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Economics · Ch 4 — The Economy of Maharashtra

Infrastructure and Human Development

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Infrastructure and Human Development

The performance of every sector rests on the quality of a state's infrastructure and on the development of its people — and here Maharashtra generally ranks among the better-placed Indian states, though again with strong internal variation.

Economic infrastructure. These are the facilities that directly support production: transport (an extensive road network including the Mumbai–Pune Expressway and the Samruddhi Mahamarg corridor, dense railways, major airports); ports (Mumbai and JNPT/Nhava Sheva, one of India's busiest container ports); power (a large generation and distribution system, though demand often runs ahead of supply); irrigation and water supply; and banking and financial infrastructure, in which the state, led by Mumbai, is the national leader. Good economic infrastructure is a major reason industry and services have flourished here.

Social infrastructure. These are the services that build human capital: education (a wide network of schools, colleges and universities, including premier institutions in Mumbai and Pune) and health (hospitals and public-health services). Maharashtra has comparatively high literacy and a relatively developed education and health system, which supports the skilled workforce its modern sectors depend on.

Human development. On the Human Development Index (HDI) — a summary measure combining income, education and health — Maharashtra ranks among the higher-performing large states, reflecting its relative prosperity and its social infrastructure. But the state-level average conceals a wide gap: districts in the Mumbai–Pune–Western-Maharashtra belt score far higher than many districts of Vidarbha and Marathwada. Human development, like income and industry, is unevenly distributed across the state. …

Definition 1Economic infrastructure

Facilities that directly support production and trade — transport, ports, power, irrigation, communication and financial institutions. Maharashtra's is among the most developed in …

Definition 2Human Development Index (HDI)

A composite measure of development combining income, education and health. Maharashtra ranks among the higher large states, but the average hides a wide gap between the prosperous west and the backw …