The Odisha Economic Survey Report 2022- 23, which was tabled in the Odisha Assembly on Thursday, says that the state’s economy has recovered from the pandemic-induced economic shocks.
It maintained that Odisha’s economy is likely to grow by 7.8 per cent in real terms during 2022-23 against 7 per cent at the national level and grow in the range of 8 to 8.5 per cent in real terms in 2023-2024. But it blamed the ongoing war between Russia and Ukraine for the rising inflation.
“Odisha’s growth performance in 2022-23, despite unfavourable global conditions, is one of the highest. During the pre-covid period (2012-13 to 2019-20), the average growth rate of Odisha’s economy was 7.1 per cent. The decade of 2021-30 is expected to work in favour of India given its demographic structure, usage of technology, push for innovation, competitive and cooperative federalism, and stable government. Odisha has all the resources to benefit from a high-growth environment in the country and deliver prosperity for all. Assuming a normal monsoon, no further disruption to global supply chains and moderation in inflation, Odisha can grow in the range of 8 to 8.5 per cent in 2023-2024 in real terms,” the report states.
It says: “The high growth achieved by Odisha needs to be contrasted with the gloomy and uncertain global macroeconomic situation. According to the World Bank’s estimates, the global economy grew by 2.9 per cent in 2022.”
However, the report states that because of the Russia-Ukraine war, there was a disruption in global supply chains and upward movement in energy and other commodity prices and the inflation in 2022-23 has gone up.
“In Odisha, the average inflation till December 2022 was 6.56 per cent, higher than 3.7 per cent in 2021-22. High fuel prices globally have been the key driver for such high inflation. On average, inflation in Odisha (6.56 per cent) has been lower than what is for all-India (6.81 per cent) in 2022-23 (April-December). 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,” the report states.
It says the state’s per capita income in 2022-23 is estimated at Rs 1,50,677 compared to the national per capita income of Rs 1,70,620. It maintains that Odisha is rapidly bridging the gap with some of the high-income states and is progressing at a fast pace.
“Within seven years, the state has successfully reduced the gap between Odisha’s per capita income and per capita income at the national level from 31.6 per cent in 2015-16 to 12 per cent in 2022-23.
The CAGR (compound annual growth rate) of Odisha’s per capita income during 2011- 12 to 2022-23 was 10.9 per cent as against the 9.4 per cent CAGR of India’s per capita income,” says the report.