Bhubaneswar: Odisha economy registered a sharp recovery in 2021-22 as the Gross State Domestic Product (GSDP) has grown at a rate of 10.1 per cent, according to the Odisha Economic Survey for 2021-22.
It is one of the fastest growing states in the country and registered a growth rate much higher than India’s GDP growth rate of 8.8 per cent.
Like the rest of the world, Odisha also faced the adverse impact of COVID-19 and the state’s GSDP contracted by 5.3 per cent in 2020-21 against a contraction of 6.6 per cent in India’s GDP, it said.
However, Odisha economy has demonstrated far more resilience vis-à-vis all India. The state economy reverted to the pre-Covid level much faster.
While India’s real GDP grew by 1.6 per cent between 2019-20 to 2021-22 leaving aside the Covid year of 2020-21, the comparable figure for Odisha is 4.2 per cent. Not only Odisha’s recovery process is faster, but it is also more broad-based.
The GSDP is projected to grow by 9.0-9.5 per cent in 2022-23, according to the advance estimates of the Odisha Economic Survey.
However, Russia and Ukraine conflict is likely to impact the state’s economy growth.
“Assuming normal monsoon, no furthermore damaging waves of corona virus mutations and induced economic disruption, stable oil prices, and steadily easing of supply chain, GSDP may grow in real terms by 9.0-9.5 per cent in 2022-23,” said the Odisha Economic Survey for 2021-22.
It said the Russia and Ukraine conflict has brought in further uncertainty.
“It is likely to impact global trade and businesses with its ramifications on domestic price level, exchange rate, commodity supplies and supply chain operations,” it said.
According to the report, per capita income of Odisha has also grown at a double-digit rate of 16.8 per cent in 2021-22. The average growth of Odisha’s per capita income over the last ten years (2012-13 to 2021-22) is 10.3 per cent against 9.15 per cent growth rate in the case of India.
Odisha’s per capita income of Rs 48,499 in 2011-12 reached Rs 1,27,383 in 2021-22. While in absolute terms, it is lower than India’s per capita income, the rate at which it is growing implies that it would soon exceed India level, the report read.
Odisha’s per capita income was 76 per cent of the per-capita income of India in 2011-12. It stands now at 84.7 per cent in 2021-22. Between 2011-12 and 2019-20, for which comparable data are available, there are only nine states including Odisha whose per capita income rank has improved, while in the case of ten states, there is no change in rank and another ten states have dropped in per capita income ranking.
Industry sector grew at 14.5 per cent followed by service sector with 7.9 per cent growth rate in 2021-22. Agriculture and allied sector registered a contraction of 3.4 per cent in 2021-22 due to drought, unseasonal rain, and Cyclone “JAWAD”.
While natural calamities continue to affect agriculture in the state, agriculture and allied activities grew at an average rate of 9.5 per cent between 2018-19 to 2020-21 before the current contraction.