IANS Year Ender 2025: Maharashtra sees political consolidation, growth push amid fiscal pressure
Mumbai: For Maharashtra, 2025 unfolded as a year of political consolidation — steady on governance, ambitious on economic growth, but strained socially and fiscally. The state navigated the year under the dominance of the ruling Mahayuti coalition, a weakened Opposition, sustained infrastructure momentum, and recurring concerns around agrarian distress, public safety and fiscal discipline.
The year was marked by political realignments, a strong push for infrastructure and industry, persistent rural stress, and recurring questions around law and order. From local body elections to budgetary pressures, and from marquee investment announcements to climate-linked disruptions, Maharashtra experienced a complex year shaped by both continuity and churn.
Politics in the state was largely defined by the continued dominance of the Bharatiya Janata Party-led MahaYuti alliance. Local body elections — including municipal councils and nagar panchayats — highlighted the organisational strength of the ruling parties, particularly the BJP, even as Opposition parties struggled to regain lost ground at the grassroots level.
The year also witnessed sustained political churn, with leaders and workers switching allegiances, especially at the district and taluka levels. While these shifts did not immediately alter the balance of power, they reinforced the perception of a fragmented Opposition and a politically consolidated ruling dispensation. The Opposition, in particular, is yet to recover from its defeat in the Assembly elections as well as recent losses in Nagar Parishad and Nagar Panchayat polls.
Agitations over Maratha and OBC reservations dominated the political discourse. Pro-Maratha quota activist Manoj Jarange-Patil and senior OBC leader and Mahayuti minister Chhagan Bhujbal emerged as prominent voices articulating their respective positions. The government moved swiftly to pacify Jarange-Patil by implementing decisions related to issuing Kunbi certificates to eligible members of the Maratha community, while also forming a Cabinet committee to address OBC-related concerns.
On the economic front, Maharashtra retained its position as one of India’s key growth engines. The state continued to attract investments in manufacturing, logistics, renewable energy and services, backed by industrial corridors, urban infrastructure projects and investor incentives.
The government claimed that most Memoranda of Understanding worth over Rs 15 lakh crore, signed at the World Economic Forum summit in Davos earlier this year, are at various stages of implementation. It also expressed confidence in signing additional high-value MoUs at the next WEF summit scheduled for January 2026.
Maharashtra continued to lead the country in attracting foreign direct investment, accounting for over 34 per cent of the national share.
However, fiscal pressures remained a persistent undercurrent. Rising public debt of Rs 9.34 lakh crore, a revenue deficit of Rs 45,891 crore, a fiscal deficit of Rs 1,36,235 crore, along with increasing expenditure on salaries, pensions and interest payments, kept the state’s finances under scrutiny. Supplementary demands presented during the year reflected the government’s effort to balance development spending with revenue constraints.
Maharashtra also remained among the top contributors to Goods and Services Tax (GST) collections nationally, underlining the strength of its formal economy. At the same time, concerns over revenue sustainability and long-term fiscal discipline continued to engage economists and policy watchers.
For rural Maharashtra, 2025 proved to be a mixed year. Erratic weather patterns — including uneven rainfall and localised flooding — impacted crop yields across several regions. Farmers in Vidarbha, Marathwada and parts of western Maharashtra faced distress due to crop losses and price volatility. The state government announced relief measures, including a package of nearly Rs 32,000 crore, financial assistance and insurance claims. However, farmer organisations continued to demand more comprehensive support, including loan waivers and improved procurement mechanisms.
Law and order remained a challenge. Crime statistics and high-profile cases kept public attention focused on safety, particularly crimes against women and children. Urban centres such as Mumbai, Pune and Nagpur grappled with organised crime, cybercrime and drug-related offences, while rural areas witnessed incidents linked to social tensions and land disputes.
The state police pursued recruitment drives and modernisation efforts, with lakhs of aspirants competing for limited government jobs — reflecting both employment aspirations and underlying economic uncertainty among the youth. The government was compelled to intensify efforts to curb the growing menace of cybercrime.
Anti-Maoist operations in parts of eastern Maharashtra showed progress, though officials acknowledged that long-term solutions would require sustained development and governance interventions. The government reiterated its commitment to eliminating Left Wing Extremism by next year, in line with the Centre’s stated objective.
Infrastructure remained one of the government’s strongest talking points in 2025. Major road projects, metro expansions, coastal road works and urban transport upgrades progressed across Mumbai and other cities. Renewable energy and power transmission projects also gained momentum, aligning with national climate and energy goals.
Despite these advances, urban governance challenges persisted. Heavy monsoon rains once again exposed deficiencies in drainage systems, particularly in Mumbai and its surrounding regions. Housing affordability, traffic congestion and environmental concerns continued to trouble urban residents.
In the social sector, health and education demanded sustained attention. While improvements in public health infrastructure were underway, gaps in service delivery — especially in tribal and remote areas — drew criticism. Incidents related to malnutrition and access to healthcare underscored persistent inequalities.
On the education front, the government’s proposal to introduce Hindi as a third language triggered strong opposition from political parties, educationists and civil society groups. The move was eventually withdrawn, but it led to a rare political moment as estranged cousins Uddhav and Raj Thackeray came together to assert Marathi pride. The rapprochement resulted in an alliance for the Brihanmumbai Municipal Corporation elections, aimed at checking the BJP’s influence and protecting the interests of the Marathi ‘manoos’ and Mumbai.
As Maharashtra steps into 2026, the year gone by leaves a sense of guarded continuity. The coming year will test whether the lessons of 2025 translate into deeper reforms or whether the state continues on a path of incremental change, as it pursues the ambitious ‘Viksit Maharashtra 2047’ mission — to become a five-trillion-dollar eco