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.
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