Bhubaneswar: Odisha economy is estimated to grow at a rate of 8.5 percent in the financial year 2023-24 as per advance estimate in comparison to 7.9 per cent growth in 2022-23. The growth, however, was concentrated in the industry sector and services sector, as per the State Economic Survey report.
The Economic Survey report, which was laid before the Assembly today also mentioned that State’s per-capita income is estimated to be Rs 1,61,437, which is 12.4 percent less than India’s per capita income of Rs 1,84,205.
While State’s per-capita income since 2015-16 has grown at a CAGR of 12.1 per cent, still Odisha ranks 11th among 17 major States.
The agriculture and allied sectors are estimated to grow by 3.5 percent in 2023-24 which contributed 20.4 percent to the Gross State Value Added (GSVA). The State needs to take measures towards crop diversification to enhance productivity and farmer’s income, it said.
Similarly, the industry sector is expected to grow at 8.7 per cent as per advance estimate contributing 43.2 per cent to the GSVA. However, industrial activities in Odisha is concentrated mainly in basic metal and mineral based industries. It needs to put more concerted effort to diversify from mineral based industries to other value-added industries.
The services sector is estimated to grow at 9.2 per cent in 2023-24 contributing around 36 per cent to State economy with an employment share of 26 per cent of total workforce.
While some IT companies have opened their domestic and global operations in Bhubaneswar, the State needs to encourage more IT and ITeS companies to open its operation in Odisha thereby increasing IT/Software exports from the State.
The Tourism sector has immense potential. However, post pandemic the State is yet to recover in terms of tourist footfall. Therefore, the State needs to augment its investment in tourism infrastructure, making Odisha the top tourist destination State.
The state allocated nearly Rs 51,68 crore towards capital outlay in 2023-24, which is 6.2 per cent of GSDP. However, given the infrastructural gap prevalent in the State, the level of Capex spending of the State is likely to increase in the ensuing years.
Foodgrains production in Odisha has reached 141.4 lakh MT in 2022-23 by growing 24.2 per cent from 113.8 lakh MT in 2021-22. Odisha is the 5th largest rice producer in the country with 7 per cent share in total rice production in India as of 2021-22.
Yield of various crops in Odisha is lower than the national average. Rice yield in Odisha is 19 per cent lower than all India level while there is 61 percent yield gap in case of pulses. There is a need to increase yield and improve efficiency to increase farmers’ income.
State Agriculture credit disbursement has increased from Rs 8,520 crores in 2011-12 to Rs 5,4717 crores in 2022- 23. There is an increase in irrigation potential created (IPC) in Odisha from 50 lakh ha to 69.2 lakh ha between 2013-14 to 2022-23.
Odisha has witnessed growth in livestock and fisheries production, contributing to both food security and economic development. Meat production in the state has increased to 226.9 thousand MT in 2022-23 against 216.2 thousand metric tons in 2021-22.
Milk Production in Odisha has increased to 24.8 lakh metric tonnes (LMT) in 2022-23 from 24.0 LMT in 2021- 22. However, per capita availability of milk and eggs in the State is lower than all India average.
Further, State’s mineral revenue has reached to Rs 38,075 crore in 2022-23 providing the state adequate cushion for developmental spending.
Odisha has been able to keep its key fiscal indicators within the Fiscal Responsibility and Budget Management (FRBM) limit. Odisha’s fiscal deficit to GSDP ratio declined from 3.5 per cent in 2019-20 to 3.1 per cent in 2023-24 (budget estimation).