STATE INCOME
161
STATE INCOME
Forecast of Gross Domestic Product for 2004-05 5.1 As per the advance estimates released by Central Statistical Organisation (CSO), the Gross Domestic Product (GDP), which is the aggregate National Income, at constant (1993-94) prices, is poised to grow at 6.9 per cent during 2004-05. This growth rate is more impressive over the higher base of earlier years GDP that grew at 8.5 per cent. The growth in GDP may be viewed against the disappointing monsoon during 2004-05. The growth of Indian economy is mainly driven by the growth in manufacturing and service sectors. The primary sector is expected to grow at 1.5 per cent with its percentage contribution in the GDP at 22.8. The agriculture, forestry and fishing sub-sector is likely to show a growth of 1.1 per cent during 2004-05, as against an impressive growth of 9.6 per cent during 2003-04. The secondary sector is expected to grow by 8.0 per cent during 2004-05 with its percentage share in the GDP at 24.8. This growth is mainly attributed due to an accelerated growth of 8.9 per cent in manufacturing sub-sector. The growth in trade, hotels & restaurants and communication subsectors, under tertiary sector, is expected to be 11.3 per cent, that will help to raise the sectors domestic product by 8.9 per cent during 2004-05.
Expected Growth Rates in Gross Domestic Product 2004-05 (per cent)
Sector Primary Secondary Tertiary Total
Maharashtra (-) 1.1 8.5 8.1 7.0
India 1.5 8.0 8.9 6.9
The share of tertiary sector in the GDP at National level would be 52.4 per cent. However, the GDP at current prices, during 2004-05 is likely to increase by 12.6 per cent. 5.2 As per the advance estimates, the Gross State Domestic Product (GSDP) for Maharashtra State, at constant (1993-94) prices, is expected to grow at the rate of 7.0 per cent during 2004-05. The GSDP of the State had, however, registered a growth of 7.3 per cent during 2003-04. The advance estimates indicate that the primary sector is likely to register a negative growth of 1.1 per cent with its share of 12.4 per cent in the GSDP. This negative growth in the primary sector is mainly due to unsatisfactory monsoon, which adversely affected the kharif crops in the State. The secondary sector is excepted to contribute 29.8 per cent in the GSDP of the State. The encouraging growth perspectives in construction (12.2 per cent) and manufacturing (8.2 per cent) sub-sectors will enable in boosting the growth of secondary sector at 8.5 per cent. The expected growth rate in the secondary sector is more impressive against its growth of 11.7 per cent during earlier year. The tertiary sector is the major contributory sector of the GSDP, with contribution to the extent of 57.8 per cent, is likely to grow by 8.1 per cent during 2004-05. The growth in tertiary sector is mainly due to the higher growth rate of 9.5 per cent in trade, hotels, transport & communication and 11.3 per cent in public administration and other services. Despite of the lackluster performance in agriculture sector for last three years, the higher growth rates in secondary and tertiary sectors resulted in overall impressive growth rate of 7 per cent and above during last three years. The Gross State Domestic Product (GSDP), at current prices, however, is likely to grow at 13.8 per cent during 2004-05. ECONOMIC SURVEY OF MAHARASHTRA 2004-05
162
Gross State Domestic Product for 2003-04 5.3 As per preliminary estimates, the GSDP of Maharashtra, at constant (1993-94) prices, is estimated at Rs. 1,90,151 crore during 2003-04, as against Rs. 1,77,138 crore in 2002-03, showing an increase of 7.3 per cent. The corresponding growth rate for all India was 8.5 per cent. The rainfall received during the monsoon in 2003-04 was not satisfactory in the State, which had resulted in the steep down fall in the agriculture production for both the kharif and rabi crops, consequently, a negative growth of 5.5 per cent was registered in the primary sector. The secondary sector registered an impressive growth of 11.7 per cent, mainly due to accelerated growth in manufacturing and construction sub-sectors. The significant growth of 18.8 per cent in communication and 11.8 per cent in trade, hotels and restaurants, resulted in growth of 8.6 per cent in the tertiary sector during 2003-04. The sectoral growth rates of GSDP at constant (1993-94) prices are given in Table No. 5.1.
