Coronavirus-Hit Maharashtra Economy to Contract 8% in FY21: Eco Survey

Mumbai:  Maharashtra's economy is expected to see an 8% negative growth during 2020-21 with industry and services sectors bearing the maximum brunt of the COVID-19 pandemic and the subsequent lockdown, the Economic Survey 2021 tabled in the state Legislature on Friday said.

Deputy Chief Minister and Finance Minister Ajit Pawar tabled the survey in the state Assembly, while Minister of State for Finance Shambhuraj Desai presented it in the Council.

The state's economy is expected to witness an 8% negative growth and it is estimated to be Rs 19,62,539 crore, the survey said.

Industry and services sectors are expected to show a negative growth of 11.3% and 9%, respectively, it said.

The agriculture and allied activities sector is expected to grow at 11.7% due to overall good monsoon (113.4% of the normal), the survey added.

The agriculture and allied activities sector was the only sector that was least impacted by the COVID-19 pandemic due to timely and proactive measures taken by the government, the survey said.

The government exempted agriculture sector from the COVID-19 lockdown. Various measures regarding transport and distribution of agriculture inputs, transport and sale of produce, online renewal of licenses, coordination among the state departments, use of modern technology benefited in  giving support to agriculture and allied activities sector during the lockdown, it said.

Due to the overall increase in estimated agriculture production, the crops sector is expected to grow by 16.2%, while livestock, forestry and logging, fisheries and aquaculture sectors are expected to grow at 4.4%, 5.7% and 2.6%, respectively.

As many as 31.04 lakh beneficiary farmers have got the farm loan waiver of Rs 19,847 crore under the state government's scheme till January 2021.

The manufacturing and construction sectors were hit the hardest with negative growth of 11.8 %and 14.6%, respectively, due to which the industry sector's growth is expected to be a negative 11.3%, the survey said.

Due to impact of the pandemic situation on trade, repair, hotels and restaurants, and transport sectors, the services sector is expected to show a negative growth of 9%.

The per capita income during 2020-21 is expected to be Rs 1,88,784 as compared to Rs 2,02,130 in 2019-20.

The percentage of fiscal deficit to gross state domestic product (GSDP) is 2.1% and debt stock to GSDP is 19.6%.

Revenue receipts for 2020-21 are Rs 3,47,457 crore against Rs 3,09,881 crore in 2019-20, it said.

The revenue expenditure is expected to be Rs 3,56,968 crore in 2020-21 against Rs 3,41,324 crore in 2019-20. Annual credit plan size for the priority sector is Rs 4.75 lakh crore for 2020-21.

The debt stock of the state is expected to be Rs 5,20717 crore, which is 19.6% of the GSDP – well within the limit of 25% of the GSDP, the survey said.

The nominal GSDP is expected to decrease by Rs 1,56,925 crore during 2020-21 as compared to 2019-20. The foreign direct investment inflows during 2020-21 up to September was Rs 27,143 crore, it said.