Maharashtra poised to achieve 8.5 per cent GDP growth

Mumbai, Mar 22 (UNI) Maharashtra is expected to achieve average annual Gross State Domestic Product (GSDP) growth of 8.5 per cent during the tenth five year plan, according to the Economic Survey of the State presented to the Legislative Assembly by Minister of State for Finance Dr Sunil Deshmukh here today.

The report said achievement of four per cent agriculture growth during the 11th plan as envisaged by the Planning Commission was a daunting task as it had to be achieved on the background of various environmental and geographical constraints.

Increasing productivity, diversification to commercial crops, use of improved seeds, water sector reforms, providing modern marketing arrangements, establishing of agro processing units and cold storage chains, agriculture credits and inputs such as seeds, fertilisers, pesticides and veterinary services are the thrust areas which need attention, the survey added.

The survey points out that the State has an onerous task of charting out effective strategies for the next five years of the 11th Five year Plan, not just to achieve double digit growth but also to lay emphasis on achieving broad based growth across the sectors and also to create an enabling environment for the poor to participate in and benefit from the growth process.

The State economy has potential to grow at a higher rate and could achieve the magical figure of double digit GSDP growth in near future, given the proper thrust to create sector specific, need-based and quality infrastructure.

The Economic Survey feels that the sluggish growth in the agriculture sector needs to be given impetus. Problems related to small and marginal farmers need special attention. Providing adequate credits, new seeds, agro technology, establishing agro processing units are some of the thrust areas for attention in this sector.

Agriculture growth has remained vulnerable in the state as nearly one-third area of the state falls under rain shadow region where rains are scanty and erratic. Favourable monsoon for the past two years in succession, after a spell of 4-5 years of drought, has resulted in better agriculture production. However, productivity levels are much below the national average. Inspite of huge investments in irrigation sector, the area under irrigation has practically remained at the same level of 15-16 per cent, the survey added.

Stating that the lacklusture performance of agriculture sector is hindering the overall economic growth performance of the state, the survey said adding that the average annual GSDP growth in agriculture and allied activities sector during the Tenth Plan (2002-07) is expected to be 2.7 per cent as against the growth of 3.7 per cent observed in the Ninth Plan (1997-02).

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