Odisha’s economy likely to grow by nine per cent in 2022-23
BHUBANESWAR: Odisha’s economy which had contracted marginally during the Covid-19 pandemic is likely to grow by nine per cent (pc) to 9.5 pc in 2022-23 assuming a normal monsoon, steady easing of the supply chain, and no further damaging waves of coronavirus mutations and pandemic-induced economic disruption.
The Economic Survey of 2021-22 said the State’s GDP, which contracted by 5.3 pc in 2020-21 against a contraction of 6.6 pc in national GDP, registered a sharp recovery in 2021-22 at a rate of 10.1 pc.
It, however, indicated that the Russia and Ukraine conflict that has brought in further uncertainty is likely to impact global trade and businesses with its ramifications on the domestic price level, exchange rate, commodity supplies, and supply chain operations.
Amid the pandemic, Odisha’s economy demonstrated far more resilience vis-a-vis all of India and reverted to the pre-Covid level much faster. While India’s real GDP grew by 1.6 pc between 2019-20 and 2021-22 leaving aside the Covid year of 2020-21, the growth was 4.2 pc in Odisha.
“Odisha is one of the fastest-growing states in the country which registered a growth rate much higher than India’s GDP growth rate of 8.8 pc. Not only Odisha’s recovery process is faster, but it is also more broad-based,” the survey report stated.
The rebound in growth in 2021-22 could be attributed to robust growth in the manufacturing sector in Odisha. The sector grew at 14.3 pc during the period and it is significantly higher than 5.5 pc growth in the manufacturing sector at the national level.
The industry sector is poised to grow at 14.5 pc as per advance estimate. The sector had witnessed two back-to-back contractions of 2.8 pc in 2019-20 and 10.8 pc in 2020-21. Mining and quarrying sector is estimated to grow at 18 pc on a lower base.
Agriculture and allied sectors have posted a contraction in real terms owing to drought, unseasonal rain, and cyclone. Industry sector posted a robust growth rate of 14.5 pc and mining and manufacturing sector - two sub-sectors of the industry have posted a stellar growth rate of 18.1 pc and 14.3 pc respectively. The service sector grew at 8.8 pc in 2021-22.
Some of the sub-sectors within the service sector which have posted very high growth rates are - financial services (9 pc), transport, storage, communication and broadcasting (9.2 pc) and Public administration (8.4 pc).