Maharashtra economy to grow at 5.7% in 2019-20: Economic Survey

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March 5, 2020 5:17 PM

The average share of the state's contribution is 14.3 per cent among all the states in the All India nominal GDP, it said.

Maharashtra economy, Economic Survey, GDP, per capita state income, GSDP, fiscal limits, 14th Finance Commission, production of oilseedsMaharashtra was second in the country after Karnataka in terms of FDI in 2019-20, it said.

Maharashtra’s economy is expected to grow at 5.7 per cent during 2019-20, marginally down from the last fiscal’s projection of six per cent, the Economic Survey presented in the state Legislature on Thursday said. The agriculture and allied activities are expected to grow at 3.1 per cent in 2019-20, it said. The survey said the industry and services sectors are expected to grow at 3.3 per cent and 7.6 per cent in 2019-20, slower than the previous fiscal’s 5.5 per cent and 8.1 per cent respectively.

The average share of the state’s contribution is 14.3 per cent among all the states in the All India nominal GDP, it said. Nominal GSDP is expected to increase by Rs 2,45,791 crore in 2019-20 as compared to 2018-19. The per capita state income in 2019-20 is expected to be Rs 2,07,727.

The GSDP in 2019-20 is expected to be Rs 28,78,583 crore, it added. The growth rate of the agriculture and allied sector in 2018-19 was negative (-2.2) per cent. In 2017-18, the growth rate was -0.7 per cent. The revenue deficit in 2019-20 is Rs 20,293 crore, fiscaldeficit Rs 61,670 crore and the debt stock was Rs 4,71,642 crore, the report said. The percentage of fiscal deficit to GSDPis 2.1 per cent and debt stock to GSDP is 16.4 per cent.

Both the indicators are within the fiscal limits prescribed by the 14th Finance Commission. The state witnessed average rainfall of 73.6 per cent of the average during 2018-19, less by 10.7 per cent in 2017-18. In2018-19,the production of food grains and fruits, and vegetables decreased by 27.3 per cent and 10.1 per cent respectively, whereas sugarcane, oilseeds and cotton increased by 8 per cent, 16.1 per cent and 8.2 per cent respectively over the previous year.

The survey said the unemployment rate in January to March 2019 was 8.3 per cent as compared to 9.6 per centin October to December 2018. Total 37,567 offences were reported in the state in 2019, in which women were victims, as compared to 35,497 in 2018 and 31,997 in 2017, the report noted. FDI inflows in 2019-20 was Rs 25,316 crore, which is less as compared to Rs 80,013 crore in 2018-19 and Rs 86,244 crore in 2017-18.

Maharashtra was second in the country after Karnataka in terms of FDI in 2019-20, it said. The state received 112.6 per cent rainfall during the monsoon of 2019. Of the 355 talukas, excluding Mumbai city and suburbs, 152 talukas received excess rainfall, 182 got normal rainfall and 21 received deficient rainfall, the survey report said.

During the kharif season of 2019-20, sowing was completed on 149.61 lakh hectare area. Production of cereals, pulses, oilseeds and cotton is expected to increase by nine per cent, three per cent, one per cent and 24 per cent respectively, while the production of sugarcane is expected to go down by 36 per cent as compared to the previous fiscal. During 2019-20, the area under rabi crops is 50.87 lakh hectares, which is 5.6 per cent more as compared to previous year.

The production of cereals and pulses is expected to go up by 43 per cent and 23 per cent respectively, while the production of oilseeds is expected to decrease by 24 per cent. The survey said that Mahatma Jyotirao Phule Farm Waiver Scheme 2019 has been approved (by the MVA government) to waive overdue loans borrowed between April 1, 2015 and March 31, 2019 up to Rs two lakh, including the principal amount and the interest, as on September 30, 2019.

The state government has provided Rs 15,000 crore during 2019-20 for its implementation. Irrigationpotential created as one June 30, 2019 by major, medium and minor irrigation (state projects) was 51.23 lakh hectares and the actual irrigated area was 35.97 lakh hectares (70.2 per cent) during 2018-19, it said.

The irrigation potential created as on June 30, 2019 by minor irrigation (local sector) projects was 18.96 lakh hectares and the potential utilised was 8.49 lakh hectares (44.8 per cent) during 2018-19. Unseasonal rains during October-November 2019 due to cyclones Kyarr and Maha, affected agriculture and horticulture crops from 349 talukas in 34 districts, the report said. Compensation for Rs 8,000 per hectare for agriculture crops and Rs 18,000 per hectare for horticulture crops was sanctioned, the report said.

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