Low farm production pulls down Odisha’s GSDP

Low farm production pulls down Odisha’s GSDP

Agency News

Bhubaneswar,Feb 17 : The Real Gross State Domestic Product (GSDP) growth of Odisha in 2019-20 declined compared to the growth in 2018-19 due lower agriculture production and deceleration in mining and manufacturing.

The decline of the GSDP was reflected in the Odisha Economic Survey report for 2019-20 tabled in the state Assembly today. The growth in the economy was largely driven by agriculture, manufacturing and mining sub sectors, the report said.

However, Odisha registered higher economic growth of 6.16 per cent in 2019-20 compared to all-India growth of 5 per cent. According to the survey report ,the industries sector showed rising trend from 2015-16 to 2018- 19 before declining marginally at 39.6 per cent in 2019-20. On the other hand the share of services sectors exceeded both industries and agriculture and allied sector and kept on rising from 38.5 per cent in 2011-12 to 43.3 percent in 2015-16, after which it declined to 39.9 per cent in 2016-17 and again rose to 41.6 percent in 2017-18.

After dip in growth in 2014-15, as mining and manufacturing decelerated, the growth of Odisha recovered in 2015-16 to 8 per cent and thereafter it jumped to 15.6 per cent in 2016-17 due to high production in agriculture, more fiscal consolidation, and increase in manufacturing output. Growth softened further in 2017-18 with 6.3 per cent owing to reduced agriculture production and contraction in manufacturing and mining sector.

The report said the GDP of the State had been growing at an average annual rate of 7.5 per cent. It enabled the state’s output to grow at a faster pace than the national GDP in the last eight years except in 2014-15.

The per capita income of Odisha has increased from Rs.48,370 in 2011-12 to Rs.101,587 in 2019- 20. But the growth of per capita income witnessed fluctuating trend over the years. (UNI)