Maharashtra, Nation Building & Corona!

Until a year back (data must be the same with minor changes), Maharashtra paid more income tax (approx. 39%) to the Government of India than the next four states combined. Delhi (approx -14%) Karnataka (approx -11%) Tamil Nadu(approx - 7%) Gujarat (approx - 5%).

Out of the total customs duty collection of India, Maharashtra’s share is 60%, out of the total foreign trade, Maharashtra’s share is approx 40%. Last year the corporate tax added to the Govt of India’s kitty by Maharashtra accounted for 36% of overall corporate tax collection.

The Government of India collects taxes from all the states. Retains a significant portion for the center (almost 58%) and distributes remaining (42%) to the TWENTY-NINE (29) states. In this total kitty, states like Maharashtra, Delhi, Karnataka, TN, Gujarat generate more than 60-70% of tax revenue and help other states.

So to give an example, for every 100 rs Maharashtra gives to the Govt of India, it gets ONLY 15 Rs back, and for every 100 Rs TN pays to Govt of India it gets 34 Rs back to manage the state. In the case of UP, if it deposits 100 Rs to the Government of India, it gets back 200 Rs, and likewise, for every 100 Rs paid to the Govt of India by Bihar, it gets 400 Rs. back.

Before moving further, I wish to mention that this post is not about showing how Maharashtra is better as compared to any other state. (Every Maharashtrian is always a proud Indian first and then a proud Maharashtrian). This post is about understanding importance of Maharashtra and Mumbai in the process of Nation Building.

This post is for all those who are busy defaming and demeaning Maharashtra and Mumbai in the Covid- 19 crises and comparing it with other states. I read posts about how X state is doing better in terms of controlling the crises, and Maharashtra should learn from them. I think before you compare Maharashtra, please consider other numbers mentioned above and evaluate the role of Maharashtra in Nation Building.

Also, world over there are two constant trends which we must understand:

1) Financial Capitals and the nearby areas are the most impacted places in corona virus crises. Example: In the US, New York is more affected than Washington DC. Another most impacted city is New Jersey (which adjacent to New York City). Cities like London, Moscow are financial capital of their respective countries and therefore are the epicenter of the crises.

2) Within those cities socioeconomically backward class is most impacted in this pandemic. For example, 75-80% of cases in the United States are from the Black Community. Likewise, different backward communities across the world are affected more as compared to progressive communities.

Please appreciate, when compared to the rest of India, Mumbai alone provides 10% of factory employment. Apart from Mumbai there are few other significant cities like Pune, Nasik, and Nagpur which provides employment to people from rest of the country. Maharashtra also has the most densely populated city in India and one of the busiest international airports predominantly catering to a single state. (who brought COVID-19 patients from across the globe).

So friends, for all those of you who are finding it difficult to understand why the corona virus cases are high in Mumbai and Maharashtra, I thought of presenting this data and logic.

I wish people stop criticizing and demoralizing people of Mumbai and Maharashtra by flooding social media by comparing it with other states. Please be mindful that if Maharashtra and Mumbai lose the battle against the corona virus, India will certainly have difficult times.