Reported by Sandeep Pattnaik
Bhubaneswar, June 19:
Negative growth in agriculture and industry sectors has slowed down the economic growth of Odisha over the past two years, according to the data revealed in the Economic Survey Report for 2013-14 by the state government.
The growth rate in Odisha during 2013-14 has been estimated at 5.60% against 8.09% in the previous year- down by 2.49%. The decline in growth rate has largely been attributed to poor growth in agriculture and industry sectors.
The real annual growth rate of agriculture sector is likely to come down from 11.01% in 2012-13 to (-) 3.25% during 2013-14 at 2004-05 prices, the Annual Survey said. The agriculture productivity during 2013-14 was badly affected due to severe cyclone ‘Phailin’ followed by recurrent floods in coastal districts in October last year.
Though the agriculture sector provides sustenance fully or partially to about 60% of population, its contribution to gross state domestic product [GSDP] has come down drastically from 70% in the early 1950s to 15.58% as per the advance estimate for the year 2013-14.
Adding to the woes, the overall growth in the industry sector has been impacted due to the global economic slowdown, the Survey said. The share of this sector in GSDP is expected to stagnate at 25.40% in 2013-14 against 25.16% in 2012-13, the Survey surmised.
The disruption in mining and quarrying activities especially during 2010-11, 2011-12 and 2012-13 has led to the poor performance in the sector, according to the report.
The growth of manufacturing sub-sector contributed a meager 7% and that of the mining and quarrying sub-sector 6.16% only to the industrial growth in 2013-14 fiscal.
However, the service sector recorded a satisfactory annual average growth rate of above 8% between 2004-05 and 2013-14, according to the report. It has a share of 59.02% of GSDP in real terms in 2013-14, the report said.
In the service sector, hotels and restaurants are the leading sub-sector with 22.40% share followed by construction (16.65%), other services (15.72%), banking, insurance and communications (15.03%), transport including railways (13.83%) in 2013-14 advance estimates.
Last but not the least, the Infrastructure sector in the state contributed around 19.6% share to the State’s GSDP for the year 2013-14.
Power which is the vital component for the strengthening of the infrastructure sector has grown in real terms at an annual average rate of 7.16% during last ten years between 2004-05 and 2013-14. During the first two years of the 12th Five-year plan, the sub-sector rebounded strongly with the annual average growth rate of 11.47%, according to the Survey. This is despite the fact that, the sector has confronted several headwinds like availability of inputs such as coal, gas or oil, environmental constraints and natural shocks.
The report also says the per capita income (Rs 25,891) in the state has registered a marginal growth, which is 1.87% higher than the last fiscal.
In terms of per capita income, Jharsuguda district tops the chart with Rs 49,021 while Nabarangpur district is at the bottom with just Rs 14,700.
This is not withstanding the fact that, the state has witnessed fastest decline in poverty index over the years, according to the report.