Odisha share in Indian GDP rise to 2.8% in 2022-23: Economic Survey

Bhubaneswar, Feb 24 (KNN) Odisha has improved its share in India’s GDP, recording a rise from 2.64 per cent in 2011-12 to 2.8 per cent in 2022-23, the Odisha Economic Survey released on Thursday pointed out.

Economic survey released day before the presentation of the annual Budget for 2023-24 highlighted that the state’s economy is projected to grow at 7.8 per cent during 2022-23, higher than the pre-Covid average growth of 7.1 per cent during 2012-13 to 2019-20.

As per reports, despite global economic uncertainties, Odisha has managed to become one of the highest growing economies in the country.

It is also higher than the national growth rate of 7 per cent for the current financial year, the survey report added.

Assuming a normal monsoon, no further disruption to global supply chains and moderation in inflation, Odisha can grow in the range of 8 to 8.5 per cent in 2023-24 in real terms, the report said, adding that the state is expected to grow at a rate higher than All-India average growth.

The industry and service sectors are the major contributors to the state’s economy.

The report mentioned that the state's economy recovered from COVID-19 induced economic shocks in 2022-23. But, due to Russia-Ukraine war led disruption in global supply chains and upward movement in energy and other commodity prices, the inflation 2022-23 has gone up.

The average inflation till December 2022 was 6.56 per cent higher than 3.7 per cent in 2021-22.

The major sectors such as agriculture (22.5 per cent), industry (41.3 per cent) and services (36.2 per cent) which contribute to the growth of Odisha’s economy are estimated to grow in the 2022-23 financial year.

While the agriculture sector will grow at 6 per cent higher than the all-India rate of 3.1 per cent during the year, the growth of industry and service sector is estimated at 6.05 per cent and 8.79 per cent during the fiscal year, respectively.

Odisha’s per capita income (PCI) at current price is also estimated at Rs 1, 50,676 in 2022-23 compared to the national PCI of 1, 70,620.

“In the past seven years, the state has successively reduced the gap between Odisha’s PCI and the PCI at the all-India level from 31.6 per cent in 2015-16 to 12 per cent in 2022-23,” said the survey report.

The compound annual growth rate (CAGR) of Odisha’s PCI during 2011-12 to 2022-23 was 10.9 per cent as against 9.4 per cent CAGR of India’s per capita income.

The capital outlay as percent of gross state domestic product (GSDP) in Odisha is one the highest among the major states which creates a solid ground for the private sector to flourish and boost economic activity in the state, said the report.  (KNN Bureau)