The Odisha Economic Survey says the state has registered a growth rate much higher than India’s GDP growth rate of 8.8% according to the first flash estimate.
The Odisha Economic Survey says the state has registered a growth rate much higher than India’s GDP growth rate of 8.8% according to the first flash estimate.
Odisha’s economy has recovered strongly in 2021-22, with gross domestic product (GSDP) registering a 10.1% growth rate, according to the Odisha Economic Survey presented at the assembly on Tuesday.
“It is one of the fastest growing states in the country and has recorded a growth rate much higher than India’s GDP growth rate of 8.8% according to the first flash estimate,” it said.
Noting that Odisha faced the adverse effects of COVID-19 as the GSDP shrank by 5.3% in 2020-21 while India’s GDP contracted by 6.6%, the report states that the state has been far more resilient and has returned to pre-pandemic levels much more quickly.
“While India’s real GDP grew by 1.6% from 2019-20 to 2021-22 excluding the COVID year 2020-21, the comparable figure for Odisha is 4.2%. Odisha’s recovery is not only faster, but also broader.”
The survey has forecast that the GSDP could grow by 9-9.5% in 2022-23 if there is a normal monsoon, no further damaging waves of coronavirus mutations and induced economic disruptions, stable oil prices and steady easing the supply chain.
However, the Economic Survey expressed concern about the Russia-Ukraine conflict, saying it could bring further uncertainty.
It paints a rosy picture of the state’s financial health, stating that Odisha’s per capita income also grew at a double-digit rate of 16.8% in 2021-22.
“The average growth of Odisha’s per capita income over the last 10 years (2012-13 to 2021-22) is 10.3% compared to a growth rate of 9.15% in the case of India. The per capita income of Odisha from ₹48,499 in 2011-12 has reached ₹1,27,383 in 2021-22,” the survey said.
Although Odisha’s per capita income is still lower than that of India, the rate of growth implied that it would soon exceed the country’s level. Odisha’s per capita income is 76% of India’s per capita income in 2011-12. (In 2021-22 it is now at 84.7%), according to the survey.
According to the report, between 2011/12 and 2019/20 there were only nine states including Odisha whose per capita income rank has improved, while in the case of 10 states there has been no rank change and another 10 states have in the ranking per capita income has fallen.
The improvement in per capita income is mainly due to growth in industry (14.5%) and services (7.9%).
The survey indicates that the agriculture and related sector has experienced a 3.4% decline in 2021-22 due to drought, unusual rain and cyclone. Inflation was estimated at 5.3%.
