Such a step is being considered as the democratic front government is convinced that high taxes do not always bring in higher revenues.

Moreover, the government wants to be careful not to create a high-cost economy even in the short term. Addressing the inaugural session of Indo-US investment summit here, Deshmukh said that his government was committed to root out aberrations such as extortion crimes and added that political patronage has been withdrawn and the free hand been given to enforcement authorities to bring back the lost glory of Mumbai and the state in general.

Deshmukh said that the state was undergoing a radical transformation towards a mature economy, with services sector accounting for nearly half of its domestic product and industry and services taken together contributing as much as 83 per cent. Out of 24 industrial categories, Maharashtra leads the country in 13 terms of value added and was second or third in another six.

Deshmukh said that his government was keen to forge new partnerships and innovative new ventures in power generation, the development of ports and airports, roads and communications to meet the requirements of the modern services sectors. He assured the investors necessary help from and said that he was personally overseeing a review of the policy. Welcoming the Centre's initiative to enact cyber laws, he said that Maharashtra which is the leader in business and industry, stands to gain the most from these measures.

"These steps will ensure that the state is the focal point of the IT revolution," he said.