Maharashtra employment growth story: Data boost for Mahayuti ahead of crucial assembly elections

Maharashtra CM Eknath Shinde and deputy CM Devendra Fadnavis

The stage is set for the multi-cornered contest in Maharashtra where the BJP-led Mahayuti is showcasing the impact of double-engine government on the employment front.

A comparative study of key union ministries and Maharashtra Economic surveys data is an ample indication that the job situation and income levels in the state have been improving above the all-India average.

The double engine government in Maharashtra led by Eknath Shinde and Devendra Fadnavis is focusing on revamping investments, creating employment and skilling opportunities, and propelling infrastructure development, in an inclusive manner.

On the other hand, the Maha Vikas Aghadi (MVA) government that led from 2019 did not take a holistic approach towards the state’s development to facilitate employment generation, data shows.

Since the NDA took charge in 2022, Maharashtra witnessed a renewed focus on industrial growth and employment generation through various programs and initiatives. Aligned with 'Viksit Bharat 2047', the NDA government launched Maharashtra’s Vision 2030 plan, that focuses on revamping investments, creating employment and skilling opportunities, and propelling infrastructure development, in an inclusive manner.

Huge capital outlays for infrastructure development and growth in labour-intensive sectors like gems and jewellery, food processing and textile sectors, are a priority.

With a view to steer industrial development towards high tech emerging sectors and generate employment, the state government has identified thrust sectors including Electrical Vehicles (Manufacturing, Infrastructure and Servicing), Textile Machinery Manufacturing, Agro, Food Processing, Electronic System Design & Manufacturing and Semiconductor Fabrication (FAB), Sports and Gym Equipment Manufacturing, etc.

Study shows that several big-ticket infrastructure projects like the Atal Setu and Samruddhi Mahamarg, which have huge employment generation potential, were stalled by the Maha Vikas Aghadi (INC, NCP, Shiv Sena) government.

The present NDA government accuses the MVA of stalling major projects for their vested interests.

The NDA government, after taking power, accelerated these projects on mission mode, greatly contributing to economic growth and benefitting the common man.

In the last two years, the state government invested around Rs 8 lakh crore for infrastructure development in Maharashtra.

Multiple projects are underway to enhance connectivity across districts and cities in the state, which is rapidly emerging as an IT hub, major tourist destination, and financial center. These initiatives are generating significant direct and indirect employment opportunities across the region.

The state’s forward-looking policies, such as the Fintech policy and a dedicated Fintech Hub in Mumbai for fintech startups, have created a nurturing environment for innovation and entrepreneurship. Maharashtra is one of the five top performer states and retained the top spot in the ‘Outlook Start-Up Outperformers 2023’ rankings 13 . There are at least 10 startups in each district of the state.

The employment scenario in the state has improved significantly under NDA as compared to Maha Vikas Aghadi (MVA). Since the NDA took charge in August 2022, the number of government jobs awarded went up by 123%.

Between 2019-2022, MVA created only 25,782 government jobs. In contrast, NDA has generated approximately 57,452 state government jobs between 2022-2024.

• The Periodic Labour Force Survey (PLFS) data shows a consistent decline in the unemployment rate, dropping from 3.5% during 2020-21 to 3.3% by 2023-24. 3
• Employment rate increased from 55.9% in 2021-22 to 57% in 2023-24
• Female employment rate (WPR) rose from 37.3% in 2021-22 to 39.1% in 2023-24
• Youth employment rate went up from 38% in 2021-22 to 40.1% in 2023-24
• Unemployment among the educated youth in Maharashtra was at 15%, which has declined from 19% in 2019 under MVA government and is lower than the all-India average at 21.84%

The trend shows the impact of the "double engine ki Sarkar", focusing on fostering a conducive environment for employment creation.

It clearly shows that unlike the NDA government, the Maha Vikas Aghadi administration did not take a holistic approach towards development to facilitate employment generation.

The MVA, led by Uddhav Thackeray, failed to prioritise formalisation of jobs.

