Maharashtra growth rate set to fall from 9.4% to 7.6% | Mumbai News – Times of India
MUMBAI: The state’s economic growth rate is set to slide from 9.4% in 2022-23 to 7.6% in 2023-24 according to Maharashtra’s Economic Survey for 2023-24 which was tabled in the state legislature on Monday. The state’s growth rate is set to match that of the Indian economy which is also expected to grow by 7.6%.
The reason for the decline is the sharp drop in the growth rate of both the agricultural and services sector.The estimated growth rate in the agriculture and allied services sector which was flattened by the drought, is set to fall from 4.5% in 2022-23 to 1.9% in 2023-24.
The growth rate in the services sector is set to plunge from 13% to 8.8% in the same period. This is a concern since the services sector has a much higher share in the computation of economic activity than agriculture or industry.
The estimated industrial growth rate, on the other hand, is set to see a rise from 5.5% to 7.6% in 2023-24. This will be a relief for the Shinde government which is under attack from the opposition for the flight of projects from Maharashtra.
Within industry, the manufacturing sector is set to see a rise in the estimated growth rate from 2.1% to 7.5% from 2022-23 to 2023-24. However, the estimated growth rate in the construction sector is expected to plunge from 14.5% to 6.2% during this period. The mining and quarrying sector is expected to experience a rise in estimated growth from 5.3% to 9.1%.
Within the services sector, the survey estimates a sharp decline in the growth rate of the segment on trade, hotels, transport and communication services from 13% to 6.6%. Within the public administration and defence segment, the estimated growth rate is set to plummet from 15.7% to 7.6%. The financial services and real estate sector is expected to see a fall in the estimated growth rate from 12.2% to 10.1%.
In terms of finances, the state’s per capita income is set to rise from Rs 2.5 lakh to Rs 2.7 lakh between 2022-23 and 2023-24.
However, in 2022-23, the state’s per capita income was lower than Telangana, Karnataka, Haryana, Tamil Nadu and Gujarat.
The survey points to the crisis in the agricultural sector with the state receiving only 86.4% of normal rainfall in 2023-24. In the kharif season of 2023-24, the production of various crops is expected to fall including cereals (-23%), pulses (-10%), oilseeds (-2%), sugarcane (-17%) and cotton (-3%).
The reason for the decline is the sharp drop in the growth rate of both the agricultural and services sector.The estimated growth rate in the agriculture and allied services sector which was flattened by the drought, is set to fall from 4.5% in 2022-23 to 1.9% in 2023-24.
The growth rate in the services sector is set to plunge from 13% to 8.8% in the same period. This is a concern since the services sector has a much higher share in the computation of economic activity than agriculture or industry.
The estimated industrial growth rate, on the other hand, is set to see a rise from 5.5% to 7.6% in 2023-24. This will be a relief for the Shinde government which is under attack from the opposition for the flight of projects from Maharashtra.
Within industry, the manufacturing sector is set to see a rise in the estimated growth rate from 2.1% to 7.5% from 2022-23 to 2023-24. However, the estimated growth rate in the construction sector is expected to plunge from 14.5% to 6.2% during this period. The mining and quarrying sector is expected to experience a rise in estimated growth from 5.3% to 9.1%.
Within the services sector, the survey estimates a sharp decline in the growth rate of the segment on trade, hotels, transport and communication services from 13% to 6.6%. Within the public administration and defence segment, the estimated growth rate is set to plummet from 15.7% to 7.6%. The financial services and real estate sector is expected to see a fall in the estimated growth rate from 12.2% to 10.1%.
In terms of finances, the state’s per capita income is set to rise from Rs 2.5 lakh to Rs 2.7 lakh between 2022-23 and 2023-24.
However, in 2022-23, the state’s per capita income was lower than Telangana, Karnataka, Haryana, Tamil Nadu and Gujarat.
The survey points to the crisis in the agricultural sector with the state receiving only 86.4% of normal rainfall in 2023-24. In the kharif season of 2023-24, the production of various crops is expected to fall including cereals (-23%), pulses (-10%), oilseeds (-2%), sugarcane (-17%) and cotton (-3%).
