Chapter-3- Profile of the Study Area
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Chapter-3- Profile of the study area 3.1. Introduction This research study has been conducted among the consumers and retailers belonging to Pimpri-Chinchward area of Pune District, one of the important industrial centers of Maharashtra state. A detailed review of the economic and demographic features of Maharashtra state is necessary to understand the economic behaviour of the sample population. 3.2. Overview of Maharashtra State- Maharashtra occupies the western and central part of the country and has a long coastline stretching nearly 720^ kilometers along the Arabian Sea. The Sahyadri mountain ranges provide a physical backbone to the state on the west, while the Satpuda hills along the north and Bhamragad- Chiroli-Gaikhuri ranges on the east serve as its natural borders. The State is surrounded by Gujarat to the north west, Madhya Pradesh to the north, Chattisgarh to the east. And lira Pradesh to the south east, Kamataka to the south and Goa to the south west. The State enjoys a tropical monsoon climate, the hot scorching summer from March onwards yields to the rainy monsoon in early June. The rich green cover persists with mild winter during monsoon season that follows through an unpleasant October transition. The seasonal rains from the western sea-clouds are very heavy and the rainfall is over 400 cm. on the Sahyadrian crests. The Konkan on the windward side is also endowed with heavy rainfall, declining northwards. East of the Sahyadri, the rainfall diminishes to a meager 70 cm. in the western plateau districts, with Solapur-Ahmednagar lying in the heart of the dry zone. The rains increase slightly, later in the season, eastwards in the Marathwada and Vidarbha regions. Maharashtra is the second largest state in India, both in terms of population and geographical area (3.08 lakh sq. km.). ' Economic Survey of Maharashtra-2012-13. 23 The State has a population of 11.24 crores (Census 2011) which is 9.3 per cent of the total population of India. The State is highly urbanized with 45.2 per cent people residing in urban areas. The State has 35 districts which are divided into six revenue divisions viz, Konkan, Pune, Nashik, Aurangabad, Amravati and Nagpur for administrative purposes. The State has a long tradition of having statutory bodies for planning at the district level. For local self-govemnnce in rural areas, there are 33 Zilla Parishads, 351 Panchayat Samitis and 27,906 Gram Panchayats. The urban areas are governed through a total of 26 Municipal Corporations, 219 Municipal Councils, 7 Nagar Panchayats and 7 Cantonment Boards. Mumbai, the capital of Maharashtra and the financial capital of India, houses the headquarters of most of the major corporate & financial institutions. India's main stock exchanges & capital market and commodity exchanges are located in Mumbai. The gross state domestic product (GSDP) at current prices for 2011-12 is estimated at Rs.l 1,99,548 crore and contributes about 14.4 per cent of the GDP. The GSDP has been growing at a rapid pace over the last few years. Presently industrial and services sector both together contribute about 87.1 per cent of the State's income. The agriculture & allied activities sector contributes 12.9 per cent to the State's income. The State has 226.1 lakh hectares of land under cultivation and area under forest is 52.1 lakh hectares. Numbers of irrigation projects are being implemented to improve irrigation. A watershed mission has been launched to ensure that soil and water conservation measures are implemented speedily in the no irrigated area. Animal husbandry is an important agriculture related activity. The State's share in livestock and poultry population in India is about 7 per cent and 10 per cent respectively. Agricultural activities concentrated mainly in rural districts of the state. Maharashtra is the most industrialized State and has maintained leading position in the industrial sector in India. The State is pioneer in Small Scale industries. The State continues to attract industrial investments from both, domestic as well as foreign institutions. It has become a leading automobile production hub and a major IT growth centre. It boasts of the largest number of special export promotion zones. The State has given importance to primary education, which has resulted in consistent improvement in literacy rate. The literacy rate of the State is 82.9 per cent as against 74 per cent at national level as per Census 2011. The State is providing free education to girls studying up to XII standard. The State has 24 excellent higher educational institutions in the fields of engineering, medical and management. Progress on Human Development Index is often depicted as a benchmark of a