Odisha’s population has remained predominantly rural. As per 1941 Census data, while 13.86 % of Indians lived in urban areas, only three per cent of Odisha’s population lived in towns. By 2011, 16.86% of Odisha's population was urban while India’s urban population had gone up to 31.16%. In 2011, only about 70 lakh people lived in urban areas in Odisha while the estimated urban population of Odisha in 2024 went up to 93 lakhs (19.5%). As per estimates, India’s urban population in 2023 has gone up to 36% and its urban population increased by 2.2%. If Odisha today had 36% of its population urban, the urban population would be 169 lakhs out of a total population of 470 lakhs. That would mean we should have 76 lakh more people in urban areas than what we have. Odisha’s urban population of 70 lakhs increased by only 23 lakhs in 12 years to 93 lakhs whereas the increase should have been 100 lakhs to reach the national level of 36%. A slow rate of urbanisation in Odisha is an indicator of its slow economic growth. This stark deficiency should be addressed through appropriate government policy interventions.
While supporting data are not available at a micro level, there are strong reasons to believe that cities do act as engines of economic growth in India. Cities contribute to nearly two-thirds of the country’s GDP. Hence, if Odisha is to ensure credible macroeconomic growth, it must support urbanisation. The decades of sluggishness must end.
The construction industry in India ranks third among major economic sectors. It is the largest job creator after agriculture. The real estate sector has been crucial for economic growth. Demand for commercial and residential properties has increased as a result of rising household income. The real estate sector is expected to contribute 12-15% to the country’s GDP by 2025. Odisha too needs to look at the real estate and construction sector much more seriously. This segment holds huge potential to create wealth.
There is a need for an innovative approach. The state needs to create thematic townships. Ghatgaon, in Kendujhar District, for example, is widely known as the seat of Goddess Tarini. Thousands of devotees visit the temple. The place, of great scenic beauty, still is without many basic amenities. It should be developed with foresight as a religious township. Shirdi, for example, is now a vibrant city with even satisfactory air connectivity. Such development could happen within forty years. The city is now a huge commercial centre and has a large number of guest houses and hotels. Similar treatment awaits Ghatgaon. To start with, a hundred acres of land could be developed for housing, guest houses, and hotels.
Many devotees would like to settle down in the holy town. A Boarding School could be set up by a Group which has a reputation for running reputed Boarding Schools in the country. In the vicinity, a well-known corporate Hospital could also come up. By the time Kendujhar hosts huge steel industries—which is a distinct possibility now—the neighbourhood would have had developed supportive infrastructure. The state could have similar religious townships in many other places like Gupteswar (Koraput District), Chakapad (Kandhamal District), Aradi (Bhadrak District), and Joranda (Dhenkanal District). Seabeach and lakeside townships could come up at Astaranga, Tala Sari, Pati Sonepur, Siali, Satapada and Barakul. Odisha has sadly not developed hill resorts in the picturesque Eastern Ghats at altitudes between 3000 and 4000 feet by integrating such resorts with suitable plantation crops which the area offers plentiful opportunities for.
Apart from thematic townships, the state must draw up a rejuvenation and enlargement plan for most of the 115 towns and cities which are either municipal corporations, municipalities or Notified Area Councils. Most of these towns have infrastructure like schools, colleges, and hospitals and given adequate developed land, the government could be triggering meaningful housing activities which would meet the widespread demand for modern housing. Most Odisha towns today look sickly because the state has not taken any worthwhile regeneration programme. This situation must change.
(DISCLAIMER: This is an opinion piece. The views expressed are the author’s own and have nothing to do with OTV’s charter or views. OTV does not assume any responsibility or liability for the same.)