Maharashtra’s Chief Minister, Devendra Fadnavis, has declared that Mumbai has reached its saturation point as the nation’s business hub, urging entrepreneurs to redirect their attention towards a “new city” that will be developed near the upcoming airport in Navi Mumbai. This new city is set to be three times larger than Mumbai and designed to meet the diverse needs of businesses, Fadnavis stated at the Mumbai Tech Week (MTW) event on Friday.
During a discussion, the Chief Minister acknowledged that many tech firms have relocated to Bengaluru and Hyderabad, largely due to the high cost of living in Mumbai, which poses significant challenges for start-ups looking to establish operations.
“Prior to 2014, we failed to develop necessary infrastructure, causing living costs and hiring expenses to rise, prompting many to seek opportunities in other cities. With improved infrastructure and the implementation of the Atal Setu sea link, we have successfully connected Navi Mumbai to Mumbai. Navi Mumbai is rapidly becoming an attractive destination for tech companies, boasting 65 percent of India’s data center capacity. Additionally, we are set to launch the first M-hub there soon, which will serve as a startup incubator, competing with those in Bengaluru and Hyderabad,” Fadnavis remarked.
The Tech Entrepreneurs Association of Mumbai (TEAM), which organized the MTW event, will collaborate as a knowledge partner with the government on this city’s development. According to TEAM Founder Aakrit Vaish, this innovative city is expected to become operational within the next two years, providing a supportive environment for start-ups. TEAM also introduced TEAM Angels, a founder-driven investment collective that allows founders to combine resources and invest in Mumbai-based start-ups. This initiative aims to offer capital, mentorship, and connections within industry networks to foster early-stage start-ups in the Innovation City.
“We consider this an investment collective rather than a traditional fund, with capital being called on a deal-by-deal basis, akin to angel investment syndicates. The investment amounts can range from ₹50-70 lakhs to ₹5-7 crores. Our goal is to enhance the availability of start-ups,” Vaish explained.
Additionally, Fadnavis revealed a Memorandum of Understanding (MoU) between the Maharashtra government and Meta, which aims to integrate artificial intelligence into governance through the AI-based ‘Aaple Sarkar’ initiative. The Maharashtra State Innovation Society (MSInS) is also partnering with TEAM to bolster the AI ecosystem and stimulate economic growth through collaborative efforts.
