Maharashtra economy to dip 8% in FY21: State economic survey

Our Bureau Mumbai | Updated on March 05, 2021

Maharashtra Chief Minister Uddhav Thackeray   -  PTI

Agriculture and allied activities to grow by 11.7%, industry, services take a hit

The Economic Survey of Maharashtra report has said the State’s economy for fiscal 2020-21 is expected to post a negative growth of 8 per cent as the per the advance estimates. The Indian economy is also expected to grow by minus 8 per cent.

On Friday afternoon the report was tabled in the Maharashtra Legislative Assembly.

Due to the Covid pandemic, the industrial growth is also in the red with a negative 11.3 per cent growth while the services sector is at a negative 9.0 per cent. The only saving grace is agriculture and allied activities, which is expected to grow by 11.7 per cent.

Investment trends

The per capita State Income during 2020-21 is expected to be at ₹1,88,784 (advance estimates), which is a decline of ₹13,346 over 2019-20 when it was ₹2,02,130 (first revised estimate).

The report pointed out that during the during Magnetic Maharashtra 2.0, a State government summit to promote industrial investments, in June 2020, the State attracted investment proposals of ₹1.13 lakh crore with expected employment of over 2.50 lakh persons.

The Maharashtra Industrial Development Corporation is offering a ready-to-move-in factory environment under Plug & Play Infrastructure and is allocating over 40,000 acres. It will also provide industrial shed spaces on a rental basis.

The FDI inflows in the State from April 2000 to September 2020 was ₹8,18,522 crore, which was 27.7 per cent of total FDI inflows at all-India level.

During 2020-21 up to September, the total FDI inflows in the State was ₹27,143 crore, the report said.

Normal monsoon

The report added that the State received 113.4 per cent of the normal rainfall during monsoon 2020. Out of 355 talukas (excluding Mumbai City & Mumbai suburban districts), 139 talukas received excess rainfall, 173 received normal and 43 received deficient rainfall. During the kharif season of 2020-21, sowing was completed on 156.89 lakh hectare. The production of cereals is expected to increase by 60 per cent, pulses by14 per cent, oilseeds by 28 per cent, cotton by 33 per cent and sugarcane by 40 per cent over the previous year,

During rabi season 2020-21, by the end of December sowing was completed on 53.64 lakh hectares. The production of cereals is expected to increase by one per cent and pulses by 12 per cent while production of oilseeds is expected to decrease by 18 per cent over the previous year.

Published on March 05, 2021

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