Freebies straining Budget but won't let capital investment suffer: Devendra Fadnavis

Maharashtra CM Devendra Fadnavis in conversation with Moneycontrol Managing Editor Nalin Mehta at the Global Wealth Summit in Mumbai.

Maharashtra Chief Minister Devendra Fadnavis on Friday said that his government is committed to ensure that the pressures of social welfare schemes on the Budget does not result in shortcomings in capital investment in the state. He was speaking to Moneycontrol Managing Editor Nalin Mehta at the Global Wealth Summit in Mumbai.

Admitting that the annual cost of Rs 60,000 crore for schemes launched by the government "has put some pressure on the state's budget", the Chief Minister said that the government is trying to facilitate development of business models among the beneficiaries.

"We started the Laadli Bahin Yojana last year where women receive a grant of Rs 1,500 per month. In Nagpur, a group of women developed a finance society. They drew deposits to the tune of Rs 30 lakh through small investments and developed a business model out of it. So, we are trying to facilitate and develop business models among the beneficiaries," the Chief Minister said.

"The state's budget is strained but we are trying to ensure that it does not hurt our capital expenditure," he added.

Pitching Maharashtra as the natural destination for investments, the Chief Minister said that the state will turn into a USD 1 trillion economy by 2030.

Fadnavis also expressed optimism about Tesla entering India, stating that Maharashtra would be the ideal destination for the electric vehicle giant.

“We also hope Tesla to come. If they ask us, then we will say the best case is Maharashtra for investment,” Fadnavis said.

He also highlighted the state’s rapid industrial transformation, emphasizing Navi Mumbai’s emergence as a hub for advanced manufacturing. “You will see Industry 4.0 in Navi Mumbai,” he added.

While acknowledging competition among Indian states for investment, Fadnavis maintained a broad national perspective. “If Gujarat develops, then I am happy. If Karnataka develops, then also I am happy. After all, investment is coming into India,” he said.