Mumbai: Maharashtra’s economy is expected to grow at 7.6 per cent in 2023-’24, as against 6.8 per cent in 2022-’23 and 9.1 per cent in 2021-’22. The growth rate is on the lines of the national economy, which is likely to grow at 7.6 per cent, as per the Economic Survey 2023-’24 presented by Deputy Chief Minister Ajit Pawar in the state assembly on the first day of the monsoon session. However, this growth rate is not sufficient for the state to achieve its ambitious target of becoming a $1 trillion economy.
The Economic Advisory Council, headed by Tata Group chairman N Chandrasekaran, has pointed out that the state economy needs to grow at 14 per cent to become a $1 trillion economy, from its current level of more than $433 billion. Maharashtra has slipped to the rank sixth from fifth when it comes to per capita state income, which is estimated at Rs 2,52,389 in 2022-23. Per Capita State Income means income of the people in an economic unit such as a country, a state or a city.
To calculate the per capita income, the total income of a unit is divided by the population of that unit. In this respect, Maharashtra now comes after Telangana, Karnataka, Haryana, Tamil Nadu and Gujarat. Telangana ranks at first position with per capita state income of Rs 3,11,649, Karnataka at Rs 3,04,474, Haryana Rs 2,96,592, Tamil Nadu Rs 2,75,583 and Gujarat Rs 2,73,558. There are at least 11 out of the total 36 districts in the state where the per capita income is quite less compared to the national level.
As per advance estimates, real Gross State Value Added (GSVA) of ‘Agriculture & allied activities’ is expected to grow at 1.9 per cent. The real GSVA of the ‘Crops’ sector is expected to grow by (-)1.5 per cent, ‘Livestock’ by 6.1 per cent, the ‘Forestry & Logging’ by 9.2 per cent and the ‘Fishing & Aquaculture’ by 2.9 per cent. ‘Industry’ and ‘Services’ sectors are expected to grow at 7.6 per cent and 8.8 per cent respectively.
Forecast for manufacturing sector and construction sector
The real GSVA of the ‘Manufacturing’ sector is expected to grow by 7.5 per cent while the real GSVA of the ‘Construction’ sector is expected to grow by 6.2 percent. As a result, the real GSVA of the ‘Industry’ sector is expected to grow by 7.6 per cent. As per advance estimates of 2023-’24, nominal Gross State Domestic Product (GSDP) is expected to grow at 10.9 per cent from 2022-’23 and estimated at Rs 40.44 lakh crore; whereas, as per the second advance estimates for 2023-’24, the nominal GDP is expected to be Rs 293.90 lakh crore and expected to increase by 9.1 per cent over 2022-’23. As per advance estimates of 2023-’24, real Gross State Domestic Product (GSDP) is expected to grow at 7.6 per cent over 2022-23 and estimated at Rs 24.11 lakh crore.
Whereas, as per the second advance estimates for 2023-’24, the nominal GDP is expected to be Rs 172.90 lakh crore and is expected to increase by 7.6 per cent over 2022-’23. The average share of the state’s nominal GSDP in the All-India nominal GDP (base year 2011-’12) from 2011-’12 to 2022-’23 is the highest (13.9 per cent), followed by that of Tamil Nadu at 8.7 per cent. Public debt at Rs 7,11,278 crore in 2023- ’24 Maharashtra’s public debt is estimated at Rs 7,11,278 crore in 2023-’24 against Rs 6,29,235 crore in 2022-’23, a rise of 13 per cent.
Increase in public debt
Even though the public debt has increased to 17.6 per cent of the Gross State Domestic Product (GSDP) against 16.5 per cent, it is well within the prescribed limits of 25 per cent of the GSDP, as per Medium-Term Fiscal Policy. Further, the state’s outgo towards interest payment increased to Rs 48,578 crore, as against Rs 41,689 crore during the same period, a rise of 16.52 per cent. The state’s revenue receipts are estimated at Rs 4,86,116 crore, as against Rs 4,05,678 crore. Of the 4,86,116 crore, tax revenue is estimated at Rs 3,96,052 crore, comprising Rs 3,26,398 crore from its own taxes and Rs 69,654 crore from its share in central states.
The non-tax revenue, including central grants, is estimated at Rs 90,064 crore. Actual revenue receipts during 2023-’24 until February, were Rs 3,73,924 crore (76.9 per cent of the RE) The state’s revenue expenditure is estimated at Rs 5,05,647 crore, against Rs 4,07,614 crore. The actual revenue expenditure during 2023-’24 until February, was Rs 3,35,761 crore (66.4 per cent of RE). The revenue deficit is likely to be Rs 19,532 crore, against Rs 1,936 crore. As per the 2023-’24 RE, the share of capital receipts in total receipts is 25.9 per cent while that of capital expenditure in total expenditure is 23.0 per cent.
Fiscal deficit & revenue deficit
The percentage of fiscal deficit to GSDP is 2.8 per cent, revenue deficit to GSDP is 0.5 per cent. The total anticipated expenditure for annual schemes 2023-’24 is Rs 2,31,651 crore, of which Rs 20,188 crore is on district annual schemes. Maharashtra remains No. 1 for FDI inflows Despite stiff competition from various states, including Gujarat, Karnataka, Andhra Pradesh, Uttar Pradesh and Odisha, Maharashtra has retained its top position in Foreign Direct Investment (FDI) inflows in the country, according to the State Economic Survey 2023-’24.
As per the Department for Promotion of Industry and Internal Trade report during 2023-’24, the FDI equity inflow in Maharashtra was Rs 1,25,101 crore against Rs 1,18,422 crore in 2022-’23. Since the adoption of liberalisation policies from August, 1991 up to December 2023, in all, 22,937 industrial projects with an investment of Rs 18,38,445 crore were approved in the state. A total number of MSMEs registered on the Udyam registration portal up to January 9, 2024, were 33.07 lakh (32.05 lakh micro, 0.91 lakh small and 0.11 lakh medium enterprises), with 123.39 lakh total employment therein. During 2022-’23, exports from the state contributed 16 per cent to the total exports from India. As of March 2024, the state has the highest share (19 per cent) in start-ups recognised by the GoI at the all India level.
