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The city houses important financial institutions such as the Reserve Bank of India, the Bombay Stock Exchange, the National Stock Exchange of India, the SEBI and the corporate headquarters of numerous Indian companies and multinational corporations.

It is also home to some of India's premier scientific and nuclear institutes like Bhabha Atomic Research Centre, Nuclear Power Corporation of India, Indian Rare Earths, Tata Institute of Fundamental Research, Atomic Energy Regulatory Board, Atomic Energy Commission of India, and the Department of Atomic Energy.

Along with the neighbouring regions of the Mumbai Metropolitan Region, it is second most populous metropolitan area in India, with a population of 21.3 million as of 2016 For centuries, the islands were under the control of successive indigenous empires before being ceded to the Portuguese Empire and subsequently to the East India Company when in 1661 Charles II of England married Catherine of Braganza and as part of her dowry Charles received the ports of Tangier and Seven Islands of Bombay.

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The term had been in use for quite some time but it gained popularity after the official name change to Mumbai.

1877 in Paris): "Etymologists have wrongly derived this name from the Portuguese Bōa Bahia, or (French: "bonne bai", English: "good bay"), not knowing that the tutelar goddess of this island has been, from remote antiquity, Bomba, or Mamba Dévi, and that she still..., possesses a temple".

This came at the insistence of the Marathi nationalist Shiv Sena party, which had just won the Maharashtra state elections, and mirrored similar name changes across the country and particularly in Maharashtra.

Growing apprehensive of the power of the Mughal emperor Humayun, Sultan Bahadur Shah of Gujarat was obliged to sign the Treaty of Bassein with the Portuguese Empire on 23 December 1534.

According to the treaty, the Seven Islands of Bombay, the nearby strategic town of Bassein and its dependencies were offered to the Portuguese.Michael's Church at Mahim (1534), The Portuguese also built several fortifications around the city like the Bombay Castle, Castella de Aguada (Castelo da Aguada or Bandra Fort), and Madh Fort.