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Chapter-5 1 Economics of Odisha Odisha Economic Survey 2019-20 February 2020 Planning and Convergence Department Directorate of Economics and Statistics Government of Odisha © Copyright 2020 Government of Odisha Published by Planning and Convergence Department Government of Odisha This Report does not necessarily reflect the views of the Government of Odisha All Rights Reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means without the prior permission of the Government of Odisha ............................................. Price : `100 Prepared by Planning and Convergence Department Government of Odisha, Bhubaneswar Printed at: Odisha Government Press, Madhupatna, Cuttack FOREWORD Asit Tripathy, IAS Chief Secretary Government of Odisha Odisha Economic Survey, 2019-20 highlights the sectorwise challenges and opportunities of the State’s Economy. Advance estimate for 2019-20 indicates a growth of 6.16 % in GSDP at constant price and 7.66% at current price for the State compared to 5.0% growth at all India level at constant price. The slump is attributed to lower agricultural production due to natural calamities and softening of growth in Mining and Manufacturing sector. The moderate growth inspite of adverse circumstances is indicative of the resilient and sustainable character of Odisha’s economy during the past decades. Uncertain weather conditions make agriculture volatile affecting contribution of agriculture to the State’s economy. The severe cyclone “Titli” in 2018 had led to decline in foodgrains production in the State. With the aim of augmenting and stabilizing farmer’s income, the Government has come up with a novel initiative- “KALIA” (Krushak Assistance for Livelihood and Income Augmentation) with an unique feature covering landless farmers too. The contribution of Mining sector at 11.08 % Manufacturing sector at 18.05 % to GSDP in 2019-20 (AE) at current prices is substantial. A structural change in the State’s economy has been observed during the recent past. The Service sector with 40.5 % of contribution to GSDP in 2019-20(AE) has overtaken other leading sectors of the economy. The Industry sector being the second largest sector contributed 39.06 % to the GSDP. Odisha Economic Survey, 2019-20 highlights the emergency trends in State’s economy. It presents the growth trajectory under different sectors and provides a comprehensive analysis of the development performances. It gives glimpses of the economic polices and development strategies that have turned Odisha into a State on the move alongwith the developmental and governance challenges for the State. I compliment the efforts of Planning and Convergence Department and the Directorate of Economics and Statistics for preparation of the Odisha Economic Survey, 2019-20 and wish the publication all success. I hope, this document will serve as a useful reference material for policy makers, planners, academicians, researchers and other stakeholders and will help shaping public policy for sustainable and inclusive growth of Odisha’s economy in future. (Asit Tripathy) PREFACE Suresh Chandra Mahapatra, IAS Development Commissioner-cum-Additional Chief Secretary Government of Odisha The Odisha Economic Survey, 2019-20 makes a comprehensive assessment of the performance and structural changes in Odisha’s economy in respect of social, economic and infrastructure sectors. The report highlights growth analysis and Government initiatives in key areas of Development. It outlines fiscal dimensions and effective reform measures taken by the State Government to ensure economic stabilization. The State’s economy has registered a growth of 6.16 % in the year 2019-20 (AE) surpassing the projected All India growth i.e. 5,0 %. Similarly, the State’s per capita income i.e. Rs.101587/- is 6.75 % higher than the previous year. The state has reported revenue surplus and maintained gross fiscal deficits within FRBM stipulations. Moreover, the Debt to GSDP ratio has been maintained below the threshold limit of 25% consistently from 2008-09 to 2019-20 (BE), it is 20% which is really encouraging. The Capital Outlay of the State is 4.6 % of GSDP (2019-20 (AE), which is the highest amongst the major States. State’s own tax buoyancy has grown in last 7 years from 1.19 in 2011-12 to 2.05 in 2017-18. Odisha has the second highest allocation of aggregate disbursement towards development purpose, which is much higher than other States. Among the three sectors, namely, 1) Agriculture and Allied activities, 2) Industry 3) Services Sector, Industry sector has the fastest growth due to Government’s pro-active initiatives like Make-in-Odisha Conclave, Start-up Policy, Ease of doing Business framework etc. The share of Manufacturing and Mining Sector in the State