BHUBANESWAR: The economy of Odisha achieved a growth rate of 8.4 per cent in 2018-19 compared to 7.4 per cent of the previous year. According to the Economic Survey tabled in the Assembly on Friday, an analysis of growth over a five year period between Odisha and other states showed that Odisha on an average has grown at a faster rate than the states such as Haryana, Punjab, Kerala, Chhattisgarh, Madhya Pradesh, Maharashtra and Jharkhand.
Stating that Odisha, with control over population growth and a strong economy, has managed to improve its ranking on per capita income, the Economic Survey maintained that the State’s rank improved from 25th in 1996-97 to 16th in 2016-17. According to the survey, the average monthly household income in agriculture increased to Rs 7,731 in 2016-17 from Rs 4,976 in 2012-13. Nearly 48 per cent of workers are employed in the agriculture sector.
The Survey maintained that it is a positive trend in the light of the State’s efforts towards eradication of poverty. Growth in consumption of bottom 30 per cent was marginally higher than that of average monthly per capita consumption expenditure (MPCE) of this class between 2004-05 and 2011-12. Inflation in 2018-19 was 2.9 per cent which is lower than all India, implying greater purchasing power, it said.
Stating that Odisha has showed strong growth in per capita income (PCI), the Economy Survey said in 2018-19, State’s PCI is expected to be Rs 75,796, up from Rs 70,799 in 2017-18. The PCI of the State has grown by Rs 28,000 (6.6 per cent) during the last seven years at a pace higher than the national trend (6.1 per cent), it added. A long term analysis of 20 years showed that Odisha has made the highest jump in PCI ranking among the States. The services sector has been the largest contributor with 41.6 per cent share in the GSDP (gross state domestic product), followed by the industries sector with 39.5 per cent.
Besides, mining sector has been another major driver in the State’s economy with 10.8 per cent contribution to the GSDP, whereas the manufacturing sector accounted for 18.5 per cent.
The State has the largest share in total mineral production in the country and is also the biggest aluminium and stainless steel producer, the survey said and added that agricultural production continues to be subject to the vagaries of nature. The deficit rainfall and severe pest attack in 2017-18 led to a decline in food grain production in the State.
Odisha was also one of the best performing states in reduction of Infant Mortality Rate (IMR), with 41 points decline from 1998-99 to 2015-16. Besides, Odisha’s performance in reduction of stunting, wasting and underweight has been best in the country, the Survey said and added that total fertility rate or the average number of children per woman has reduced from 2.6 to 2 from 2004 to 2016.
The Survey, however, maintained that the State has very low rail connectivity, especially in the Kalahandi, Balangir and Koraput (KBK) region. The density of rail route in Odisha is only 16 km as against the national average of 20 km, it said.