The States Reorganisation Act, 1956 recognised each Indian state on the basis of languages. However, there were a number of other languages spoken in the former Bombay, including Marathi, Gujarati, Kutchi, and Konkani. At this point, the Sanyukta Maharashtra Samiti began a campaign calling for a separate state.

They wanted Bombay to be divided into two parts- one is to comprise Marathi and another to be Gujrati.

Simultaneously, the other movement started called, MahaGujrat, which demanded the separate state for Gujrati People. With both the movements running parellely, Finally, the peace was made with Bombay Reorganization Act.

Due to this movement, Gujarat and Maharashtra were created as states under the Bombay Reorganisation Act of 1960. The law went into force on May 1, 1960, which also happened to be International Labour's Day.

To honour the state's founding, the Maharashtra government has declared May 1 a public holiday every year. On this unique day, the majority of educational institutions, including schools, colleges, and offices, are closed. A parade at Dadar's Shivaji Park kicks off the day. Participating in the parade are the state's governor, the state reserve police, home guards, Mumbai Police, BMC Force, traffic police, and others. Numerous occasions are held to showcase Maharashtra's traditions and culture.

In honour of the day and to pay homage to the martyrs, a flag is raised at each district headquarters in the presence of authorities. In acknowledgment of this noteworthy achievement, individuals from many backgrounds, including athletes, police officers, and doctors, get rewards.

On this Maharashtra Day, the people of Maharashtra celebrate the day with traditional performances, which involve the recitation of poems by Marathi saints, while processions are held all over the state. On Maharashtra Day, the State government and various commercial businesses use the occasion to inaugurate and launch new projects and programmes. In addition, today is recognised as International Labour Day in several countries, a tradition that dates back to the 19th century.