The policy offers a wide range of fiscal and operational incentives to encourage investments.
1. Incentives for MSMEs
Eligible MSMEs receive Industrial Promotion Subsidy (IPS) on 100% of gross SGST for first sales within Maharashtra.
Additional incentives include:
- 50% subsidy on technology upgrades (up to ₹25 lakh)
- 50% subsidy for energy and water audits
- 50% subsidy for energy efficiency equipment
- Support for quality certifications and ZED certification
- Stamp duty exemption
- Electricity duty exemption
- Power tariff subsidy (₹1 per unit for 3 years)
- EPF reimbursement up to 50% for 5 years
2. Incentives for the Service Sector
Although the policy mainly focuses on manufacturing, certain service sectors such as R&D centres and Global Capability Centres (GCCs) are also eligible.
Service sector benefits include:
- Rental subsidy (up to 50%)
- EPF reimbursement and skilling incentives
- R&D cost reimbursement up to 50% (maximum ₹10 crore)
- Eligibility for services is based on the number of jobs generated rather than investment levels.
3. Green and Sustainable Technology Incentives
The policy strongly promotes sustainable industrial practices by reimbursing up to 25% of costs for eco-friendly technologies, including:
- Renewable energy systems
- Wastewater treatment plants
- Zero Liquid Discharge systems
This supports Maharashtra’s transition toward green manufacturing.
4. Incentives for Strategic and High-Tech Sectors
The policy prioritizes investments in more than 16 high-technology sectors, including:
- semiconductor manufacturing
- electric vehicle production
- aerospace and defence
- pharmaceuticals and biotechnology
- renewable energy equipment manufacturing
Projects in these sectors may receive additional benefits such as:
- fast-track approvals
- priority land allotment
- waiver of certain industrial development charges
Investments in 27 less-developed districts may also receive additional subsidies of 15–25%.
Incentive Period
The duration of incentives varies depending on the location and project category.
MSME – The incentive period is 5 years for Taluka A, 7 years for Taluka B, and 10 years for Talukas C, D, and D+, as well as for No-Industry/Naxal/Aspirational areas and regions such as Vidarbha and Marathwada.
Special LSI industries – The incentive period is 5 years for Taluka A,B, C, D and D+ and 9 years for No-Industry/Naxal/Aspirational areas and regions such as Vidarbha and Marathwada.
Mega /Ultra Mega industries – The incentive period is 5 years for Taluka A and B, 7 years for Taluka C, and 10 years for Talukas D, and D+.
Service Sector – The incentive period is 5 years for Taluka A and B, 7 years for Taluka C, and 10 years for Talukas D, and D+.
Incentive Ceiling
1)MSME
| Taluka Group | Incentive ceiling (% FCI) |
| A | 30 |
| B | 40 |
| C | 50 |
| D | 60 |
| D+ | 70 |
| Vidarbha/Marathwada/etc. | 80 |
| No-Industry/Naxal/Aspirational | 100 |
2)Special LSI Industries
| Taluka Group | Incentive ceiling (% FCI) |
| A/B | 40 |
| C | 50 |
| D | 60 |
| D+ | 80 |
| Vidarbha/etc. | 90 |
| No-Industry/etc. | 100 |
Mega, Ultra-Mega, and service-sector projects may receive incentives of up to 100% of Fixed Capital Investment, subject to approvals and eligibility.
How Businesses Can Benefit from the Policy
The policy presents several strategic advantages for businesses planning to invest in Maharashtra:
- Reduced capital and operational costs through subsidies
- Access to well-developed industrial infrastructure
- Faster regulatory approvals through the MAITRI portal
- Strong supply chains and logistics networks
- Opportunities in emerging high-tech sectors
Companies planning large-scale manufacturing investments, R&D centres, or export-oriented production facilities may find Maharashtra particularly attractive under this policy framework.
Conclusion
The Maharashtra Industries, Investment and Services Policy 2025 is designed to make Maharashtra one of the most attractive destinations for industrial investment in India.
With generous incentives, a strong focus on employment generation, and additional benefits for investments in backward regions, the policy offers significant opportunities for both domestic and international businesses looking to expand in India.
Companies planning to establish manufacturing units, R&D centres, or large-scale industrial projects in Maharashtra can benefit substantially from this policy.
