The Maharashtra state government aims to achieve a $1 trillion economy in the next five years with a growth rate of 17.13% per year, according to a comprehensive recommendation plan. The state’s economy has grown at 8.75% over the past seven years, making the target challenging. The plan focuses on investment and aims for a target of $1,535 billion in six years. Funds are expected from organizations such as the World Bank and the Asian Development Bank. The government has categorized the state into three segments based on GDP per capita to ensure balanced growth.
Mumbai: The Maharashtra state government has set a target of achieving a $1 trillion economy in the next five years until 2028. This involves a formidable annual growth rate of 17.13% CAGR, outlined in a comprehensive 341-point recommendation plan for inclusive growth. The state’s economy has maintained an 8.75% growth over the past seven years, making the targeted growth rate challenging, according to experts and officials.
A presentation on the Economic Advisory Council’s (EAC) report was delivered by Pravin Pardeshi, CEO of Maharashtra Institution for Transformation (Mitra), before the state cabinet. The plan focuses on various recommendations, emphasising investment, which has witnessed a decline over the last decade. The state aims for a target of $1,535 billion in six years to support the projected growth of 17.55% CAGR.
Funds for strengthening districts, tertiary healthcare development, smart projects, and floodwater diversion are expected, with contributions from organisations such as the World Bank and the Asian Development Bank.
To ensure balanced growth, the government categorized the state into three segments based on GDP per capita. Seven districts (Mumbai and Mumbai suburbs, Thane, Palghar, Nagpur, Pune and Raigad) have 1.3 times of the state GDP per capita while the second segment of 11 districts has over 0.8% of the state per capita. The remaining 18 districts have less than 80% of the state average per capita. The state government has constituted a task force under chief secretary, comprising Pravin Pardeshi and has outlined district strategic plan for the comprehensive growth of the state.According to the EAC report, Maharashtra’s GDP in FY22 was $444 billion, contributing 13% to India’s GDP. The state’s CAGR during FY14 and FY22 was 8-9%, and to achieve the $1 trillion target by FY28, growth must accelerate to 14-15% annually. Recommendations include reducing regional imbalances, focusing on sectors like agriculture and tourism, and completing irrigation projects.. “To accelerate the growth, the state should reduce the regional imbalances, as 55% of the state’s GDP comes from 7 districts, whereas the bottom 18 districts contribute to less than 20% of of GDP,” the report by EAC has stated.
The report has also recommended the completion of the irrigation project that would give a boost to the growth in the agricultural and allied segments. It has stated that ₹14,801 crore will need to be provided to complete the irrigation projects. It has also mentioned 75 irrigation projects that have been completed by more than 40%.While industry experts acknowledge the difficulty in achieving the set target, there is optimism for substantial growth by 2030 if not in the next five years.
