The Business Bytes
Bhubaneswar, July 24, 2024 (TBB Bureau): Odisha’s economy has demonstrated significant progress, with an impressive growth rate of 8.5 per cent for the 2023-24 financial year, according to the latest Economic Survey report tabled in the state assembly on Wednesday. This marks a notable increase from the 7.9 per cent growth achieved in the previous fiscal year.
The survey highlights that Odisha’s economic size has reached approximately Rs 8.3 lakh crore (around USD 100.6 billion). Despite this robust growth, the state’s per capita income stands at Rs 1,61,437, which is 12.4 per cent lower than the national average of Rs 1,84,205. Among the 17 major states, Odisha ranks 11th in per capita income, with Telangana, Karnataka, Haryana, Tamil Nadu, and Gujarat leading the pack. The average per capita income of these top five states was nearly Rs 2.92 lakh in the 2022-23 fiscal year.
Agriculture and allied sectors, a critical part of Odisha’s economy, grew at 3.5 per cent and contributed 20.4 per cent to the Gross State Value Added (GSVA). With over 48 per cent of the workforce dependent on agriculture, this sector is crucial for rural income and consumption. The report advocates for a greater focus on livestock, horticulture, and fisheries to further diversify these sectors.
The industrial sector also saw substantial growth of 8.7 per cent, contributing 43.2 per cent to the GSVA. Mining continues to play a pivotal role in the state’s economy, with its impact extending to strong manufacturing activities. The service sector grew at 9.2 per cent, accounting for 36.3 per cent of the state’s economic output and employing 26 per cent of the total workforce.
Odisha’s merchandise exports reached nearly Rs 90,000 crore in the fiscal year 2022-23, placing it 10th among major states with a 2.5 per cent share of national exports. The state’s key export items include metallurgical products (69.1 per cent), minerals (15.2 per cent), and engineering, chemical, and allied products (9.6 per cent). Marine products and textiles contribute a smaller share of 4.9 per cent and 0.6 per cent, respectively.
The survey also reports progress in poverty reduction, with the multidimensional poverty headcount ratio dropping from 29.3 per cent in 2015-16 to 15.7 per cent in 2019-21. More than 62 lakh people have risen above the poverty line during this period. However, Odisha still ranks sixth among major states for high poverty incidence.
On the fiscal front, Odisha has maintained its key fiscal indicators within the Fiscal Responsibility and Budget Management (FRBM) limit. The fiscal deficit to GSDP ratio has improved from 3.5 per cent in 2019-20 to 3.1 per cent in 2023-24.
Agricultural achievements include a record foodgrain production of 141.4 lakh metric tonnes in 2022-23, marking a 24.2 per cent increase from the previous year. Odisha remains the fifth-largest rice producer in India, contributing 7 per cent to the national total. The state has also seen a rise in agriculture credit disbursement and improvements in meat and milk production, although per capita availability of milk and eggs remains below the national average.
In terms of public health, life expectancy in Odisha has increased significantly by 9.9 years, reaching 70.3 years as of 2016-2020. Despite this progress, life expectancy in Odisha remains lower than in seven other major states.
Inflation in Odisha stood at 6.5 per cent for the fiscal year 2023-24, exceeding the national average of 5.4 per cent and being the second-highest among major states, with only Haryana reporting a higher rate.
Overall, the Economic Survey reflects a period of dynamic growth and development for Odisha, with notable achievements across various sectors and ongoing challenges to address for future advancement.
