Economy of Odisha

2022-04-08T07:49:51Z

223.231.209.14:

{{Short description|Economy of the region}}
{{Use dmy dates|date=May 2018}}
{{Use Indian English|date=May 2018}}
{{Infobox economy
| country = Odisha
| population = 41,974,218 (2011)<ref name="CensusIndia2011PCA12018">{{cite web|url=https://www.censusindia.gov.in/2011census/PCA/PCA_Highlights/pca_highlights_file/India/Chapter-1.pdf|title=Population, Size and Decadal Change|work=Primary Census Abstract Data Highlights, [[Census of India]]|access-date=5 December 2020|url-status=live|archive-url=https://web.archive.org/web/20191019035341/https://www.censusindia.gov.in/2011census/PCA/PCA_Highlights/pca_highlights_file/India/Chapter-1.pdf|archive-date=2019-10-19|publisher=[[Registrar General and Census Commissioner of India]]}}</ref>
| image = Bhubaneswar.jpg
| image_size =
| caption = [[Bhubaneswar]], the capital city of Odisha.
| currency =
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| gdp = {{INRConvert|5.86|lc}} (2021-22 est.)<ref name="Budget Analysis"/>
| gdp rank = [[List of Indian states and union territories by GDP|16th]]
| growth = 10.1% (2021-22)<ref name="Budget Analysis"/>
| per capita = {{INR Convert|127383}} (2021-22)<ref name="Budget Analysis"/>
| per capita rank = [[List of Indian states and union territories by GDP per capita|24th]]
| sectors = Agriculture 27% <br /> Industry 32% <br /> Services 41% (2019-20)<ref name="Budget Analysis"/>
| components =
| inflation =
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| gini = 0.31 (2009-10)<ref name="Sharma2013">{{cite book|author=Vipin Sharma|title=State of India's Livelihoods Report 2012|url=https://books.google.com/books?id=3fZLl34WUdkC&pg=PA26|access-date=25 May 2015|date=24 January 2013|publisher=SAGE Publications|isbn=978-81-321-1095-8|page=26}}</ref>
| hdi =
| labor =
| occupations =
| unemployment = {{decreasePositive}} 1.7% (Nov 2020)<ref>{{cite web|title=Unemployment Rate in India |url=https://unemploymentinindia.cmie.com/ |publisher=Centre for Monitoring Indian Economy |access-date=3 November 2020}}</ref>
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| balance = {{INRConvert|-17878|c}} (3% of GSDP) (2020–21 est.)<ref name="Budget Analysis"/>
| debt = 19% of GSDP (2020-21 est.)<ref name="Budget Analysis"/>
| revenue = {{INRConvert|1.24|lc|nolink=yes}} (2020-21 est.)<ref name="Budget Analysis"/>
| expenses = {{INRConvert|1.5|lc|nolink=yes}} (2020-21 est.)<ref name="Budget Analysis">{{cite web |title= Odisha Budget Analysis 2020-21 |url=https://www.prsindia.org/parliamenttrack/budgets/odisha-budget-analysis-2020-21 |website= PRS Legislative Research |access-date=2 March 2020}}</ref>
| aid =
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| spelling = Oxford
| presentUS$asdefault = yes or no; default value is "yes"; shows/hides statement about US$
}}