GDP is 39.6 % in 2019-20 (AE), where as the all India level contribution is 29.1 %.The steady pace of industrialization in the State has positive implications for employment generation. To enhance the farmer’s income, Government of Odisha have launched a progressive farmers welfare scheme, named KALIA. About 42.65 lakh farm households have been covered under KALIA for livelihood and income augmentation. The State Government continues to provide significant thrust for enhancing irrigation potential and public investment in the sector has increased substantially. Allocation of INR 2076 crore to this sector in the year 2007-08, has increased to INR 10,196 crore in 2018-19 which has contributed to creation of a total of 69.0 lakh ha. of irrigation potential by the end of 2018-19. Government’s commitment to equity and inclusive growth under Social Services sector has been reflected in year marking of 42.5 % of revenue expenditure for the sector. Remarkable reduction in IMR (Infant Mortality Rates) and Birth rate is due to the Government interventions in Health Sector, through different welfare schemes. In order to face the challenges in health sector, the schemes like Free Blood services, NIrmal, Khusi, (Free sanitary napkin distribution), Sunetra, Nidan and Swastha Sanjog (Mobile health units) were implemented which translated into landmark achievements in the health scenario of Odisha. Government have launched a flagship health assurance programme “Biju Swasthya Kalyan Yojana” to propel the State on a healthy trajectory. The State’s historic achievements during the time of natural calamities, evacuation and saving lives as well as quick restoration of public properties has established an international benchmark. Future challenges extends to creation of disaster resilient power infrastructure and housing for the disaster affected areas in the State. Operationalisation of “Five Ts: i.e. Technology, Teamwork, Transparency, Time leading to Transformation” and “Mo Sarkar” as a part of 5 T programme envisions effective and transparent service delivery with the mechanism of receiving citizen’s feedback on government services through ICT. I take this opportunity to acknowledge the sincere and dedicated efforts of the Officers of Planning and Convergence Department and Directorate of Economics and Statistics and all related offices/ organizations in making this report possible. I hope, Odisha Economic Survey, 2019-20 will be of use to the policy makers, planners, academicians, students and general public as well. (Suresh Chandra Mahapatra) ACKNOWLEDGEMENTS Gopabandhu Satpathy, IAS Special Secretary Planning and Convergence Department Government of Odisha The Odisha Economic Survey, 2019-20 presents both the challenges and opportunities of the State’s economy with wider perspectives. The Planning and Convergence Department with the support of D E & S has prepared this important document. The concerted efforts of officers of various institutions and Department are gratefully acknowledged. We are deeply grateful to Sri Suresh Chandra Mahapatra, Development Commissioner-cum-Additional Chief Secretary who has supported, guided and shared his intellectual inputs through Steering Committee meetings throughout. We express our gratitude to all Departments of Govt. of Odisha, to all Additional Chief Secretaries, Principal Secretaries and Commissioner-cum- Secretaries, for their support and feedback which has enriched the report. Our special gratitude to Sri Ashok K. Meena, IAS, Principal Secretary, Finance Department for his continuous technical support in preparing this Report. Our appreciation to the dedicated team of Officers and staff of Planning and Convergence Department and Directorate of Economics and Statistics, Odisha and other Officers in deputation to different departments/ organisations who extended their sincere and tireless supports in preparing and compiling the Report with the schedule time. Our thankful acknowledgement of the support provided by : The Pwc team including Dr. Tapas Sen and P. Rajsekhar; Sri Ananta Charan Sarangi, Joint Director, Smt. Sudha Panda, Asst.Director and other staff of Programme I section of P&C Department; Sri S. Sahoo (ISS), Director; Miss P. R. Pradhan, Joint Director, Sri Gagan Bihari Dash, Joint Director, PR & DW Deptt.; Md. Feroz Khan, Joint Director, PR & DW Deptt.; Dr. B.N. Mohanty, Deputy Director, SLAU, SDCs; Dr. B.N. Mohapatra, Deputy Director, Smt. Jayashree Rath, Asst. Director, Smt. Purabee Mohanty, Asst. Director, Smt. Smrutiranjita Pattnaik, SO, Sri Sarat Chandra Sahu, SO and Sri Kshiroda Kumar Sahoo, SO of Directorate of Economics & Statistics. Our thanks to all the Officers and staffs of Odisha Government Press , Cuttack for their co-operation and
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