eVidyarthi

Notes Class 11 Chapter 4 Economics Maharashtra Board

The Economy of Maharashtra

Introduction

  • Formation: Maharashtra was formed on 1st May 1960.
  • Economy: The state’s economy is strong due to the hard work of its people, making it one of the leading economies in India.

Administrative Divisions

  • Maharashtra is divided into 36 districts grouped under 6 revenue divisions:
  • Mumbai
  • Pune
  • Nashik
  • Aurangabad
  • Amravati
  • Nagpur
  • This division helps in better administration (Economic Survey of Maharashtra 2017-18).

Key Features of Maharashtra’s Economy

  1. Population: Second largest in India with 11.24 crore people (2011 Census).
  2. Area: Third largest state, covering 3.08 lakh sq. km.
  3. Urbanization: Most urbanized state with 45.2% of the population living in cities.
  4. Sex Ratio: 929 females per 1000 males (2011 Census).
  5. Literacy Rate: 82.3% (2011 Census).
  6. Economic Growth: Highest Gross State Domestic Product (GSDP) and State Per Capita Income (SPCI) growth in 2016-17 compared to other states.

Characteristics:

  • Rich natural resources.
  • Skilled workforce.
  • Advanced technology.
  • Well-developed infrastructure.

Investment and Tourism: Maharashtra is a top destination for creativity, skill development, investment, and tourism.

Economic Development of Maharashtra

The economy is divided into three main sectors: Agriculture, Industry, and Service.

A) Agricultural Sector

  • Importance: Agriculture and allied activities are key to Maharashtra’s economy.
  • Contribution: In 2016-17, agriculture contributed 12.2% to Gross State Value Added (GSVA), down from 15.3% in 2001-02, showing a declining trend.

Problems in Agriculture:

  1. Smaller land holdings reduce productivity.
  2. More small and marginal farmers.
  3. Overuse of chemical fertilizers and pesticides harms soil.
  4. Farmers’ debts.
  5. Poor land reforms and unsuitable crop patterns.
  6. Dependence on dry land and lack of irrigation.
  7. Lack of capital.
  8. Poor rural development plans.
  9. Limited marketing facilities.
  10. Climate change impacts.

Government Measures (Economic Survey 2017-18):

  1. Providing quality seeds at low prices.
  2. Increasing fertilizer and pesticide outlets.
  3. Improving irrigation facilities.
  4. Electrifying agricultural pumps and offering “electricity on demand.”
  5. Providing financial help to farmers.
  6. Setting up Agriculture Produce Marketing Committees (APMC), agro-export zones, horticulture training centers, and grading/packing facilities.
  7. Using media to spread agricultural information and make farming profitable.

Think About It: If farmers sell directly without middlemen, they may earn more profit, but they need better marketing skills and infrastructure.

B) Industrial Sector

  • Importance: Maharashtra is a leading industrial state, absorbing excess farm labor and boosting income and productivity.
  • Contribution: In 2016-17, the industrial sector contributed 18% to Net Value Added (NVA) (Annual Survey of Industries).

Foreign Direct Investment (FDI):

  • Since 1991, India relaxed FDI rules, and Maharashtra has been the top destination for FDI.
  • From April 2000 to September 2017, FDI inflow was ₹6,11,760 crore (31% of India’s total FDI).

Problems in Industry:

  1. Slow government processes.
  2. Limited skill development opportunities.
  3. Outdated technology.
  4. Poor infrastructure.
  5. Lack of support for new entrepreneurs.
  6. Few development programs.
  7. Regional imbalances.

Government Measures (Economic Survey 2017-18):

  1. Single Window Cell for quick clearances for investors.
  2. MAITRI (Maharashtra Industry, Trade, and Investment Facilitation Cell) for online investment information.
  3. Awards and subsidies for small-scale industries to participate in global exhibitions.
  4. Creating Special Economic Zones (SEZ) to boost industry.
  5. Maharashtra State Industrial Cluster Development Programme (MSICDP) to support small, medium, and micro enterprises.

Find Out: List five enterprises in Maharashtra for:

  • Chemicals
  • Food processing
  • Textiles
  • Automobile
  • IT
  • Pharmaceuticals

C) Service Sector

  • Importance: Largest and fastest-growing sector, employing the most people.
  • Contribution: In 2017-18, it contributed 54.5% to GSDP.
  • Key Areas: Fintech, IT/ITES, startups, cloud computing, electric vehicles, defense, tourism, private universities.
  • Government Efforts: Expanding services in Tier II cities.

