Ch 4 MSBSHSE-Class-11-Economics-Textbook-2021-22English-34-40.pdf

CHAPTER - 4 : THE ECONOMY OF MAHARASHTRA Introduction : The state of Maharashtra came into existance on 1st May 1960. The state economy has achieved a distinguished status as a result of the collective efforts of its people. M...

CHAPTER - 4 : THE ECONOMY OF MAHARASHTRA Introduction : The state of Maharashtra came into existance on 1st May 1960. The state economy has achieved a distinguished status as a result of the collective efforts of its people. M A D H Y A P R A D E S H Nandurb C ar Gondia Bhand G U JARAT Nagpur H Amravati H ar a Dhule Dadra Jalgaon A And Akola Wardha Nagar Haveli Buldhana T Yavatmal Chandrapur T Daman Nashik Washim (Daman and Diu) I Palghar Aurangabad Jalna Hin Gadchiroli S gol i G Thane Ahmadnagar A Mumbai Suburban Parbhani R District Beed T E LAN GANA Nanded Mumbai City H District Pune Rai Latur AR gad Osmanabad MAHARASHTRA AB Satara Solapur A Administrative Divisions IA K N N A Ra tna Sangli T SE gir A i Kolhapur A N R Si nd A hu du K rg 0 60 120 Kilometres GOA Administrative Divisions of Maharashtra : 3) It is the most urbanized state with 45.20% As per Economic Survey of Maharashtra of its population living in towns and cities. 2017-18, the state has been divided into 36 districts 4) According to 2011 census, the sex ratio of under 6 revenue divisions viz, Mumbai, Pune, Maharashtra was 929 females per 1000 Nasik, Aurangabad, Amaravati and Nagpur, for males. administrative reasons. 5) The state literacy rate was 82.3% as per Important features of the economy of 2011 census. Maharashtra : 6) According to the Economic Survey of 1) Maharashtra is the second largest populated Maharashtra for 2016-17, the State had state in the country, the population of the the highest growth of GSDP (Gross State state was 11.24 crores during 2011. Domestic Product) and State Per Capita 2) Maharashtra is the third largest state in Income (SPCI) in comparison with other the country in terms of geographical area states. measuring about 3.08 lac sq. kms. 7) The state economy is characterised by 24  i) abundant natural resources General problems in the agricultural sector : ii) availability of skilled manpower i) Decrease in the average size of land iii) technological advancement holdings leads to low farm productivity. iv) developed infrastructure. ii) Increase in the number of small and 8) Maharashtra is the most favoured destination marginal farmers. for creativity, skill development, investment iii) Excessive use of chemical fertilizers and and tourism. pesticides, leading to soil degradation. Economic development of Maharashtra : iv) Agricultural indebtedness. v) Poor implementation of land reforms and adverse crop pattern. vi) Dry land and inadeqate irrigation facilities. vii) Lack of capital viii) Improper implementation of rural development plans. ix) Lack of marketing facilities x) Impact of climatic changes Think about it : What will happen if the farmers sell their farm produce without the middlemen? Measures undertaken by the Government for Fig. 4.1 : Economy of Maharashtra agricultural development (Economic Survey A) Agricultural sector : Agriculture and of Maharashtra 2017-18) : allied activities play an important role in 1) Distribution of quality seeds at reasonable the economic developmant of the state. rates. As per Economic Survey of Maharashtra 2017-18, the share of agriculture and allied 2) Increased number of outlets for fertilizer activities in the total Gross State Value and pesticide distribution. Added (GSVA) was 12.2% during 2016- 3) Development of irrigation facilities. 17 as against 15.3% during 2001-02 which 4) Electrification of agricultural pumps and shows a declining trend over the period. efforts to provide 'electricity on demand'. 5) Financial assistance as per requirements. 6) Setting up of Agriculture Produce Marketing Committees (APMC), establishment of agro export zones, horticultural training centres, grading and packing facilities for effective distribution. 7) Creating awareness about agricultural information through the use of mass media for making agriculture a profit making business. B) Industry : Maharashtra is an industrially Fig. 4.2 : Agriculture advanced state. Industrial sector plays a 25  major role in the economic development of 4) Lack of infrastructural facilities. Maharashtra. It has the potential to absorb 5) Lack of motivation to new enterpreneurs. excess labour from the farming sector,. It 6) Lack of development programmes. leads to diversification of markets, generates 7) Regional imbalance higher incomes and higher productivity. As per Annual Survey of Industries (ASI) 2016- Measures undertaken by the Government for 17, the industrial sector of Maharashtra is industrial development (Economic Survey of at the top position. The share of industry Maharashtra 2017-18) : in the Net Value Added (NVA) is about 1) Single window cell was initiated to provide 18%. Maharashtra has also been the first all clearances to the existing and prospective choice of domestic and foreign investors. investors. 