Maharashtra's growth rate stagnant at 7.1%

The economic survey report tabled in the state legislature on Tuesday has revealed that the state’s growth rate remained stagnant in 2012-13, estimated at 7.1%, the same as the earlier fiscal year.

The gross state domestic product, a measurement of the economic output of the state, has been dragged down as agriculture and allied sector growth has fallen to -2.1% in 2012-13, from 4.6% in the earlier year.

The decline in food grain production due to deficient rainfall is estimated at 18%.

The statistics in the report show that Maharashtra’s gro-wth trajectory is yet to get back on track. In 2010-11, the state had achieved a double-digit growth figure at 10.2%. 

So, even as the industry and services sectors posted a modest growth at 7% (5.2% in 2011-12) and 8.5% (8.4%), this is not enough to offset the dip in agriculture.

To put it in perspective, the state’s agriculture growth in the last two years has come down by nearly 19%.

“Risk of global financial crisis appears to have ebbed at the end of 2012-13, but domestically, the growth remains sluggish,” the report states.

The state’s otherwise strong construction industry and finance, banking sectors also showed a slowdown. The report noted a dip in the growth of the construction industry — 11.2% in 2012-13 from 12.4 in 2011-12, and in the finance and insurance sector to 9.8% from the earlier 10.2%.

The good news is that the manufacturing sector posted a growth of 5.1% up from the earlier 2.5%.

Despite the slow growth, a relief for citizens is that inflation has moderated to a three-year low, at 6.6% in January. And, for Mumbaiites, our per capita income has increased by Rs.10,000 to Rs.1,51,000 this year. 

The state’s industries performance has been good with Maharashtra bagging the highest number of industrial proposals, 17,779, with the most employment potential at 44.4 lakh over the last two decades.

This is better than neighbouring state Gujarat’s performance, which is ranked second, though Gujarat has claimed higher investment through fewer number of proposals.

“With macroeconomic indicators improving in the country and the globe, we expect the state to get back on track in this financial year,’’ said a senior finance official.

 

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