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The industrial region extends from Mumbai-Thane to Pune and in the adjoining districts of Nashik and Solapur. Apart from this, industrial development has been rapid in Kolaba, Ahmednagar, Satara, Sangli and Jalgaon districts. Development of this region started with the location of cotton textile industry in Mumbai.

Mumbai is leading the centre of the cotton industry in India. Factors responsible for the growth of cotton textile industries in Mumbai are as follows:

• Proximity to production centres: Mumbai is a cotton-growing region with the moist climate favouring the location of cotton textile industry. With the development of the cotton textile industry, the chemical industry also developed. The opening of the Mumbai High petroleum field and erection of nuclear energy plants added additional pull to this region.

• Transportation: The area is highly connected with all forms of transportation. It has an inexpensive water transport network, reinforced by a good network of railways, roadways and waterways. This helps in the easy and cheap movement of raw material to the industries. In 1853, the 34-km Mumbai-Thane rail ushered in industrialization.

• Labour: Labour is another factor that has to be considered while establishing industries. Cheap labour can be obtained from Mumbai and adjoining states of Gujarat, Bihar, Jharkhand and many other states.

• Allied Sectors: Mumbai, Pune, Gujarat and other cities provide adequate banking, insurance and port facilities for the export and production of the goods. Many people are associated with the industry directly and indirectly.

• Resources: Mumbai is rich in resources of cotton and it is known as the hinterland of cotton. Also, the moist climate in the Mumbai Pune region is favourable for the growth of cotton textile industries.