In contrast, the NDA government made formal sector employment a priority, not just creating more jobs, but ensuring higher-quality jobs that support long-term economic stability.

In 2023-24, there were 1.31 crore net payroll additions. The state accounted for 22% of the net additions made across the country in 2023- 24, showcasing the boom in formal sector job creation.

More than 40% of these jobs are created under the ‘Expert Services’ Sector category, which includes supplying personnel, manpower agencies, consulting services, R&D services, etc.

To expand the outreach of employment programmes, the NDA Government organised around 1,138 job fairs between FY2022 and 2024. 6 These fairs led to a significant increase in number of jobs created, which reached 1.51 lakh under NDA.

The share of the manufacturing sector in employment also shows a positive trend. Manufacturing sector’s share of employment increased substantially from 16.68% in 2019-20 under MVA to 20.57% in 2023-24 under Mahayuti led by the BJP and Shiv Sena.

From NSSO and PLFS survey reports, it is amply clear that the MVA did not take a holistic approach towards the state’s development to facilitate employment generation.

The total EPFO membership in Maharashtra grew by 8.5% from 5.6 crore in 2021-22 to 6.10 crore in 2022-23.

The MVA government failed to prioritize formalisation of jobs, data shows.

In contrast, the NDA government made formal sector employment a priority, not just creating more jobs, but ensuring higher-quality jobs that support long-term economic stability.

In 2023-24, there were 1.31 crore net payroll additions. The state accounted for 22% of the net additions made across the country in 2023- 24, showcasing the boom in formal sector job creation.

More than 40% of these jobs are created under the ‘Expert Services’ sector category, which includes supplying of personnel, manpower agency, consulting services, R&D services, etc.

Over 78% EPFO Net Payroll Enrolment 2023-24 (provisional) computed from EPFO Annual Payroll Provisional Data

Under the NDA government, successful implementation of two state schemes, Pramod Mahajan Kaushalya Udyojakata Vikas Abhiyan and Kiman Kaushalya Vikas Karyakram, led to a significant increase in creation of employment opportunities.

The Pramod Mahajan Kaushalya Udyojakata Vikas Abhiyan created 89,342 jobs in 2021-22, increasing to 1,12,192 in 2022-23. Similarly, under the Kiman Kaushalya Vikas Karyakram, the number of jobs rose from 15,537 to 20,529 during the same period.

Growth in investments in SEZs spurred economic activity, exports- oriented growth, and employment in the state. Out of 280 Special Economic Zones (SEZs) in the country, 38 are in Maharashtra, indicating the state’s strength in promoting exports and attracting investment. The Ministry of Commerce and Industry’s data shows that these 38 SEZs employ 6.35 lakh people, of which 2.19 lakh are women.

According to the sources, the Ministry of Commerce data proves that NDA's initiative to promote Maharashtra as a textile hub met with success.

The “Integrated &c Sustainable Textile Policy” was launched in June 2023. Other major projects include PM MITRA in Amravati district and 18 Mini Textile Parks across the state.

These initiatives are expected to attract a combined investment of Rs 36,000 crore and is estimated to provide direct and indirect employment to approximately 8.36 lakh people.

Navi Mumbai is set to have a Large Jewellery Park that will provide employment to at least 1 lakh people, positioning Mumbai as a leading global centre for the gems and jewellery sector.

Employment generated by MSMEs increased from 108.68 lakh jobs in 2022 to 123.39 lakh by 2024.

Maharashtra’s MSME sector witnessed substantial growth under the NDA government. Between 2019 and 2024, the number of MSMEs increased from 14.9 lakhs to 33.07 lakhs.

Experts claim that Maharashtra’s growth story under the NDA government demonstrates a clear and effective approach to creating jobs.

Through job fairs, support for small businesses and startups, and efforts to formalise the workforce, the NDA (Mahayuti) turned Maharashtra into a leader in employment and economic progress.

In contrast, the previous Maha Vikas Aghadi government failed to address the core issues of job creation and economic development.