Maharashtra growth rate dips to 6.7%

Maharashtra’s pre-Budget Economic survey today said that the state’s growth rate in 2008-09 fell sharply to 6.7 per cent as against 9.2 per cent in the previous year.

The decline in the Gross State Domestic Product (GSDP) was mainly because of two factors. While the industrial growth rate saw a huge dip to 4.8 per cent from 8 per cent in 2007-08, insufficient and uneven rainfall had an adverse impact on agriculture and allied activities, resulting in a 7.1 per cent decline in the growth rate during 2008-09 as against 10.4 per cent in the earlier year.

The foodgrain production of the kharif and rabi season is estimated to be 117.19 lakh metric tonnes, down by 24 per cent from the previous year.  This was worrying, the survey said, as around 55 per cent of the state’s population is still dependent on agriculture.

The estimated employment in the state, based on the National Sample Survey, which was on the rise till 2004-05 at 43 million, declined to 41 million, clearly signalling the impact of the economic downturn.

The survey, tabled in the State Legislature today, said 2008-09 witnessed heavy turmoil in the global economy, which impacted the Indian as well as the state's economy. It said however, the services sector's growth at 10.5 per cent cushioned the effects of economic slowdown, the survey said.

On power, the state’s performance continued to be dismal. Even though electricity generation increased by 6 per cent, the state continued to have a peak hour demand shortage of around 4,500 mw. And in per capita availability of power, Maharashtra is in the seventh position — much below large states like Gujarat and Andhra Pradesh, the survey said.

The picture, however, was brighter as far as foreign direct investment is concerned. Maharashtra remained a leader in attracting FDI.  Since 1991, the state has attracted FDI of Rs 75,096 core, leaving states like Tamil Nadu, Gujarat and Andhra Pradesh much behind.

Among the key social sectors, Maharashtra has been able to improve its literacy rate and reduce school dropout numbers and provide employment to more persons under the National Rural Employment Guarantee Scheme (NREGS).

With extension of the NREGS across all the districts of the state, employment of 60 million people was provided by the state in 2008-09 compared to 42 million in 2007-08.