The latest economic survey for Maharashtra 2009-10 has predicted a recovery for the State and said that the Gross State Domestic Product (GSDP) is expected to grow at 8.6 per cent during the year 2009-10 as against 3.4 per cent during the previous year.

The Economic Survey which was tabled in the State legislature on Tuesday pointed out that agriculture and allied activities is expected to grow by 1.8 per cent during 2009-10 as against negative growth of 19. 3 per cent in the previous year.

However, industry is still facing the negative impact of recession and is expected to grow moderately by 7 per cent. The service sector is expected to maintain the growth momentum and is likely to grow by 10.4 per cent during the year.

The per capita State income at current prices is estimated at Rs. 54, 867 in the year 2008-09 as against Rs. 49,058 during 2007-08. The per capita State income is higher then the per capita National Income and the State maintained second rank after Haryana.

After enjoying a revenue surplus for three consecutive years, a revenue deficit of Rs. 7,123 crore or 0 .9 per cent of GSDP is expected during 2009-10. The fiscal deficit which was 2.3 per cent of GSDP during 2008-09 is expected to increase to 3.2 per cent during 2009-10. To cope up with the deficit, the government will be required to borrow more and therefore, the debt stock of 2009-10 is expected to increase to Rs. 1,85,801 crore which is 22.3 per cent of GSDP.

FDI flow

On the brighter side, Maharashtra is one of the favoured destinations for industrial investment. A total of 15,408 industrial projects with an investment of Rs. 5,58,336 crore and employment potential of about 28.17 lakh have been registered with the government of India to set up units in the State till August 2009. The major share of FDI is in IT industry (Rs.12,765 crore).

However, in terms of poverty estimates provided by the Planning Commission of India, the poverty ratio in the State during 2004-05 is 30.7 per cent as against an all India average of 27.5 per cent. Though the results at various points of time show decline in poverty ratios, the number of persons living below poverty line is gradually increasing since 1973-74 and increased by 12.2 lakh persons in 2004-05 as compared to 1993-94.

The price situation in rural areas based on the Consumer Price Index reached 172.8 in December 2009, thus recording a rise of 23.5 points during the year which is highest ever in last five years. Even in the urban areas, there was a rise of 21.8 points which was again the highest ever in the last five years. In the rural areas the rise was mainly due to increase in the prices of rice, wheat, tur dal, moong dal, potato, onion and sugar.

Major problem

The Survey notes that closing of industries is now becoming a severe problem in the State. The percentage of small scale industries closed during 2009-10 (up to September 2009) increased by 35 per cent over the previous year. In 2009-10, 44,997 small scale industries closed down, affecting 1,97,798 workers, while 845 medium and large industries closed down, affecting 1,53,786 workers.

The State is becoming one of the leading wine producing areas in the country. At present, out of 62 wineries in the country, 58 wineries are functioning in Maharashtra with an investment of Rs. 329 crore. The wine production in India is 2.25 crore litre of which 2.11 crore litre (97 per cent ) is produced in the State.