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Even as the pandemic has dealt a blow to public and private finances, the number of billionaires in India remained high at 136 as against 77 in 2018-19, though the count of ultra-high net worth (UHNW) individuals shrunk by five in the country vis-a-vis 2019-20.
As per CBDT (Central Board of Direct Taxes) data, the country has a total of 136 UHNW individuals who have declared a gross annual income of Rs 100 cr (1bn) during the year 2020-21. The billionaire list, however, has none from Odisha.
Though Odisha figured at 16th in the country with regard to real GSDP (means GSDP at 2011-12 prices), the State failed to sign in to the top-20 billionaire states in the country. Interestingly, Jharkhand, which is at the 19th rank in the list of real GSDP size, has for the first time made a debut in the country's billionaire club. The neighbouring State has made a big bang entry in 2020 with a total count of 4 ultra-rich individuals.
Odisha Vs Neighbours
A cursory glance at the IIFL-Hurun India Rich list 2020 reveals that in the guild of the top-20 ultra-rich nationally, Andhra Pradesh has 7 to its credit, West Bengal has 32, Jharkhand and Bihar have four each. The nil billionaire count in Odisha shows it finishing poor in creating wealth generators, despite being endowed with rich mineral resources and a cheap labour force.
Significantly, as per the IIFL-Hurun Wealth Report 2020, for the first time since the release of the 'IIFL Rich report', manufacturing (including mining and metal) has figured among the top-10 industrial sectors that produced ultra-rich individuals in the country.
Mineral-Rich Odisha Industrially Poor?
As per the IIFL-Hurun report, the top sectors that have emerged as the big wealth creators in the country are Pharmaceuticals, Chemicals and Petrochemicals, Software and Services, Automobile and Auto components, Jewellery, Financial services, Construction and Engineering, Real estate, Manufacturing, Food and Beverages.
The Pharma sector is credited with having 122 rich individuals and is followed by Chemicals and Petrochemicals.
Incidentally, except manufacturing, Odisha has no or poor footprint in industrial sectors like pharma, software, financial services, automobile, jewellery, food and beverages etc. It's this lack of industrial diversification here that is proving a drag-on in the State emerging as a cradle of wealth creators in the country.
Wealth Creators Are Also Job Creators
As per the study report, the metallurgical sector is neither regarded as the top-10 wealth creators nor is it a big job creator in the country.
Employment potential in the private sector has been poor in Odisha as the job creation potential of the metal and metallurgical sector has been abysmal, observed in an earlier report of the erstwhile Planning Commission. Therefore, the planning body has urged the State for faster diversification of the industrial sector. Because it will entail big windfalls - from wealth to job creation - that are listed below.
- Food processing industry gives the maximum employment.
- While metallurgical could see the creation of around 66, 000 jobs per one lakh crore investment, the food processing sector with an investment of mere Rs 30,000 cr (one-third of the metallurgical) generates 85,000-90,000 jobs.
- Electrical/electronic sector generates around 40,000 jobs with only one-third of the investment of that of metal sector.
- Petrochem too produces roughly 80,000 jobs and infra/real estate around 75,000 per one lakh crore investment.
- Pharma Sector generates 2.7 mn jobs annually in the country. Odisha has a large number of pharmacy colleges but no pharma industry footprint. Pass-outs go as far as Uttarkhand, Himachal and Madhya Pradesh to work.
