BHUBANESWAR: After registering a sluggish growth of 2.21 per cent in 2013-14, the State economy is expected to grow at 8.78 per cent during the current fiscal.
The Odisha Economic Survey report for 2014-15, which was tabled in the Assembly on Monday, has estimated the per capita income of the State Rs 28,384 at 2004-05 price.
The State stands fourth from bottom in the per capita income in national ranking. The three States that trail Odisha are Assam, Uttar Pradesh and Bihar.
“The anticipated growth rate of Odisha in 2014-15 is 8.78 per cent in real terms at 2004-05 price, while the growth rate is 8.08 per cent as per factor cost at current market price,” the survey said.
The State’s economy is expected to recover with resilience after the economic slowdown and an upswing in the economy may be attributed to higher growth rates in industry and service sectors, the report said.
Stating that the industry and service sectors have emerged as the main drivers of growth during the recent decade, the report observed that the downturn in the economy in 2013-14 was due to the adverse impact of natural calamities like cyclone Phailin, negative growth in agriculture sector and industrial recession.
While the service sector has become more pronounced in the recent years, the report said the share of this sector to the Gross State Domestic Products (GSDP) is expected to be 51.2 per cent. The contribution of industry sector to the GSDP is likely to be 33.4 per cent.
However, the agriculture sector, which has been registering very low or negative growth, is the major area of concern as more than 60 per cent of the State’s population still depends on it for their sustenance.
Though the sector recovered strongly with a 12.3 per cent growth in 2012-13, it was short-lived as the severe cyclone Phailin followed by heavy floods adversely impacted coastal Odisha during 2013-14 with extensive damage to crops and property.
The State’s economy, which has been growing at a higher rate since 2003-04, had exhibited an average annual growth rate of 8.2 per cent during the 10th Plan (2002-07) and 7 per cent during the 11th Plan (2007-12) despite several challenges faced by it.
Even as the State’s economy exhibited impressive growth during the 11th Plan period, the wide gap in the per capita income with the national average is an area of concern.
With a per capita income of Rs 28,384 in the current fiscal as against the national average of Rs 39,904, the standard of living of the people in the State is way behind the national level.
As per the report, Jharsuguda leads the district-wise per capita income with Rs 49,021 followed by Kandhamal with Rs 37,567, while Nabarangpur is at the bottom with Rs 14,700.
“The per capita income of Kandhamal is higher probably due to bumper crop production, particularly ginger and turmeric, during 2010-11 and lowest population density,” the survey stated.