Odisha economy to grow at 8.5 per cent in 2023-24: Advance Estimates

Bhubaneswar, July 24 (IANS) Odisha's economy is likely to grow at 8.5 per cent in the financial year 2023-24, as per advanced estimates. The growth seemed to be primarily concentrated in the industry and the service sector. 

This was revealed in the Economic Survey report, 2023-24 presented in the Odisha Assembly on Wednesday.

Notably, the state had registered a growth rate of 7.9 per cent in the previous financial year of 2022-23. 

"In 2023-24, per-capita income of Odisha was Rs 1,61,437 in nominal terms. Between 2011-12 and 2023-24 (A), the per-capita income of Odisha increased from Rs 48,387 to Rs 1,61,437, growing at a CAGR of 10.6 per cent. Although the gap between Odisha and India's per-capita income has reduced, in 2023-24, Odisha's per-capita income was 12.4 per cent lower than India's per-capita income," the survey report read.

The state ranks 11th among 17 major states of the country in terms of per-capita income in the financial year 2022-23.

Gross State Domestic Product (GSDP) has been pegged at Rs 8.3 lakh crore in 2023-24 as per the advance estimates. Though the comparable data for 2023-24 is not available, Odisha ranked 13th among 17 major states of the country during 2022-23 as per the size of the state's economy.

Quoting the NITI Aayog, the survey report noted that the multidimensional poverty headcount ratio in the state has declined from 29.3 per cent in 2015-16 to 15.7 per cent in 2019-21. 

It further added that more than 62 lakh people escaped multidimensional poverty in the state during the same period.

The report, however, revealed that Odisha ranks sixth among the 17 major states with a high incidence of poverty headcount.

The agriculture and allied sectors are estimated to grow by 3.5 per cent in 2023-24 which contributes 20.4 per cent to the Gross State Value Added (GSVA). 

Similarly, the industry sector which is the largest contributor to GSVA with 43.2 per cent is expected to grow at 8.7 per cent in 2023-24.

The services sector, another major contributor to the GSVA, is estimated to grow at 9.2 per cent in 2023-24, as per the advanced estimate.

The services sector is contributing around 36 per cent to the state economy with an employment share of 26 per cent of total workforce in 2023-24.

The survey report found that the majority of the employment is in the agriculture and construction sector.

Meanwhile, the state government indicated in the report that capex spending in Odisha will be increased substantially in the coming years. 

The state allocated nearly Rs 51,683 crore towards capital outlay in 2023-24 (Budget Estimate), which is 6.2 per cent of GSDP.

The survey also found that the production of foodgrains in Odisha has reached 141.4 lakh MT in 2022-23 by growing 24.2 per cent from 113.8 lakh MT in 2021-22. 

It noted Odisha is the 5th largest rice producer in the country with 7 per cent share in total rice production in India as of 2021-22.

"In 2023-24, inflation in Odisha was 6.5 per cent higher than All-India average of 5.4 per cent. In comparison with 17 major states as well, the inflation in Odisha was second highest. Haryana reported inflation of 6.6 per cent higher than Odisha. Other 15 major states reported inflation lower than Odisha," reads the report. 

--IANS

gyan/pgh