Maharashtra economy to grow 6.8% in 2022-23: State Economic Survey

Although Maharashtra’s share of all-India GDP is the highest among States, this year’s projected growth is a sharp drop from last year’s 9.1%, with the services sector accounting for much of the drag

March 08, 2023 01:48 pm | Updated 07:36 pm IST - Mumbai:

Maharashtra Chief Minister Eknath Shinde (right) and Deputy Chief Minister Devendra Fadnavis addressing a press conference in Mumbai. File photo

Maharashtra Chief Minister Eknath Shinde (right) and Deputy Chief Minister Devendra Fadnavis addressing a press conference in Mumbai. File photo | Photo Credit: ANI

Maharashtra’s economy is expected to grow by 6.8% in 2022-23 against the projected 7% growth of the Indian economy, according to the State’s annual Economic Survey, tabled by Deputy Chief Minister and Finance Minister Devendra Fadnavis in the Assembly on March 8. 

However, the projected growth for this year is significantly lower than the 9.1% growth seen in 2021-22. The report, which was tabled a day ahead of the State budget, also said that Maharashtra’s 14% share in the national nominal GDP is the highest among all States. 

In the current fiscal year, the agriculture and allied activities sector is expected to grow by 10.2%, slower than the 11.4% growth seen the previous year. Services growth for 2022-23 is projected at 6.4%, a drastic drop from the 10.6% growth for the previous year. However, the industrial sector is expected to grow 6.1% this year, much faster than the 3.8% growth seen in 2021-22.

As per advanced estimates, the nominal (at current prices) Gross State Domestic Product (GSDP) for 2022-23 is expected to be ₹35.27 lakh crore, and the real (at constant 2011-12 prices) GSDP is expected to be more than ₹21.65 lakh crore.

Higher income

As per the advanced estimates, the State’s per capita income for 2022-23 is expected to be ₹2.42 lakh, against ₹2.15 lakh the previous year. Maharashtra stood fifth in terms of per capita income in 2021-22, when Karnataka led the States with a per capita income of ₹2.79 lakh.

The average Consumer Price Index for rural and urban areas in the State was 350.8 and 334.9 respectively from May to December 2022, while year on year inflation was 8.1% for rural areas and 7.3% for urban areas.

The percentage of fiscal deficit to GSDP is 2.5% and debt stock to GSDP is 18.4% as per the budget estimates for 2022-23. The total funds proposed for annual schemes this year was ₹1.5 lakh crore of which ₹18,175 crore were for district schemes.

The Foreign Direct Investment inflow into Maharashtra from April 2000 to September 2022 was ₹10.88 lakh crore, which was 28.5% of the total FDI inflow into the country, the report said. 

Agriculture projections

Mr. Fadnavis said that recent unseasonal rains damaged standing crops on 13,729 hectares in eight districts in the State and orders have been issued to provide immediate relief.

According to the Economic Survey, during the kharif season of 2022-23, sowing was completed on 157.97 lakh hectares of land. The production of cereals, oilseeds, cotton and sugarcane is expected to grow 10%, 19%, 5% and 4% respectively while the production of pulses is expected to fall 37% from the previous year.

During the 2022-23 rabi season, sowing was completed on 57.74 lakh hectares. The production of pulses is expected to grow 34% while the production of cereals and oilseeds are both expected to fall 13% from the previous year. Horticulture crops were planted on 23.92 lakh hectares and production was expected to hit 327.84 lakh tonnes during 2021-22.

As per the India State of Forest Report (ISFR) 2021, the total forest cover in Maharashtra was 50,798 sq km, an increase of 20 sq km over that reported in ISFR 2019. As per the survey report, the forest cover in the State accounts for 16.5% of the total geographical area against the goal of 33% envisaged in the National Forest Policy.

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