Odisha to cross national growth at 7.14 per cent in 2017-18

BHUBANESWAR: Odisha’s economy is estimated to grow at 7.14 per cent in 2017-18 against the national average of 6.5 per cent. It had performed even better in 2016-17 by registering a growth of 7.94 per cent against the national average of 7.1 per cent.

The growth trajectory of the State remained promising despite downside pressure of demonetisation and global uncertainties. The improvement in the State’s economy is attributed to political stability, prudent fiscal management, higher contribution from services sector, low rate of inflation and focused initiatives in building rural infrastructure, said a report on the state economy.

“Odisha’s Gross State Domestic Product (GSDP) is estimated to grow at 7.14 per cent as against the national average of 6.5 per cent. Services sector as a leading contributor to GSDP has contributed 38.54 per cent in 2011-12 and this increased to 45.25 per cent in 2017-18 surpassing the contribution from agriculture and industry sectors over the years,” said Odisha Economic Survey 2017-18.

The report tabled in the State Assembly on Thursday said the GSDP which was Rs 2.30 lakh  crore in 2011-12 increased to Rs 3.23 lakh crore in  2016-17. “It is further expected to rise up to Rs 3.46 lakh crore in 2017-18,  showing a growth rate of 7.14 per cent compared to 2016-17,” the report said.
The per capita income at base year price of the State in terms of  GSDP is estimated to be Rs 77,193 in 2017-18, which registered a growth of 6.06 per cent from Rs 72,780 in 2016-17.

At current prices, the per capita income of the State during 2017-18 is likely to touch the level of Rs 92,727, while it will be Rs 1,26,349 at the national level, the report said.The share of agriculture has declined to 20 per cent from an overbearing 60 per cent in the 1960s, but the share of population dependent on the sector continues to be significant at around 50 per cent. There was a need for continued policy priority for agriculture, especially in its allied sectors, in view of the high employment potential and favourable agro-climatic conditions, it said.

Claiming that the state has achieved significantly in poverty reduction from 57.2 per cent  to 32.6 per cent between 2004-05 and 2011-12, the report said the State Government has launched specific initiatives to address regional disparities.The development initiatives have contributed to improving the development momentum in the backward regions of the state.