Bhubaneshwar: Odisha’s economy is set to grow by 8.5% in the fiscal year 2023-24, a significant leap from the 7.9% growth achieved in the previous year. This optimistic outlook, detailed in the latest Economic Survey report tabled in the state Assembly, highlights substantial growth concentrated in the industrial and service sectors.
Economic Growth and Per Capita Income
The report estimates Odisha’s economy to reach Rs 8.3 lakh crore (approximately USD 100.6 billion) in 2023-24. The state’s per capita income is projected at Rs 1,61,437, which remains 12.4% lower than the national average of Rs 1,84,205. Despite this gap, Odisha’s commitment to accelerating growth initiatives aims to boost per capita income and contribute significantly to India’s ‘Viksit Bharat’ mission.
Sectoral Performance
The industrial sector is expected to grow by 8.7% in 2023-24, making up 43.2% of the Gross State Value Added (GSVA). However, the sector remains heavily focused on basic metals and minerals, indicating a need for diversification into value-added industries.
The services sector is projected to expand by 9.2%, contributing 36% to the state’s economy and employing 26% of the workforce. Although Bhubaneswar has seen an influx of IT companies, further efforts are needed to attract more IT and ITeS firms to boost exports in this sector.
The agriculture sector, contributing 20.4% to the GSVA, is anticipated to grow by 3.5%. Despite being a primary livelihood source for 48% of the workforce, agricultural yields in Odisha lag behind national averages. The state is advised to pursue crop diversification and enhance productivity to improve farmer incomes.
Poverty Reduction and Rural Development
Odisha has made significant strides in poverty reduction, with the multidimensional poverty headcount ratio dropping from 29.3% in 2015-16 to 15.7% in 2019-21, lifting over 62 lakh individuals out of poverty. Despite these gains, Odisha ranks 6th among major states in poverty prevalence.
Rural infrastructure has seen notable improvements, with road coverage expanding from 22,795 km in 2011-12 to 99,446 km in 2023-24. The Labour Force Participation Rate (LFPR) has increased from 51.2% in 2018-19 to 61.3% in 2022-23, with the female LFPR also rising significantly.
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Tourism and Infrastructure
The tourism sector in Odisha holds vast potential but has struggled to regain pre-pandemic visitor numbers. Increased investment in tourism infrastructure is crucial to positioning Odisha as a premier tourist destination.
The state has also expanded its railway and civil aviation networks, connecting to 19 Indian cities and three international destinations: Bangkok, Singapore, and Dubai.
Education and Healthcare
Odisha’s Gross Enrolment Ratio (GER) for upper primary, secondary, and higher secondary levels are 91.3, 80.4, and 43.6, respectively, with extensive support for SC and ST students through residential schools and hostels.
Healthcare improvements include a high rate of institutional births at 92.2%, surpassing the national average. However, the Maternal Mortality Ratio remains higher than the national figure.
Agricultural and Allied Sector Development
Foodgrain production surged to 141.4 lakh metric tonnes in 2022-23, with Odisha ranking as the fifth-largest rice producer in India. The state’s millet production has also seen substantial growth, thanks to the Odisha Millet Mission. Livestock and fisheries sectors have shown promising growth, contributing to food security and economic stability.
Economic Diversification and Future Prospects
Odisha’s reliance on mineral-based industries highlights the need for economic diversification. With substantial mineral revenue and increasing agricultural credit disbursement, the state is well-positioned to invest in broader industrial and service sectors.
The state’s fiscal management remains strong, with key indicators within the Fiscal Responsibility and Budget Management (FRBM) limits. However, the inflation rate of 6.5% in 2023-24, higher than the national average, poses a challenge.
Overall, Odisha’s economic landscape is one of robust growth with a focus on diversification, poverty reduction, and infrastructure development. As the state continues to evolve, strategic investments in key sectors will be essential to sustaining and enhancing its growth trajectory.
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