Odisha Economy Registers Impressive Growth Rate of 8.4% in 2018-19 Fiscal

Key Highlights

  • Odisha registers higher rate of growth than many of its peers and the national average
  • KALIA scheme game changer to improve agriculture prosperity in Odisha
  • Debt to GSDP ratio maintained below the threshold limit of 25%
  • Odisha’s capital outlay stands at 4.9% of GSDP, which is one of the highest amongst the major States
  • Pro-active initiatives like Make-in-Odisha Conclave, Start-up Policy, Ease of doing Business framework responsible for the upward swing of the economy
  • State’s performance in several areas has been quite impressive

Bhubaneswar: Odisha has witnessed a high economic growth in the year 2018-19, said the Odisha Economic Survey 2018-19 report.

Odisha’s real Gross State Domestic Product (GSDP) has grown at 8.4 percent in 2018-19 fiscal  which has been higher than the preceding year 2017-18 (7.4 percent), the report said.

The State has not only registered higher rate of growth than many of its peers but also the national average, thereby consistently improving its ranking amongst major States. Similarly, the State’s per capita income has notched higher growth rate than most other major States, the report said.

The State has reported a revenue surplus and maintained gross fiscal deficit within FRBM limits. Moreover, the Debt to GSDP ratio has been maintained below the threshold limit of 25%, the survey said.

The capital outlay of the State is 4.9% of GSDP, which is one of the highest amongst the major States. This performance has to be viewed against the backdrop of major natural calamities striking the State at regular intervals adversely impacting its finances and social overhead capital.

Among the three sectors, namely, Agriculture & Allied Activities, Industries and Services, the second one has registered fastest growth.

Government’s pro-active initiatives like Make-in-Odisha Conclave, Start-up Policy, Ease of doing Business framework etc. have been responsible for this upward swing. Institutional mechanisms are in place for addressing implementation level hurdles and according timely approvals and clearances.

This has fast-tracked investments in public infrastructures like highways, railways and power transmission.

Remarkably, while the manufacturing and mining sectors’ contribution to nation’s income is 29.8% its share in the State GDP is 39.5% which is encouraging., the report stated.

The manufacturing sector utilises the natural resources the State is endowed with. The steady pace of industrialisation in the State has positive implications for employment generation.

The services sector trend continues to have the largest share of State GVA at 41.62%. It has been responsible lately for throwing up opportunities for employment of educated youth.

The share of agriculture sector continues to decline. Consistent with national scenario, this trend has impacts in income level of a large number of agrarian families dependant on agriculture therefore necessitating state intervention. A slew of reforms and interventions have contributed to encouraging the performance in this sector. State’s performance has earned the coveted ‘Krishi Karman’ award at national stage multiple times.

To boost the farmers’ income and to step up rural income, Government of Odisha have launched a progressive farmers welfare scheme, unique in the country named KALIA. The State Government has earmarked Rs 10,180 crore in three years, including the current one, under the scheme.

Not only small and marginal farmers but also the sharecroppers and landless labourers have been remitted cash transferred into their bank accounts.

The State continues to provide significant thrust for enhancing irrigation potential and public investment in the sector has increased substantially. Allocation of INR 2076 crore in the year 2007-08 has increased to INR 9216 crore in 2017-18 and has contributed to creation of a total of 59.20 lakh Ha. of irrigation potential. In coming days the thrust will be on crop diversification and expansion of agro/food processing industries. Public investment at high level will have to be sustained. Management of water resources shall have to be optimised.

The Government’s commitment to equity and inclusive growth has been well reflected in allocation of 45.55% of total expenditure for social sector spending.

The State’s performance in several areas has been quite impressive. The State has witnessed notable improvement across critical health indicators such as infant and under-5 mortality rates, institutional delivery, immunization coverage and utilisation of public health facilities for pre-natal and post-natal care. The success can be attributed to the enhancement of health care system through various targeted interventions especially in the areas of infrastructure development, provision of high quality yet affordable drugs, diagnostics and health services and human resource management.

Establishment of new medical colleges, district headquarters hospitals, maternal and child health complexes, AYUSH dispensaries and upgradation of primary and community health centres in tribal areas have been given focus. With a vision of “Healthcare for all – each life matters”, the Government launched its flagship health assurance programme “Biju Swasthya Kalyan Yojana” in 2018.

The reduction of IMR from 2005-06 to 2015-16 has been considered as the best performance in the country. The State’s track record in reduction in stunting, wasting and underweight has been praiseworthy. Further in terms of stabilisation of population, Odisha has the distinction in reducing the average fertility rate from 2.6 to 2.0 in the ten years i.e. 2004-06 to 2014-16.

In the area of empowerment of women, the State has been leading light in the country with six lakh women SHGs covering seventy lakh women. The Mission Shakti has been not only socially emancipating but also several interventions have led to a variety of remunerative economic activities lending financial heft to the women.

State’s tryst with natural calamities of severe magnitude and its response has been well documented earning both national and international laurels. In evacuation and saving lives as well as in quick restoration of public services and infrastructure to normalcy, the State has established global bench marks. Future challenge extends to creation of disaster resilient power infrastructure and robust housing for millions in the cyclone affected areas of the State.

As several parts of the State are affected by drought at times, water conservation, micro irrigation and rain-water harvesting are priorities. Not only the irrigation potential already created has to be efficiently used to garner both productivity and crop security but the State has to move towards climate – Smart agriculture.

The Government is committed to pursue the vision of taking its economy to the next level by use of five Ts i.e. Technology, Teamwork, Transparency and Time leading to Transformation as a developed State, the report added.

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