March 29, 2022
Odisha’s economy registered a sharp recovery in 2021-22 after contracting by 5.3 percent in 2020-21 and the GSDP is expected to grow at 10.1 percent as per advance estimates.
The Odisha Economic Survey 2021-2020 further said that it is one of the fastest-growing states in the country, which registered a growth rate much higher than India’s GDP growth rate of 8.8 percent.
Notably, Odisha’s economy had grown at 7.1 percent per annum during 2012-13 to 2019-20 before witnessing negative growth in 2020-21 due to the adverse impact of COVID-19. The state’s GSDP contracted by 5.3 percent in 2020-21 against a contraction of 6.6 percent in India’s GDP, it said.
The report said that Odisha’s recovery process is not only faster but also more broad-based and it reverted to the pre-COVID level. However, the Russia-Ukraine conflict is likely to impact the state’s economic growth.
The Russia-Ukraine conflict has brought further uncertainty and is likely to impact global trade, businesses with its ramifications on the domestic price level, exchange rate, commodity supplies, and supply chain operations, it said.
The per capita income of Odisha has also grown at a double-digit rate of 16.8 percent in 2021-22. The average growth of Odisha’s per capita income over the last ten years (2012-13 to 2021-22) is 10.3 percent against India’s 9.15 percent.
Odisha’s per capita income of Rs 48,499 in 2011-12 reached Rs 1,27,383 in 2021-22. While in absolute terms, it is lower than India’s per capita income, the rate at which it is growing implies that it would soon exceed India’s level. Odisha’s per capita income was 76 percent of the per-capita income of India in 2011-12. It stands now at 84.7 percent.