Odisha logs slowest ever GSDP growth rate of 6% in last 5-years!
The telltale signs of slowdown clearly discernible in Odisha economy. All sectors ranging from mining, manufacturing, construction and services have recorded sharp decline. Farm growth dropped by over 6%
Bhubaneswar: Odisha growth story stands decelerated in the Fiscal 2019. The growth rate of GSDP (Gross State Domestic Product) is projected to post a steep fall of over 1.8 per cent to touch 6.16 per cent in 2019-20.
This is the slowest growth rate in last 5-years. Odisha has been growing at an average rate of 9.5 per cent per year during the period of 2015 – 19. The State achieved the highest growth rate of 15.72 per cent in 2016-17 and lowest growth rate of 6.68 per cent in 2017-18.
And expectedly, the impact is noticed on the per capita income. Odisha’s real per capita income grew by mere 5 per cent to touch Rs78,119. The real national per capita income is projected at Rs 96,563. The gap between Odisha and National per capita income is estimated at around 20 per cent.
The noteworthy mention here is the growth of real per capita income in 2018-19 had been over 7 per cent.
Though the Eco-survey 2019-20 attributed the drop to extremely severe cyclonic storm Fani affect on farm sector and slowdown in the mining and manufacturing sector, the big fact here is in fiscal year 2013-14 (Phailin effected year), the GSDP of the State grew at a high rate of 9.26 per cent.
The significance of this comparison is the slowest ever GSDP growth in last 5-years indicates to prevalent of some inherent faultlines in the State economy.
The slowdown impact is clearly discernible. Mention one. You will find out. Mining growth rate registered sharpest drop. The sector is projected to grow at mere 3.4 per cent vis-a-vis 16.18 per cent growth rate in 2018-19. Manufacturing sector’s projected growth rate this fiscal is estimated at 5.9 per cent against 7.6 per cent last year. The story is same for the other secondary sectors.
The big takeaway from the Survey is farming sector in the State has a poor growth story. Even, the Economic-Survey 2019-20 has conceded that the average growth of crop sector is mere 2.5 per cent during the period of 2012-13 to 2019-20. The growth rate projected in 2019-20 is mere 2.9 per cent.
The positive signs noticed about the allied sectors are: Odisha witnessed highest ever growth rate in livestock sector (dairy and poultry). The rate of growth is projected at a whopping 20.68 per cent. The highest ever growth rate since 2012-13 in the livestock sector is mainly led by the poultry sector.
Though fisheries and aquaculture grew by 12 per cent, it’s a drop from the high of 21.93 per cent in 2016-17. Forestry and logging have also shown a better growth rate than 2018-19.
Services sector, which is the job engine in states like Maharashtra, Gujarat, Delhi, Haryana etc, has shown a slower growth rate of 6 per cent in 2019-20. The rate of growth was 8.59 per cent in 2018-19. Even, 2018-19 growth rate was of below potential for the State. The reason: services sector grew by 13 per cent in 2016-17. A glance shows the private sector has recorded slower growth. And the jobs in the service sector are created mostly by government sector (Public administration & Defence).