The annual growth rate of Orissa was lower in 2007-08 compared to the previous fiscal. It declined to 8.67 percent in 2007-08 (advance estimates) compared to 9.35 percent recorded in 2006-07.
This decline is attributed to the decline in the sectoral contribution of the primary sector by 1.7 percent. However, the contribution of the secondary sector increased by 0.95 percent during the same period.
The overall performance of the state’s economy during the 10th plan period (2002-2007) was better than the previous plan period. The growth rate during the 10th plan has been recorded at 8.39 percent compared to 5.3 percent annual growth achieved during the 9th plan, says the Economic Survey 2008-09 presented by the Orissa government in the state Assembly today.
Praising the high growth during the 10th plan period, the survey says this high growth was possible mainly due to robust 27.85 percent growth in the manufacturing sector. While the share of manufacturing and mineral sector together was 13.18 percent of the Net State Domestic Product (NSDP) in the beginning of the 10th plan, it increased to 20.82 percent by the end of the 10th plan.
The Gross State Domestic Product (GSDP) of Orissa, registered a compound annual growth of 6.79 percent during 1999-2000 to 2007-08. It increased from Rs 42,909.62 crore in 1999-2000 to Rs 73,542.26 crore in 2007-08.
Similarly, the per capita income of the state also increased to 16,195 in 2007-08 compared to Rs 13,096 in 1999-2000 (at 1999-2000 constant prices). However, the per capita income of the state compares unfavourably with the national average of Rs 24,256 in 2007-08.
Referring to the employment problem in the state, the survey points out that the number of employees in the public sector establishments declined to 5.98 lakh by the end of 2007 compared to 7.11 lakh by the end of 2000. But there was marginal increase in the employment in the organised private sector. The public sector employment declined by 15.89 percent during this period compared to 3.45 percent growth in the organised private sector.
The backlog of unemployment, which is estimated at 14.13 lakh in the beginning of the 11th plan, has been projected to decline to 13.93 lakh by the end of the plan. While 10.53 lakh additional labour force is likely to join the labour market, about 10.73 lakh persons are likely to be employed, it states.
Citing that poverty as the most intractable problem of the state, the report says the state exhibits large scale poverty both in terms of intensity and extent of spread, which has affected the overall human development in the state.
It expressed concern over growing joblessness among the educated youth and called for higher level of investment to create more gainful employment opportunities. It suggested that the issue need to be tackled at the regional and the sectoral level rather than macro level. Labour intensive rural development and wage employment programmes can be instrumental in reducing the unemployment problem.
Pointing out that savings and investment are core inputs for growth of production and employment, the survey states that high rate of domestic savings and mobilisation of resources are pre-requisites for the macro-economic stability of the state. It called for the need to increase public savings and reduce deficit by increasing the tax and non-tax revenue. Besides, steps are required for curbing un-necessary expenditure.
