The projected growth of Maharashtra's economy according to the economic survey report is a healthy 8%, up from 5.8% in 2014-2015, but much of that will come from the industrial and service sectors. Projections for the agricultural sector are gloomy in the backdrop of drought and unseasonal rainfall. It is feared that the expected dip in agricultural production will lead to food inflation.
The report, presented in the state assembly, estimates a decline in the agricultural sector by 2.7%, but projects a 5.9% rise in the industrial sector and a 10.8% increase in services.
A deficient monsoon has had an adverse effect on the production of principal crops. It has led to a reduction in the kharif crop area by 6%. The rabi crop is estimated to decrease by 16% compared to the 2014-15 financial year.
The state has been reeling under severe drought for three years, with 2015-16 being exceptionally bad. Water stocks in all the dams have dipped. The production of food grains has declined by 24.9%, of cereals by 18.7%, and pulses by 47%. The production of fruits and vegetables has dropped by 15%.
Thus, the gross value added (GVA) growth rate of the agricultural sector is expected to be 16%. Food inflation in rural areas is up from 5.7% to 5.9% and in urban areas from 6.2%. to 7.3%.
The upswing in industry and services can be seen from the increase in the number of industrial establishments in the state by 45.3%. The number of people employed in non-agricultural sectors has gone up by 28.3%.
The state's rank is two when it comes to the number of factories, workers and fixed capital with a national share of 13% 12.6% and 13.8% respectively Functioning in the state are 2.44 lakh micro, small and medium enterprises, with an investment of Rs 56,552 crore and employment generation of 29.2 lakh Thanks to the Make in India event, the trend is expected to continue, as per the report.
The opposition has criticized the survey report, saying the growth rate projected in it would be difficult to achieve amid the global slowdown. But revenue minister Eknath Khadse said the Centre's policies would offset the slowdown's effects and the state's growth will be more than the national average.