Q.Why is Mumbai called the financial capital of India? Explain the importance of the service sector to Maharashtra's economy.

The service sector is the biggest source of the state's income, and its strength is anchored in Mumbai's unique concentration of finance.

Why Mumbai is the financial capital of India. Mumbai concentrates the country's key financial institutions in one city:

• the Reserve Bank of India (RBI), the central bank;
• India's two major stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE);
• the market regulator SEBI; and
• the head offices of many banks, insurance companies and mutual funds.

Together these make Mumbai the hub of the banking, financial services and insurance (BFSI) industry — the reason it is called the financial capital of India.

Importance of the service sector to Maharashtra.

1. It is the largest income sector. The tertiary (services) sector contributes the biggest share of the state's income (GSDP) — the signature of an advanced economy.
2. Finance (BFSI). Anchored in Mumbai, finance and insurance are a defining, high-value part of the state's — and the nation's — economy.
3. IT/ITES. Maharashtra is a leading centre for information technology and IT-enabled services, with major clusters in Pune and Mumbai — among the fastest-growing, highest-value activities.
4. Trade and transport. As India's commercial gateway, the state has a huge trade and logistics sector, served by its ports, airports and rail/road networks.
5. Tourism. A rich base — Ajanta–Ellora, hill stations, Konkan beaches, pilgrimage centres and forts — that the state actively promotes for income and jobs. …

Naming only stock exchanges and forgetting the RBI/SEBI/insurance side of BFSI; treating tourism or entertainment as trivial when the …