Maharashtra is rolling out a subsidised co-working and innovation network to transform early-stage start-ups into manufacturing-ready businesses, as it moves to compete more directly with established hubs such as Bengaluru and Hyderabad.
Under its MATRIX programme, the state is planning to offer desks at around ₹2,500 a month—well below the ₹10,000–₹40,000 typically charged in Mumbai and Pune. The rollout is expected by mid-FY27, senior officials told businessline.
Incubation centres
At the core of the strategy is a network of more than 200 incubation centres, spanning about 15 million sq ft of innovation space. These centres go beyond basic office infrastructure, combining subsidised co-working with access to design studios, testing facilities, certification infrastructure and prototyping labs. The model is designed as a pipeline from idea to production, linking engineering capability with shared manufacturing infrastructure.
This incubation layer is tethered to a manufacturing backbone. Maharashtra plans to develop around 500 industrial clusters where 30 to 50 MSMEs can share advanced infrastructure, including specialised equipment that would otherwise be cost-prohibitive, said P Anbalagan, Industries Secretary.
These clusters will focus on sectors such as EV components, semiconductors, defence, drones and autonomous systems.
Very low prices
The scale of the intervention becomes clearer against current market benchmarks. In premium micro-markets such as BKC and Nariman Point, seats at top-end centres can go as high as ₹60,000 a month, while the city-wide average for a standard desk is around ₹11,600.
“The scale of the incubation network is intended to help Maharashtra compete more aggressively by lowering infrastructure costs while providing access to engineering and manufacturing capabilities within the same ecosystem,” said Deependra Kushwaha, Commissioner of Industries.
A key advantage for private players under the model is lower development cost. The state plans to partner with developers and flex operators through special purpose vehicles (SPVs), enabling access to land at a significantly lower cost, which in turn reduces development and rental costs.
Industry hails move
Industry participants have welcomed the move. “By lowering entry costs while embedding startups within a broader ecosystem of engineering, training and manufacturing, the state is positioning flexible workspaces as the front end of an industrial pipeline,” said Janak Malkani, India Head – Managed Office Solutions, WeWork India while addressing the 3rd edition of FICCI India Flexible Workspace Summit 2026.
State officials said the programme is designed to enable start-ups to move from product development to commercial manufacturing without leaving the state, reducing friction in scaling.
Within Maharashtra, Pune has emerged as a cost-effective alternative to Mumbai, with operating costs typically 25–35% lower. In micro-markets such as Viman Nagar and Kalyani Nagar, standard seats range from ₹11,000 to ₹13,000, while Baner and Hinjewadi offer more competitive pricing at ₹9,000–₹10,500. The broader city average ranges between ₹10,000 and ₹15,000 per desk.
Beyond Pune, cities such as Nashik and Nagpur are seeing faster growth as companies adopt hub-and-spoke models. Entry-level desks start at ₹5,000–₹6,000, with demand growing nearly twice as fast as in Tier-1 markets, driven by lower overheads and a return-to-hometown workforce shift.
Flex boom sets the backdrop
The policy push comes amid a structural shift in India’s office market. India’s flex office inventory has crossed 100 million sq ft, tripling since 2020 to an estimated 110–114 million sq ft, growing at a 23–25 per cent CAGR over five years, according to a FICCI–CBRE report.
Bengaluru remains the largest flexible workspace market, followed by Delhi-NCR, while Pune—at 13.6–14.6 million sq ft—is the third-largest, underscoring Maharashtra’s growing role in the segment.
Demand is led by IT and technology firms, alongside BFSI and professional services, with global capability centres (GCCs) expected to drive the next phase of growth.
Tata Tech partnership
To support this distributed expansion, Maharashtra has partnered with Tata Technologies to set up Centres for Invention, Innovation, Incubation and Training (CIIIT) across districts including Satara, Nashik, Amravati, Nanded and Nagpur. These centres will provide access to advanced engineering tools and training in areas such as AI, robotics, IoT and electric vehicle technology.
Under the model, start-ups begin at low-cost desks, develop prototypes using shared infrastructure and scale through cluster-linked manufacturing facilities and engineering support.
The CIIIT centres will operate as public-private partnerships, with the state expected to hold up to 40 per cent equity while industry partners bring technical expertise.
India’s flexible office stock crossed the 100 million sq ft milestone, with a robust 3X increase in total inventory between 2020 and 2025 to reach 110-114 mn sq ft. The inventory has grown at a 23-25 per cent CAGR over the past five years, FICCI–CBRE report ‘Flex-plosion’ said.
Published on March 25, 2026
