Maharashtra Micro, Small, and Medium Enterprises (MSME) Manufacturing Policy 2024-2030

Shaping the Future of Maharashtra's MSME

Maharashtra is poised to become a leader in Micro, Small, and Medium Enterprises (MSME) manufacturing, harnessing its vast resources, strategic location, and entrepreneurial spirit. The Maharashtra MSME Manufacturing Policy 2024-2030 is designed to create a thriving, inclusive, and sustainable ecosystem for MSMEs in the state. This policy provides a robust framework of incentives, infrastructure development, and financial support to empower MSMEs, enabling them to contribute significantly to the state’s economic growth and employment generation.

By focusing on technology upgradation, sustainable practices, export competitiveness, and inclusive growth, Maharashtra aims to make MSMEs the backbone of its industrialization. This policy also encourages participation from marginalized sections of society, including women entrepreneurs, SC/ST entrepreneurs, and persons with disabilities, ensuring Maharashtra’s growth benefits all.

Objectives

The primary objectives of the Maharashtra MSME Manufacturing Policy 2024-2030 are:

Promote MSME Growth: Foster the growth of new MSME manufacturing units and the expansion of existing ones across various sectors.
Support Sustainable Industrial Development: Encourage MSMEs to adopt green technologies, energy-efficient practices, and modern manufacturing processes.
Enhance Competitiveness: Increase the global competitiveness of MSMEs through technology adoption, innovation, and export promotion.
Inclusive Growth: Prioritize participation from women, SC/ST communities, and persons with disabilities, ensuring inclusivity in the state’s industrialization efforts.
Create Employment Opportunities: Generate sustainable employment across urban and rural areas through the development of MSMEs and skill development initiatives.
Promote Innovation and R&D: Encourage MSMEs to engage in research and development (R&D) and develop innovative products, positioning Maharashtra as a hub for industrial innovation.

Key Focus Areas

Infrastructure Development for MSMEs

Maharashtra will focus on building world-class infrastructure for MSMEs across the state to provide easy access to markets, affordable land, and modern facilities.

MSME Parks: Establish dedicated MSME manufacturing parks across all districts, offering affordable and ready-to-use infrastructure for new and expanding enterprises.
Common Facility Centers (CFCs): Development of sector-specific clusters with common facility centers for industries like food processing, textiles, auto components, pharmaceuticals, and electronics, allowing MSMEs to access advanced manufacturing facilities and reduce operational costs.
Logistics and Supply Chain Infrastructure: Creation of multimodal logistics parks with dedicated transportation facilities to reduce supply chain costs for MSMEs and provide seamless access to national and international markets.

Financial Assistance and Capital Support

To reduce the financial burden on MSMEs, Maharashtra offers a comprehensive package of capital subsidies, financial incentives, and interest subsidies for new investments and expansions.

Capital Investment Subsidy: Up to 30% subsidy on capital investments in plant and machinery for new and expanding MSMEs. Additional subsidies are provided for MSMEs owned by women, SC/ST entrepreneurs, and persons with disabilities.
Working Capital Assistance: Interest-free or low-interest working capital loans for MSMEs in priority sectors such as agriculture, food processing, and handicrafts to help manage their cash flow efficiently.
Interest Subsidy on Loans: 50% interest subsidy on loans taken for technology upgradation, plant expansion, and modernization, applicable for 5 years, with a maximum cap of ₹1 crore per unit.

Technology Upgradation and Modernization

To improve the global competitiveness of MSMEs, the policy emphasizes the adoption of advanced technologies, automation, and digital transformation.

Technology Purchase Assistance: 50% subsidy on the cost of purchasing new technologies, machinery, or equipment, specifically targeting high-growth sectors like biotech, automotive, electronics, and renewable energy.
Industry 4.0 Adoption: Special incentives for MSMEs adopting Industry 4.0 technologies, including automation, AI, robotics, and smart manufacturing solutions. The subsidy will cover up to 30% of technology costs, capped at ₹1 crore.

R&D Grants for MSMEs: 50% grant on R&D expenditure to promote innovation and the development of new products and processes. This grant will be available to MSMEs in sectors like pharma, electronics, and agriculture processing.

Export Promotion and Global Market Access

Maharashtra is committed to transforming MSMEs into major players in the global market by offering export incentives, market access support, and international branding.

