Odisha slipped to 12th nationally in GSDP growth rate for the fiscal year 2018, though it remained as a top five growing States in country for the fiscal period of 2013-17.
This 2018 topsy-turvy for Odisha stands quite starkly, when Odisha in fiscal 2017 had even piped Gujarat to secure the tag of second fastest growing State in country.
More distressing on the horizon is despite posting a higher economic growth rate vis-a-vis national growth rate for period 2013 – 17, the gap in per capita income of Odisha and the country ballooned to Rs 31, 844 in fiscal 2018 from mere Rs 7,197 in fiscal 2003.
Another shocker to the fore is high economic growth rate in Odisha for fiscal 2013 – 17 was not employment intensive as Odisha lagged below the average national growth rate in Gross Value Added (GVA) in employment-intensive sectors like construction, manufacturing, trades, hotels, transport and communication services, and resultantly Odisha was at a distant 11th among 17 non-special category States in country.
Such shifting trends in Odisha economy was brought to the fore by Crisil in its report titled States of Growth 2.0 released on Monday.
The seemingly double whammy for Odisha is while GSDP growth got decelerated in fiscal 2018, the fiscal deficit had overshot the FRBM target of around 3 per cent to touch 3.5 per cent. Contrastingly, fiscal deficit in 2017 was 2.5 per cent and GSDP growth rate was a whopping 10.4 per cent. The ballooned fiscal deficit in 2017-18 is attributed to populist programmes, courtesy the election year.
However, most nagging fact for Odisha Government’s financial mandarins is high growth since fiscal 2013 – 17 was neither equitable nor jobs-intensive, said Crisil.
The report outlined that Odisha had been a low income State since fiscal 2003 – 13, but grew faster than nation’s growth rate for period 2013 – 17. Still, gap in per capita income between India and Odisha widened to around Rs 32,000 in 2018 from around Rs 7,200 in 2003. Also, with an average year-on-year (y-o-y) growth rate of 6.6 per cent in GVA in employment intensive sectors, Odisha fell below national growth rate of 7 per cent during 2013 – 17. The implied fact reveals while Odisha grew faster than the country, it churns out fewer jobs for its youths than the country. The only shining fact is while Odisha is a top spender on roads and bridges.