Maharashtra economic survey forecasts 12.1% growth in current FY

Maharashtra’s per capita income is expected to touch ₹2,25, 073 in the current FY, according to the state’s economic survey. 2

MUMBAI: The economic survey of Maharashtra has forecast the state economy to grow at 12.1% in the current financial year 2021-22 from -7.6% in the last FY 2020-21, dropped owing to Covid-19 pandemic. This translates the growth in the FY 22 to be a whopping 19.7%, which is the highest in the last one decade, according to the survey figures. The growth in the state is better than the Indian economy which is expected to grow at 8.9% in the ongoing fiscal.

Maharashtra’s economic growth is expected to be driven by the services and industries sectors which are expected to grow at 13.5% and11.9% respectively. (Representational Image)

The growth is expected to be driven by the services and industries sectors which are expected to grow at 13.5% and11.9% respectively. The agriculture sector is expected to grow at 4.4%. The agriculture and allied activities sector is expected to grow by 4.4%, of which 3% is from the crops and 6.9% from livestock, forestry, logging and fishing. Agriculture growth has reduced this year from 17.9% in FY 2020-21. The industry grew by 21.9% in FY 22 as it was -10% in FY 20-21 and 11.9% in FY 21-22. Services sector grew 22.5% from -9%, construction sector by 28.4% from -11% last year. The growth of the services and construction sectors in FY 21-22 is expected to be 13.5 and 9.5%.

The nominal GSDP of the state is expected to be ₹31,97,782 crore in FY 2021-22 against 2711,685 in the previous FY 21. The share of the state in all India nominal GDP is highest at 14.2% among all the states. The fiscal deficit of the state to GSDP is 2.1%, while the debt stock to GSDP is 19.2% for FY 22, and is estimated to be within the limit of 25% according to the FRPM Act provisions.

The per capita income of the state is expected to touch ₹2,25, 073 in the current FY, against ₹1,93,121 in the FY 20-21 and ₹196100 in 2019-20.

The state received 118.2% of the normal rainfall last monsoon though 22 of the 355 talukas received deficient rainfall. The kharif 21-22 saw the sowing on 155.15% lakh hectares and the production of cereals, pulses, oilseeds, cotton and sugarcane is expected to decrease by 11, 27, 13, 30 and 0.4% respectively, the economic survey said. The production of the pulses is expected to increase in rabi season by 14%, though the production of cereals and oilseeds are expected to go down by 21 and 7% respectively in this season over the previous year’s production.

Manoj Saunik, additional chief secretary, finance department, said, “The growth estimated in FY 21-22 is better, due to the improved performance of industry, services sectors.”

The irrigation potential created by the state up to June 2020 by irrigation projects was 54.15% lakh hectares and the actual irrigation area was 41.6 lakh hectares in 2020-21. The year saw 0.68 lakh hectares areas newly brought under micro irrigation, the survey said.