Export Subsidy: Up to 30% subsidy for MSMEs involved in exports, covering logistics, shipping, and international marketing costs. This will make it easier for MSMEs to enter and compete in global markets.
International Market Access Programs: Financial support for MSMEs to participate in global trade fairs, buyer-seller meets, and exhibitions, capped at ₹10 lakhs per year, to showcase products and secure international buyers.
Global Product Certification: 100% reimbursement for MSMEs obtaining international certifications like ISO, CE, or FDA approval to ensure their products meet global standards and enhance export potential.

Employment Generation and Skill Development

The policy offers robust incentives for MSMEs that create jobs and invest in skill development, ensuring a skilled workforce for modern manufacturing processes.

Employment Subsidy: 100% reimbursement of the employer’s contribution to ESI and EPF for women employees and 75% reimbursement for male employees, for a period of 5 years, incentivizing MSMEs to hire local talent.
Skill Development Grants: Up to 50% subsidy on costs incurred by MSMEs for employee training programs, including technical certifications, vocational training, and on-the-job training, capped at ₹10 lakhs per unit.
Apprenticeship and Internship Support: SMEs offering apprenticeship programs or internship opportunities will receive a subsidy of ₹1 lakh per annum, encouraging them to train local youth in advanced manufacturing skills.

Inclusive Growth Initiatives

Maharashtra’s MSME policy prioritizes inclusivity, offering special incentives and support to marginalized sections of society, including women entrepreneurs, SC/ST entrepreneurs, and persons with disabilities.

Women Entrepreneurs: MSMEs led by women will receive additional financial assistance, priority access to government schemes, and skill development programs. Special land allotment and capital investment subsidies are also provided.
SC/ST Entrepreneurs: Dedicated support for SC/ST entrepreneurs, including preferential access to financial schemes, capital subsidies, and training programs to encourage their participation in the MSMEsector.
Entrepreneurs with Disabilities: Financial incentives and subsidies will be provided to entrepreneurs with disabilities, enabling them to set up and expand manufacturing units in Maharashtra’s MSMEsector.

Sustainability and Green Manufacturing

The Maharashtra government encourages MSMEs to adopt green technologies and sustainable manufacturing practices through various incentives and grants.

Green Manufacturing Subsidy: Up to 40% subsidy on investments in renewable energy (solar, wind, and biomass), energy-efficient technologies, and waste management systems, promoting eco-friendly manufacturing.
Zero Defect Zero Effect (ZED) Certification: 80% financial support for MSMEs to obtain ZED certification, ensuring adherence to global standards in environmental sustainability and product quality.
Recycling and Waste Management: Financial support for MSMEs investing in waste recycling technologies, circular economy initiatives, and water/energy conservation systems, particularly in resource-intensive sectors like textiles, chemicals, and food processing.

Incentives for SME Manufacturing in Maharashtra

To accelerate the growth of Micro, Small and Medium Enterprises (MSMEs) in Maharashtra, the MSME Manufacturing Policy 2024-2030 offers a comprehensive package of financial and non-financial incentives. These incentives are designed to support new investments, facilitate the modernization of existing enterprises, promote technology upgradation, and encourage sustainable manufacturing practices. The aim is to make Maharashtra a highly attractive destination for MSME entrepreneurs, ensuring the state’s leadership in industrial growth, export competitiveness, and job creation.

Below is a detailed breakdown of the Incentives for MSME Manufacturing in Maharashtra:

Land and Infrastructure Incentives

Maharashtra offers generous land-related incentives to reduce the initial costs of setting up MSME manufacturing units. These include land allotments at concessional rates and subsidies for infrastructure development.

Incentive	Details
Land Allotment at Concessional Rates	Up to 100% land allotment subsidy for MSMEs with investments in Plant & Machinery up to ₹10 crores, with a land cap of 5 acres. For larger projects with investments up to ₹50 crores, the subsidy will be 75%.
Preferential Land Allocation in MSME Parks	Priority access to land in MSME Manufacturing Parks and Special Economic Zones (SEZs) with concessional rates for MSMEs involved in priority sectors such as electronics, textiles, agriculture processing, and pharmaceuticals.
Stamp Duty Exemption	100% exemption on stamp duty for MSMEs investing up to ₹10 crores in backward regions or industrially underdeveloped areas. 75% exemption on stamp duty for MSMEs investing between ₹10 crores and ₹50 crores in semi-developed regions.
Infrastructure Development Grants	50% grant on investments made by MSMEs towards building internal roads, power supply systems, wastewater treatment, and other essential infrastructure for their manufacturing units, capped at ₹2 crores.

Financial Assistance and Capital Subsidies

To reduce the capital expenditure burden, the Maharashtra government provides capital subsidies, interest subsidies, and other financial support for the procurement of plant and machinery, modernization, and expansion of MSMEs.

