Economic Survey: Massive dip in Maharashtra’s industrial growth\, lowest since 2013-14

Economic Survey: Massive dip in Maharashtra’s industrial growth, lowest since 2013-14

The manufacturing sector grew at 2.7 per cent compared to 6 per cent previously while electricity, gas and water supply sector's growth was 6.4 per cent as against 9.9 per cent in 2018-19.

| Mumbai | Published: March 5, 2020 9:36:58 pm
Economic Survey: Massive dip in Maharashtra's industrial growth, lowest since 2013-14 The mining and quarrying sector was virtually stagnant, registering zero per cent growth. (Representational image)

Long-term decline in consumer spending and industrial investment coupled with the contraction in the country’s manufacturing, capital goods and consumer durables sector seem to have had an impact on Maharashtra’s industrial sector, which has grown at the rate of 3.3 per cent in 2019-2020.

According to the Economic Survey, submitted in the Legislative Assembly on Thursday, the industrial sector’s growth rate is substantially lower than both 2018-19 and 2017-18, when it had grown at the rate of 6.9 and 7.6 per cent, respectively. This is also the lowest growth rate for the industrial sector since 2013-14, when it had notched a 3.1 per cent growth.

The mining and quarrying sector was virtually stagnant, registering zero per cent growth. The manufacturing sector grew at 2.7 per cent compared to 6 per cent previously while electricity, gas and water supply sector’s growth was 6.4 per cent as against 9.9 per cent in 2018-19. Construction sector showed an increased growth of 6.1 per cent as against 5.1 per cent last year.

Interestingly between February and August 2019, Maharashtra managed to add only one operational industry with an investment of Rs 37 crore. According to the 2018-19 Economic Survey, Maharashtra had 9,098 commissioned projects with a total investment of Rs 3,06,825 lakh crore. However, the number, as per the 2019-20 survey, has increased by only one to 9,099 projects with a total investment of Rs 3,06,862 lakh crore.

As per the Annual Survey of Industries (ASI), the total number of industries in the state has come down. The ASI report quoted in the survey Maharashtra as of 2017-18 (the latest figures available) has 26,393 industries. The number is lesser by 617 when compared to 2016-17, when the state had 27,010 industries.

The Economic Survey report also stated that the total FDI inflow into Maharashtra in 2019-20 was expected to be around Rs 25,316 crore, which is a severe reduction over 2018-19 when the total FDI inflow was pegged at Rs 80,013 crore.