BHUBANESWAR: The State’s economy is expected to register a growth rate of 7.94 per cent (pc) in 2016-17 against the national average of 7.1 per cent.
“Odisha’s economic growth in terms of real gross state domestic product (GSDP) has recovered to a respectable level of 7.94 pc in 2016-17 reversing the sharp decline of 6.1 pc growth rate in 2015-16,” said the Odisha Economic Survey 2016-17.
The report tabled in the Assembly by Finance Minister Pradip Kumar Amat on Saturday attributed the accelerated growth to increased agriculture production due to improved monsoon.
The advance estimates released by the Directorate of Economics and Statistics are based on data available upto November 2016.
The size of the State’s economy increased by 22.27 pc in real terms during the last six years exhibiting an annual average growths rate of 6.66 per cent.
The real per capita income of the State increased from `57,616 in 2015-16 to `61,678 in 2016-17 registering a growth of seven pc.
Over the same period, India’s per capita income grew 6.5 pc from `77,524 to `81,805.
“The growth rate picks up momentum with industries and services sectors as drivers of growth. Agriculture sector loses its importance in terms of contribution to State’s income while still retaining its prime status as the livelihood provider to maximum number of families,” the report said.
The size of the GSDP has reached `3.14 lakh crore in 2016-17 with industries contributing 36.56 pc. The share of agriculture rose to 19.91 pc in 2016-17 from 18.68 pc in 2015-16.
The share from the manufacturing sector declined from 19.19 pc in 2015-16 to 18.27 pc in 2016-17. The gross value added in manufacturing stood at `63,695 crore with iron and steel and non-ferrous metals contributing 72 pc of this value.
On poverty reduction, the report said about 82 lakh poor people moved up from below poverty lines in eight years. “The poverty in Odisha has declined by 24.61 percentage point (average annual decline of 3.52 percentage points) from 57.2 pc in 2004-05 to 32.59 pc in 2011-12, the highest reduction among major states.