Odisha Economic Survey 2023-24: Growth Rate Estimated At 8.5%; Ranks 11th In Per Capita Income

Bhubaneswar: Odisha’s economy is projected to grow by 8.5 per cent in 2023-24, surpassing the 7.9 per cent growth posted during the previous year, according to the Economic Survey.

The growth, however, was concentrated in the industry sector and services sector, said the Odisha Economic Survey 2023-24 which was tabled in the state Assembly on the eve of the 2024-25 budget.

It said the state’s per capita income is estimated at Rs 1,61,437 for 2023-24, which is 12.4 per cent lower than the national per capita income of Rs 1,84,205.

Odisha is dedicated to accelerating its growth and development initiatives to boost per capita income and contribute to India’s ‘Viksit Bharat mission.

Citing NITI Aayog reports, it said Odisha’s multidimensional poverty headcount ratio has decreased from 29.3 per cent in 2015-16 to 15.7 per cent in 2019-21, lifting over 62 lakh individuals out of multidimensional poverty. However, Odisha is ranked 6th among 17 major states in terms of poverty prevalence.

Agriculture and related sectors, contributing 20.4 per cent to the Gross State Value Added (GSVA), are expected to grow by 3.5 per cent in 2023-24. The state is advised to pursue crop diversification to increase productivity and farmers’ incomes.

The industrial sector is projected to expand by 8.7 per cent in 2023-24, accounting for 43.2 per cent of the GSVA. Despite this, industrial activities in Odisha are predominantly focused on basic metals and minerals. There is a need for a concerted effort to shift from mineral-based industries to a broader range of value-added sectors.

The service sector is projected to grow by 9.2 per cent in 2023-24 (AE), contributing approximately 36 per cent to the state’s economy and accounting for 26 per cent of total workforce employment. Although some IT companies have commenced operations in Bhubaneswar, both domestically and globally, there is a need for the state to attract more IT and ITeS companies to Odisha to boost IT/software exports.

Odisha’s tourism sector holds significant potential. Yet, following the pandemic, the state has struggled to regain its previous levels of tourist arrivals. Consequently, there is a pressing need for increased investment in tourism infrastructure to establish Odisha as a premier tourist destination.

The Labour Force Participation Rate (LFPR) and the female LFPR are on the rise in the state. Odisha’s LFPR (for individuals aged 15 and above) has climbed from 51.2 per cent in 2018-19 to 61.3 per cent in 2022-23. Similarly, the female labour force participation rate for the same age group has increased from 24.4 per cent in 2018-19 to 44.7 per cent in 2022-23.

Despite these gains, the majority of employment remains concentrated in the agricultural and construction sectors. The state’s focus is on creating more high-quality jobs with improved wage structures.

For the fiscal year 2023-24 (BE), the state has allocated nearly INR 51,683 crore for capital outlay, which represents 6.2 per cent of the GSDP. Foodgrain production in Odisha has surged to 141.4 lakh MT in 2022-23, a 24.2 percent increase from 113.8 lakh MT in 2021-22.

Odisha ranks as the fifth-largest rice producer in the country, contributing 7 per cent to India’s total rice production as of 2021-22. However, the yield of various crops in Odisha falls below the national average. For instance, rice yield in Odisha is 19 per cent lower than the all-India average, and there is a 61 per cent yield gap for pulses.

In 2022-23, millet production in Odisha saw a 47.3% increase. Following the Odisha Millet Mission’s launch, the state’s millet output has surged by 121% from 2017-18 to 2022-23.

Agricultural credit disbursement rose from INR 8,520 crores in 2011-12 to INR 54,717 crores in 2022-23. The irrigation potential created (IPC) in Odisha increased from 50 lakh hectares to 69.2 lakh hectares between 2013-14 and 2022-23.

The state has also experienced growth in livestock and fisheries, enhancing food security and economic growth. Meat production climbed to 226.9 thousand MT in 2022-23, up from 216.2 thousand MT in 2021-22. Milk production grew to 24.8 lakh metric tonnes in 2022-23, up from 24.0 lakh metric tonnes in 2021-22.

Fish production soared to 10.5 lakh tonnes in 2022-23, with a CAGR of 11% from 4.4 lakh tonnes in 2014-15. Per capita fish consumption annually in the state rose from 11.06 kg in 2014-15 to 17.73 kg in 2022-23.

Mineral revenue in Odisha reached INR 38,075 crore in 2022-23, providing substantial funds for development. Financial services contribute 2.9% to the state’s GSVA in 2023-24 (AE), one of the lowest among major states. According to the SLBC report (March 2023), 4,373 Gram Panchayats lack a single brick-and-mortar bank branch.

By the end of 2022-23, Odisha had 2,992 km of railway routes, with 2,940 km (98.3%) electrified. The civil aviation sector has expanded, connecting the state to 19 Indian cities and three international destinations: Bangkok, Singapore, and Dubai.

The Gross Enrolment Ratio (GER) in Odisha for upper primary, secondary, and higher secondary levels stands at 91.3, 80.4, and 43.6, respectively. However, the GER at the primary and upper primary levels in Odisha remains below the national average of India.

Odisha boasts an extensive network of 1,737 residential schools and 5,500 hostels, serving 4.5 lakh ST and SC students, including 2.75 lakh girls, across primary to senior secondary education levels.

In healthcare, Odisha records a 92.2 per cent rate of institutional births, slightly higher than the national average of 88.6 per cent. Conversely, the Maternal Mortality Ratio in Odisha is 119 per lakh live births for 2018-20, which is higher than the national figure of 97. Over 80 per cent of Odisha’s population lives in rural areas, where rural road coverage has increased from 22,795 km in 2011-12 to 99,446 km in 2023-24, the survey said.