2) Maharashtra Industry, Trade and Investment Facilitation Cell (MAITRI) was introduced to provide online consolidated information about the investment process. 3) Awards for export performance, space rent subsidies are provided to small scale industries to encourage participation in international exhibitions. 4) Creation of Special Economic Zones (SEZ) Fig. 4.3 : Industry to boost industrial growth. Find out : 5) Maharashtra State Industrial Cluster Development Programme (MSICDP) is being Names of any five enterprises from implemented all over the state to develop each category producing the following small, medium and micro enterprises. goods in Maharashtra : chemicals, food processing, textiles, automobile, I.T. and C) Service Sector : Service sector consists of pharmaceuticals. insurance, tourism, retail banking, education and social services. Service sector includes Foreign Direct Investment (FDI) : provision of services to business as well as In the early 1990s, the Government of final consumers. India started amending the norms capping    Service sector is the largest employment foregin direct investment in certain sectors. The generating and fastest growing sector of liberalisation act of 1991 cleared the path of the economy. The contribution of service FDI. Maharashtra has been consistently ranked sector to the Gross State Domestic Product as the number one investment destination in (GSDP) has been the highest compared to India. The State has remained in the forefront the other sectors in the economy. It was in terms of FDI inflow in the country. The FDI 54.5% during 2017-18. inflows in Maharashtra since April, 2000 till September 2017 was ` 6,11,760 Crore which is   The core areas for development of 31% of the total FDI inflow at all India Level. service sector include Fintech, IT/ITES, start ups, cloud computing, electric vehicles, General problems in the industrial sector : defence, tourism and private universities. 1) Delays in government procedure Government has also tried to expand 2) Lack of opportunities for skill development. the service sector by various activities in 3) Lack of updated technology. Tier II cities. 26  7) Internet subscriber base was 5.45 crore in Try this : Maharashtra as on 30th September 2017, Classify the services mentioned in which is the highest among all the states. the previous paragraph into services for b) Social infrastructure : Social infrastructure business and services for final consumers. is also one of the important components of the Core Areas of Service Sector : economy because it improves the quality of human life as well as stimulates the economic Infrastructure : development. It not only improves the quality Infrastructure is the basic requirement for but also gives the power to produce knowledge. economic development. A sound infrastructural Social infrastructure includes literacy foundation is the key to overall socio-economic programme, education, public health, housing, development of the state. This acts as a magnet drinking water and sanitation. for attracting additional investment into the state Measures undertaken to develop Social and thus provides a competitive edge to it over Infratructure : other states. Adequate infrastructural facilities are an absolute necessity for rapid achievement i) Education : of sustainable economic growth. Education is considered as one of the Classification of Infrastructure basic human needs. It forms the backbone of socio-economic development of any country. Education is significant aspect of human resource Economic Infrastructure Social Infrastructure development (HRD). In the present scenario, India Energy Transport Communication Health   Education is getting the advantage of highest demographic dividend due to maximum percentage of young a) Economic Infrastructure : It facilitates population in the country. Education, therefore production and distribution of goods and services becomes 'a priority' at the national as well as state for economic development. level. The state of Maharashtra has implemented various educational schemes to achieve the goal Measures for development of economic of education. There are four levels of education in infrastructure : our country. 1) Increasing installed capacity of electricity 1) Primary 2) Secondary   generation. 3) Higher Secondary 4) Higher education 2) Rural electricification, network improvement a) Primary education : The state of and programmes for energy conservation. Maharashtra has implemented the Right to 3) Modified direct benefit transfer scheme to Education (RTE) of children in the age group LPG consumers in the state. 