The Maharashtra Economic Survey for 2025-26 reveals a mixed economic forecast for the state. While the agriculture and allied sectors are anticipated to experience a significant slowdown compared to the previous year, the industrial and services sectors are expected to continue on an upward trend. The growth rate for agriculture and allied activities is predicted to decrease to 3.4% in the fiscal year 2025-26 from the robust 9.1% recorded in 2024-25, mainly due to adverse weather conditions affecting crop yields.
The Economic Survey highlights the fluctuating performance of the agricultural sector over the past decade. Despite reaching peak growth of 11.6% in 2020-21 during the Covid-19 period, growth slowed to 4%, 3.2%, and 1.2% between 2021-22 and 2023-24. Although the sector rebounded to 9.1% in 2024-25, it is projected to moderate to 3.4% in 2025-26. Sowing during the kharif season of 2025-26 covered 157.27 lakh hectares, with varying expectations for the production of cereals, sugarcane, cotton, pulses, and oilseeds.
In the rabi season of 2025-26, sowing encompassed 66.98 lakh hectares, with anticipated increases in cereal and pulse production but a decline in oilseed production compared to the previous year. Despite challenges in the primary sector, the secondary and tertiary sectors are poised to bolster the state’s economy. The industrial sector is forecasted to grow by 5.7% in 2025-26, showing an improvement from the previous year’s growth rate of 4.3%.
The services sector, a key pillar of Maharashtra’s economy, is expected to regain momentum after a brief slowdown in the last two years. The Economic Survey underscores the risks posed by climate variability to rural incomes, while also acknowledging the stabilizing influence of steady growth in services and industry on the state’s overall economic outlook.
