Odisha’s Economy Projected To Grow By 7.8% In 2022-23

Bhubaneswar: The Odisha Economic Survey 2022-23 revealed that the economic growth in the state is taking place at a faster rate than that of the country as a whole.

Odisha’s economy is projected to grow by 7.8 per cent in real terms during 2022-23 against 7.0 per cent at All-India level as per the advance estimates, says the Economic Survey 2022-23 tabled in the state Assembly on Thursday.

The economic growth at 7.82% in 2022-23 is higher than the pre-Covid average growth of 7.1% (2012-13 to 2019-20), it said.

Similarly, the state’s per-capita income in 2022-23 is estimated at Rs 1,50,676 compared to national PCI of Rs 1,70,620, according to the Economic Survey.

The state’s per capita income of Rs 150676 is 12 per cent less than country PCI.

Per capita income growth between 2011-12 and 22-23 in the state stood at 10.9% , while it was 9.4% for the country as a whole.

It said the state has improved its share in india’s GDP, recording a rise from 2.64 per cent in 2011-12 to 2.8 per cent in 2022-23 (AE). Odisha is also reapidly bridging the distance with some of the high-income states and is progressing at a fast pace, the Survey said.

Odisha’s growth performance in 2022-23, despite unfavourable global conditions, is one of the highest, it said.

While the projected growth rate of 2022-23 at 7.8% this fiscal was less than 11.5% in 2021-22, the state can can grow in the range of 8 to 8.5 per cent in 2023-24 in real terms the Economic Survey said.

Assuming a normal monsoon, no further disruption to global supply chains and moderation in inflation, Odisha can grow in the range of 8 to 8.5 per cent in 2023-24 in real terms. The high growth achieved by Odisha needs to be contrasted with the gloomy and uncertain global macroeconomic situation, it said.

It said social sector spending in Odisha accounts for 53.2% of development expenditure with education, health & water supply/sanitation getting top priority.

Capital outlay, meant for asset creation, increased by 29.6% and 66.5% in 2021-22 and 2022-23 respectively. Capital outlay to GSDP ratio stands at 5.4 per cent.

Unemployment rate which was 7.1 per cent in 2018-19 came to 5.3 per cent till 2020-21.

The economy recovered from COVID-19 induced economic shocks in 2022-23. But, due to Russia-Ukraine war led disruption in global supply chains and upward movement in energy and other commodity prices, the inflation 2022-23 has gone up.

In Odisha as well, the average inflation till December 2022 was 6.56 per cent higher than 3.7 per cent in 2021-22. High fuel prices globally have been the key driver for such high inflation, it said.

On an average, inflation in Odisha (6.56 per cent) has been lower than for all-India (6.81 per cent) in 2022-23 (April-Dec).

The Survey said that the agriculture sector is estimated to grow at 6 per cent in 2022-23 in real terms. This is significantly higher than the growth experienced at the all-India level (3.5 per cent).

Industry sector has been the key growth driver in the state. It experienced a growth of 6.05 per cent in 2022-23 in real terms, it said.