Present Mumbai was originally an archipelago of seven islands. Artefacts found near Kandivali, in northern Mumbai indicate that these islands had been inhabited since the Stone Age.[11] Documented evidence of human habitation dates back to 250 BC, when it was known as Heptanesia (Ptolemy) (Ancient Greek: A Cluster of Seven Islands). In the 3rd century BCE, the islands formed part of the Maurya Empire, ruled by the Buddhist emperor, Aşoka. The Hindu rulers of the Silhara Dynasty later governed the islands until 1343, when the kingdom of Gujarat annexed them. Some of the oldest edifices of the archipelago – the Elephanta Caves and the Walkeshwar temple complex date from this era.

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Mumbai is located on Salsette Island, which lies at the mouth of Ulhas River off the western coast of India, in the coastal region known as the Konkan. Much of Mumbai is at sea level, and the average elevation ranges from 10 to 15 metres. The northern part of Mumbai is hilly, and the highest point of the city is at 450 metres (1,450 feet).[14] Mumbai spans a total area of 468 km² (169 mi²). There are five lakes supplying water to Mumbai. They are Vihar, Vaitarna, Powai, Tulsi and Tansa lakes. Three lakes are located within the metropolitan limits — the Tulsi Lake, Vihar Lake and Powai Lake. The first two are located within the Borivali National Park, and supply part of the city's drinking water. Mumbai also has three small rivers within the city limits originating in the National Park. The coastline of the city is indented with numerous creeks and bays. The eastern seaboard of Salsette Island is covered with large mangrove swamps, rich in biodiversity. On the western seaboard, there are two beaches, named Juhu beach and Chowpatty beach.

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Mumbai contributes 10% of all factory employment, 40% of all income tax collections, 60% of all customs duty collections, 20% of all central excise tax collections, 40% of India's foreign trade and Rupees 40 billion (US$ 9 billion) in corporate taxes.[20] A number of Indian financial institutions have headquarters in downtown Mumbai, including the Bombay Stock Exchange, the Reserve Bank of India, the National Stock Exchange of India, the Mint, and numerous conglomerates (the Tata Group, Godrej and Reliance etc). Many foreign banks and financial institutions also have branches in this area. The Financial Capital of Mumbai also has number of Chambers of Commerce, like Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA)which was founded in the year 1927 by the great visionary and industrialist Seth Walchand Hirachand with the mission to unite and organize business class, then emerging in the pre-independent India.

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