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Odisha’s economy rebounds in 2021-22, says survey

The average growth of the state’s per capita income over the last 10 years is 10.3 per cent against India’s 9.15 per cent
Naveen Patnaik.
Naveen Patnaik.
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Subhashish Mohanty   |   Bhubaneswar   |   Published 30.03.22, 12:34 AM

Odisha’s economy has seen a rebound in 2021-22 despite the second and third wave of Covid-19 hitting the state.

The real GSDP (Gross State Domestic Product) has grown at a rate of 10.1 per cent as per advanced estimate, which is much higher than the national growth rate of 8.8 per cent, revealed the Odisha Economic Survey 2021-22 that was tabled in the Odisha Legislative Assembly on Tuesday.

The chief minister’s office (CMO) tweeted, “ With prudent financial planning, Odisha’s GSDP grew at 10.1% in 2021-22 compared to 8.8% growth in India’s GDP. Odisha economy continues to grow at a spectacular rate averaging a real growth rate of 9.2% from Financial Year 2017 to Financial Year 2022, leaving aside the Covid-19 Year.”

CMO further tweeted, “With rapid economic growth, capital investment, employment generation, Odisha’s per capita income grew at 11.6 per cent between Financial Year 2017 to Financial Year 2022, compared to 8 per cent growth at national level. Odisha’s per capita income grew from Rs 48,499 in 2011-12 to Rs 1,27,383 in 2021-22.”

“This has been possible due to the developmental approach of the Government, effective handling of the pandemic and vaccination in full swing and proactive fiscal measures. Per capita income of Odisha has grown at a double-digit rate of 16.8 per cent in 2021-22,” said Development Commissioner P.K. Jena, adding that this can be attributed to rapid economic growth, capital investment, employment generation and stabilization in population.

The average growth of Odisha’s per capita income over the last 10 years (2013 to 2021-22) is 10.3 per cent against India’s 9.15 per cent.

As per the Economic Survey report, the broad industries sector has shown steady recovery from the impact of Covid-19 loss and registered 14.46 per cent growth in 2021-22. “In 2021-22, agriculture and allied activities contributed 20.61 per cent, Industry contributed 39.51 per cent and services contributed the remaining 39.88 per cent to GVA (Gross Value Added),” the report reveals.

Jena maintained that “start-up policy, Make-in-Odisha conclaves, and various facilitation measures for ease of doing business have helped boost mining and manufacturing activity, attracted investors to the State and the state is gradually becoming the industrial hub of the eastern region of the country. Industries and Service sector have become the lead sectors and the new driver of growth in Odisha”.

Stating that Odisha’s aim is to build a “New Odisha, Empowered Odisha,” chief secretary Suresh Chandra Mohapatra said: “The state’s GSDP contracted by 5.3 per cent in 2020-21 which is lower than the contraction experienced at all India level, i.e. 6.6 per cent. In spite of the adverse impact of Covid-19 second wave, the state economy is likely to grow by 10.1 per cent in 2021-22. The rebound in growth is attributed to robust growth in the manufacturing sector.”

Finance secretary Vishal Kumar Dev said: “The state has consistently generated revenue surplus and has maintained gross fiscal deficit within the threshold limit set by the Fiscal Responsibility and Budget Management (FRBM) Act. Odisha is one of the few states in the country to have managed the state’s finances very well without breaching the FRBM Limits and did not resort to high cost borrowing during the pandemic.

On a year-on-year basis, in January 2022, Odisha reported inflation at the rate of 4.5 per cent.

The average inflation rate was 6.2 per cent in neighbouring states and 6 per cent in major states, the survey report points out.

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