Odisha's Gross State Domestic Product (GSDP) is projected to grow by 9.0%-9.5% in 2022-23, according to the advance estimates of the Odisha Economic Survey for 2021-22.
However, the Russia-Ukraine conflict is likely to impact the State’s economy growth.
“Assuming normal monsoon, no furthermore damaging waves of corona virus mutations and induced economic disruption, stable oil prices and steadily easing of supply chain, GSDP may grow in real terms by 9.0-9.5 per cent in 2022-23,” said the Odisha Economic Survey. The Russia-Ukraine war has brought in further uncertainty.
“It is likely to impact global trade and businesses with its ramifications on domestic price level, exchange rate, commodity supplies and supply chain operations,” it said.
Odisha’s economy registered a sharp recovery in 2021-22 as per the advance estimate of GSDP.
The real GSDP has grown at a rate of 10.1%. Odisha is one of the fastest growing States registering a growth rate much higher than India’s GDP growth rate of 8.8%.
Odisha also faced the adverse impact of Covid-19 and its GSDP contracted by 5.3% in 2020-21 against a contraction of 6.6% in India’s GDP. Odisha’s economy has demonstrated far more resilience vis-Ã -vis all-India. The State economy reverted to the pre-Covid level much faster, the survey said.
While India’s real GDP grew by 1.6% between 2019-20 and 2021-22 leaving aside the Covid year of 2020-21, the comparable figure for Odisha is 4.2%. Not only Odisha’s recovery process is faster but it is also more broad-based.
According to the survey, the per capita income in Odisha has also grown at a double-digit rate of 16.8% in 2021-22. The average growth of per capita income over the last ten years (2012-13 to 2021-22) is 10.3% against 9.15% growth rate in the case of India.
Odisha’s per capita income of Rs 48,499 in 2011-12 reached Rs 1,27,383 in 2021-22. While in absolute terms, it is lower than India’s per capita income, the rate at which it is growing implies that it would soon exceed the all-India level.
Odisha’s per capita income was 76% of the per capita income of India in 2011-12. It stands at 84.7% in 2021-22. Between 2011-12 and 2019-20, for which comparable data are available, there are only nine States, including Odisha, whose per capita income rank has improved while in the case of ten States, there is no change in rank and another ten States have dropped in the per capita income ranking.
Odisha’s industry sector grew at 14.5% followed by service sector with 7.9% in 2021-22. Agriculture and allied sector registered a contraction of 3.4% in 2021-22 due to drought, unseasonal rain, and Cyclone JAWAD.
While natural calamities continue to affect agriculture in the State, agriculture and allied activities grew at an average rate of 9.5% between 2018-19 and 2020-21 before the current contraction.