MITRA sets 17.55% GSDP target for Maharashtra to become $1 trillion economy by 2028
Maharashtra aims to become a $1 trillion economy by 2028, targeting a GSDP growth of 17.55% from 7.85% and increasing investment to 37% of GSDP.
Mumbai: To achieve its aim of making Maharashtra a $1trillion economy by 2028, the state-appointed think tank Maharashtra Institution for Transformation (MITRA) has set a Gross State Domestic Product (GSDP) growth target of 17.55 %, up from the current 7.85%. It also aims to increase investment to 37% of the GSDP from the current rate of 25%.
During the first meeting of the think tank’s governing body on Monday, MITRA also set a target of achieving a capital formation rate of 36.9% in five years, up from the current 24%. Capital formation is that part of a state’s current output and imports that is not consumed or exported during the accounting period but is set aside as an addition to its stock of capital goods.
Chief minister Eknath Shinde, who heads the governing body, held the review meeting in the presence of deputy chief minister Devendra Fadnavis, MITRA CEO Pravin Pardeshi, finance secretary OP Gupta, and planning secretary Rajgopal Devara, among others.
Pardeshi made a presentation to the governing body, where he stated that at the current rate of GDP growth (7.85%, which is a 10-year growth rate average), the state will take over 12 years to achieve its $1 trillion economy target. If it rose to 10.19%, the target would be achieved by 2032. Fadnavis announced last month in the state legislature that Maharashtra’s GDP had crossed the $500 billion mark.
The think tank has recommended projects like Maharashtra Strengthening Institutional Capabilities in Districts for Enabling Growth (MahaSTRIDE) and Maharashtra Resilience Development Program (MRDP). Other recommendations include having a comprehensive data policy and developing IT parks in tier-II cities, among others.
Shinde launched MahaSTRIDE on Monday. The programme adopts a strategic plan that leverages each district’s geographic advantages and resources to contribute to the goal of a $1 trillion economy.
“54% of the state GDP contribution comes from just seven districts, including Mumbai (city and suburban), Thane, Palghar, Pune, Nagpur and Raigad, while 26% comes from 11 and merely 20% from the remaining 18 districts. The $268.97 million project, which aims to strengthen district-level systems for enabling growth, has 70% contribution by the World Bank,” a statement released by the chief minister’s office said.
The CM has also directed MITRA to concentrate on key sectors like agriculture, health, education, environment, power and infrastructure. It should also “concentrate on the growth in Mumbai Metropolitan Region and emphasis on climate change, innovations in agriculture, organic farming among others,” according to the statement.
The state government has finalised district strategy plans for all the districts, and 12 of them have been approved, according to an official from the finance department. “The $1 trillion economy is a far-fetched dream, at a GDP growth rate of 17.5%, [up] from the existing rate of 7.85%. Especially when the investment by the private sector is waning,” the official added.
According to MITRA estimates, Maharashtra will have to register GSDP growth of 17.13% till 2028 to become a $1 trillion economy. Gujarat’s GSDP will have to grow at 19.6% till 2030, and Uttar Pradesh’s at 30.65% till 2027 to achieve the target.