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Press Release

FICCI - SPJAIN Report and Survey on 'Doubling the Economic Growth' lists steps to create job-led growth in Maharashtra

Oct 31, 2018


FICCI - ANAROCK report on 'Construction and Real Estate Services Sector in Maharashtra' calls for govt. support for risk-prone construction sector

MUMBAI, 31 October 2018. A FICCI-SPJAIN Report and Survey on 'Doubling the Economic Growth: Way forward to Sustainable Job Creation for a Trillion Dollar Maharashtra Economy' focuses on presenting scenarios in which the state would be able to create employment-led growth.

Maharashtra's growth rate has been consistently higher than the national average, except for 2014-15 and grew by 10% in FY 2016-17. This has largely been made possible through productivity growth. While employment has grown but not commensurately with actual growth.

The report suggests that the state government will need to focus on employment generation and lead the way, as it has done in many other parameters, such as exports, FDI inflows, HDI indicators etc. Prof Tulsi Jayakumar, Lead Author and Professor Economics, SPJAIN Institute of Management Research said, "While agricultural sector will need to be given an impetus, the focus should be in sectors which have the highest employment elasticity. These are typically services, as also the manufacturing sector. The government schemes and programs may help significantly in this regard of pushing employment".

The governments focus on start-ups, low cost housing, SMEs, entrepreneurship, especially among women, as also services such as finance and infrastructure is likely to pay rich dividends, she added.

FICCI-ANAROCK Report on 'Construction and Real Estate Services Sector in Maharashtra' dives deep into the construction and real estate services sector's contribution to the state's economy by considering various scenarios and assessing how these sectors can act as pivots to steer towards the 1 Trillion USD Maharashtra economy by 2025.

 

The highlights of the report are:

  • With urbanization rates as high as 45% in the state, India looks upon Maharashtra to be the biggest contributor to $5 trillion economy by contributing $1 trillion by 2024-25.  
  • Construction and real estate services are the biggest contributors to the state's economy. Together these sectors account for nearly 27% to Maharashtra's GDP. With mega planned infrastructure projects such as airports, road/rail connectivity, expressways, etc. and burgeoning real estate developments, construction and real estate services are likely to fuel the state's economy in the future periods as well.  
  • Real estate sector in Mumbai and Pune being the biggest in the country (nearly 7.7 lakh units launched during 2013 till 2018 with an absorption of more than 5.7 lakh units) coupled with the government's continued focus to uplift the infrastructure status of the state is the key to Maharashtra's economic growth.  
  • With a push to affordable housing supported with smooth implementation of RERA which has increased the buyer confidence in the market, real estate services are expected to continue to support the growing economy of the state.
  • Construction industry which involves high risks of delays is a key area where high caution and support from the government's side is expected so that the execution is seamless.

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