Coronavirus-hit Maharashtra’s economy contracted FY% in FY11: Survey

The Corona epidemic and subsequent lockdown heavily impacted the state’s economy. According to the Economic Survey presented in the Legislative Assembly on Friday, Maharashtra’s economy is expected to grow 8% (compared to the previous financial year) in 2020-21. The Indian economy is also expected to grow by (-) 8.0 percent during the same period. The state budget will be presented on Monday.

During 2020-21, the ‘agricultural and allied activities’, ‘industry’ and ‘service’ sectors are expected to grow by 11.7%, (-) 11.3% and (-) 9.0% respectively. The manufacturing and ‘construction’ sectors were hit the most and expected to be (-) 11.8% and (-) 14.6% respectively, leading to growth of the ‘industry’ sector at (-) 11.%. . The ‘services’ sector is expected to grow by (-) 9.0%, mainly due to the difficult impact of the epidemic situation on the trade, repair, hotel and restaurant and transport sectors. To revive the most affected hospitality sector during the COVID-19 epidemic, the state has decided to classify it as an industry.

According to advance estimates, the nominal gross state domestic product (GSDP) for 2020-21, 26,61,629 crore and actual GSDP, is expected to be 19,62,539 crore. As per the first revised estimates for 2019-20, the per capita state income during 2020-21 could see a drop of 84 1,88,784 as compared to 2,02,130.

The state’s debt stock includes unpaid debts and other liabilities accumulated on the state. The state’s debt stock is expected to be Rs 17 5,20,717 crore as per 2020-21 (BE), which is 19.6% of GSDP. The revenue deficit is expected to be Rs 119,511 crore as compared to the revised estimates of 44 31,443 crore for 2019-20. The report states that the fiscal deficit is ₹ 54,618 crore.

31.04 lakh beneficiary farmers have been benefited since the commencement of Kar Mahatma Jyotirao Phule Shaktari Karjamukti Yojana 2019 till January 2021 in `19,847 crore. The power generation capacity was established on March 31,2020 and electricity was generated during 2019-20. States were the highest in the country. The state ranks fourth in terms of installed capacity of renewable energy and ranks second in consumption of major petroleum products during 2019-20.

The survey said that from January to March 2020, the unemployment rate was 5.6% compared to 5.2% in October to December 2019. The state recorded a total of 26,586 crimes by October 2020, compared to 35,501 women. 2018 and 37,112 in 2019, the report said. The total foreign direct investment in the state during September 2020-21 was Rs 27,143 crore.

The state ranks third after Gujarat and Karnataka in terms of FDI during the same period. During Magnetic Maharashtra 2.0 in June, 2020, the state has attracted investment proposals of ₹ 1.13 lakh crore with over 2.50 lakh jobs. At the end of December 2020, there were 7,603 startups in the state.

Irrigation potential of 19.26 lakh hectares and 8.63 lakh hectares (44.8%) were used during 2019-20 by the Minor Irrigation (Local Area) Projects till June 30, 2020.