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Maharashtra economy to slow to 7.3% in FY18

Our Bureau Mumbai | Updated on March 08, 2018 Published on March 08, 2018

Maharashtra Finance Minister Sudhir Mungantiwar, (right) with Deepak Kesarkar, Minister of State for Finance giving finishing touches to the State Budget at Mantralaya in Mumbai on Thursday   -  Vivek Bendre

Economic survey sees big dip in farm sector

The growth rate of the economy in Maharashtra is slowing down. Based on advance estimates, the latest Maharashtra government Economic Survey has said the State economy is forecast to grow by 7.3 per cent during fiscal 2017-18, which is a drop of 2.7 per cent over the previous year.

For fiscal 2016-17, the economic growth was 10 per cent. The signs for the agriculture and allied sector is even more ominous with an 8.3 per cent dip in growth rate during 2017-18 due to comparatively low rains (84.3 per cent of the normal monsoon). During 2016-17 agricultural production was higher on account of good rains (94.9 per cent of the normal monsoon). On Thursday, the Survey report was tabled in the Maharashtra Legislative Assembly by Sudhir Mungantiwar, State Finance Minister.

The report pointed that during kharif season of 2017, the production of cereals, pulses, oilseeds and cotton is expected to decrease by four per cent, 46 per cent, 15 per cent and 44 per cent respectively, while the production of sugarcane is expected to increase by 25 per cent.

For Rabi crops during 2017-18, the production of cereals, pulses and oil seeds is expected to decrease by 39 per cent, four per cent and 73 per cent respectively.

Industry development

On the industrial growth front, the report said that from August 1991 to December 2017 in all 19,826 industrial proposals with proposed investment of ₹11.89 lakh crore were approved.

Of these, 8,974 projects were commissioned (45.3 per cent) with an investment of ₹2.92 lakh crore (24.6 per cent) and generated employment of about 12.67 lakh.

Banking

For banking, as on 31st March, 2017 aggregate bank deposits and gross credit of scheduled commercial banks in the State were ₹21.64 lakh crore and ₹23.00 lakh crore respectively.

Credit-Deposit Ratio of scheduled commercial banks was 106.3 per cent as on 31st March, 2017 as compared to 102.7 per cent on 31st March, 2016.

The share of the State in aggregate deposits and gross credit of scheduled commercial banks on all India basis was 20.1 per cent and 29.0 per cent respectively, the report said.

Published on March 08, 2018
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