Maharashtra Economic Survey 2018-19: GSDP grew at 7.5%, agri growth at 0.4% due to severe drought

Maharashtra maintained the pace of growth in gross state domestic product (GSDP) at 7.5% in 2018-19. However, the GSDP growth is higher than GDP which is expected to grow at 6.8%. The scanty and uneven rains resulting in drought situation practically stagnated the growth in the state.

The agriculture production has taken a major hit as it is expected to grow at a paltry 0.4% in 2018-19 against 3.1% in 2017-18.  The crop production is expected to fall 8% in the real gross state value added (GSVA) against 0.8%.

Further, the slump in economic growth has also impacted the growth in the industry sector which has reduced to 6.9% against 7.6%. However, the services sector has grown at 9.2% against 8.1%.

As per the Economic Survey for 2018-19, which was tabled by the state finance minister Sudhir Mungantiwar in the state legislature on Monday, the growth in the mining sector has dipped to 7.1% against 7.7%, whereas, electricity, gas, water supply and other utility services reduced to 4.3% against 6.5%.

State's public debt rose to Rs 4.14 lakh crore against Rs 4.02 lakh crore while the interest payment increased to Rs 33,929 crore against Rs 33,018 crore. The government has said that the debt stock of Rs 4.14 lakh crore is 15.6% of the GSDP which is well within the limit of 22.3% laid down by the 14th Finance Commission.

State's per capita income is expected to be Rs 1,91,827 in 2018-19 against Rs 1,76,102 in 2017-18, a rise of 8.9%. Maharashtra is ranked third in per capita income growth after Karnataka (Rs 2,07,062) and Telangana (Rs 2,06,107).