Odisha's Economy to Grow by 8.5% in FY 2023-24, Focuses on Industrial and Service Sectors

Odisha's economy is projected to grow by 8.5% in FY 2023-24, driven primarily by the industry and service sectors. However, efforts are needed to diversify industrial activities and boost agricultural productivity. The state's per-capita income remains below the national average, as reported in the State Economic Survey.

The State Economic Survey report of Odisha indicates that the state's economy is projected to grow at a robust rate of 8.5 percent for the financial year 2023-24, according to advance estimates. This marks an increase from the 7.9 percent growth observed in 2022-23. The report highlights that the growth is predominantly concentrated in the industry and service sectors.

Presented before the Assembly on Wednesday, the Economic Survey also reveals that Odisha's per-capita income is expected to be Rs 1,61,437, trailing by 12.4 percent compared to India's per capita income of Rs 1,84,205. Despite witnessing a compound annual growth rate (CAGR) of 12.1 percent in per-capita income since 2015-16, Odisha ranks 11th among 17 major states.

The agriculture and allied sectors are estimated to grow by 3.5 percent in 2023-24, contributing 20.4 percent to the Gross State Value Added (GSVA). The report suggests that the state should adopt crop diversification strategies to enhance productivity and farmers' income. Concurrently, the industry sector is expected to grow at a rate of 8.7 percent according to advance estimates, making up 43.2 percent of the GSVA.

Industrial activities in Odisha are largely confined to basic metal and mineral-based industries. The report advises a shift towards more diversified, value-added industries. The services sector is projected to grow by 9.2 percent in 2023-24, accounting for around 36 percent of the state economy and employing 26 percent of the total workforce.

(With inputs from agencies.)