{"id":4751,"date":"2016-11-07T10:53:27","date_gmt":"2016-11-07T05:23:27","guid":{"rendered":"http:\/\/discoverbbsr.com\/?p=4751"},"modified":"2021-09-06T22:40:22","modified_gmt":"2021-09-06T17:10:22","slug":"why-odisha-poor","status":"publish","type":"post","link":"https:\/\/discoverbbsr.com\/why-odisha-poor\/","title":{"rendered":"What Makes Odisha Poor and How It Can Change its Fortunes"},"content":{"rendered":"
The slogan of \u2018Make in Odisha\u2019 is being raised, Bhubaneswar is going to be a smart city. But first the state must explore ways of raising its farm productivity.<\/em><\/p>\n Odisha is one of the rare states that has enjoyed a long period of political stability and continuity in economic policies since March 2000, when Naveen Patnaik took over as chief minister for the first time.<\/p>\n The state is also blessed with abundant natural resources, especially minerals, forests and groundwater.<\/p>\n Given all this, Odisha should have been one of the richer states of India. But Odisha\u2019s per capita income is the fifth lowest in the country <\/strong>and poverty the sixth highest amongst various states<\/strong> of India.<\/p>\n Odisha\u2019s per capita income \u2014 Rs 24,928 in fiscal year (FY) 2014 \u2014 was about 62 per cent of the all-India average \u2014 Rs 39,904 in FY14.<\/p>\n Although it is much better in this respect compared to Bihar (Rs 15,506) and Uttar Pradesh (Rs 19,233), Odisha remains way below the top-performing states like Sikkim (Rs 83,527), Maharashtra (Rs 69,097), Haryana (Rs 67,260) and Gujarat (Rs 63,168).<\/p>\n One-third of Odisha\u2019s population is poor, which is higher than national average – 22% of the country\u2019s population is below the poverty line.<\/p>\n To put things in perspective, let\u2019s compare this to that some of the other states in India.<\/p>\n Note<\/strong>: The figures are from 2011-2012, as per the erstwhile Planning Commission estimates based on the Tendulkar poverty line.<\/p>\n In its quest to industrialize fast, Odisha is hosting a mega event, \u201cMake in Odisha Conclave\u201d, at the end of this month.<\/p>\n Bhubaneswar, the state\u2019s capital, tops the list of 20 smart cities to be developed under the Union government\u2019s 100 smart cities program.<\/p>\n These are laudable initiatives.<\/p>\n A research at ICRIER by The Indian Express reveals that higher productivity and income in agriculture may still hold the key<\/strong> for faster poverty alleviation.<\/p>\n This is particularly so since 91% of poverty in Odisha is rural<\/strong>, and more than 60% of its workforce is engaged in agriculture<\/strong>.<\/p>\n But unfortunately, between 2010-2011 and 2014-2015, Odisha\u2019s agri-GDP recorded an annual average growth of a mere 0.9 per cent.<\/p>\n Compare this with a 14.2 per cent agri-GDP growth in Madhya Pradesh and a 7.1 per cent agri-GDP growth in Bihar.<\/p>\n Odisha\u2019s productivity with respect to its main crop, rice, is less than two mt\/ha (metric tonnes per hectare).<\/p>\n Punjab\u2019s rice productivity is four mt\/ha, Haryana\u2019s 3.2mt\/ha and Andhra Pradesh\u2019s four mt\/ha.<\/p>\n Low rice productivity in Odisha is surely discomfiting.<\/strong><\/p>\n So, how can one turn around Odisha\u2019s agriculture and alleviate rural poverty faster? Here are some suggestions to fix rural poverty in Odisha.<\/p>\n First, the state should gain better control over water resources, especially those pertaining to irrigation.<\/p>\n About 39 per cent of Odisha\u2019s gross cropped area is irrigated (compared to the all India average of 48 per cent, and above 95 per cent in the Punjab-Haryana belt).<\/p>\n Odisha has a large (70 per cent) untapped groundwater potential<\/strong> and about 50 per cent untapped potential from major and medium irrigation schemes.<\/p>\n While this is holding back the state\u2019s agri-growth, some strategic interventions can turn things around.<\/p>\n Luckily, much of Odisha\u2019s groundwater reserves are at a depth of just two to five meters (see map below)<\/strong>, which can be tapped economically if adequate power supply is provided to the agriculture sector.<\/p>\nOdisha\u2019s Per Capital Income<\/h2>\n
1\/3rd<\/sup> of Odisha\u2019s Popular is Poor<\/h2>\n
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What is the best and fastest way to eliminate poverty?<\/h2>\n
Better Control over Water Resources<\/h2>\n