Maharashtra is the country's largest economy

Maharashtra is the country's largest economy with a gross state domestic product (GSDP) of Rs.16.87 lakh crore, followed by Tamil Nadu and Uttar Pradesh. The manufacturing sector was the top contributor (25.18%) to the state's GSDP after Gujarat (27.26%) in terms of level of contribution from the sector. Maharashtra's infant mortality rate has been lower than all other states' average rate.
These facts were revealed in the fourth report of Indian credit rating agency Brickwork Ratings titled `State Finances Handbook 2015'. It mentions that the state's GSDP grew at a rate of 11.69% for the financial year 2014-15.
Brickwork looks at the state's willingness and ability to honour debt obligations. It considers an analysis of political, economic, budgetary , financial and institutional parameters, deemed relevant to the state government's credit-worthiness. “Access to finance, regular technology upgrade, skill enhancement, regular supply of power and market support through stronger links with larger firms have to be improved to boost competitiveness of the manufacturing sector,“ the report states.
It states that the growth of the services sector was largely due to IT BPO KPO units, led by Karnataka, Tamil Nadu, Maharashtra and Andhra Pradesh. Maharashtra earns major part of its revenue -70% -through own taxes. It is the highest among the bigger states followed by Gujarat and Tamil Nadu. Regarding the expenditure on pension, Bihar, Odisha, Tamil Nadu and Kerala spent the maximum. Karnataka and Maharashtra kept expenses on this head at a reasonable level.
The most interesting observation in the report was that `for the first time in decades, India's GDP growth rate at 7.3% in 2014-15 exceeded that of China which grew at 6.9%'. The report mentions that for India, the challenges remain with funds managers perceiving higher risk in emerging countries and the need for the improvement in ease of doing business.
The report mentions that the “states need to explore sources to boost non-tax revenues and review their policies towards user charges,“ and that “the Centre needs to encourage more decentralization and delegate power to states and local bodies“.

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