Table No. 5.1 Sectoral growth rates* of GSDP for Maharashtra at constant (1993-94) prices Sector Primary Sector Agriculture Forestry & Logging Fishing Mining & Quarrying Secondary Sector Manufacturing (a) Registered (b) Un-registered Construction Electricity, Gas & Water Supply Tertiary Sector Railways Transport & Storage Communications Trade, Hotels and Restaurants Banking & Insurance Real Estate, Ownership of Dwelling and Business Services Public Administration Other Services Total * Provisional
Percentage change over previous year
5.4 As per the preliminary estimates, the GSDP of Maharashtra in 2003-04 at current prices is estimated at Rs. 3,33,145 crore, higher by 12.7 per cent than that of Rs. 2,95,525 crore in 2002-03.
State Income and Per Capita State Income 5.5 The preliminary estimate of State Income i.e. Net State Domestic Product (NSDP) of Maharashtra, at current prices, is Rs. 2,94,001 crore in 2003-04, higher by 12.7 per cent than that of 2002-03. During 2003-04, the NSDP for primary sector registered a negative growth of 1.4 per cent, whereas the secondary and tertiary sectors registered a growth of 20.1 per cent and 13.4 per cent respectively. Thus, the overall increase in NSDP registered was 12.7 per cent during 2003-04. Details of NSDP are given in Table No. 5.2.
Table No. 5.2 Sectorwise NSDP of Maharashtra
(Rs. in Crore)
Year
Primary Secondary Tertiary
At Constant (1993-94) Prices 2002-03 25,304 38,333 2003-04 23,879 43,166 % change (-) 5.6 12.6 At Current Prices 2002-03 40,085 63,050 2003-04 39,516 75,701 % change (-) 1.4 20.1
2002-03
2003-04
(-)1.4 (-)1.7 (-)0.6 (-)2.7 4.8 8.7
(-)5.5 (-)7.3 5.1 4.4 8.3 11.7
10.8 1.8 16.3
8.6 6.1 33.1
5.9 10.1 5.7 8.0 7.8
5.0 8.6 3.8 7.1 18.8
18.5 11.5
11.8 5.7
4.6 4.3 5.3
4.5 7.6 6.4
2002-03 2003-04
7.8
7.3
% change
Total
90,915 1,54,552 98,850 1,65,896 8.7 7.3 1,57,677 2,60,812 1,78,784 2,94,001 13.4 12.7
5.6 The Per Capita State Income (Per Capita NSDP), at constant (1993-94) prices, increased by 5.8 per cent in 2003-04 over 2002-03 and at current prices, it increased by 11.1 per cent. Details of Per Capita NSDP are given in Table No. 5.3
Table No. 5.3 Per Capita NSDP of Maharashtra ( In Rs.)
At Constant (1993-94) Prices
At Current Prices
15,580 16,479
26,291 29,204
5.8
11.1
ECONOMIC SURVEY OF MAHARASHTRA 2004-05
163
Sectoral composition of State Income 5.7 The sectoral composition of the State Income has undergone considerable changes during 1960-61 to 2003-04. Over these 40 plus years, the share of primary sector has declined from 34.4 per cent to 13.4 per cent, the share of secondary sector has remained more or less at about 26 per cent, however, the share of tertiary sector has increased from 39.9 per cent to 60.8 per cent. For the year 1993-94 (which is base year for current national account series) however, the corresponding shares were 21.2 per cent, 31.2 per cent and 47.6 per cent, respectively.
