Economic survey paints bleak picture for Maharashtra

The Democratic Front government in Maharashtra is looking at a bleak economic picture, according to The Economic Survey for Maharashtra (2011-12) tabled by the Maharashtra government in the state legislature on Thursday ahead of the state budget on Monday.

Chief minister Prithviraj Chavan and his deputy chief minister Ajit Pawar, who is also the finance minister, will have to tackle a projected overall negative growth in the state.
The survey reveals Gross State Domestic Product (GSDP) growth at 8.5 per cent in 2011-12 as against 11.3 per cent in 2010-11. The state debt is expected to cross Rs2,26,926 crore, which constitutes 18.2 per cent of the GSDP.

The most alarming situation arises from agriculture and allied sectors, which registered a negative growth of 5.1. Agricultural production alone is expected to decline 9.1 per cent from last year, the survey says.

Food grain production registered a fall of 23 per cent, at 118.09 lakh metric tonnes in 2011-12 as against 154.19 lakh metric tonnes in 2010-11. One of the major reasons for this shortfall is the delayed and erratic rainfall in Vidarbha and Marathwada regions, the report says.

While the monsoon was 'normal' overall, it lacked uniformity in spread and intensity. Also, there was a reduction in the area under crops for cereals, pulses, oilseeds. These combined are likely to hamper agriculture production in the state, the survey notes.

The 9.1-per cent growth rate in the industry sector and 10.1 per cent in the service sector are also below expectations. Inflation and shortage of cash is being held responsible for the slow growth in the manufacturing and service sectors.