BHUBANESWAR: THE State economy which contracted by 4.9 per cent (pc) due to the Covid-19 pandemic is expected to recover rapidly during the next three years.According to the Fiscal Strategy Report published by the Finance Department, economic growth is expected to reach 10.5 pc in 2021-22 and level off eight pc in the next two financial years. The report maintained that despite the negative growth in sectors, the recovery will be driven by higher investment in infrastructure, industrial promotion through Make-In-Odisha and increased agricultural output.
All the sectors including mining and tourism had reported negative growth during the last one year because of the Covid-19 pandemic. Revival of all the sectors has started after opening of the economy because of the improved Covid-19 situation. The report maintained that on a sectoral level, manufacturing, trade, hotel and restaurant, transport, communication and services is expected to return to growth from 2021-22 financial year.The report has projected inflation (GSDP deflator) at 4.2 pc in 2021-22, increasing marginally to 4.3 pc by 2023-24 financial year.
Agriculture sector which is the mainstay of the State’s economy is expected to contract by 6.4 pc during 2020-21 because of the pandemic though the sector and allied activities have registered strong growth rate of around 5 pc in the recent years. The report said that in the post Covid-19 scenario, manufacturing is expected to contribute significantly to growth in the coming years. Manufacturing which is expected to grow by 19.3 pc in 2021-22 financial year will balance around 15.3 pc in the next two years. Official sources said that the government’s commitment to create an enabling environment for industrial development through initiatives like Make in Odisha and schemes under Ease of Doing Business will support sector’s growth during this period.
SECTORS TO GROW
Manufacturing
Trade, Hotel and Restaurant
Communication