Inter-state Comparison 5.9 The average annual growth rates of State Income and Per Capita State Income for major States of India for the period 1993-94 to 2002-03 and Per Capita State Income at current prices for 2002-03, are given in Table No. 5.4. In terms of Per Capita State Income, among the major states in India, Maharashtra State ranked second, after Haryana. Table No. 5.4 Growth Rates and Per Capita State Income of major States
&+$1*,1*&20326,7,212)67$7(,1&20(
State
7(57,$5
STATE INCOME
Forecast of Gross Domestic Product for 2004-05 5.1 As per the advance estimates released by Central Statistical Organisation (CSO), the Gross Domestic Product (GDP), which is the aggregate National Income, at constant (1993-94) prices, is poised to grow at 6.9 per cent during 2004-05. This growth rate is more impressive over the higher base of earlier years GDP that grew at 8.5 per cent. The growth in GDP may be viewed against the disappointing monsoon during 2004-05. The growth of Indian economy is mainly driven by the growth in manufacturing and service sectors. The primary sector is expected to grow at 1.5 per cent with its percentage contribution in the GDP at 22.8. The agriculture, forestry and fishing sub-sector is likely to show a growth of 1.1 per cent during 2004-05, as against an impressive growth of 9.6 per cent during 2003-04. The secondary sector is expected to grow by 8.0 per cent during 2004-05 with its percentage share in the GDP at 24.8. This growth is mainly attributed due to an accelerated growth of 8.9 per cent in manufacturing sub-sector. The growth in trade, hotels & restaurants and communication subsectors, under tertiary sector, is expected to be 11.3 per cent, that will help to raise the sectors domestic product by 8.9 per cent during 2004-05.
Expected Growth Rates in Gross Domestic Product 2004-05 (per cent)
Sector Primary Secondary Tertiary Total
Maharashtra (-) 1.1 8.5 8.1 7.0
India 1.5 8.0 8.9 6.9
The share of tertiary sector in the GDP at National level would be 52.4 per cent. However, the GDP at current prices, during 2004-05 is likely to increase by 12.6 per cent. 5.2 As per the advance estimates, the Gross State Domestic Product (GSDP) for Maharashtra State, at constant (1993-94) prices, is expected to grow at the rate of 7.0 per cent during 2004-05. The GSDP of the State had, however, registered a growth of 7.3 per cent during 2003-04. The advance estimates indicate that the primary sector is likely to register a negative growth of 1.1 per cent with its share of 12.4 per cent in the GSDP. This negative growth in the primary sector is mainly due to unsatisfactory monsoon, which adversely affected the kharif crops in the State. The secondary sector is excepted to contribute 29.8 per cent in the GSDP of the State. The encouraging growth perspectives in construction (12.2 per cent) and manufacturing (8.2 per cent) sub-sectors will enable in boosting the growth of secondary sector at 8.5 per cent. The expected growth rate in the secondary sector is more impressive against its growth of 11.7 per cent during earlier year. The tertiary sector is the major contributory sector of the GSDP, with contribution to the extent of 57.8 per cent, is likely to grow by 8.1 per cent during 2004-05. The growth in tertiary sector is mainly due to the higher growth rate of 9.5 per cent in trade, hotels, transport & communication and 11.3 per cent in public administration and other services. Despite of the lackluster performance in agriculture sector for last three years, the higher growth rates in secondary and tertiary sectors resulted in overall impressive growth rate of 7 per cent and above during last three years. The Gross State Domestic Product (GSDP), at current prices, however, is likely to grow at 13.8 per cent during 2004-05. ECONOMIC SURVEY OF MAHARASHTRA 2004-05
162
Gross State Domestic Product for 2003-04 5.3 As per preliminary estimates, the GSDP of Maharashtra, at constant (1993-94) prices, is estimated at Rs. 1,90,151 crore during 2003-04, as against Rs. 1,77,138 crore in 2002-03, showing an increase of 7.3 per cent. The corresponding growth rate for all India was 8.5 per cent. The rainfall received during the monsoon in 2003-04 was not satisfactory in the State, which had resulted in the steep down fall in the agriculture production for both the kharif and rabi crops, consequently, a negative growth of 5.5 per cent was registered in the primary sector. The secondary sector registered an impressive growth of 11.7 per cent, mainly due to accelerated growth in manufacturing and construction sub-sectors. The significant growth of 18.8 per cent in communication and 11.8 per cent in trade, hotels and restaurants, resulted in growth of 8.6 per cent in the tertiary sector during 2003-04. The sectoral growth rates of GSDP at constant (1993-94) prices are given in Table No. 5.1.
