The State’s economy is expected to contract by 4.92 per cent in 2020-21 due to the impact of Covid-19, as per the Economic Survey Report 2020-21 presented in the State Assembly on Saturday.
The economy of Odisha grew at 7.1 per cent per annum during the period 2012-13 to 2019-20 and is likely to slide by 4.92 per cent in 2020-21 as per the Advance Estimates, it said.
The decline in the growth rate between 2019-20 and 2020-21 was attributed to the devastating impact of Covid-19, said the report, adding that the contraction in Odisha’s real GSDP growth in 2020-21 at -4.92 per cent is lower than that of the national economy at -7.7 per cent. The State’s agriculture sector is estimated to contract by 6.54% compared to a positive growth of 3.40% at the national level. The industry sector and services sector contracted by 8.83% and 3.18%, respectively, in the State compared to 9.57% and 8.77% decline at the national level during 2020-21, the report said. “Prioritising life to livelihood, the stringent stipulations imposed by the State Government to contain the spread of Covid-19 in earlier phases had a greater impact on Rabi crops and floods in some parts of the State, long dry spells in panicle initiation stage and pest attack on Kharif Paddy are the reasons for negative growth rate of agriculture sector of Odisha in comparison to India,” the report said.“However, overall economic base of the State has emerged stronger which resulted in a significantly less contraction of the overall State economy in comparison to national scenario,” it said.
The State’s per-capita income in 2020-21 is estimated at Rs 1,02,156 compared to Rs. 1,04,566 in 2019-20. The per-capita income is expected to decline by 2.30% against the decline of 5.41% at the national level. The State economy’s annual average growth rate during 2012-13 to 2020-21 is also estimated at 5.72% against the national average of 5.01%.