Maharashtra economy expected to grow at 7.6%, dropped from 9.4% in 2022-23

Mumbai: Maharashtra's economy is projected to grow by 7.6% in the 2023-24 financial year, matching the growth rate of the Indian economy as a whole, according to the state's latest economic survey.

The report, released on Thursday, highlights Maharashtra's continued dominance as the largest contributor to India's GDP, accounting for 13.9% of the national total. This figure significantly outpaces the second-highest contributor, Tamil Nadu, which stands at 8.7%.

Despite maintaining its leading position, Maharashtra has experienced a notable slowdown from the 9.4% growth recorded in 2022-23. The agricultural sector has been particularly affected, with growth declining to 1.9% from 4.5% in the previous year. Similarly, the services sector has seen a decrease in growth, falling to 8.8% from 13% in 2022-23.

In contrast, the industrial sector has shown improvement, with growth rising to 7.6% from 5.5% in the previous year.

The state's gross domestic product has reached ₹40,44,251 crore, up from ₹36,45,884 crore in 2022-23 and ₹31,44,138 crore in 2021-22.

Maharashtra's revenue receipts for 2023-24 stood at ₹4,86,116 crore, an increase from ₹4,05,678 crore in the previous year. Revenue expenditure also rose to ₹5,05,647 crore, up from ₹4,07,614 crore.

The agricultural sector faced challenges, with production decreases across several key crops. Cereals, pulses, oilseeds, and sugarcane saw declines of 23%, 10%, and 17% respectively, whilst cotton production fell by 3% compared to the previous year.

On a more positive note, the state's irrigation potential increased to 55.60 lakh hectares by June 2022, up from 42.33 lakh hectares in the previous year. Maharashtra also maintains strong positions in livestock and poultry, ranking seventh and fifth nationally, respectively.

In the industrial sector, Maharashtra leads the country with a 19% share of startups recognised by the central government.

The state's per capita income grew to ₹2,77,603 in 2023-24, up from ₹2,52,389 in 2022-23. However, Maharashtra ranks sixth in per capita income nationally, trailing behind Telangana, Karnataka, Haryana, Tamil Nadu, and Gujarat.

"These figures demonstrate Maharashtra's resilience in the face of economic challenges," said a senior state official who requested anonymity. "While there are areas for improvement, our state continues to be a cornerstone of India's economic growth."