Maharashtra’s economy expected to grow by 7.6% in 2023-24: Economic Survey

Mumbai: Maharashtra’s economy, the top contributor to the national nominal GDP, is expected to expand by 7.6 per cent in 2023-24, similar to the country’s projected growth of 7.6 per cent, according to the state’s latest Economic Survey.

The agriculture and allied activities sector, which was hit by "scarcity situation", in the state is expected to grow by 1.9 per cent and the Industry sector by 7.6 per cent, while the services sector is likely to register an expansion of 8.8 per cent in the last fiscal, it said.

The Economic Survey 2023-24 was tabled by Deputy Chief Minister Ajit Pawar, who also handles the finance portfolio, in the Maharashtra legislature whose monsoon session began on Thursday.

The state’s economy is expected to grow by 7.6 per cent, compared to 6.8 per cent in the previous year.

As per the key document, the state’s gross state domestic product (GSDP) at current prices for 2023-24 has been projected at Rs 40,44,251 crore and real at Rs 24,10,898 crore.

GSDP indicates the total economic output generated within a state’s boundaries over a specified period, typically a fiscal year.

The average share of the state in the all-India nominal GDP is highest at 13.9 per cent. The per capita state income for 2022-23 was Rs 2,52,389 as against Rs 2,19,573 in the previous fiscal, it said.

“The percentage of fiscal deficit to GSDP is 2.8 per cent, revenue deficit to GSDP is 0.5 per cent and debt stock to GSDP is 17.6 per cent,” the report said.

The total anticipated expenditure for annual schemes in the last financial year is Rs 2,31,651 crore of which Rs 20,188 crore is towards district annual schemes, it said.

The revenue receipts are expected to be Rs 4,86,116 crore for 2023-24 as against Rs 4,05,678 crore in the previous fiscal. As per the Survey, Maharashtra’s revenue expenditure in the given period is Rs 5,05,647 crore compared to Rs 4,07,614 crore in the year before.

The annual credit plan size for the state’s priority sector for 2023-24 is Rs 6.51 lakh crore in which the share of the agriculture and allied activities sector is 25.9 per cent and that of micro, small, medium enterprises and khadi and village industries sector is 55.6 per cent, it said.

The state received 86.4 per cent of the normal rainfall during the monsoon in 2023. Across Maharashtra, 19 talukas received excess rainfall, 190 received normal rainfall and 146 received deficient rainfall, the Economic Survey said.

The kharif season of 2023-24 saw sowing over 155.64 lakh hectares. For this season, the production of cereals, pulses, oilseeds and sugarcane is expected to decrease by 23 per cent, 10 per cent, 2 per cent, and 17 per cent, respectively. Cotton production is expected to rise by 3 per cent over 2022-23.

During the rabi season of 2023-24, sowing was completed on 58.60 lakh hectares. The production of cereals and pulses is expected to go down by 5 per cent and 4 per cent, respectively, while production of oil seeds is expected to increase by 13 per cent over the previous year, it said.

The area under horticulture is expected to be 22.40 lakh hectares and production is expected to be 327.80 lakh metric tonnes.

The agriculture and allied activities sector, a key driver of the state’s economy, contributes about 12 per cent of the GSDP.

The state ranks second in India in organic farm production (27 per cent) after Madhya Pradesh. Maharashtra’s irrigation potential created up to June 2022 by major, medium and minor projects was 55.60 lakh ha. During 2022-23, the actual irrigated area stood at 42.33 lakh ha, the Survey said.

“Scarcity situation during the kharif season 2023 affected 40 talukas in 15 districts,” it said. In all, 22.66 lakh ha of agricultural and fruit crops were affected due to drought and compensation of Rs 2,442.23 crore was sanctioned, it said.

Between November 2023 and January 2024, compensation of Rs 2,277.9 crore was sanctioned to 23.96 lakh farmers over 12.89 lakh ha of affected area.

According to the Economic Survey report, Maharashtra has remained topped in terms of FDI inflows in the country. During 2022-23, exports from the state contributed to 16 per cent of the total exports from the country, it said.