Maharashtra To Grow At 7.5% Amid Farm, Manufacturing Slowdown

Maharashtra is expected to grow in 2018-19 despite a water crisis that hurt its farm sector.

The gross state domestic product is expected to grow at 7.5 percent in 2018-19, the same as the revised estimate for the previous fiscal, according to the Economic Survey tabled in the state’s legislative assembly on Monday.

Maharashtra—which contributed the highest 15 percent to the nation’s gross domestic product financial year 2018-19—is reeling under severe drought in several regions. Agriculture and allied activities are expected to grow at 0.4 percent in 2018-19—the slowest pace in three years. The revised estimates for 2017-18, however, showed a surprise growth of 3.1 percent for the sector against an estimated contraction of 8.3 percent, as per the survey. Farm and allied activities contribute 11.9 percent to the state’s GDP.

The business environment is yet to recover from the overhang of the implementation of the goods and services tax. The manufacturing sector is expected to grow at 6.9 percent in 2018-19 compared with 7.6 percent in the previous financial year, the survey showed. Industry in Maharashtra contributes 33.1 percent to the state’s total GDP.

Drought Relief Bill

The Maharashtra government made available Rs 4,909.50 crore for drought relief in the financial year ended March 2019. The total affected area is about 85.8 lakh hectares in 151 taluks spread over 26 districts across the state. Of this, 112 taluks witnessed severe drought and the rest was affected by drought of moderate intensity.

The annual budget for agriculture and allied activities in 2018-19 is more than Rs 85,400 crore, the survey said.

Other Highlights:

• The state’s debt is seen at Rs 4.14 lakh crore in 2018-19.
• The government estimates total tax and non-tax revenue at Rs 2,86,500 crore against Rs 2,43,654 crore a year ago.
• The state achieved the top position in terms of gross value added (Rs 2.42 lakh crore), as per the annual survey of industries 2016-17.

(With inputs from PTI)

(Corrects an earlier version to update revised growth estimates of the previous year)