Step 1: Understand the purpose of the institute.
The Entrepreneurial Development Institute of India (EDII) was established to promote entrepreneurship among Indian youth and provide necessary training and skills for business development.
Step 2: Evaluate the options.
- The EDII was founded by the Maharashtra government as part of its initiative to foster entrepreneurial culture and provide support for new businesses.
Step 3: Conclude.
The correct answer is that the Maharashtra government established the Entrepreneurial Development Institute of India.
Final Answer:
\[
\boxed{\text{Maharashtra Government}}
\]