Maximum State

In a way, the story of Maharashtra’s rise—and Mumbai’s—as India’s economic engine begins in the mid-19th century with a visionary Parsi businessman, Cowasji Nanabhai Davar. In 1854, Davar established the Bombay Spinning and Weaving Company, the first cotton mill in Bombay (now Mumbai). With this began the city’s transformation from a trading post to an industrial powerhouse.

Davar sparked a textile revolution. By 1870, there were 13 mills in Bombay, and by 1900, this number had grown to more than 80. These mills didn’t just change the economy; they redefined Mumbai’s geography and demography. Thousands of workers moved from rural Maharashtra and beyond, turning Bombay into a melting pot of cultures and languages.

The mill areas, particularly in central Mumbai, became a world unto themselves. Labour historian Rajnarayan Chandavarkar, in his seminal work The Origins of Industrial Capitalism in India, notes how these areas developed their own unique culture. The mill district was not merely a place of work but a complex social world, with its own rhythms, customs, and ways of life, he wrote.

As the textile industry boomed, so did the workforce. By the 1920s, Bombay’s textile industry employed over 1,50,000 workers. But working conditions were often harsh and exploitative, leading to the rise of trade unionism and collective bargaining.

One of the most significant figures in this movement were N.M. Joshi who, in 1920, founded the All India Trade Union Congress (AITUC), India’s first national trade union organisation, and N.M. Lokhande, whom many consider the father of the trade union movement in India. While Joshi was a follower of Gokhale, Lokhande associated with Mahatma Jyotirao Phule and the Satyashodhak Samaj. The textile workers’ strikes of 1928 and 1929, led by communist leaders like S.A. Dange and K.N. Joglekar, were watershed moments in India’s as well as Maharashtra’s labour history. These strikes set the stage for future labour movements and contributed to the broader struggle for Independence.

While Bombay’s mills were transforming urban Maharashtra, the rural areas were witnessing their own revolution through the cooperative movement. The movement, which began in the early 20th century, aimed to empower farmers and rural artisans. A telling example of the success of cooperatives in the State is the sugar cooperatives in western Maharashtra. Started in the 1950s, these cooperatives turned the region into India’s sugar bowl. Many historians and economists, including former vice-chairman of the Planning Commission D.R. Gadgil, termed the sugar cooperatives of Maharashtra as one of the most successful experiments in cooperative enterprise in the developing world. This success extended beyond sugar. Dairy cooperatives, credit societies, and marketing cooperatives all played crucial roles in rural Maharashtra’s development.

Evidently, Maharashtra’s economic growth was accompanied by significant social and political movements. The State has been home to numerous social reformers who challenged societal norms and worked towards a more equitable society. Jyotirao Phule and his wife Savitribai Phule were pioneers in promoting education for women and marginalised castes in the 19th century. Their efforts laid the groundwork for future social reform movements. Dr B.R. Ambedkar, born in Mhow (now in Madhya Pradesh) to a Maharashtrian family, became a towering figure in India’s fight against caste discrimination. His influence on Maharashtra’s politics and social fabric cannot be overstated.

These reformers, along with others like Gopal Krishna Gokhale and Dhondo Keshav Karve, created a progressive intellectual tradition that moulded Maharashtra’s unique politics, which has been characterised by a mix of regionalism, social reform, and national integration. The formation of the Samyukta Maharashtra Movement in the 1950s, which led to the creation of the linguistic State of Maharashtra in 1960, was a significant moment in this political evolution. Maharashtra’s politics has also been significantly influenced by agrarian issues. The State has witnessed powerful farmer movements, particularly in regions like Marathwada and later in Vidarbha.

The rise of the Shiv Sena in the 1960s under Bal Thackeray added a virulent dimension to Maharashtra’s moderate politics, even while the party’s blend of Marathi pride and populist policies has been a major force in the State’s politics for decades. Significantly, Maharashtra has been at the forefront of coalition politics in India. The alliance between the Shiv Sena and BJP, which lasted for nearly three decades before its recent breakdown, was one of the longest political alliances in Indian politics.

By the mid-20th century, Maharashtra had established itself as India’s economic powerhouse. Mumbai, with its textile mills, port, and later its film industry, was the face of this economic might. But the State’s economic strength wasn’t limited to its capital. Cities like Pune, Nagpur, and Nashik developed into important industrial and educational centres. The Maharashtra Industrial Development Corporation, established in 1962, played a crucial role by developing industrial estates across the State.

Maharashtra’s economic dominance is reflected in the numbers. As of 2022, the State accounted for about 14 per cent of India’s GDP, the highest among all States. It attracts the highest share of foreign direct investment in India, accounting for roughly 30 per cent of the total FDI inflow. The services sector, particularly IT and financial services, has been a major driver of growth in recent decades. Mumbai’s status as India’s financial capital, home to the Reserve Bank of India and the country’s largest stock exchanges, has been a key factor in this growth.

But not everything has been good in Maharashtra in recent years.

Maharashtra faces significant challenges in the 21st century. The decline of the textile industry, which began in the 1980s and accelerated in the 1990s, has had far-reaching consequences. The great textile strike of 1982-83, led by trade unionist Datta Samant, marked the beginning of the end for Mumbai’s mill culture. While the strike aimed to secure better wages and working conditions, it ultimately led to the closure of many mills and massive job losses.

The transition from a manufacturing-based economy to a service-based one has not been smooth. Experts, especially urban planners, have pointed out that the shift has created a dual city—one of glitzy malls and skyscrapers, and another of former mill workers and their families struggling to make ends meet. One can see this duality in the sharp economic disparities within the State. While Mumbai boasts some of the most expensive real estate in the world, it houses some of the poorest slums in the world, and rural Maharashtra continues to stare at agrarian distress. The high number of farmer suicides in regions like Vidarbha grimly remind us of this dangerous inequality.

Environmental challenges pose another threat. Rapid urbanisation and industrialisation have put immense pressure on natural resources. Mumbai, in particular, faces severe environmental issues, from flooding during monsoons to dangerous levels of air pollution. There are many such challenges, made worse by how politics in the State has transformed over the past few years, especially in how the right wing has spread its wing across the State.

Clearly, as Maharashtra moves further into the 21st century, it stands at a crossroads. The State’s future will depend on how it addresses issues of inequality, environmental sustainability, and inclusive growth. Maharashtra’s history suggests it has the potential to reinvent itself, but whether it can do so while addressing its deep-seated inequalities remains to be seen.

Which is why the upcoming Assembly election will be seen as a crucial moment in the State’s history. What are the crucial pointers voters need to take into account as they make up their minds on who should come to power? Why is it important to understand the nuances of the crisis Maharashtra is facing now? Frontline’s latest cover scans the State in detail—its history, politics, economic challenges, and Mumbai’s transformations and beyond. We’ve roped in writers such as Suhas Palshikar, Neeraj Hatekar, Radheshyam Jadhav, Savita Kulkarni, Smruti Koppikar, and our Maharashtra special correspondent Amey Tirodkar. Enjoy the bouquet and write back with your comments.

Wishing you a lovely week ahead,

For Frontline,

Jinoy Jose P.

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