BHUBANESWAR: Even as Odisha’s economic growth is estimated to contract to 7.2 per cent in 2024-25 compared to the previous fiscal’s estimation of 8.5 per cent, the size of the economy is expected to be Rs 9.5 lakh crore, up by 10 per cent from Rs 8.6 lakh crore in 2023-24, revealed the Economic Survey Report tabled in the state Assembly on Saturday.
The estimated growth in 2024-25 is, however, higher than the all-India growth rate of 6.4 per cent during this financial year. The per capita income of the state has increased by 10.6 per cent to reach Rs 1,82,548 in 2024-25 (advanced estimate) against the national growth of 8.7 per cent. The state’s per capita income is 8.8 per cent less than India’s per capita income of Rs 2,00,162 and on a convergent path, the report noted.
The Economic Survey recognised the services sector and industry as the major growth engines of the state economy. The services sector is estimated to grow at 10 per cent contributing around 37.1 per cent to the state economy while the industry sector is expected to grow at 6.1 per cent contributing 43.9 per cent to the Gross State Value Added (GSVA).
Investment in the industrial sector witnessed a sharp rise. The state government approved 133 new investments worth more than Rs 2.4 lakh crore with employment potential of more than 1.8 lakh people between June 2024 and January 2025. The state recently received investment commitments worth Rs 16.7 lakh crore during Utkarsh Odisha Conclave which will create employment opportunities for 12.9 lakh people across 20 sectors.
Odisha’s mineral production grew at an annual compound growth rate of 21.4 per cent between 2017-18 to 2023-24, which is the highest among major mineral-producing states.
The state contributed 45 per cent of national major mineral production as of 2023-24. Merchandise exports from Odisha have increased from Rs 4,72,000 crore in 2019-20 to Rs 98,08,000 crore in 2023-24, at a CAGR of 20.3 per cent.
The agriculture and allied sector have also registered a robust growth of 3.3 per cent, which contributed 19 per cent to GSVA. It grew at 7 per cent compared to the national average of 4.1 per cent. Foodgrains production in Odisha has reached a record high of 143 lakh tonne in 2023-24 from 116.9 lakh tonne in 2019-20, reflecting average growth rate of 5.2 per cent.
“The labour force participation rate has increased from 51.2 per cent in 2018-19 to 64.9 per cent in 2023-24. The LFPR in the state is higher than the all India average of 58 per cent. The participation of women at 49.4 per cent is also higher than the national rate,” the report said.
Odisha has adhered to prudent fiscal management principles for keeping the fiscal deficit of 3.4 per cent and revenue surplus of 2.9 per cent of GSDP in 2024-25. Its debt-to-GSDP ratio stood at 13.2 per cent, which is lowest among all major states. Moreover, the credit-deposit ratio has increased from 60.4 per cent in March 2020 to 76.4 per cent in September 2024 which will stimulate economic growth, the report added.