Maharashtra's Economic Forecast: Agriculture Growth to Decline, Industries to Thrive in 2025-26
Synopsis
The Maharashtra Economic Survey for 2025-26 presents a mixed economic outlook, highlighting a predicted slowdown in agriculture alongside growth in industrial and service sectors. This report sheds light on the changing dynamics of the state's economy amidst climatic challenges.
Key Takeaways
Projected agriculture growth: 3.4% in 2025-26 Industry growth: Expected to rise to 5.7% Services sector: Regaining momentum after slowdown Kharif production: Increase in cereals, sugarcane, cotton Climate impact: Affects rural incomes significantly
Mumbai, March 5 (NationPress) The Maharashtra Economic Survey for the fiscal year 2025-26 reveals a diverse outlook for the economic landscape of the state. While agriculture and its allied sectors are anticipated to experience a significant decline, the industrial and services sectors are expected to flourish.
The Economic Survey (ES) forecasts that the growth rate of agriculture and allied activities will plummet to 3.4 percent in 2025-26, a stark contrast to the impressive 9.1 percent recorded in 2024-25. This downturn is primarily linked to extreme rainfall and unseasonable showers impacting crop yields across various regions of the state.
The ES highlights the inconsistent performance of agriculture over the past decade. Notably, in 2020-21, the sector achieved a remarkable peak growth of 11.6 percent during the Covid-19 era.
Nonetheless, the growth rate fell to 4 percent, 3.2 percent, and 1.2 percent in the years 2021-22 to 2023-24 respectively. Although a recovery to 9.1 percent was observed in 2024-25, projections indicate a further moderation to 3.4 percent in 2025-26.
During the kharif season of 2025-26, sowing has been completed over 157.27 lakh hectares. The production of cereals, sugarcane, and cotton is anticipated to rise by 10.6 percent, 22 percent, and 7 percent correspondingly. Conversely, production of pulses and oilseeds is expected to decline by 28.2 percent and 47.4 percent, respectively, when compared to the previous year.
For the rabi season of 2025-26, sowing activities covered 66.98 lakh hectares. The output of cereals and pulses is projected to increase by 28.3 percent and 29.7 percent, while oilseeds production is anticipated to drop by 16.2 percent compared to the last year.
Despite challenges faced by the primary sector due to climate issues, the secondary and tertiary sectors are projected to bolster the state's economy. The industrial sector is forecasted to grow by 5.7 percent in 2025-26, an improvement from the previous year's 4.3 percent growth rate.
The services sector remains a critical pillar of Maharashtra’s economy. After experiencing a temporary slowdown over the last two years, it is set to regain its momentum.
The Economic Survey underscores that while climate variability continues to threaten rural incomes, the steady growth in services and industry contributes positively to stabilizing the overall economic outlook of the state.
Point of View
Where agricultural challenges contrast with the resilience of industry and services. The situation demands a nuanced understanding of how climate impacts agriculture while industrial growth offers a beacon of hope for economic stability.
NationPress
6 May 2026
Frequently Asked Questions
What is the projected growth rate for Maharashtra's agriculture in 2025-26?
The projected growth rate for Maharashtra's agriculture and allied activities in 2025-26 is expected to drop to 3.4 percent.
How did the agricultural sector perform in recent years?
The agricultural sector saw a peak growth of 11.6 percent in 2020-21, followed by a decline in subsequent years, with a recovery to 9.1 percent in 2024-25.
What sectors are expected to grow in Maharashtra's economy?
The industrial and services sectors are projected to maintain growth momentum, with the industrial sector expected to grow by 5.7 percent in 2025-26.
What challenges does the agricultural sector face?
The agricultural sector faces challenges from climate variability, including heavy rainfall and unseasonal showers that affect crop yields.
What is the significance of the services sector in Maharashtra's economy?
The services sector is a crucial component of Maharashtra's economy, expected to regain momentum after a brief slowdown.
