Economic Survey 2021: Industrial growth takes a hit, pegged at -11.3%

The lockdown has severely impacted the manufacturing and construction sectors and in turn the growth of the industry sector. According to the Economic Survey, the industry sector is expected to grow at minus 11.3% in 2020-21 against 0.2% in 2019-20. Between 2012-13 and 2019-20, the average growth of the industry sector was reported at 5.4%.

The manufacturing sector is expected to grow at minus 11.8% in 2020-21 against minus 1%. The average growth has been 6.7% between 2012-13 and 2019-20.

The construction sector was hit the most after migrant workers left as well as because of the complete halt in construction activity due to the curbs put in place by the government to contain the spread of the virus. The construction sector is expected to grow at minus 14.6% in 2020-21 against 1.7% in 2019-20. The average growth between 2012-13 and 2019-20 has been 2.6%.

The state government, in order to boost the realty and construction sector, decreased stamp duty by 3% from September 1 to December 31, 2020, for Mumbai and Mumbai suburbs and 2% for the rest of Maharashtra. Further, from January, 2020, to March 2021, the stamp duty has been reduced by 2% for Mumbai and Mumbai suburbs and 1.5% for the rest of the state.

In the case of the industry sector too, the state government provided sops in the payment of premiums and other charges to the Maharashtra Industrial Development Corporation (MIDC).

Hiranandani Group MD and Co-Founder Niranjan Hiranandani said Maharashtra has always been the economic leader amongst Indian states and across industries. “The hope is that recovery from the pandemic in terms of GDP growth will see Maharashtra retaining its premier position,” he noted.

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