Fadnavis paints a grimpicture of economy
22-12-2015 00:09

CM blames agrarian crisis; Chavan says it’s a testimony of govt’s failure

The ongoing agrarian crisis will hamper Maharashtra’s growth in the coming year, said Chief Minister Devendra Fadnavis on Monday. The CM’s admission comes amidst criticism of the government’s failure to attract investments in Maharashtra and its inability to handle the agrarian crisis.

The Hindu had reported on December 21 that farmer suicides in 2015 were the highest since 2001. Despite the government’s announcements of relief packages, the crisis does not seem to be ending.

“The State has faced drought for over three years. The growth rate in the agrarian sector will be negative. That means the economy will be affected,” the CM said in an interaction with presspersons on the sidelines of the winter session of the legislature.

“There will be a lull in the service sector due to this, which will in turn affect the manufacturing sector. It is difficult to expect the expansion of the economy in the coming year,” said Mr Fadnavis. The government is working to devise different strategies for investments. “More investment in agriculture can yield results for the future,” he said.

Former Chief Minister and Congress leader Prithviraj Chavan slammed Mr Fadnavis over his remarks, and said it was a testimony of the government’s ‘failure’.

“We do not deny the agrarian crisis. But has the government done anything to resolve it? The government has not been able to bring in any investment ever since it came to power. Now it is blaming the crisis for its failure,” he told The Hindu, adding that the BJP-led government could not develop an investment-friendly atmosphere.

Mr Chavan was referring to one of the replies under the Right to Information, which was submitted in the State Council by opposition leader Dhananjay Munde last week. According to the reply from the Industry Department, while the assured foreign investment was around Rs 41,400 crore, none of it has been signed on paper.

According to Mr Fadnavis, even though the State has adopted a model for ‘ease of doing business’, it is now facing a tough challenge from other States.

“Others are giving away many concessions to industries, which we sometimes cannot manage. But I am sure we will start giving out results soon,” he said.

Reference