Odisha’s economic growth rate is expected to surge ahead of national growth with 8.78 per cent in real terms at market prices in 2014-15 despite the continuing economic slowdown at the global and national levels, according to the Odisha Economic Survey: 2014-15 placed before the Assembly on Monday.
A negative growth of 9.78 per cent in the agriculture sector had slowed down the State’s economy in 2013-14 with the growth nose-diving to an all-time low at 2.21 per cent due to the cyclone Phailin and two flash floods in October 2013 and industrial recession. The turnaround in the growth rate in the current fiscal is largely due to a high growth registered by the industry and service sectors rather than the agricultural sector, the survey said.
“Odisha’s economy is becoming less agricultural, more industrial and more service-oriented over time,” it said, adding that the share of the agriculture sector has steadily declined over the years and those of the industry and services sectors have been increasing. The share of the services sector is expected to be about 51.2 per cent of the Gross State Domestic Product (GSDP) followed by the industry at 33.4 per cent and agriculture 15.4 per cent in real terms at the 2004-05 prices. The growth pattern, however, exhibits a similar trend at the national level. The performance of the agriculture sector continues to be highly volatile while the services sector has been growing in a comparatively stable manner, the survey said.
Though the agriculture sector provides sustenance fully or partially to about 60 per cent of the population, its contribution to the GSDP has come down drastically from 70 per cent in the early 1950s to 15.4 per cent as per the advance estimates for the year 2014-15.
Odisha has the record of the highest poverty reduction among major States in the country. However, the incidence of poverty among scheduled caste and tribe communities still continues to be high and “remains a matter of concern,” the survey admits. Poverty in the State declined by 24.6 percentage points from 57.2 in 2004-05 to 32.6 in 2011-12 as per the estimates made by the Planning Commission based on the Tendulkar Committee methodology.
The south Odisha, which includes KBK districts, has the highest poverty (48%) followed by the northern (39.97%) and coastal (21.65%) parts. The State has 32.6 per cent people living in poverty against the national average of 21.92 per cent and it is the second poorest State in the country after Bihar, the survey said.
The per capita income, a significant indicator of standard of living of the people, of the Sate during 2014-15 is estimated at Rs 28,384 accounting for a growth rate of 7.31 per cent over 2013-14. “Though the gap in real per capital income between Odisha and the national averages has been reducing over the recent years, this gap has remained a matter of concern. Odisha still lags far behind in comparison to several faster-growing States’ and national averages,” the survey stated.