Maharashtra's economic decline: P. Chidambaram critiques ruling coalition's growth claims

With Maharashtra gearing up for elections on November 20 and vote counting set for November 23, Congress veteran P. Chidambaram has raised concerns about the state's economic trajectory under the current ruling coalition.

Speaking in Mumbai, the former Union Finance Minister questioned claims that Maharashtra remains India's top investment destination, citing various indicators of economic decline.

Chidambaram pointed to a significant drop in Maharashtra's GDP growth, from 9.4% in 2022-2023 to 7.6% in 2023-2024, along with widening revenue and fiscal deficits. He also highlighted declines in key sectors, including agriculture, services, trade, transport, communications, and construction, with reductions ranging from 3% to as much as 7-8%.

"How can one claim Maharashtra is economically growing when multiple indicators show otherwise?" he asked.

He further mentioned the state's Gross Ecosystem Product (GEP), which measures nature's contributions to human well-being, has also fallen, emphasizing the broader implications for sustainable development.

Chidambaram linked the economic decline to rising unemployment in the state.

Responding to claims that Maharashtra faces a "mountain of debt," Deputy Chief Minister Devendra Fadnavis countered that the state’s economy, valued at Rs 40 lakh crore, has a debt burden of only Rs 6-6.5 lakh crore, which he argued was manageable.

The Congress leader dismissed the ruling coalition's $1 trillion economy target as vague without a concrete timeline. He compared the claim to the central government’s $5 trillion economy goal, stating that such objectives are meaningless without specific deadlines. "Whether you grow at 3%, 5%, or 8%, you’ll eventually reach the goalpost, but the key question is when," Chidambaram said, drawing an analogy to a journey between Mumbai and Pune that can be completed by any means of transport.

The ruling BJP and its allies have defended their track record, with Union Minister Ashwini Vaishnaw accusing the opposition Maha Vikas Aghadi (MVA) of stalling development. Vaishnaw asserted that only the BJP-led government could transform Maharashtra into a $1 trillion economy.