Economic Survey: Maharashtra to clock 7.3% growth in 2024-25

The survey pointed a decline in the growth of industry and service sector. During 2024-25, the real Gross State Value Added of the agriculture and allied activities, industry and services sectors is expected to grow at 8.7 per cent, 4.9 per cent and 7.8 per cent respectively.

While the services sector is likely to grow at 7.8 per cent in 2024-25 compared to 8.3 per cent of the first Revised Estimate (RE) of 2023-24, the industrial sector is expected to grow by 4.9 per cent in 2024-25 compared to 6.2 per cent of the first RE of 2023-24.

Within the industry sector, the growth rate of manufacturing and electricity, gas, water supply and other utility service sectors for current fiscal are pegged at 4.2 and 6.5 per cent, a decrease from 6.8 and 8.1 per cent of first RE of 2023-24. The construction sector has however shown growth.

The Economic Survey said the Indian economy is expected to grow at 6.5 per cent. The survey also pointed out reduction in transfer of financial resources from the Governnment of India to Maharashtra. While the share in central taxes has increased for the year 2024-25, the grants-in-aid and loans and advances have reduced. The state received Rs 1,39,369 crore in 2024-25, compared to Rs 1,51,453 crore in 2023-24, as per budget estimates.

The survey pointed out that as per the budget estimates for 2024-25 (BE), the state’s debt stock is expected to increase by 10.1 per cent over the previous year. Debt stock refers to the accumulated outstanding loans and other liabilities of the state.

However, the survey said that its percentage to the Gross State Domestic Product (GSDP) is expected to be well within the prescribed limit (25 per cent of GSDP) as per the Maharashtra Fiscal Responsibility and Budget Management Rules, 2006. As per 2024-25 (BE), the major contributor to total debt stock is the internal debt of the state, which is expected to be Rs 6,37,141 crore (81.4 per cent).

The survey also shows the total receipts and expenditure are expected to marginally increase by 0.1 per cent and 2.0 per cent respectively in 2024-25 (BE) compared to the previous year. The share of revenue expenditure in total expenditure is expected to be 77.6 per cent in 2024-25 (BE). While the share of capital expenditure in total expenditure is expected to be 22.4 per cent as per 2024-25 (BE), it has decreased to Rs 1,49,977 from Rs 1,50,848 that was estimated for the 2023-24.

As per 2024-25 (BE), the revenue deficit, fiscal deficit and primary deficit are expected to be Rs 20,051 crore (0.4 per cent of GSDP), Rs 1,10,355 crore (2.4 per cent of GSDP), Rs 53,628 crore (1.2 per cent of GSDP) respectively.

According to the survey, Maharashtra stands at fifth rank in terms of per capita income for the year 2023-24 with Telangana being the first. The per capita state income for 2024-25 as per advance estimates is Rs 3,09,340 as against Rs 2,78,681 that was estimated for the previous fiscal.

State fares well in agri sector

Meanwhile, Maharashtra is performing well in the agriculture sector. During the kharif season of 2024-25, sowing was completed in 157.59 lakh hectare area. While the production of cereals, pulses, oilseeds, and sugarcane is expected to increase by 49.2 per cent, 48.1 per cent, 26.9 per cent, and 6.6 per cent respectively, that of cotton is expected to increase by 10.8 per cent over the previous year.

During the rabi season of 2024-25, sowing was completed on 62.81 lakh hecate. The production of cereals and pulses is expected to increase by 23 per cent and 25 per cent respectively and that of oilseeds is expected to increase by 22.7 per cent over the previous year.