6-14 years to provide free and compulsory education under the Sarva Shiksha Abhiyan 4) Road development plan (2001-2021) is (SSA). The expenditure of the State government being implemented in the state with a target on primary education was `19,486 crores during to develop 3.37 lakh kms of road. 2016-17. 5) Metro Railway has started at Mumbai and Primary (Std. I to VIII) Educational Nagpur. Institutions and Enrolment 6) Maharashtra Port Development Policy Year Number Total No. of Pupil- was constituted for integrated development of Enrolment Teachers Teacher of ports. State government is promoting Schools (in lakhs) (in lakhs) Ratio Sagarmala programme launched by the 2016-17 1,04,971 159.86 5.30 30.1 central government for port led development. Source : Economic Survey of Maharashtra 2017-18 27  b) Secondary and Higher Secondary d) Others : Education : Rashtriya Madhyamik Shiksha 1) Inclusive education : This is for Abhiyan (RMSA) was launched in 2009 differently abled children with special needs. with the objective to improve the access as 2) Girls' Education : Various schemes well as the quality of secondary education. to promote girls' education such as free During 2016-17, the State government’s education till the higher secondary level, expenditure on secondary and higher free of cost S.T. bus service for school secondory education was `16,089 crores. going girls in rural areas, bicycles to needy Secondary and Higher Secondary (Std. girls living within 5 kms from schools have IX to XII) Educational Institutions and their been introduced by the Government of Enrolment Maharashtra. Year Number Total No. of Pupil- 3) Adult Literacy : To increase adult of Enrolment Teachers Teacher literacy in the state, innovative schemes Schools (in lakhs) (in lakhs) Ratio like ‘Each one Teach one’, ‘Sakshar Bharat 2016-17 25,737 66.15 2.13 31.1 Abhiyan’ are implemented with community Source : Economic Survey of Maharashtra 2017-18 participation. 4) Tribal Education : Government of c) Higher education : Apart from Maharashtra has introduced residential universalization of primary education, the Ashram Schools in the tribal areas of Government of Maharashtra is taking efforts the state. Tribal students are provided to expand opportunities in higher education accommodation, food, uniforms, educational also. Higher education helps in creating materials and other concessions free of cost. technical and skilled human resources which There are 556 aided Ashram Schools in the is an important input necessary for overall state. Government hostel facility is provided economic development. There are 22 state at division, district and taluka levels to universities, out of which 4 universities are for encourage tribal students to pursue higher agriculture, one university for health science studies. courses, one university for veterinary science, one for technology and 15 other universities Find out : for general courses. In addition to these, there Symbols of the following : are 21 autonomous universities, one central Sarva Shiksha Abhiyan (SSA) university, 4 private universities and 5 institutes of national importance in the state. Rashtriya Madhyamik Shiksha Abhiyan To meet the challenges of liberalization, (RMSA) privatization and globalization, the state Adult Literacy Mission (ALM) enacted the new Maharashtra Public Universities Act, 2016. Key focus of this ii) Health Services : Act is to promote academic autonomy and There were 1814 primary health centres excellence, skill based education through and 360 community health centres in the state as democratic process in higher education. on 31st March 2017. Government of Maharashtra Maharashtra is also the first state in the also emphasizes on programmes to strengthen country to receive RUSA grant of ` 20 crore health system in rural and urban areas through under Research and Innovation and Quality National Rural Health Mission (NRHM) and Improvement for setting up innovation National Urban Health Mission (NUHM). and technology transfer hubs. Rashtriya These programmes include health determinants Uchchatar Shiksha Abhiyaan (RUSA) is a like sanitation and hygiene, nutrition and safe centrally sponsored scheme launched by the drinking water. The Government of Maharashtra Government of India in 2013. 