Table No. 5.1 Sectoral growth rates* of GSDP for Maharashtra at constant (1993-94) prices Sector Primary Sector Agriculture Forestry & Logging Fishing Mining & Quarrying Secondary Sector Manufacturing (a) Registered (b) Un-registered Construction Electricity, Gas & Water Supply Tertiary Sector Railways Transport & Storage Communications Trade, Hotels and Restaurants Banking & Insurance Real Estate, Ownership of Dwelling and Business Services Public Administration Other Services Total * Provisional
Percentage change over previous year
5.4 As per the preliminary estimates, the GSDP of Maharashtra in 2003-04 at current prices is estimated at Rs. 3,33,145 crore, higher by 12.7 per cent than that of Rs. 2,95,525 crore in 2002-03.
State Income and Per Capita State Income 5.5 The preliminary estimate of State Income i.e. Net State Domestic Product (NSDP) of Maharashtra, at current prices, is Rs. 2,94,001 crore in 2003-04, higher by 12.7 per cent than that of 2002-03. During 2003-04, the NSDP for primary sector registered a negative growth of 1.4 per cent, whereas the secondary and tertiary sectors registered a growth of 20.1 per cent and 13.4 per cent respectively. Thus, the overall increase in NSDP registered was 12.7 per cent during 2003-04. Details of NSDP are given in Table No. 5.2.
Table No. 5.2 Sectorwise NSDP of Maharashtra
(Rs. in Crore)
Year
Primary Secondary Tertiary
At Constant (1993-94) Prices 2002-03 25,304 38,333 2003-04 23,879 43,166 % change (-) 5.6 12.6 At Current Prices 2002-03 40,085 63,050 2003-04 39,516 75,701 % change (-) 1.4 20.1
2002-03
2003-04
(-)1.4 (-)1.7 (-)0.6 (-)2.7 4.8 8.7
(-)5.5 (-)7.3 5.1 4.4 8.3 11.7
10.8 1.8 16.3
8.6 6.1 33.1
5.9 10.1 5.7 8.0 7.8
5.0 8.6 3.8 7.1 18.8
18.5 11.5
11.8 5.7
4.6 4.3 5.3
4.5 7.6 6.4
2002-03 2003-04
7.8
7.3
% change
Total
90,915 1,54,552 98,850 1,65,896 8.7 7.3 1,57,677 2,60,812 1,78,784 2,94,001 13.4 12.7
5.6 The Per Capita State Income (Per Capita NSDP), at constant (1993-94) prices, increased by 5.8 per cent in 2003-04 over 2002-03 and at current prices, it increased by 11.1 per cent. Details of Per Capita NSDP are given in Table No. 5.3
Table No. 5.3 Per Capita NSDP of Maharashtra ( In Rs.)
At Constant (1993-94) Prices
At Current Prices
15,580 16,479
26,291 29,204
5.8
11.1
ECONOMIC SURVEY OF MAHARASHTRA 2004-05
163
Sectoral composition of State Income 5.7 The sectoral composition of the State Income has undergone considerable changes during 1960-61 to 2003-04. Over these 40 plus years, the share of primary sector has declined from 34.4 per cent to 13.4 per cent, the share of secondary sector has remained more or less at about 26 per cent, however, the share of tertiary sector has increased from 39.9 per cent to 60.8 per cent. For the year 1993-94 (which is base year for current national account series) however, the corresponding shares were 21.2 per cent, 31.2 per cent and 47.6 per cent, respectively.
Inter-state Comparison 5.9 The average annual growth rates of State Income and Per Capita State Income for major States of India for the period 1993-94 to 2002-03 and Per Capita State Income at current prices for 2002-03, are given in Table No. 5.4. In terms of Per Capita State Income, among the major states in India, Maharashtra State ranked second, after Haryana. Table No. 5.4 Growth Rates and Per Capita State Income of major States
&+$1*,1*&20326,7,212)67$7(,1&20(
State
7(57,$5
