MUMBAI: Maharashtra's economy is expected to grow at a faster rate than the national average, buoyed by a good monsoon which is expected to lead to a rise in agricultural production.Growth rate is projected at 9.4%, up from 8% the previous year, according to the state's economic survey for 2016-17. The overall Indian economy is expected to grow at 6.75-7.5% in the financial year beginning April 1, 2017.
The state recorded almost 95% of a normal monsoon last year after two successive years of drought. The agricultural sector which posted a decline of 4.6% last year is expected to make a dramatic recovery and grow by 12.5% in 2016-17, says the survey.
However, growth in the industrial sector — despite the emphasis on the Make in Maharashtra campaign — is set to decline to 6.7% from 7.5% in 2015-16. Given the fact that Maharashtra has India's biggest industrial base, the forecast suggests slowing investments and demand.
DIPP (department of industrial policy and promotion) data quoted in the survey shows that while Maharashtra had the highest share of approved industrial proposals in the country between 1991 and 2016, Gujarat received highest share of investments. Maharashtra had a share of 17.9% of approved industrial proposals in the country, expected to generate a share of 10% in investments. Gujarat had a share of 12.3% of approved industrial proposals but these would generate a higher share in investments at 12.6%, according to the DIPP.
Growth in the services sector is set to remain more or less steady, rising to 10.8% from 10.6% in 2015-16.