28 has created a three tier health infrastructure to tourism and event management are also a part provide comprehensive health services. of this sector. Primary tier includes Primary Health Centres and Community Health Centres. The Secondary Entertainment Industry : tier includes sub district hospitals and district India produces the largest number of hospitals. films in the world. Maharshtra has played a The tertiary tier includes well equipped remarkable role in this. Entertainment sector of medical colleges and super speciality hospitals Maharshtra generates employment opportunities located in major cities. to large number of people. Kolhapur has been a worth mentioning city for regional films. Tourism : Mumbai, popularly known as 'Bollywood' has a great impact on the global film industry. Maharashtra attracts many tourists from different states and abroad too. To promote D) Co-operative Movement in Maharshtra : the state as a leading tourist destination, the Co-operative movement is the greatest government has formulated Maharashtra contribution given by the state of Maharashtra Tourism Policy, 2016. to the country. Objectives of tourism policy include :  To make Maharashtra a leading tourist destination by 2025.  To attract investments to the tune of ` 30,000 crore.  To create one million additional jobs in the industry. Maharashtra Tourism Development Corporation (MTDC) is the nodal agency for implementation of this policy in the state. MTDC organises different events such as Ellora festival, Elephanta festival etc. MTDC has also launched the scheme of Fig. 4.4 : Co-operative Movement ‘Mahabhraman’ to bring different experimental Co-operative Movement is an effective projects such as agro tourism, village tourism, instrument in the economic development of rural food tourism, safaris, tribal lifestyles etc. under areas and improving socio-economic conditions one roof. of the under- privileged in Maharshtra. The basic nature of co-operative societies is to encourage Hospitality : the values of self help, democracy, equality and solidarity. Hospitality is a much broader industry Co-operative movement in Maharashtra than other industries. It has grown manifold in was confined mainly to the field of agricultural Maharashtra due to flourishing tourism. One credit but subsequently extended to other of the most defining aspects of this industry is sectors such as : that it focusses on customers' satisfaction. Hotel  agro processing industry is one of the sectors of the hospitality industry. Many forms of transportation that  agro marketing cater to the tourists are also part of this business,  sugar co-operatives e.g. Airlines, Mumbai-Goa cruiseship, fancier  fisheries co-operative societies trains (Deccan Odyssey), restaurants, general  co-operative dairy societies 29  textiles As on 31st March 2017, there were about  housing societies 1.95 lakh co-operative societies in the state with  consumer stores about 5.25 lakh members. EXERCISE Q. 1. Give economic terms : 2) Agriculture sector and Service sector 1) Investments done by foreign companies in our 3) Tourism and Hospitality country 4) Education and Health services 2) Programme for development of small, medium and Q. 5. Answer the following : micro industries. 1) Explain the role of Co-operative movement in 3) Basic requirement for facilitating production and Maharashtra. distribution of goods and services for economic development. 2) Explain in detail measures taken by the government 4) Movement that promotes values of self-help for agricultural development of Maharashtra. democracy and equality. 3) Explain the major problems in the industrial sector Q. 2. Find the odd word out : of Maharashtra. 1) Agricultural Indebtedness, dry farming, lack of 4) Explain the measures taken to develop social capital, engineering infrastructure in Maharashtra. 2) Tourism, Banking, Automobile Production, Q. 6. Read the following passage and answer the Insurance questions given below : 3) Pune, Hyderabad, Nasik, Nagpur Government of India has launched an ambitious 4) MTDC, MAITRI, SEZ, MIDC programme of 'Bharatnet' for rural India by keeping in 5) Primary education, Hospitality, Higher education, mind today's modern era. More than one lakh rural Skill based education. (Grampanchayat) areas have been connected under Bharatnet high speed broadbrand scheme. Maharashtra Q. 3. Identify and explain the concepts from the given has become the best performing state. East Uttar Pradesh, illustrations : Chattisgarh, Rajasthan and Jharkhand have also been 1) To facilitate research in robotic technology, Japan placed among the best performing states in the first phase has invested ` 1000 crores in India of Bharatnet broad band connection scheme. 2) Prajakta and her family visited the beaches during 1) Why did the Government of India launch the her eight-day Diwali vacation. Bharatnet project? 3) Pravin from Latur works as a technician in the 2) How many Grampanchayats have received the films division at Mumbai city. Internet service? 4) Rani Gond from Chandrapur works as a hostess 3) Which states have been placed as the best with the Mumbai-Goa cruise ship. performing states in the first phase of Bharatnet? 4) 'Internet has brought the world closer' - Express Q. 4. Distinguish between : your views on it. 1) Economic Infrastructure and Social infrastructure  30