The '''economy of Odisha''' is one of the fastest growing economies in [[India]].<ref>{{Cite web|url=http://www.newindianexpress.com/states/odisha/2016/dec/02/odishas-economic-transformation-touchstone-of-indias-growth-arun-jaitley-1544667.amp|title = Arun Jaitley says Odisha's economic transformation touchstone of India's growth - the New Indian Express}}</ref> According to 2014-15 economic survey, [[Odisha]]'s gross state domestic product (GSDP) was expected to grow at 8.78%.<ref name=OdishaGSDP>{{cite news|title=Odisha GSDP to grow 8.78% in 2014-15: Economic Survey|url=http://www.business-standard.com/article/economy-policy/odisha-gsdp-to-grow-8-78-in-2014-15-economic-survey-115021601782_1.html|access-date=25 May 2015|work=[[Business Standard]]|date=16 February 2015}}</ref> Odisha has an [[agriculture]]-based economy which is in transition towards an industry and service-based economy. According to recent estimates, the size of Odisha's economy has increased by 122.27 per cent during the last six years in terms of the gross state domestic product (GSDP). Thereby, [[Odisha]] achieved an annual average growth rate of 6.23 per cent during that period.<ref>{{cite web|title=Odisha economy increased by 22 per cent in last six years: Governor S C Jamir|url=https://timesofindia.indiatimes.com/city/bhubaneswar/odisha-economy-increased-by-22-per-cent-in-last-six-years-governor-s-c-jamir/articleshow/57295583.cms|work=[[The Times of India]]|access-date=22 February 2017}}</ref> Odisha is also one of the top [[Foreign direct investment|FDI]] destinations in India. In the fiscal year 2011–12, Odisha received investment proposals worth {{currency|49,527|INR}} [[crore]] ({{currency|9.296|USD}} [[1000000000|billion]]).<ref name=FDI>{{cite news|title=Odisha top FDI destination in FY12, Gujarat at No. 3: Assocham|url=http://profit.ndtv.com/news/market/article-odisha-top-fdi-destination-in-fy12-gujarat-at-no-3-assocham-309964|access-date=25 May 2015|work=[[NDTV]]|date=28 August 2012}}</ref> According to the [[Reserve Bank of India]], It received {{currency|53,000|INR}} [[crore]] ({{currency|8.33|USD}} billion) worth of new FDI commitments in the 2012-13 fiscal year.<ref name=RBIFDI>{{cite news|title=RBI investment data overshoot Odisha figure four times|url=http://www.business-standard.com/article/economy-policy/rbi-investment-data-overshoot-odisha-figure-four-times-113091700631_1.html|access-date=25 May 2015|work=[[Business Standard]]|date=17 September 2013}}</ref>

==Overview==
In 2013–14, the GSDP growth rate dropped to 2.21%. This slown down was attributed to the [[Phailin]] cyclone, which caused a negative growth of 9.78% in the agricultural sector and also affected several other sectors.<ref name=OdishaGSDP/> According to the 2011 [[Census of India]], Odisha has a working population of 17,541,589, among them 61% are [[Full employment|main workers]] and rest are marginal workers. 33.9% of the total working female population are main workers.<ref name=Census/> {{As of|June 2014}}, Odisha has 10,95,151 people registered in various employment exchanges of the state. Of them, 10,42,826 reported themselves educated.<ref name=Youth>{{cite news|title=Over a million youth unemployed in Odisha|url=http://www.thehindu.com/todays-paper/tp-national/tp-otherstates/over-a-million-youth-unemployed-in-odisha/article6140452.ece|access-date=25 May 2015|work=[[The Hindu]]|date=23 June 2014}}</ref> Odisha had a rural unemployment rate of 8.7% and an urban unemployment rate 5.8% calculated based on the current daily status basis in the 68th National Sample Survey (2011-2012).<ref name=2015Survey/> The [[per capita income]] of the state was {{currency|98983|INR}} ({{currency|1531|USD}}) in 2013–14.<ref name=PerCapita>{{cite web|title=State-wise Per Capita Income and Gross Domestic Product at current prices|url=http://pib.nic.in/archieve/others/2014/aug/d2014070801.pdf|publisher=[[Press Information Bureau]]|access-date=26 May 2015}}</ref> The state has a [[public debt]] of {{currency|38,666|INR}} crore ({{currency|6.34|USD|}} billion), which is {{currency|8909|INR}} per capita ({{currency|146|USD}}), at the end of 2013–14.<ref name=Debt>{{cite news|title=Rs 38,666 Crore Debt Burden on Odisha|url=http://www.newindianexpress.com/states/odisha/Rs-38666-Crore-Debt-Burden-on-Odisha/2015/03/19/article2720527.ece|access-date=25 May 2015|work=[[The New Indian Express]]|date=19 March 2015}}</ref>

