Odisha’s growth story is not quite impressive and has registered a declining trend, according to the latest economic survey presented in the assembly on Tuesday.
Fall of Gross State Domestic Product
The performance of economy of any state is generally adjudged in terms of growth rate of ‘gross state domestic product (GSDP) and its variants. Odisha’s ‘real growth rate’ in 2013-14 is estimated at just 5.6%, a fall from 8.09% the previous year.
As per the report, the slowdown in growth rate of the state’s economy may be attributed to negative growth rates of ‘-0.85% in primary sector and ‘-3.25% in agriculture sub-sector in particular.
There were also ‘relatively slow growth rate’ recorded in other sectors that contribute to the GSDP like infrastructure, including power (4.92%), construction (3.59%) and service sector (4.03%), the report said.
Pro-Industrial Policies Hurting Agriculture
Though the report said Odisha in recent years had been veering towards becoming less agriculture and more industrial and service-oriented, over 60% of the state’s population continue to depend on agriculture for their survival.
The government, during 2012-13, had claimed 11.01% growth in agriculture sector and showed food grain production at 10,210 thousand metric tonne to bring home the point. It said a ‘state farmers’ commission’ has been constituted to ‘review the current status of agriculture, its performance, strengths and weaknesses’ to work out a comprehensive strategy for sustainable and equitable development.
State’s Per Capita Income Ranks Second from the Bottom
The survey report estimated the per capita income of people during 2013-14 at Rs 25,891, a rise of 1.87% over that of previous year, and above per capita income of states like Manipur, Assam, Uttar Pradesh and Bihar.
But that can bring not much solace as Odisha, according to the survey report, remained at second-last of the ‘monthly per capita consumer expenditure (MPCE) chart with Rs 904.79 (rural) and Rs 1,830.35 (urban) just above Bihar.
The MPCE is considered as a strong indicator of people’s standard of living. The gross disparity in MPCE between rural and urban Odisha indicated meagre flow of funds to villages where more than 83% of the state’s 4.19 crore people live.
The report said the government had undertaken a slew of programmes to ‘reduce poverty’ and achieved highest success amongst major states. It said poverty has declined by ‘24.61 percentage points’ from 57.20 in 2004-05 to 32.59 in 2011-12 and that the reduction is higher in rural areas.
Courtesy: The Times of India