ET Make in India SME Regional Summits: Vidarbha's industrial awakening

Maharashtra's Vidarbha region, long known primarily for its oranges and cotton fields, is experiencing a shift that has business leaders and policymakers buzzing with optimism. This subject was core to the ET Make in India SME Regional Summit - Nagpur, which took place on July 24, 2025. This edition had IDBI as banking and lending partner and Canon as tech enabler.

"Nagpur is now in take-off mode as an industrial capital of Vidarbha," said Julfesh Shah, Chairman of the Chamber of Small Industry Associations (COSIA), Vidarbha Chapter, capturing the sentiment that underlined the panel discussion, ‘Unlocking Vidarbha’s potential: Building a stronger MSME ecosystem in central India’. The other panellists were Prashant Mohota, MD, Gimatex Industries (Textiles) & President, Vidarbha Industries Association; Prashant Waghmare, DGM & Regional Head, APEDA; and Aakash Awasthi, Branch Head, NSIC, Nagpur.

The transformation in the heart of India is tangible. Infrastructure development spanning 100 kilometres around Nagpur, including new roads, bridges, and metro connectivity, has laid the foundation for what industry leaders believe will be the country’s next major manufacturing hub. This boom is already attracting attention from investors and manufacturers looking beyond traditional industrial centers.


Beyond cotton: The diversification imperative
For decades, Vidarbha's industrial identity was synonymous with cotton textiles. But industry leaders are pushing for a fundamental shift. Prashant Mohota highlighted both the challenge and opportunity ahead.

"Countries like China, Vietnam, and Korea have grown on the strength of man-made fibres [MMFs], but we remain cotton-dependent," he explained. The irony isn't lost on local manufacturers: one of the world's biggest MMF producers, Indorama, operates nearby, and yet local adoption remains minimal.

“We [also] need region-specific cotton R&D. Institutions like CICR and CIRCOT are helping, but the reach is limited. Sustainable cotton production is the future. Without that, our industry cannot scale globally,” Mohota added.

The textile sector, which currently exports 30-35% of its production, is now focused on innovation and international collaboration. With new skill development policies launched under Maharashtra Chief Minister Devendra Fadnavis and two universities planned around Nagpur, the region is betting on its youth to drive the next phase of growth.

The orange gold rush
While textiles diversify, Vidarbha's agricultural exports are experiencing their own renaissance. Nagpur oranges, protected by geographical indication status, are breaking new ground in international markets. Prashant Waghmare shared promising developments at the ET SME Summit: while 80% of current exports still go to Bangladesh, the region is successfully expanding into Middle Eastern markets and Dubai supermarkets.

“We aim to support farmers with training and linkages to foreign markets. There’s great potential here if we continue investing in cold storage, logistics, and processing infrastructure,” he stated.

The numbers speak to the potential. Last week alone, Vidarbha exported 300 metric tonnes of oranges. Companies such as DIS and Fresh Market are already operational, while small-scale entrepreneurs are being supported through export facilitation centers that provide automatic grading, waxing, and pre-cooling services.

Policy support meets ground reality
The MSME sector, which accounts for about 96% of India's industrial units, is receiving unprecedented support in Vidarbha. The revised MSME definition, which allows enterprises with up to ₹125 crore investment and ₹500 crore turnover to qualify for benefits, has expanded the eligible base significantly.

But challenges persist. GST complexities, particularly the 18% tax on commercial property leases, continue to burden small manufacturers. COSIA has taken these issues to court, with favorable judgments emerging in Gujarat and cases pending in Mumbai High Court.

Aakash Awasthi from NSIC emphasised that Maharashtra's Package Scheme of Incentives offers support across all scales, from small to ultra-mega industries.

"Maharashtra's policies are among the best, based on our comparison across eight states," he said, though land availability remains a bottleneck.

Looking ahead
The convergence of infrastructure development, policy support, and market diversification has created what industry leaders describe as a perfect storm for growth. The region's strategic location, improved connectivity, and emerging ecosystem of support institutions are attracting serious investor attention.

As the panel at the ET SME Summit in Nagpur concluded, the message was clear. Vidarbha is no longer just an agricultural heartland. It’s positioning itself as India's next industrial frontier, where traditional strengths in textiles and agriculture are reimagined for global markets.

The question isn't whether Vidarbha will emerge as a major industrial hub; industry leaders seem convinced it will. The question is how quickly the region can execute its ambitious vision, and how effectively it can leverage its unique advantages in an increasingly competitive landscape.

For investors and manufacturers looking beyond saturated industrial centres, Nagpur’s message is simple: the stage is set, the infrastructure is ready, and the takeoff has begun.

The ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India’s MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.