According to [[ASSOCHAM]], in the fiscal year 2011–12, Odisha received investment proposals worth {{currency|49,527|INR}} [[crore]] ({{currency|9.296|USD}} [[1000000000|billion]]).<ref name="FDI"/> According to the [[Reserve Bank of India]], Odisha received new FDI proposals worth Rs 53,000 crore (US$8.333 billion) in the 2012-13 fiscal year.<ref name="RBIFDI"/> In 2012–13, {{currency|125|INR}} crore ({{currency|19.66|USD}} million) worth of [[foreign aid]] was received by [[NGO]]s in the state.<ref name=NGOs>{{cite news|title=Indian NGOs got foreign aid worth Rs 3,784 cr last year|url=http://www.rediff.com/business/report/rs-3784-crore-in-foreign-donations-went-to-ngos-in-2013-14/20141125.htm|access-date=25 May 2015|work=[[Rediff]]|date=26 November 2014}}</ref>
{{Pie chart
|caption = Contribution of each sector to the GSDP (in percent)
|value,1 = 51
|label.1 = Service
|value,2 = 15.4
|label.2 = Agriculture
|value,3 = 33.6
|label.3 = Industry
}}

{{Bar chart
| title = GSDP by year<ref name=GSDPState>{{cite web|title=Gross State Domestic Product (GSDP) at Current Prices (as on 31-05-2014)|url=http://planningcommission.nic.in/data/datatable/0306/table%20168.pdf|publisher=[[Planning Commission of India]]|access-date=26 May 2015}}</ref>
| label_type = Year
| data_type = GSDP (in [[crore]] [[Indian rupees]])
| data_max = 400,000
| label1 = 2001-02 | data1 = 46,756
| label2 = 2002-03 | data2 = 49,719
| label3 = 2003-04 | data3 = 61,008
| label4 = 2004-05 | data4 = 77,729
| label5 = 2005-06 | data5 = 85,096
| label6 = 2006-07 | data6 = 101,839
| label7 = 2007-08 | data7 = 129,274
| label8 = 2008-09 | data8 = 148,491
| label9 = 2009-10 | data9 = 162,946
| label10 = 2010-11 | data10 = 197,530
| label11 = 2011-12 | data11 = 214,583
| label12 = 2012-13 | data12 = 255,459
| label13 = 2013-14 | data13 = 288,414
| label14 = 2014-15 | data14 = 310,810
| label15 = 2015-16 | data15 = 348,107
}}

==Sectors==
{{State of Odisha}}

===Agriculture and Livestock===
According to the 2011 [[Census of India]], 61.8% of the working population are engaged in agricultural activities.<ref name=Census>{{cite web|title=2011 Census: Odisha - Executive Summary|url=http://www.censusindia.gov.in/2011census/PCA/PCA_Highlights/pca_highlights_file/Odisha/Executive_Summary.pdf|publisher=[[Census of India]]|access-date=25 May 2015}}</ref> However, the agricultural activities undertaken in the state contributed only 16.3% to the GSDP in the fiscal year 2013-14 and it was estimated to be 15.4% in 2014–15. The area under cultivation was 5,691 [[hectares]] in 2005-06 and it dropped to 5,424 hectares in 2013–14. [[Rice]] is the dominant crop in Odisha. It is grown on 77% of the area under cultivation. Odisha produced 8,360 metric tonnes of rice in 2013–14, a drop from 10,210 metric tonnes due to the cyclone Phailin.<ref name=AgriShare>{{cite news|title=Agriculture share in GSDP falls|url=http://timesofindia.indiatimes.com/business/india-business/Agriculture-share-in-GSDP-falls/articleshow/46320809.cms|access-date=25 May 2015|work=[[The Times of India]]|date=21 February 2015}}</ref>
Given below is a table of 2015 national output share of select agricultural crops and allied segments in Odisha based on 2011 prices<ref>[http://www.mospi.gov.in/sites/default/files/publication_reports/Final1Brochure_30july2018.pdf 2015 agricultural output of Odisha based on 2011 prices]</ref>
{| class="wikitable"
|-
! Segment || National Share %
|-
| Cow pea || 45.0
|-
| Pumpkin || 33.6
|-
| Niger seed || 30.5
|-
| Sweet potato || 30.4
|-
| Turmeric || 17.0
|-
| San hemp || 24.7
|-
| Brinjal || 14.3
|-
| Water melon || 12.1
|-
| Lemon || 11.7
|-
| Bitter gourd || 11.1
|-
| Coconut || 11.0
|-
| Betel || 9.9
|-
| Cabbage || 8.5
|-
| Ber || 8.4
|-
| Fuel wood || 8.4
|-
| Linseed || 7.8
|-
| Cashew nut || 7.3
|-
| Parmal || 7.2
|-
| Jackfruit || 6.9
|-
| Okra || 6.8
|-
| Sunflower || 6.3
|-
| Bottle gourd || 6.0
|-
| Tomato || 5.9
|-
| Moong || 5.8
|-
| Paddy || 5.6
|-
| Arhar || 5.5
|-
| Mango || 5.0
|-
| Chilli || 5.0
|}