Incentive	Details
Capital Investment Subsidy	25-30% subsidy on investments in Plant & Machinery for new MSME units or for the expansion of existing units, with additional subsidies for MSMEs owned by SC/ST, women, or entrepreneurs with disabilities. This subsidy is capped at ₹50 crores per project.
Interest Subsidy on Loans	50% reimbursement on the interest paid for loans taken to finance capital expenditure, for a period of 5 years, up to a maximum limit of ₹1 crore per unit.
Subsidized Loans for Technology Upgradation	Subsidized loans at reduced interest rates for MSMEs investing in the latest manufacturing technologies, automation, and digital transformation, particularly in sectors like automobile, textiles, pharma, and food processing.
Working Capital Support	MSMEs engaged in sectors like agriculture, textiles, handicrafts, and electronics can avail interest-free working capital loans for the first 3 years of operation.
Access to State Venture Capital Funds	Venture capital and private equity financing support for innovative MSMEs working in high-tech manufacturing, clean energy, and sustainability-driven industries. The state-backed fund will provide up to 50% equity participation.

Tax-Related Incentives

Maharashtra offers an array of tax benefits and rebates to reduce the operational costs of MSMEs, making it easier for them to maintain profitability while scaling their operations.

Incentive	Details
SGST Reimbursement	75-100% SGST reimbursement for new MSMEs or those expanding, modernizing, or diversifying their businesses. The reimbursement will be applicable for a period of 5 years based on the capital investment made and the location of the unit.
Corporate Tax Rebate	10-year corporate tax holiday for MSMEs located in backward regions or economically disadvantaged areas, ensuring that businesses can reinvest profits into expansion and modernization.
Tax Holiday for Export-Oriented Units	Full tax exemption for export-oriented units (EOUs) for the first 7 years of operation, encouraging MSMEs to engage in global trade and boost exports from Maharashtra.
Electricity Duty Exemption	100% exemption from electricity duty for MSME units for the first 5 years for MSMEs with a contract demand of up to 750 KVA. Larger units will receive 50% exemption on electricity duty for 3 years.
Exemption on Entry Tax	MSMEs can avail 100% exemption on entry tax for the purchase of raw materials, machinery, and equipment necessary for manufacturing, applicable for a period of 5 years from the commencement of commercial production.

Employment and Skill Development Incentives

Recognizing the importance of job creation, the Maharashtra government offers a variety of employment incentives and training subsidies to encourage the hiring of local workers and ensure a skilled workforce for the MSME sector.

Incentive	Details
Employment Subsidy	100% reimbursement of employers’ contribution towards ESI (Employees’ State Insurance) and EPF (Employees’ Provident Fund) for female employees for 5 years, and 75% reimbursement for male employees for the same period.
Apprenticeship and Internship Programs	Up to ₹1 lakh per annum subsidy for MSMEs that offer on-the-job training, internship, or apprenticeship programs to local youth in Maharashtra, promoting workforce development.
Skill Development Grant	50% reimbursement of the costs incurred by MSMEs on employee skill development programs, vocational training, and technical
	Certifications, capped at ₹10 lakhs per unit. This is specifically targeted at fostering a skilled labor force for advanced manufacturing sectors.
Job Creation Incentives	MSMEs creating more than 100 jobs will receive a special job creation incentive of ₹50,000 per employee, up to a maximum of ₹50 lakhs, applicable to units that hire local residents from Maharashtra.
Special Employment Schemes for SC/ST and Women Entrepreneurs	MSMEs owned by SC/ST entrepreneurs or women will receive additional subsidies for every employee hired, with a focus on job creation in economically disadvantaged communities.

Export Promotion and Market Access Incentives

To support MSMEs in expanding their reach into international markets, Maharashtra offers a wide range of export incentives and facilitates global market access through subsidies, financial assistance, and trade support services.

Incentive	Details
Export Subsidy	Subsidies of up to 30% of the total project cost for MSMEs engaged in exports, covering costs such as logistics, shipping, and international marketing.
Market Access Programs	Financial support for MSMEs to participate in international trade fairs, exhibitions, and buyer-seller meets to showcase products and enter global markets, capped at ₹10 lakhs per year.
Product Branding and Certification Support	100% reimbursement of costs incurred by MSMEs for obtaining international quality certifications and product branding, ensuring that products from Maharashtra meet global standards.
Export Credit and Trade Finance	Access to export credit facilities at reduced interest rates through state-backed financial institutions, ensuring liquidity for MSMEs engaged in global trade.
Freight Subsidies for Export-Oriented Units	Freight subsidies for MSMEs exporting from Maharashtra’s designated export zones or SEZs, covering up to 50% of transportation costs for shipments to international markets.

