Maharashtra's Economic Survey Forecasts 7.3% Growth in FY 25; Industry and Services Show Decline

Mumbai, March 7 (NationPress) The economic landscape of Maharashtra is projected to achieve a growth rate of 7.3 percent in the fiscal year 2024-25, surpassing the anticipated national growth rate of 6.5 percent. Nevertheless, this growth rate marks a decrease from the 7.6 percent recorded in 2023-24.

As outlined in the Economic Survey for 2024-25, delivered on Friday by Deputy Chief Minister and Finance Minister Ajit Pawar, the agriculture and allied sectors are expected to expand by 8.7 percent, a notable increase from 3.2 percent in the previous year. Conversely, the industrial sector is projected to grow at 4.9 percent, down from 6.2 percent last year, while the services sector is expected to grow at 7.8 percent, a decline from 8.3 percent in the prior fiscal year.

The state’s total debt for 2024-25 is estimated at Rs 7,82,991 crore, an increase from Rs 7,11,278 crore (RE). This debt level represents 17.3 percent of the gross state domestic product (GSDP), remaining under the 25 percent threshold recommended by the Finance Commission.

Interest payments by the state government are expected to rise to Rs 56,727 crore in 2024-25, compared to Rs 48,578 crore last year. Furthermore, the government plans to allocate Rs 1,59,071 crore for salaries in 2024-25, up from Rs 1,42,718 crore previously, representing 30.6 percent of GSDP compared to 28.2 percent last year. For pensions, the expenditure is projected to be Rs 74,011 crore (14.3 percent) versus Rs 60,446 crore (12 percent) last year. The government will also incur Rs 33,063 crore (6.4 percent) in spending compared to Rs 52,484 crore (10.4 percent) last year.

The first revised estimates indicate that the nominal GSDP for 2023-24 is projected at Rs 40,55,847 crore, up from Rs 36,41,543 crore for 2022-23. The real GSDP for 2023-24 is estimated at Rs 24,35,259 crore against Rs 22,55,708 crore for the previous year.

According to the same estimates, Maharashtra’s nominal GSDP share in the All-India nominal GDP is the highest at 13.5 percent for 2023-24. The per capita state income for 2024-25 is expected to rise to Rs 3,09,340, compared to Rs 2,78,681 for 2023-24. The state's revenue receipts are projected at Rs 4,99,463 crore for 2024-25 (BE), compared to Rs 4,86,116 crore in 2023-24 (RE). Tax and non-tax revenue (including central grants) for 2024-25 (BE) are estimated at Rs 4,19,972 crore and Rs 79,491 crore, respectively. Actual revenue receipts for 2024-25 up to January reached Rs 3,81,080 crore (76.3 percent of BE).

The anticipated revenue expenditure for the state in 2024-25 is Rs 5,19,514 crore, compared to Rs 5,05,647 crore in 2023-24 (RE). Up to January 2024-25, the actual revenue expenditure totaled Rs 3,52,141 crore (67.8 percent of BE). As per 2024-25 (BE), the capital receipts share in total receipts and capital expenditure share in total expenditure are expected to be 24.1 percent and 22.4 percent, respectively.

For 2024-25 (BE), the fiscal deficit percentage to GSDP, revenue deficit percentage to GSDP, and debt stock percentage to GSDP are projected at 2.4 percent, 0.4 percent, and 17.3 percent, respectively. The total allocation for the Annual Plan 2024-25 is Rs 1,92,000 crore, which includes Rs 23,528 crore designated for the District Annual Plan.

During the kharif season of 2024-25, sowing has been completed on 157.59 lakh ha. The expected production increases for cereals, pulses, oilseeds, and cotton are 49.2 percent, 48.1 percent, 26.9 percent, and 10.8 percent, respectively, while sugarcane production is anticipated to decrease by 6.6 percent from last year.

Additionally, the rabi season of 2024-25 saw sowing completed on 62.81 lakh ha. Production increases for cereals and pulses are expected at 23 percent and 25 percent, while oilseed production is predicted to drop by 22.7 percent. The area for horticulture crops in 2023-24 is expected to reach 21.74 lakh ha, with production anticipated at 326.88 lakh MT.