During 2013–14, the state exported 4.13 [[lakh]] tonnes and {{currency|1,800|INR}} [[crore]] worth of seafood. In 2014–15, the value of exports rose by 26% to {{currency|2,300|INR}} [[crore]] with 4.67 tonnes being exported. Odisha is the fourth largest [[shrimp]] producing state in India.<ref name=Seafoodexport>{{cite news|title=Odisha achieves record seafood exports growth|url=http://www.oneindia.com/india/odisha-achieves-record-seafood-exports-growth-1754919.html|access-date=8 August 2015|work=One India|date=22 May 2015}}</ref><ref name=ShrimpExportUp>{{cite news|title=Shrimp Export up by 56 Per Cent in State|url=http://www.newindianexpress.com/states/odisha/Shrimp-Export-up-by-56-Per-Cent-in-State/2015/07/23/article2935598.ece|access-date=8 August 2015|work=[[The New Indian Express]]|date=23 July 2015}}</ref><ref name=RecordRxportsTOI>{{cite news|title=Odisha achieves record seafood exports growth|url=http://timesofindia.indiatimes.com/good-governance/odisha/Odisha-achieves-record-seafood-exports-growth/articleshow/47387967.cms|access-date=8 August 2015|work=[[The Times of India]]|date=22 May 2015}}</ref>
On 22 November 2017, Odisha government decided to launch "Nabakrushna Choudhury Seccha Unnayan Yojana" to provide irrigation facility to about 55,000 hectare of agricultural land across Odisha.
The scheme would be implemented with an outlay of Rs 635 crore over a period of three years. Under the scheme, 46,296 hectare command area of 14 major and medium irrigations and 284 minor irrigation projects will be revived.

===Industry===
The primary industries in Odisha are manufacturing; mining and quarrying; electricity, gas and water supply and construction. The industrial sector's contribution to the state's GSDP was estimated at 33.45% in 2014–15. Most of Odisha's industries are mineral-based. Odisha has 25% of India's [[iron]] reserves. It has 10% of India's production capacity in [[steel]]. Odisha is the top [[aluminium]] producing state in India. Two of the largest aluminium plants in India are in Odisha, [[National Aluminium Company|NALCO]] and [[Vedanta Resources]]. Mining contributed an estimated 6.31% to the GSDP.<ref name=2015Survey>{{cite web|title=Odisha Economic Survey, 2014 -15|url=http://www.odisha.gov.in/pc/Download/Economic_Survey_2014-15.pdf|publisher=Planning and Coordination Department, [[Government of Odisha]]|access-date=25 May 2015}}</ref>

