NITI Aayog sets target of doubling MMR’s GDP to $300 billion in five years

Mumbai: NITI Aayog has set a target of doubling the Mumbai Metropolitan Region’s (MMR) GDP from $140 billion in 2022-23 to $300 billion in the next five years. The Centre’s public policy think tank has asked the Maharashtra government to concentrate on seven growth drivers and attract investment of $125-135 billion from the private sector to achieve the target.
NITI Aayog CEO BVR Subrahmanyam and other officials held a meeting with chief minister Eknath Shinde and his two deputies, Devendra Fadnavis and Ajit Pawar, on Thursday, where they presented their plan to the state government.
According to the think tank’s report, the Maharashtra government needs to focus on seven growth drivers: developing Mumbai into a global services hub, facilitating affordable housing, transforming MMR into a global tourism centre, integrated development of ports in MMR, creating an industrial and logistics hub, developing cities, and creating sustainable, all-inclusive infrastructure of international standards.
NITI Aayog has chalked out a road map that could help MMR become a $1.5 trillion economy by 2047. MMR, which comprises Mumbai city, Mumbai suburbs, Palghar, Raigad and Thane districts, accounts for a third of Maharashtra’s GDP, the report said. The region has to achieve a compound annual growth rate (CAGR) of 9-10%, up from the existing 6.1%, according to the plan.
“The growth can be achieved by accelerated completion of ongoing and announced projects worth $65 billion by encompassing 30 projects, eight sectoral policies and nine institutional shifts from [the] seven growth drivers. The state will have to attract additional investment of ₹50,000 crore over and above its current commitments,” stated the report.
The think tank asked the government to concentrate on expediting the development of the Mumbai Port Trust (MbPT) land and the redevelopment of 220,000 slums on land owned by the central government in MMR.
Responding to the report, the state government has requested the Centre to tweak the policies for the redevelopment of land owned by MbPT, defence, railway, and salt pan commissioners. “Most of the lands owned by these central agencies have been ridden with encroachment, and there is an urgent need to allow their redevelopment,” said an official privy to the developments. “The CM has requested NITI Aayog to facilitate the approvals for it.”
The need for a comprehensive sectoral team on the lines of a war room for concentrated efforts, instead of multiple agencies, was also discussed in the meeting. Fadnavis expressed the need to strengthen the data centre hub in Navi Mumbai, which has the capacity to cater to 60% of the region’s requirements because of improved connectivity via the Mumbai Trans Harbour Link and facilitated logistics around it, the official added.
Shinde said his government has been concentrating on infrastructure, housing, transportation and other key sectors. Investment projects worth ₹80,000 crore have been sanctioned recently, and efforts are on to develop the state’s 720 km coastline for tourism, the chief minister added.
Subramanyam apprised the state government that NITI Aayog was making a roadmap for 13 states by concentrating on the financial development of cities in these states. Apart from MMR, the think tank is implementing pilot projects in Surat, Varanasi, and Visakhapatnam.
“The GDP of MMR, comprising Mumbai, Thane, Palghar and Raigad, is $140 billion, which is 80% of the GDP of Uttar Pradesh. Achieving $300 billion GDP by FY 2030 will help generate 12.5 million-12.8 million jobs by then and 20 million by FY 2047. This would also help in taking [India’s] per capita GDP to $10,000-12,000 by FY 2030 and $38,000 by FY 2047,” Subramanyam said.