Maharashtra State Economic Survey in State Assembly

Dr. Niranjan Hiranandani, MD and co-Founder, Hiranandani Group said, “The Covid-19 pandemic and series of lockdowns have impacted the Indian economy through 2020-21; and according to the Economic Survey 2021 tabled in the state Legislature, Maharashtra’s economy is expected to see an eight per cent negative growth during 2020-21. This number is in line with the national number, India’s growth is also estimated to be minus 8 per cent during 2020-21.”

He added, “The state government has done well to ensure that the state’s economy did not get impacted by the pandemic to the extent that the negative growth figures might have been higher. It has taken measures to enhance ease of doing business, while efforts to boost the economy have seen positive results in terms of new investment proposals and jobs which these will create. For example, Magnetic Maharashtra 2.0 in June saw the state attract investment proposals of Rs 1.13 lakh crore, with expected employment of over 2.50 lakh. FDI inflows in Maharashtra from April 2000 to Sept 2020 was Rs 818522 crore which was 27.2 per cent of total FDI inflows in India, while during 2020-21, up to Sept 2020, total FDI inflow was Rs. 27,143 crore.”

“India Inc. hopes the state government will further enhance ease of doing business as also come up with positive policies which will attract more investments to the state. Maharashtra has always been the economic leader among Indian states, and across industries in the state, the hope is that recovery from the pandemic in terms of GDP growth will see Maharashtra retaining its premier position,” he concluded.

Maharashtra’s economy as per the advance estimates is expected to grow at minus 8% during 2020-21 largely due to COVID 19 induced lockdown and the economic downturn as per the Economic Survey 2020-21 tabled in the state legislature on Friday.

The minus 8% growth is in line with India’s growth estimated at minus 8% during 2020-21. In 2019-20, Maharashtra had clocked the 5.7% growth in.

Despite the coronavirus pandemic, the agriculture and allied activities sector has been a silver lining as it is expected to grow at a record 11.7%. However, the industry will grow at minus 11.3% and services minus 9%.

The agriculture and allied activities sector was the only sector that contributed positively to GSVA in 2020-21 and was least impacted during COVID 19 pandemic due to timely and proactive measures taken by the Maharashtra Government.

Due to the hard impact of the pandemic situation mainly on trade, repairs, hotels and restaurants and transport sectors, the services sector is expected to grow at minus 9% in 2020-21.