===Power===
Odisha has 9036.36 [[Megawatt|MW]] installed capacity of electricity production, out of which 6753.04 MW is coal-generated. 2166.93 MW is generated by [[hydro power]] and 116.39 MW by other [[renewable source]]s.<ref name=CEA>{{cite web|title=All India Installed Capacity (in MW) of Power Stations|url=http://www.cea.nic.in/reports/monthly/inst_capacity/jun15.pdf|access-date=8 August 2015|publisher=Central Electricity Authority|date=30 June 2015|archive-url=https://web.archive.org/web/20150923201714/http://www.cea.nic.in/reports/monthly/inst_capacity/jun15.pdf|archive-date=23 September 2015|url-status=dead}}</ref>

Odisha was the first state in India to reform its power sector. In 1996, it passed the Orissa Electricity Reform Act to restructure and privatize the sector. Before the Act, the single public-sector company Orissa State Electricity Board (OSEB) had been producing and supplying electricity in the state since its establishment in 1961. But by 1994–95, OSEB had run into heavy losses and there was a gap of 45% between consumption and production. The reforms unbundled power generation from transmission and distribution. Following the reforms, hydro power plants were handed over to [[Odisha Hydro Power Corporation]] (OHPC) and the existing thermal power plants were transferred to [[Odisha Power Generation Corporation]] (OPGC). [[Grid Corporation of Odisha]] (Gridco) was given the task of power supply. Initially, these were operated as state-owned farms, but later were [[Corporatization|corporatised]].<ref>{{cite web|url=http://planningcommission.nic.in/plans/stateplan/sdr_orissa/sdr_orich13.doc|publisher=[[Planning Commission of India]]|title=Power Sector Reform in Orissa: A Case Study in Restructuring|access-date=8 August 2015}}</ref>

In August 2014, the government announced a plan to invest {{currency|54,000|INR}} crore in the power sector over the next 5 years, to provide 24-hours electricity to both the urban and rural regions.<ref name=plan54>{{cite news|url=http://www.thehindu.com/news/national/other-states/odisha-plans-rs-54000-crore-investment-in-power-sector/article6271723.ece|title=Odisha plans Rs. 54,000 crore investment in power sector |date=1 August 2014|work=[[The Hindu]]|access-date=8 August 2015}}</ref> Odisha expects to reach a power surplus during its peak consumption months by 2015–16.<ref name=PeakSurplus>{{cite news|title=Odisha to have 12% surplus power in peak period in 2015-16|url=http://www.business-standard.com/article/economy-policy/odisha-to-have-12-surplus-power-in-peak-period-in-2015-16-115060201695_1.html|access-date=8 August 2015|work=[[Business Standard]]|date=2 June 2015}}</ref>

===Service===
The service sector contributed an estimated 51% to the GSDP in 2014–15. The primary sub-sectors are: community, social and personal services, which contributed 13.45% to the GSDP; trade, hotels and restaurants, which contributed 13.09%; financial and insurance services, which contributed 13.64%; and transport, storage and communication, which contributed 10.99%.<ref name=2015Survey/> The state has a well-developed banking network compared to many states of India. There is one bank branch for every 12,000 people. 90% of the branches are in the rural region.<ref name=2015Survey/>

==See also==
* [[Industrial Promotion & Investment Corporation of Odisha Limited]]
* [[2015–16 Odisha state budget]]

==References==
{{Reflist}}

==Further reading==
* {{cite web|title=Odisha Economic Survey, 2012 -13|url=http://www.odisha.gov.in/pc/Download/Economic_Survey_2012_13.pdf|publisher=Planning and Coordination Department, [[Government of Odisha]]|date=February 2013}}
* {{cite web|title=Odisha Economic Survey, 2013 -14|url=http://www.odisha.gov.in/pc/Download/Economic_Survey_2013-14.pdf|publisher=Planning and Coordination Department, [[Government of Odisha]]|date=February 2014}}
* {{cite web|title=Odisha Economic Survey, 2014 -15|url=http://www.odisha.gov.in/pc/Download/Economic_Survey_2014-15.pdf|publisher=Planning and Coordination Department, [[Government of Odisha]]|date=February 2015}}

{{Odisha}}
{{Economy of India}}

{{DEFAULTSORT:Economy Of Odisha}}
[[Category:Economy of Odisha| ]]

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Economy of Odisha