Economy of Maharashtra

Economy of Maharashtra
Statistics
GDP ₹25.35 lakh crore (US$400 billion) (2017-18 est.)
GDP rank 1st
GDP growth
 11.8% (2016-17 est.)[1]
GDP per capita
 ₹147,939 (US$2,300) (2015-16)[1]
GDP by sector
 Agriculture 10%
Industry 26%
Services 64% (2015)[2]
Labour force by occupation
 Agriculture 51%
Industry 9%
Services 40% (2015) [2]
Public finances
16.3% of GSDP (2017-18 est.)[1]
Revenues ₹2.45 lakh crore (US$38 billion) (2017-18 est.)[1]
Expenses ₹2.84 lakh crore (US$44 billion) (2017-18 est.)[1]

Maharashtra is one of the largest, wealthiest and developed states in India. Maharashtra's gross state domestic product for 2014 is estimated at $295 Billion in current prices which rose to $398 Billions in 2015. As of 2010 Maharashtra had a Per Capita Income of $1,660, far ahead of national average of $1,219 . Maharashtra's GDP Per Capita crossed the US$2,000 threshold for the first time in 2011 . Maharashtra is third-most urbanised state with urban population of 45% of whole population.

Mumbai, the capital of Maharashtra and also the financial capital of India houses the headquarters of almost all major banks, financial institutions, insurance companies and mutual funds. India's largest stock exchange Bombay Stock Exchange, oldest in Asia, is located in the city. More than 41% of the S&P CNX 500 conglomerates have corporate offices in Maharashtra. After successes in the information technology in the neighbouring states, Maharashtra has set up software parks in Pune, Mumbai, Navi Mumbai, Nagpur and Nasik, Aurangabad and Latur. Maharashtra is the second largest exporter of software with annual exports of 18 000 crores and accounts for more than 30 per cent of the country's software exports, with over 1,200 software units based in the state.[3] Maharashtra ranks first nationwide in coal-based thermal electricity as well as nuclear electricity generation with national market shares of over 13% and 17% respectively. Maharashtra is also introducing Jatropha cultivation and has started a project for the identification of suitable sites for Jatropha plantations.[4] Ralegaon Siddhi is a village in Ahmednagar District that is considered a model of environmental conservation.[5]

Industry

Maharashtra is India's leading industrial state contributing 13% of national industrial output. 64.14% of the people are employed in agriculture and allied activities. Almost 46% of the GSDP is contributed by industry.
Maharashtra has had a long History in textiles with Mumbai being the original home of India's textile mills. Solapur, Ichalkaranji, Malegaon and Bhiwandi are some of the cities known for textile industry today .

Year Gross Domestic Product (millions of INR)
1980 166,310
1985 296,160
1990 644,330
1995 1,578,180
2000 2,386,720
2005 3,759,150[6]
2011 9,013,300
2014 16,866,950

Sugar industry has made considerable progress specially in the co-operative sector. Maharashtra is well known for the development of co-operative sugar industry whereby the farmers acquire a share in the sugar mills.

Pharmaceuticals, petrochemicals, heavy chemicals, electronics, automobiles, engineering, food processing, and plastics are some of the major industries in the state. Maharashtra is renowned for the production of three-wheelers, jeeps, commercial vehicles and cars, synthetic fibers, cold rolled products and industrial alcohol. Small scale industries have also come up in a big way in the state. The state capital Mumbai and the Mumbai Metropolitan Region has historically been the most industrialized area in the state. Industrial development in the state is largely concentrated in the Pune Metropolitan Area , Nashik, Aurangabad and Nagpur. The six important industries in the state are cotton textiles, chemicals, machinery, electricals, transport and metallurgy.[7] Pune is emerging as one of the largest automobile hubs in the country.

To attract industries to different areas of the state, the government of Maharashtra established Maharashtra Industrial Development Corporation (MIDC) in 1962. MIDC provides businesses with infrastructure such as land (open plot or built-up spaces), roads, water supply, drainage facilities etc. To date 233 areas have been developed around the state with emphasis on different sectors such as Industrial, IT, Pharmaceutical, and Wine.

Agriculture

Sorghum farm at Chinawal village in Maharashtra

Although Maharashtra is a highly industrialized state of India, agriculture continues to be the main occupation in the state. Since most of the cultivable land is still rain-fed, the Southwest Monsoon season between June and September is critical to the food sufficiency and quality of life in the state. Therefore, the agricultural calendar of Maharashtra and other parts of India, is governed by Monsoon. Any fluctuations in the time distribution, spatial distribution or quantity of the monsoon rains may lead to conditions of floods or droughts causing the agricultural sector to adversely suffer. This has a cascading effect on the secondary economic sectors, the overall economy, food inflation and therefore the overall quality and cost of living for the general population. Districts in Western Maharashtra on the Deccan plateau such as Pune and Ahmadnagar are particularly prone to drought.

Irrigation facilities are being extended so that agriculture could be made less dependent upon rain water. Maharashtra has by far the largest number of Dams in India. Despite that, the net irrigated area totals only 33,500 square kilometres or about 16% of cultivable land.[8]

Principal Monsoon crops include Rice, jwari, and Bajri. Other crops include Wheat, pulses, vegetables and onions.

The main Cash crops include cotton, sugarcane, turmeric, and several oil seeds including groundnut, sunflower and soyabean. The state has huge areas, under fruit cultivation of which mangoes, bananas, grapes, and oranges are the main ones.

Sugarcane weighing at a Cooperative Sugar mill in Maharashtra, India.

Most of the Growers of Cash crops such as sugarcane and cotton in the state belong to farmers cooperatives. For example, most of the sugar production in Maharashtra takes place at mills owned by local cooperative societies. The members of the society include all farmers, small and large, supplying sugarcane to the mill.[9] Over the last fifty years, the local sugar mills have played a crucial part in encouraging political participation and as a stepping stone for aspiring politicians.[10]

See also

References

  1. 1 2 3 4 5 "Maharashtra Budget Analysis 2017-18" (PDF). PRS Legislative Research. Retrieved 25 March 2017.
  2. 1 2 "Maharashtra Budget Analysis 2016-17" (PDF). PRS Legislative Research. Retrieved 19 November 2016.
  3. ↑ http://www.ibef.org/download/Maharashtra_060710.pdf
  4. ↑ "Identification of suitable sites for Jatropha plantation in Maharashtra using remote sensing and GIS". University of Pune. Archived from the original on 27 March 2008. Retrieved 15 November 2006.
  5. ↑ "A model Indian village- Ralegaon Siddhi". Retrieved 30 October 2006.
  6. ↑ Maharashtra economy soars to $85b by 2005
  7. ↑ Economy of Maharashtra @ webindia.com Suni System (P) Ltd. Retrieved on 20 June 2007
  8. ↑ Sengupta, S.K. "NATIONAL REGISTER OF LARGE DAMS – 2009" (PDF). Central Water Commission - An apex organization in water resources development in India. Central water Commission. Archived from the original (PDF) on 21 July 2011. Retrieved 14 January 2015.
  9. ↑ "National Federation of Cooperative Sugar Factories Limited". Coopsugar.org. Retrieved 27 December 2011.
  10. ↑ Patil, Anil (9 July 2007). "Sugar cooperatives on death bed in Maharashtra". Rediff India. Retrieved 27 December 2011.
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