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Maharashtra's Farm Growth to Halve in 2025-26; Industry & Services Surge

The Maharashtra Economic Survey for 2025-26 forecasts a sharp slowdown in agricultural growth to 3.4%, down from 9.1% the previous year, largely due to heavy and unseasonal rainfall affecting yields. While pulses and oilseeds production is expected to decline significantly, cereals, sugarcane, and cotton output is projected to increase. In contrast, the industrial sector is projected to grow at 5.7%, and the services sector is regaining momentum as the state's economic backbone. The overall outlook is mixed, with climate risks impacting rural incomes but steady secondary and tertiary sector growth providing stability.

Key Points: Maharashtra Agri Growth to Drop to 3.4%, Industry Gains

  • Agri growth to drop from 9.1% to 3.4%
  • Heavy rainfall blamed for crop yield impact
  • Industry growth projected at 5.7%, up from 4.3%
  • Services sector regaining momentum as economic backbone
2 min read

Agri growth in Maha projected to drop to 3.4 pc in 2025-26; industry, services to gain momentum

Maharashtra's agriculture growth projected to fall to 3.4% in 2025-26 due to heavy rain, while industry and services sectors gain momentum.

"While climate variability continues to pose risks to rural incomes, steady growth in services and industry is helping stabilise the state's overall economic outlook. - Economic Survey"

Mumbai, March 5

The Maharashtra Economic Survey for 2025-26 has presented a mixed outlook for the state's economy. While the agriculture and allied sectors are expected to record a sharp slowdown compared to the previous year, the industrial and services sectors are projected to maintain an upward trajectory.

According to the Economic Survey (ES), the growth rate for agriculture and allied activities is expected to drop to 3.4 per cent in the 2025-26 fiscal year from a robust 9.1 per cent recorded in 2024-25. The slowdown has largely been attributed to heavy rainfall and unseasonal showers in several parts of the state, which affected crop yields.

The ES notes that agricultural performance has fluctuated over the past decade. In 2020-21, the sector recorded peak growth of 11.6 per cent during the Covid-19 period.

However, between 2021-22 and 2023-24, growth slowed to 4 per cent, 3.2 per cent and 1.2 per cent respectively. The sector recovered to 9.1 per cent in 2024-25, but is projected to moderate again to 3.4 per cent in 2025-26.

During the kharif season of 2025-26, sowing was completed over an area of 157.27 lakh hectares. The production of cereals, sugarcane and cotton is expected to increase by 10.6 per cent, 22 per cent and 7 per cent respectively. However, the production of pulses and oilseeds is expected to decline by 28.2 per cent and 47.4 per cent respectively compared to the previous year.

During the rabi season of 2025-26, sowing was completed over an area of 66.98 lakh hectares. The production of cereals and pulses is expected to increase by 28.3 per cent and 29.7 per cent respectively, while the production of oilseeds is projected to decline by 16.2 per cent compared to the previous year.

While the primary sector faces climatic challenges, the secondary and tertiary sectors are expected to provide support to the state's economy. The industrial sector is projected to grow at 5.7 per cent in 2025-26, marking an increase from the previous year's growth rate of 4.3 per cent.

The services sector continues to remain the backbone of Maharashtra's economy. After a brief slowdown over the past two years, it is expected to regain momentum.

The Economic Survey noted that while climate variability continues to pose risks to rural incomes, steady growth in services and industry is helping stabilise the state's overall economic outlook.

- IANS

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Reader Comments

S
Sarah B
The projected growth in industry (5.7%) and services is a positive sign for Mumbai and Pune's job markets. However, we can't ignore the agricultural heartland. A balanced approach is needed for sustainable development across the state.
A
Arjun K
The decline in pulses and oilseeds production by 28% and 47% is alarming! This will directly hit the common man's kitchen budget. Dal and cooking oil prices are already high. Hope the government has a plan to manage this shortfall.
P
Priya S
While the services sector is the backbone, we are too dependent on it. Manufacturing needs a bigger push to create more stable jobs. Also, climate-resilient farming techniques should be promoted aggressively in Marathwada and other dry regions.
M
Michael C
The data shows agriculture growth is highly volatile, swinging from 11.6% to 1.2% in recent years. This unpredictability makes life very hard for farmers. Long-term solutions for water management and market access are critical, not just short-term relief.
K
Kavya N
Good to see rabi season projections for cereals and pulses are positive! But the overall picture is mixed. The state must invest in food processing industries near farms. This will add value, reduce waste, and provide farmers with better income. 👍

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