MUMBAI: Maharashtra’s economy is set to grow at a slower rate. From 10% in 2016-17, it is estimated to fall to 7.3% in 2017-18 as per the state’s economic survey. While insufficient monsoon rain has significantly pulled down agricultural growth, industrial growth, including manufacturing, too is set for a decline, the survey shows.Nevertheless, the state’s growth rate is slated to be higher than the country’s 6.5%. Maharashtra’s per capita income too is among the highest in the country and is set to grow from Rs 1.65 lakh to Rs 1.8 lakh per annum. Also, according to the national economic survey, Maharashtra has the highest share of GST collections and the country’s exports.“The decline in the state’s growth rate is mainly because of the lower monsoon last year, which was 84.3% of normal compared to 95% the previous year. We should also remember that the state’s economy is still growing faster than the national economy,” said state finance minister Sudhir Mungantiwar , dismissing concerns about the lingering impact of demonetisation and GST on the economy.The survey forecast a negative growth rate in agriculture and allied services at (-) 8.3% in 2017-18 compared to 22.5% in 2016-17. The growth rate in crops was also negative at (-) 14.4%) compared to 30.7% the previous year.The growth rate in livestock is pegged at 5.8% in 2017-18 compared to 11.7% the previous year. The growth rate of the fishing and aquaculture sector is expected decline sharply to 5.9% compared to 21.2% in 2016-17.But agriculture alone cannot account for a decline in the growth rate. It accounts for 11.9% in the computation of the gross state value added (GSVA) metric, or value of economic activity in the state. Industry accounts for 33.6% and services account for 54.5%.The survey shows that the growth rate for industry--a big focus of the Make in India campaign--is set to decline from 6.9 % in 2016-17 to 6.5% in 2017-18; for manufacturing from 8.3% to 7.6%; and for construction from 4.9% to 4.5%.The growth rate of services is set to marginally improve from 9.6% in 2016-17 to 9.7% in 2017-18, the survey shows. Within this, the growth rate for financial, real estate and professional services shows the biggest improvement: from 9% to 10.3%.“A decline in agricultural output does have an impact on economic growth because a fall in agricultural income lowers rural demand and impacts other sectors,” says economist R Ramakumar from TISS.But he points out that demonetisation and the imposition of GST have impacted the agricultural and industrial sectors at the national level. “This is reflecting in the growth rate of the economy both nationally and in the state,” says Ramakumar.Despite a decline in its growth, Maharashtra continues to score on several economic parameters. The state accounts for the highest share of approved industrial proposals in the country since 1991—a share of 17.9%, according to DIPP data. FDI inflows into the state from April 2000 to September 2017 account for Rs 6.11 lakh crore, which is 31% of total FDI at the all-India level, the survey shows.But fiscally the cash-strapped state continues to draw concerns, with an estimated debt of Rs 4.13 lakh crore in 2017-18, up from Rs 3.71 lakh crore in 2016-17. “This is well within fiscal limits. Our debt to GSDP ratio is 16.6%, which is much lower than the 22.2% limit stipulated by the 14th Finance Commission ,” says Mungantiwar.2016-172017-18Gross State Domestic Product10%7.3%Gross State Value Added9.9%6.6%Agriculture22.5%(-)8.3%Industry6.9%6.5%Services9.6%9.7%Maharashtra’s growth rate/sectoral growth rateMaharashtra’s Economic Survey 2017-18State economy set to grow by 7.3% over the previous year in 2017-18 compared to 10% in 2016-17The Indian economy is expected to grow by 6.5% in 2017-18Maharashtra’s growth rate of agriculture sector from to decline from 22.5% in 2016-17 to (-)8.3% in 2017-18Decline in growth rate of industrial sector from 6.9% in 2016-17 to 6.5% in 2017-18.Services sector growth rate to increase by 0.1% from 9.6% in 2016-17 to 9.7% in 2017-18State says agricultural production has declined owing to a lowered rainfall in 2016-17 which was 84.3% of normalState’s GSDP is Rs 24.9 lakh crore crore during 2017-18 as compared to 22.5 lakh crore in 2016-17State’s GSDP to grow by 2.34 lakh crore in 2017-18 over 2016-17Per capita income is 1.8 lakh in 2017-18 compared to 1.65 lakh in 2016-17In 2016-17, Maharashtra’s per capital income was higher than several other states including Karnataka, Andhra Pradesh and Tamil Nadu.Expected revenue receipts for 2017-18 are 2.43 lakh crore compared to Rs 2.2 lakh crore during 2016-17Expected revenue expenditure for 2017-18 is 2.48 lakh crore compared to 2.34 lakh crore in 2016-17Expected revenue deficit is Rs 4511 crore for 2017-18, fiscal deficit is Rs 38,789 crore and the state’s debt is Rs 4.13 lakh croreGovernment says debt is within fiscal limits. The Debt to GSDP ratio is 16.6% compared to the the limit of 22% stipulated in the 14th Finance CommissionThe Asian Competitiveness Institute of the Lee Kuan Yew School of Public Policy of Singapore index of ease of business in 2016, ranked Maharashtra first in the countryOf the 8 lakh crore investments in Make in India Week in 2016, 61% are in various stages of implementationFrom August 1991 to December 2017, as many as 19,826 industrial proposals were approved. Of these 8,974 (45.3%) projects were commissionedThe RBI in Mumbai received Rs 74,123 crore equity inflows of FDI for Maharashtra, Dadra and Nagar Haveli during April to December 2017 (32% of All India level)Maharashtra’s share in total industrial proposals received since 1991 was 17.9%, accounting for 12.9% of investments