MMR Aims for USD 300 Billion Economy with NITI Aayog's Seven-Driver Plan

NITI Aayog on Thursday, August 22, presented a comprehensive report of the Mumbai Metropolitan Region (MMR) to the Maharashtra government. The agency has aimed for a target of double GDP for MMR in the next five years. MMR’s current GDP stands at USD 140 billion for the financial year 2022-2023.

Niti Aayog has asked the Maharashtra government to focus on seven economic drivers to attract private investments amounting to USD 125-135 billion to achieve this goal.

The think tank’s report outlines that MMR’s growth can be accelerated by focussing on seven key areas: making Mumbai a global services hub, providing affordable housing, promoting tourism, developing ports, establishing an industrial and logistics hub, building cities, and constructing sustainable infrastructure that meets global standards. 

The goal is to boost MMR’s economy to a $1.5 trillion valuation by 2047. To reach this milestone, the region's compound annual growth rate (CAGR) needs to increase from the current 6.1% to 9–10%. 

The report suggests that this growth can be driven by expediting USD 65 billion worth of existing projects. These projects are 30 key initiatives, eight sector-specific policies, and nine institutional changes. Additionally, the state must attract an extra INR 50,000 crore in investments beyond current commitments.

A significant focus will be on the redevelopment of 220,000 slums situated on land owned by the central government within MMR. The think tank has advised the state government to push for the rapid development of Mumbai Port Trust (MbPT) land.

In response, the Maharashtra government has requested the Centre modify redevelopment policies for properties managed by MbPT, the military department, the railway company, and salt pan commissioners. These lands, largely encroached upon, require urgent redevelopment. 

The Chief Minister has asked NITI Aayog to assist in securing the necessary approvals. Shinde noted that his administration is prioritising housing, transportation, infrastructure, and other critical areas. The state is also promoting its 720-kilometre coastline for tourism, with recent investment projects totalling ₹80,000 crore. 

According to Subrahmanyam, the GDP of Mumbai, Thane, Palghar, and Raigad combined is USD 140 billion, which is 80% of Uttar Pradesh’s GDP. Reaching a USD 300 billion GDP by FY 2030 will help create 12.5 to 12.8 million jobs, and by FY 2047, 20 million jobs. This growth will also contribute to raising India’s per capita GDP to USD 38,000 by FY 2047 and to USD 10,000–12,000 by FY 2030.

In the meeting, NITI Aayog’s CEO, BVR Subrahmanyam, met with Maharashtra Chief Minister Eknath Shinde and his deputies, Ajit Pawar and Devendra Fadnavis, to discuss the strategy. NITI Aayog is not only focused on MMR but is also developing roadmaps for 13 other states, with particular attention to the economic development of their cities. Trial initiatives are currently underway in Surat, Varanasi, and Visakhapatnam, in addition to MMR.