Maharashtra Chief Minister Devendra Fadnavis’ week-long trip (January 17-24) to Davos, Switzerland, to attend the annual meeting of the World Economic Forum (WEF) has resulted in the state getting investment proposals worth Rs 30 lakh crore.
With three and a half years left in his term, political observers said, Fadnavis will have to quickly implement the MoUs signed in Davos to counter the The opposition’s accusation that the BJP was promoting the economic interests of Gujarat at the expense of Maharashtra.
Meanwhile, Fadnavis’ announcement of investment proposals of Rs 30 lakh crore has caused some unease among the alliance partners. This is evident as neither the Shiv Sena nor the NCP have praised the development.
A senior NCP minister said on condition of anonymity: “If the coalition dharma was strictly adhered to, the CM should have shared the Davos result first with the deputy CM. Eknath Shinde and Deputy CM Ajit Pawar, who is also Finance Minister. “They should have collectively taken credit for the investments.”
Maharashtra Chief Minister Devendra Fadnavis (right) meets ArcelorMittal Chairman Lakshmi Mittal at the WEF Congress Center in Davos, Switzerland. (@Dev_Fadnavis/X via PTI Photo)
However, dismissing these sentiments as coalition jabs, a BJP strategist said: “CM is the captain. He is bound to have the last word at a global meeting.” The strategist also drew attention to the presence of NCP MLA and Industry Minister Uday Samant in the state delegation that went to Davos as proof that the BJP prioritizes “collective leadership”.
Why is Davos important to Fadnavis?
During the Mahayuti government’s tenure, at least two big-ticket projects, Vedanta-Foxconn and dad Airbus moved from Maharashtra to Gujarat. Additionally, several diamond traders have moved their operations from Bombay toward Surat Diamond exchange in Gujarat. These developments have given the opposition parties – Congress, Shiv Sena (UBT), NCP (SP) – reasons to put the ruling Mahayuti on the defensive. Uddhav Thackeray attributed the developments to political maneuvers by the BJP’s “big two”: Narendra Modi and amit shah – to undermine Maharashtra and promote his home state of Gujarat. This issue has also been raised by the opposition in Maharashtra in successive elections – the 2024 Lok Sabha and Assembly elections, and in the recent local body elections.
Talking about the challenge facing Fadnavis, a senior official in the Industries Department said, “Investment euphoria can help in political messaging. But putting in place each MoU is a tedious task. Records reveal that the actual realization rate… is 45-50 per cent.”
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The Prime Minister has been asked why the government has signed so many memorandums of understanding with national players in Davos. Critics argued that if he wanted to, Fadnavis could have signed those agreements in India itself. Opposition parties pointed out the MoU with the Lodha Group as Lodha Group MD and CEO Abhishekh Lodha is the son of BJP leader Mangal Prabhat Lodha.
Maharashtra Chief Minister Devendra Fadnavissecond left, during a meeting with Uber President and COO Andrew Macdonald in Davos, Switzerland. Other officials are also seen. (PTI Photo)
Undeterred by the criticism, Fadnavis said: “Though some of the companies we have signed MoUs with are Indian, they have a presence in over a hundred countries around the world. They bring in a foreign direct investment component through partnerships with global franchises.”
Official data shared by the Chief Minister’s Office (CMO) states, “The Maharashtra government has signed MoUs with (companies from) more than 18 countries including the United States, United Kingdom, Canada, Norway, Spain, Switzerland, Sweden, France, Italy, Japan, Belgium, Germany, Austria, Singapore, Denmark, UAE and others.”
Further, Fadnavis said during a media interaction on Friday, “Maharashtra has taken the lead in securing investment commitments worth Rs 30 lakh crore across multiple sectors including industries, agriculture, services, technology, healthcare, education, energy, etc. Additionally, we hope to finalize investments of Rs 7-10 lakh crore in the coming days. Our preliminary discussions have been completed.”
These investments will create 40 lakh jobs, he added.
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The CM added, “The reforms undertaken to facilitate doing business make Maharashtra a favorite destination for investors. When we talk about the realization rate (of MoUs), the process from signing to implementation takes three to seven years.”
Relief for the state treasury?
When presenting the state 2025-26 budgetDeputy CM and Finance Minister Ajit Pawar stated that the state’s projected debt stood at Rs 9.32 lakh crore. The higher debt was attributed to the state government’s welfare schemes.
Sources in the Maharashtra government said that the state now hopes to generate some momentum for development works by realizing the MoUs signed in Davos.
Why is the opposition critical?
The opposition alleged that the WEF has become an annual event where promises made do not materialize in reality.
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Congress state chief Harshwardhan Sapkal dismissed the investment proposals as another “good marketing” by Fadnavis. “They’re just statistics; they don’t mean anything. What are they doing about rising unemployment and poverty?” asked.
Another harsh critic of the state government, Shiv Sena (UBT) MP Sanjay Raut, said: “Chief ministers of various Indian states visit Davos every year. It has become a picnic. Why do they go to Davos? How much do they spend on their trips? If they have to meet Indian industrialists to make investments there, it is ridiculous. They can do it in their own states.”