state's progress of key development indicators. As per India Human Development Report, 2011 Human Development Index of India is 0.467 and State ranks 5th in the country with Human Development Index of 0.572. The State has well spread road network of 2.43 lakh km. (maintained by public works Department and Zilla Parishads). All weather roads and fair weather roads connect more than 99 per cent villages. It has best surface transport facilities and connectivity with sea ports and airports has resulted into good transport system. It has highest installed capacity and generation of electricity in the country. All this has made this state the most favoured destination for investment. The State is well known for its administrative acumen and innovative ideas. The State is first to implement Women policy and engendering the budget by establishing separate Woman & Child Development Department. It is pioneer in implementing its 'Employment Guarantee Scheme' which is replicated by the Government of India. Maharashtra is not just a geographical expression but an entity built on collective efforts of its people. Natural as well as cultural diversities have helped in the development of a unique Marathi culture. It has its own spiritual dimensions and known as Land of Saints. Saints of that time helped the cultural awakening of the region along with their spiritual contribution. Maharashtra has played a significant role in the social and political life of India. Maharashtra's contribution to the freedom struggle against the British is notable and after that it was engaged in the task of nation building. Monuments such as Ajanta, Ellora and Elephanta caves. Gateway of India and architectural structures like Viharas and Chaityas have attracted people from all over the world. Besides the wonderful monuments, segment mix of population and its cultural aspects makes it intra-national. It has produced many important personalities covering almost every aspect of human development. The State has sizable contribution in sports, arts, literature and social services. The world famous film industry, popularly called "Bollywood" is located in Mumbai, a capital city of the State. 25 3.3. State of Economy State Income Gross State Domestic Product (GSDP) at constant (2004-05) prices, as per advance estimates, is expected to grow at 7.1 per cent during 2012-13. The Agriculture sector is expected to grow at (-) 1.4 per cent, restraining the growth of 'Agriculture & allied activities' sector at (-) 2.1 per cent. The Industry sector is expected to grow at 7.0 per cent while, the Services sector is expected to grow by 8.5 per cent. GSDP at constant (2004-05) prices was Rs. 7,87,426 crore during 2011-12, as against Rs.7,35,212 crore in 2010-11, showing an increase of 7.1 per cent as per the first revised estimates. GSDP during 2011-12 at current prices was Rs. 11,99,548 crore, showing an increase of 15.9 per cent over the previous year. Net State Domestic Product (State Income), as per the first revised estimates, was Rs.10,82,751 crore and Per Capita State Income is Rs.95,339 during 2011-12. Prices Avernge Consumer Price Index (CPI) in the State for the period April to December, 2012 for rural and urban areas increased by 9.7 per cent and 9.6 per cent respectively over the corresponding period of the previous year. The year-on-year rate of inflation based on WPI declined from 7.5 per cent in April, 2012 to 6.6 per cent in January, 2013, the lowest in last three years. For 'Food' sub-group, it declined sharply from 10.9 per cent in April to 6.7 per cent in Octolier. Subsequently, it increased to 11.9 per cent in January, 2013. Public Finance The expected Revenue receipts of the State Government was Rs. 1,36,712 crore during 2012-13 (BF), as against Rs.1,25,313 crore during 2011-12 (RE). Tax and non-tax revenue were expected to be Rs. 1,09,023 crore and Rs.27,689 crore respectively. Actual revenue receipts during April to December, 2012 was Rs.96,405 crore (70.5 per cent of budget estimates). Thirteenth Finance Commission has recommended grants-in-aid for specific purposes. This amount received during 2012-13 is Rs. 3,554 crore includes basic grants of 26 Rs. 1,095 crore and performance grants of Rs.751 crore for local self governments. Revenue expenditure of the State Government was expected to be Rs. 1,36,559 crore during 2012-13 (BE) as against Rs.1,27,372 crore during 2011-12(RE). Revenue surplus of Rs. 153 crore and fiscal deficit of Rs. 23,066 crore was projected during 2012-13. Debt stock at the end of 2012- 13 was expected to reach at Rs.2,53,085 crore. The percentage of fiscal deficit to GSDP was 1.7 per cent and debt stock to GSDP was 18.4 per cent during 2012-13, well within the Consolidated Fiscal Reform Path stipulated by the Thirteenth Finance Commission.