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Due to the influx of many outsiders, the local Marathis were agitated as they felt that they were losing their jobs, culture and language. As a result, the Shiv Sena Party was formed by Bal Thackeray with the purpose of protecting the interests of local Maharashtrians. For civic administration purposes, the city is divided into two main regions - the city and the suburbs. The city is administered by Brihanmumbai Municipal Corporation (BMC) and is in charge of civic and infrastructure needs of the city.

The Mumbai Police is headed by the Police Commissioner who is an IPS officer. Mumbai is the seat of the Bombay High Court which also exercises power over the states of Maharashtra and Gujarat, the Union Territories of Daman and Diu and Dadra and Nagar Haveli. The city elects six members to the Lok Sabha and 34 members to the Maharashtra Vidhan Sabha. Mumbai is headed by mayor Shubha Raul, Muncipal Commissioner Jairaj Phatak and Sheriff Indu Shahani.

India is the most populous democracy in the world. For most of its democratic history, it has been led by the Indian Congress Party. The Constitution of India is the longest constitution of any other nation in the world. It defines India as a sovereign, socialist, secular and democratic republic. India operates under a Westminister-style parliamentary system. The President of India is the head of state. While he holds substantial reserve powers, the Presidential role is largely ceremonial.

The Constitution authorises the Parliament of India to oversee the operation of the government. The parliament in turn consists of two houses, The Rajya Sabha (Council of States) and the Lok Sabha (House of the People). The Council of Ministers is held responsible to the Lok Sabha. India is divided into 28 states and seven union territories. Each state has its own elected government while Union Territories are governed by an administrator appointed by the central government. The states' chief minister is the official head of his state and is responsible to the legislatures in the same way the prime minister is responsible to parliament.