Technology Upgradation and Modernization Incentives

The Maharashtra government encourages MSMEs to embrace technology and automation by offering incentives for technology upgradation, R&D, and modernization of manufacturing processes.

Incentive	Details
Technology Purchase Subsidy	50% subsidy on the cost of purchasing advanced technologies or machinery, particularly in sectors such as automotive, electronics, agriculture processing, and biotechnology, capped at ₹20 lakhs.
Subsidy for Industry 4.0 Adoption	Special subsidy for MSMEs adopting Industry 4.0 technologies, including AI, machine learning, automation, and smart manufacturing solutions. The subsidy will cover 30% of technology costs, with a cap of ₹1 crore.
R&D Incentives	50% reimbursement on R&D expenditure for MSMEs engaged in new product development, prototyping, and process innovation, particularly in high-tech sectors such as pharmaceuticals, electronics, and green technologies.
Energy Efficiency and Sustainability Grants	Grants for MSMEs that adopt energy-efficient technologies, renewable energy sources, and green manufacturing practices. The grants will cover up to 40% of the total project cost for energy-saving initiatives.

Sustainability and Green Manufacturing Incentives

To promote sustainable development and reduce the carbon footprint of industries, the government offers a variety of green incentives for MSMEs adopting environmentally friendly practices.

Incentive	Details
Sustainability Grants	Grants covering 35-50% of the project costs for MSMEs implementing green technologies such as solar energy, water recycling, waste reduction, and clean production methods, capped at ₹30 lakhs per unit.
Zero Defect Zero Effect (ZED) Certification	80% financial support for obtaining ZED certification, which ensures that MSMEs meet international standards for environmental sustainability and production quality.
Green Building Incentives	50% subsidy on investments in constructing energy-efficient buildings, including LEED-certified manufacturing units and zero-energy facilities.
Recycling and Waste Management Subsidy	Subsidies for waste management technologies, including recycling systems, waste-to-energy conversion, and circular economy initiatives in sectors such as textiles, food processing, and chemicals.
Water and Energy Audit Support	75% reimbursement for MSMEs conducting water and energy audits, capped at ₹5 lakhs per unit. This ensures that MSMEs are using natural resources efficiently and meeting global sustainability standards.

Ease of Doing Business

The Maharashtra government is committed to simplifying the business setup process for MSMEs by providing:

Single Window Clearance System: An online portal for all MSME -related approvals, including land acquisition, environmental clearances, and licenses, ensuring speedy clearances.
Facilitation Centers: Establishment of state-level facilitation cells to guide MSME entrepreneurs and investors through the process of setting up and operating their businesses.
Cluster Development: Promotion of cluster-based MSME development in identified focus sectors to help MSMEs achieve economies of scale and improve competitiveness.

Conclusion: Empowering MSMEs to Lead Maharashtra’s Industrial Growth

The Maharashtra MSME Manufacturing Policy 2024-2030 is a comprehensive roadmap designed to transform Maharashtra into a manufacturing powerhouse, driven by the energy and innovation of its Small and Medium Enterprises (MSMEs). By fostering inclusive growth, promoting sustainability, and facilitating global competitiveness, this policy aims to position Maharashtra as the preferred destination for MSME investments.

Through strategic incentives, world-class infrastructure, and a supportive regulatory environment, Maharashtra will become a global leader in MSME -led industrialization, providing opportunities for growth across all sectors and regions. The state invites entrepreneurs, investors, and stakeholders to join in this journey of growth, innovation, and sustainable development.

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The Make in Maharashtra is a Public Benefit Corporation (PBC) with a mission to establish Maharashtra as a key player in international economic collaboration, focusing on strategic partnerships with nations like USA, Europe, Australia, African Union, KSA, China, India, Qatar, Saudi Arabia, Türkiye, and the UAE across vital sectors such as energy, technology, agriculture, and finance. Our goal is to integrate lessons from successful global economic models, adopting best practices to ensure sustainable and inclusive growth. We aim to enhance economic prosperity and diversification, contribute to societal progress, and promote sustainable economic practices. By leveraging Maharashtra’s unique position, Make in Maharashtra strives to drive substantial economic growth, spur innovation, and solidify Maharashtra’s stature in the international economic arena, resonating with the government’s vision of a technologically advanced and interconnected economy.