Maharashtra's economy poised to grow at 9.3 pc, state GDP at 8.5 pc

Mumbai, Mar 22 (UNI) For the first time in the history, Maharashtra's economy is expected to grow in excess of nine per cent for the second consecutive year, according to the Economic Survey for 2006-07 presented to the Legislative Assembly by Minister of state for Finance Dr Sunil Deshmukh here today.

The Survey said the economy, during 2006-07 is poised to grow at 9.3 per cent, whereas the Indian economy is expected to grow at 9.2 per cent. The state's economy registered a growth rate of 9.2 per cent in 2005-06.

The recovery in agriculture and allied activities with a growth of about 6.6 per cent each in the last two years of the tenth plan in succession, from a negative growth of 5.4 per cent in 2004-05 appears to be the main driver for achieving the higher growth, said the survey.

With this consistent robust growth, the state economy is expected to register an annual average Gross State Domestic Product (GSDP) growth rate of 8.5 per cent as against the Planning Commission's target of eight per cent in the Tenth Plan. The growth rate of 8.5 per cent during the Tenth Plan is as against the much lower growth of 3.2 per cent in the Ninth five-year plan.

During 2006-07, the sectoral growth rates for the primary, secondary and tertiary sectors of the state's economy are expected to be 6.6 per cent, 9.4 per cent and 9.9 per cent respectively.

The food grains production in the state is expected at 129.3 lakh tonnes, more by 11 per cent over the previous year. Cotton production is expected around 41.27 lakh bales, more by 31 per cent.

Oil seed production is expected to increase by 5 per cent and would be 33.9 lakh tonnes. Sugar cane production is expected to be at 627 lakh tonnes, more by 61 per cent than the previous year.

The survey also said during 2005-06, share of Maharashtra in FDI is the highest in the country at 21 per cent.

As per the survey, literacy rate in the state has increased to 81 per cent in 2006. It was 87.4 per cent for males and 76 per cent for females. The survey also reveals that 4.4 per cent children in the age group of 6-14 years are currently out of school.

The projected population of the state as on March 1, 2007 is about 10.55 crore. Maharashtra has shown a continuous improvement in life expectancy at birth. Its projections for the period 2006-10 is 67.9 years for males and 71.3 years for females.

Maharashtra has aggregate installed capacity of 15,310 MW power including captive and non conventional. However, there is marginal addition in the last few years. The demand for electricity is high and increasing continuosly due to shortage of installed capacity, high transmission and distribution losses due to poor grid network and power theft. T&D losses for 2005-06 were 32.6 per cent which was very high, the survey said.

Expenditure on salaries, wages and pension payments reduced from 64 per cent of revenue receipts in 2000-01 to about 40 per cent in 2006-07. About 20 paise of each rupee revenue earned by the government is spent on interest payments, the survey added.

(Eds: Pick up suitably from earlier takes - By 3&4) UNI