Business and Economy of Nanded
The growing amount of production from agriculture and other activities based on it have played prominent role in uplifting the economic condition of Nanded for many years. The city has a predominant agrarian economy and is a backward district found in the Marathwada region of Maharashtra. The nine talukas of Nanded are involved in agricultural production for many years. As majority of the city’s population depends on agriculture sector for its living there is very less industrialization happening here.
The few industries that are found here are also based on agriculture and its produce. This is why the Maharashtrian government aims to maintain a balance in the region by motivating and inviting new entrepreneurs, utilize the natural resources available at the optimum level, utilize cutting edge technology to enhance the production in industries and exploit the skills of local people in Nanded in a fruitful way. The resource based industries and demand based industries are found in various areas in Nanded and have played a vital role in the economical development of the city.
Economic History of NandedNanded inspite of being rich in man power and agriculture resources did not have a great economical picture in the past as it was industrially backward. About 76% of the total Nanded population thrived on agriculture. However lack of facilities such as transport, inadequate entrepreneurship, promotional investment and government support during days of Nizam affected the economy of this city greatly. The earlier contributors of the economy of this district were derived from the textile mills, as the cotton was a major crop here. Spinning mills, ginning mills, weaving mills and pressing units also offered good amount of employment to the people.
Initial Industries in NandedThe entire district of Nanded is a bit backward industrially. Those industries that prevailed earlier in Nanded were agro based such as sugar mills, dal mills and oil mills and the rest were engineering industries. The district had about 1462 registered industries that had an investing capital of Rs. 4978 lakhs and offered employment to more than 10,000 people. There were 35 big and medium scale industries that had an investment of Rs. 39,825 lakhs and were located across the talukas such as Kandhar and Degloor.
The other industries found in Nanded are involved in manufacturing of farm machinery, steel furniture, industrial alcohol, edible oil, saw mills, sugar, fertilizer, steel sheets that are galvanized, sectic acid, construction, foundries and rice mills. In spite of being the educational hub of India with numerous educational institutions to its credit, the educated youth in the city were not keen to seek employments in these agro based industries as the pay scale was very low.
This is a major reason why the chief export of this economy was human capital. Each year thousands of professional graduates of Nanded leave the city to seek better employment opportunities in major cities in India such as Hyderabad, Mumbai, Pune, Aurangabad etc. Few even try to make use of employment opportunities available abroad. In spite of being the home town to many influential political personalities who have served the Indian Federal Government as Cabinet Ministers, much was not done in the business sectors and industrial sectors of Nanded. In short, the lack of people with business visionary has prevented the city from flourishing as a center of industrial and commercial activities.
Role of MIDC in NandedMaharashtra Industrial Development Corporation or MIDC has set up a number of plants where DOC production is undertaken and is exported to foreign countries. The income generated by these solvent plants in the city has a fair share of contribution to its economy. The high level production of bananas in Nanded has also created a brisk business in the industrial sector. The Nanded Banana Research Center established here is involved in exploring new ideas to channelize the sales of bananas in innovative ways and to improve the income to its economy.
Major industries found in NandedNanded is the home to few popular industries that deal in different categories. An ethanol plant, which is a joint effort by Tata Chemicals and Praj Industries of Pune is set up at the MIDC in the year 2009. Parsvnath Developers have developed a SEZ or Special Economic Zone that deals in pharmaceutical industries as a joint venture with MIDC at a sprawling area of over 370 acres. The major aim behind setting up this SEZ with 26% held by MIDC is to invite the attention of major pharmaceutical giants by offering world class infrastructure facilities to stimulate the economic growth rate of Nanded.
The city also has welcomed some bigger projects in the recent times as the recent development in the infrastructure and boom in real estate have offered a face lift to the economy. The city has the Indian branch of Mauritioun Co’s Advanced Steel World here. Welspun has set up a 1200 crore project and Tata steel has set its industry in Nanded. The city has also got its first BPO run by the popular firm, Videocon, which has performed the job of retaining the educated youths who graduated from this city. With all this growing businesses by industries, it is well evident that Nanded would soon evolve as a commercial hub or an industrial hub. Owing to this factor, many firms belonging to ancillary sectors like construction, banking and insurance are also planning to make its way to this city.