Odisha's GDP expected to grow at 6.16% in FY20, shows Economic Survey

According to the Odisha Economic Survey, the state's GSDP is growing at average annual growth rate of 7.5%, enabling it to grow at rate faster than national average in 8 years save 2014-15

Odisha's Gross State Domestic Product (GSDP) is projected to grow to 6.16 per cent in FY20, against 7.9 per cent in FY19, according to the advance estimates of the Odisha Economic Survey. Lower agricultural production due to catastrophic cyclonic storm Fani and deceleration in mining and manufacturing are expected to pull down the state's economic growth.

Over the past few years, Odisha's economy has been on a roller coaster ride. After a dip in growth in FY15, as mining and manufacturing contracted, Odisha's growth recovered in FY16 to eight per cent and then soared to 15.6 per cent in 2016-17 on the back of higher agricultural output, more fiscal consolidation and an increase in manufacturing output. The state's growth weakened in 2017-18 to 6.3 per cent, owing to reduced agriculture production and contraction in manufacturing and mining sectors. In 2018-19, the growth rose again to 7.9 per cent led by higher agricultural production along with fiscal consolidation.

According to the Odisha Economic Survey for 2019-20, the state's GSDP has been growing at an average annual growth rate of 7.5 per cent, enabling the state to grow at a faster rate than the national average in the last eight years save 2014-15.

The industries sector continues to have a dominant share in Odisha's GSVA (Gross State Value Added) with 39.6 per cent and a growth of 4.9 per cent projected for 2019-20. Manufacturing is the leading sub-sector which grew at 10.7 per cent in 2015-16, 33.2 per cent in 2016-17, 8.6 per cent in 2017-18 and 7.6 per cent in 2018-19  barring a contraction in 2012-13 and 2014-15. The growth rate is  expected to decline to 5.9 per cent in 2019-20.

“The growth in mining (16.2 per cent in 2018-19 and 3.4 per cent forecast for 2019-20) and construction sector (7.7 per cent in FY19 and 4.4  per cent in FY20) showed fluctuations and therefore need more attention for its balanced growth. The electricity, gas  & water-supply sub-sector is expected to  grow at 5.1 per cent in 2019-20”, the Economic Survey noted.

Likewise, the state's agriculture sector constituted 19.9 per cent of GSVA in 2019-20 as per advance estimates. The growth of crop sub-sector appeared to be more volatile due to natural shocks like cyclone in 2013-14, drought in 2015-16 and pest attack in 2017-18 which affected crop production.

Services sector is the largest contributor to GSVA accounting for 40.51 per cent share. “There is scope to further tap the service sectors' growth potential by providing supporting infrastructure. The expansion of services sector will also have immense potential to generate in the formal sector”, the survey report added.