$5 trillion economy gets on fast track with development of basic facilities: Fadanvis

Mumbai, Dec 12: With the development of basic facilities the $5trillion economy is on fast track and with efforts for sustainable development in agriculture, manufacturing and service sectors, well-planned financial and administrative reforms we will achieve this target by 2025, said Maharashtra Chief Minister Devendra Fadanvis here on Wednesday.

Fadanvis was speaking at the India Economic Conclave organised by Times Network here today.

He said that India is a young country and we can achieve the $5trillion target in a much better way with the skilled human resources and added that $1 trillion contribution in this $5 trillion economy is expected to come from agriculture and allied sectors. But this sector is under stress due to global situation, climate change etc. which are creating hurdles in development of this sector. Sino-US relations, trade war, crude oil rates and our dependence on them are proving worrisome. Yet, with well-planned efforts the way to achieving this objective could be developed, he added.

While doubling the income of farmers and farm sector, it is expected to encourage agro-based industry, change in cropping pattern etc. Our agriculture is dependent on rain and we confront natural disasters like floods, drought, hailstorms etc. We need to increase investment in farm sector in view of the global demand and that we are doing with launching of initiatives like e-nam. With relief and rehabilitation, investment in farm sector is also being enhanced and for this, schemes like Prime Minister Irrigation Scheme or Prime Minister Crop Insurance Scheme are being implemented.

Development of allied sectors:

For $5 trillion economy there is a need to develop manufacturing sector by $ 1 trillion like the farm sector, the Chief Minister said adding that huge job opportunities are hiding in defence production sector. Prime Minister Narendra Modi has personally taken interest in it including areas of aeroplane manufacturing, food processing industry, electronic sectors etc. Biotech, automation, MSME industries, Fintech, Cloud Policy, StartUP policy etc. which will help develop supply chain, and transform the face of digital economy. Along with conventional services, value addition of services will also be the one of the pillars of the $5 trillion economy. We can achieve $1 trillion target from digital economy.

We can broaden the way to economic development by joining health, housing areas development; HRD index etc. with each other, the Chief Minister said adding that Maharashtra will have the maximum share of contribution in this. Presently, Maharashtra has 15 to 16 % share in the GDP and it is imperative to develop Maharashtra’s economy by $ 1 trillion to make the country a $ 5 trillion economy. For this, the present growth rate of Maharashtra should go up from 7.3% to 15.4%. For this, the contribution of farm sector should go up to 6%, manufacturing sector to 27% and services sector to 67% need to be increased, the Chief Minister said.

With integrate4d development attention has been given to poverty alleviation work. 6 lakh houses are constructed in rural areas through the PMAY and another 6 lakh would be constructed. Nine lakh houses would be built in urban areas. 18000 projects have registered under Maha RERA with Rs 8 lakh crore investments which are 25% of Maharashtra’s state GDP. The speedy development in this sector will be conducive to $5 trillion economy.

Basic facilities and Maharashtra:

Massive investments are done in Sagar Mala, Bharat Mala, port development, airports, railway development etc. projects. The speed of road construction per day has increased by five to ten times. Maharashtra is ahead in basic facilities development and 51 % of such works are going on in the state. This will help develop Maharashtra economy by $ 1 trillion. The 70-0 km Samruddhi Mahamarg will connect 14 backward districts and JNPT port. This will lead to creation of jobs on large scale as more logistic development would come up.

Metro network is growing fast. Mumbai Trans-harbour link, airport development at Mumbai, Pune and Nagpur, bullet train, growing railway network etc. help Maharashtra economy to march fast on to the target of becoming $1 trillion economy. The process of land acquisition has been simplified. The land acquisition for 700 km Samruddhi Mahamarg has been completed in one year, Fadanvis said.

With the help of World Bank, SMART scheme is launched in 10000 villages. This would help farmers to sell their products in the market directly. Jalyukt Shivar is the ambitious program of the state. 16000 villages in the state are made self – reliant in water supply through this scheme. The agricultural production was 180 lakh MT in 2012-13 with 109% of rainfall. But last year we had only 84% rainfall but the agricultural production remained the same as we have reduced the level of dependency on rainfall, he added.

Maharashtra is the most favoured destination of direct foreign investment; the Chief Minister said adding that growing urbanization is not a challenge but an opportunity. Cities are proving to be growth engines and GST, DBT, E-administration have ushered in an era of corruption-free India and transparency in the working of the system.

V Vaidyanathan of Capital First and Times Network CEO M K Anand expressed their thoughts on the occasion. They dealt with difficulties, way outs and measures to achieve the $ 5 trillion economy.