According to the report, released a day before presentation of the annual Budget for the 2023-24 financial year, Odisha can grow in the range of 8 to 8.5 per cent in 2023-24 in real terms.
Odisha’s economy is projected to grow at 7.8 per cent during 2022-23 which is higher than the pre-Covid average growth of 7.1 per cent during 2012-13 to 2019-20, said the Odisha Economic Survey released Thursday.
Odisha’s growth performance in 2022-23, despite unfavourable global conditions, is one of the highest in the country. It is also higher than the national growth rate of 7 per cent for the current financial year, the survey report added. The growth of the state in 2021-22 was estimated at 11.5 per cent.
“The decade of 2021-30 is expected to work in favour of India given its demographics structure, usage of technology, push for innovation, competitive and cooperative federalism, stable government. Odisha has all the resources to benefit from a high growth environment in the country and deliver prosperity for all,” said the survey report.
According to the report, released a day before presentation of the annual Budget for the 2023-24 financial year, Odisha can grow in the range of 8 to 8.5 per cent in 2023-24 in real terms assuming a normal monsoon, no further disruption to global supply chains and moderation in inflation.
Odisha’s per capita income (PCI) at current price is also estimated at Rs 1,50,676 in 2022-23 compared to the national PCI of 1,70,620. “In the past seven years, the state has successively reduced the gap between Odisha’s PCI and the PCI at the all-India level from 31.6% in 2015-16 to 12% in 2022-23,” said the survey report.
The compound annual growth rate (CAGR) of Odisha’s PCI during 2011-12 to 2022-23 was 10.9 per cent as against 9.4 per cent CAGR of India’s per capita income.
As the inflation of Odisha till December 2022 was 6.56 per cent higher than 3.7 per cent in 2021-22, the report attributed it to global factors like disruption in the supply chain due to the Russia-Ukraine war, upward movement in energy and other commodity prices.
High fuel prices globally have been the key driver for such high inflation, said the survey report adding Odisha’s average inflation rate (6.56 per cent) during April-December 2022 is lower than that of all-India inflation rate of 6.81 per cent during the period.
“A well targeted and effective public distribution system focusing on food grains and the mid-day meal scheme and efficient supply management practices have been immensely helpful in moderating prices in the state,” said the Economic Survey.
The major sectors — agriculture (22.5 per cent), industry (41.3 per cent) and services (36.2 per cent) — which contribute to the growth of Odisha’s economy are estimated to grow in the 2022-23 financial year. While the agriculture sector will grow at 6 per cent higher than the all-India rate of 3.1 per cent during the year, the growth of industry and service sector is estimated at 6.05 per cent and 8.79 per cent during the fiscal year, respectively.
The capital outlay as percent of gross state domestic product (GSDP) in Odisha is one the highest among the major states which creates a solid ground for the private sector to flourish and boost economic activity in the state, said the report.
According to the report, Odisha has improved its share in India’s GDP, recording a rise from 2.64 per cent in 2011-12 to 2.8 per cent in 2022-23.
