Odisha’s economy to contract by 4.92%: Economic Survey Report 2020-21

Bhubaneswar: The economy of Odisha is expected to contract by 4.92 percent in 2020-21, as per the Economic Survey Report 2020-21.

The economy of Odisha has grown at 7.1 per cent per annum during the period 2012-13 to 2019-20 (at constant 2011-12 basic prices) and is expected to contract by 4.92 per cent in 2020-21 as per the Advance Estimates.

The decline in the growth rate between 2019-20 and 2020-21 (Advance Estimate) is attributed to the impact of Covid-19, said the report.

The Agriculture sector of the state is estimated to contract by 6.54 per cent in comparison to a positive growth of 3.40 per cent at national level.

But the industry sector and services sector contracted by 8.83 per cent and 3.18 per cent in Odisha as compared to 9.57 per cent and 8.77 per cent contraction at national level during 2020-21.

The stringent measures imposed by the State Government to contain the spread of Covid-19 in earlier phases and the impact of severe cyclone Amphan had greater impact on Rabi crops.

Similarly, floods in some parts of the State and long dry spells and pest attack on Kharif paddy was accompanied with contraction of livestock sub-sector by 32.97%.

However overall economic base of the state has emerged stronger which resulted in a significantly less contraction of the overall state economy in comparison to National scenario.

The per-capita income of Odisha in 2020-21 is estimated at Rs. 1,02,156 in comparison to Rs. 1,04,566/- in 2019-20. The per-capita income of the State is expected to decline by 2.30% as against the decline of 5.41% at national level.

In spite of devastating impact of Covid-19, the sectoral composition of the State follows almost the similar pattern like previous year.

The agricultural sector, industry sector and services sectors continue to contribute 21.27%, 36.26% and 42.47% to the Gross State Value Added (GSVA) as against the respective shares of 21.38%, 37.92% and 40.70% during 2019-20.

The annual average growth rate of state economy during 2012-13 to 2020-21 is also estimated at 5.72% against the National average of 5.01%.