Bhubaneswar: Odisha has registered an impressive growth rate of 8.4 per cent in 2018-19, bettering its Gross State Domestic Product (GSDP) growth of 7.4 per cent in the preceding fiscal. With this, Odisha has put behind several developed states in economic growth over a five-year period, according to the economic survey tabled in the state Assembly on Friday.
Riding on the robust growth achieved by the services and the industries sectors, the eastern state managed to have a higher economic growth than states like Haryana, Punjab, Kerala, Chhattisgarh, Madhya Pradesh, Maharashtra and Jharkhand, the report said.
Since 2012-13, Odisha’s GDP has been rising at an average annual rate of 8.10 per cent, thus enabling the state’s output to grow at a faster pace than the national GDP in the past seven years, except in 2014-15. The slowdown in 2014-15 is attributed mainly to the stay on mining activities, a fall in the price of major minerals and cyclones in two consecutive years.
With a 41.6 per cent contribution to the GSDP, the services sector overtook other sectors and drove the state’s economy, followed by the industries sector, which contributed 39.5 per cent as against 29.8 per cent at the national level. Contribution of the mining sector has been an impressive 10.8 per cent of the GSDP, while the manufacturing sector contributed 18.5 per cent at current prices.
String of initiatives taken by the Naveen Patnaik-led Biju Janata Dal (BJD) government such as organizing the Make-in-Odisha Conclave and framing the Start-Up Policy and Ease of Doing Business Framework have been attributed to the upward trend.
Odisha is home to the largest share in the country’s total mineral production (34.3 per cent in 2017-18). It is also the largest producer of aluminium and stainless steel in the country.
The average monthly household income in agriculture rose to Rs 7,731 in 2016-17 from Rs 4,976 in 2012-13. Agriculture remains the primary source of livelihood for a majority of Odisha’s population, and nearly 48 per cent of workers in the state are engaged in the agriculture sector.
Agriculture and allied activities registered a strong growth of 8.3 per cent in 2018-19, supported by a surplus rainfall and the robust expansion in livestock and fisheries sectors.
The agriculture sector constituted 18.9 per cent of Odisha’s Gross State Value Added (GSVA) in 2018-19. While agriculture output contracted by 8.2 per cent due to drought in 2017-18, the sector is expected to show a growth of 8.3 per cent in 2018-19, the survey report said.