Classification of Services:

  • For Businesses: Fintech, IT/ITES, cloud computing, defense.
  • For Consumers: Tourism, education, retail banking, social services.

Try This: Classify the above services into business and consumer categories.

D) Infrastructure

Importance: Infrastructure is critical for economic and social development, attracting investment, and ensuring sustainable growth.

Types:

  1. Economic Infrastructure: Supports production and distribution (e.g., energy, transport, communication).
  2. Social Infrastructure: Improves quality of life (e.g., health, education, housing, water, sanitation).

Economic Infrastructure Measures

  • Increasing electricity generation capacity.
  • Rural electrification and energy conservation programs.
  • Direct benefit transfer for LPG consumers.
  • Road Development Plan (2001-2021) to develop 3.37 lakh km of roads.
  • Metro Railway in Mumbai and Nagpur.
  • Maharashtra Port Development Policy and support for Sagarmala (port-led development).
  • Internet subscribers: 5.45 crore (highest in India, as of 30th September 2017).

Social Infrastructure Measures

Education:

  • Education is vital for human resource development.
  • Levels: Primary, Secondary, Higher Secondary, Higher Education.

Primary Education:

  • Right to Education (RTE) under Sarva Shiksha Abhiyan (SSA) for free education (6-14 years).
  • 2016-17: 1,04,971 schools, 159.86 lakh students, 5.30 lakh teachers, pupil-teacher ratio 30.1.
  • Expenditure: ₹19,486 crore.

Secondary and Higher Secondary:

  • Rashtriya Madhyamik Shiksha Abhiyan (RMSA) to improve access and quality.
  • 2016-17: 25,737 schools, 66.15 lakh students, 2.13 lakh teachers, pupil-teacher ratio 31.1.
  • Expenditure: ₹16,089 crore.

Higher Education:

  • Maharashtra has 22 state universities (4 agriculture, 1 health science, 1 veterinary, 1 technology, 15 general), 21 autonomous universities, 1 central university, 4 private universities, and 5 institutes of national importance.
  • Maharashtra Public Universities Act, 2016: Promotes academic autonomy, skill-based education.
  • RUSA Grant: ₹20 crore for research and innovation.

Other Initiatives:

  • Inclusive Education: For differently-abled children.
  • Girls’ Education: Free education, free transport, bicycles for girls.
  • Adult Literacy: “Each One Teach One,” Sakshar Bharat Abhiyan.
  • Tribal Education: 556 aided Ashram Schools, hostels for higher studies.

Health Services:

  • 1814 Primary Health Centres, 360 Community Health Centres (as of 31st March 2017).
  • Programs: National Rural Health Mission (NRHM), National Urban Health Mission (NUHM).

Three-tier system:

  • Primary: Primary and Community Health Centres.
  • Secondary: Sub-district and district hospitals.
  • Tertiary: Medical colleges, super-specialty hospitals.

Tourism:

  • Maharashtra Tourism Policy, 2016 aims to make Maharashtra a top tourist destination by 2025, attract ₹30,000 crore investment, and create 1 million jobs.
  • Maharashtra Tourism Development Corporation (MTDC) organizes events like Ellora Festival, Elephanta Festival.
  • Mahabhraman Scheme: Promotes agro-tourism, village tourism, food tourism, safaris, tribal lifestyles.

Hospitality:

  • Grows with tourism, focusing on customer satisfaction.
  • Includes hotels, airlines, cruises (e.g., Mumbai-Goa), trains (Deccan Odyssey), restaurants, and event management.

Entertainment Industry:

Maharashtra leads in film production, with Mumbai (Bollywood) and Kolhapur (regional films) creating jobs and global impact.

E) Co-operative Movement

  • Importance: A major contribution of Maharashtra to India, promoting economic development in rural areas and supporting underprivileged communities.
  • Values: Self-help, democracy, equality, and solidarity.

Sectors:

  • Agricultural credit
  • Agro-processing
  • Agro-marketing
  • Sugar co-operatives
  • Fisheries
  • Dairy
  • Textiles
  • Housing
  • Consumer stores

Statistics: As of 31st March 2017, 1.95 lakh co-operative societies with 5.25 lakh members.

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