Odisha Economic Survey 2024-25 bets big on Services sector to become Number 1 by 2036 from 13th in 2024-25! EXCLUSIVE

Bhubaneswar: The Mohan Majhi led BJP government in Odisha has set the target of 2036 to make Odisha sit on the high table of developed states.

However, the road for Odisha to perch among the leading states seems a long way ahead. Odisha economy size at present is only one-third of leading developed states in India. The State has only a decade left to take a place on the high table.

The State’s size of economy seems to have tripled during the last decade of 2014-15 to 2024-25. If the State grows at a greater pace, then the target seems achievable. The Economic Survey says, it is very much possible.

ODISHA’s LAST DECADE ECONOMY SIZE GROWTH

As per the Economic Survey, Odisha’s economy size stood at over Rs 2.95 lakh cr in the year 2014-15, the same, a decade later in the year 2024-25 has touched Rs 8.62 lakh cr.

A detailed look at the data shared by Economic Survey 2024-25 shows that Odisha economy took 9 longs years to double. The rate of GSDP growth in current prices has been very slow. View the table below.

GSDP AT CURRENT PRICES

A look at the Economic Survey shows Odisha GSDP growth picked up pace since 2021-22. The year saw GSDP at current prices (including inflation) taking a big jump of massive 29%. Still then, the growth rate has been in single digit averaging 6.5%. (view the table below)

The above table shows after taking a double digit growth of 29% in year 2021-22, the GSDP growth dropped to single digit in 2022-23. A double digit growth of over 13 percent notched in 2023-24 and in 2024-25, the growth dropped to single digit again.

The above trend shows Odisha economy’s double digit growth has not been a consistent show. The inconsistency in growth rate at current prices shows the State accomplishing the target of Rs 25 Lakh cr at current prices by 2036 a hard chase.  

This seems so as the State is now perching at the bottom.

ODISHA ECONOMY SIZE 13^th AMONG 17 MAJOR STATES

As per the Economic Survey 2024-25, the GSDP of Odisha at current prices of Rs 8.63 cr finishes at 13^th among the17 major states.

Odisha’s economy size is just ahead of smaller states like Chhattisgarh, Jharkhand, Punjab and poorest state like Bihar. (see the image below).

ECONOMIC SURVEY SAYS ODISHA CAN DO IT!

 Stating that the State has the has significant potential to grow and enhance the size of the economy, the Survey enlisted why the size matters?

• Economy size determines the ability of the state to provide better standard of living to its population
• Strengthens state’s capacity to raise funds from the market for development
• Reflects resilience of the State to various shocks
• Boost attractiveness to the investors.

HOW CAN ODISHA DO IT?

Terming as growth enablers, the Survey has the listed the recipe of success below.

• State giving big push to infrastructure to fuel growth in Agriculture, Industry and Services sector.
• High emphasis on irrigation to boost agricultural productivity.
• In this regard, Odisha govt has initiated 94 new irrigation projects with an investment of Rs 8,420 crores to enhance agricultural productivity and water supply across various districts.
•  State is developing future relevant industrial infrastructure to attract industries in diversified sectors.
• With regard to its endeavours, the Survey listed out the planned interventions like FDI park in state capital region to attract industries such as automobiles, electric vehicles, and IT
• Garment manufacturing parks
• Dedicated semiconductor parks
• Multi Modal Logistics Parks for facilitating trade and logistics across eight key locations under ‘Connect Odisha’ Scheme.
• Modi govt allocated nearly Rs10,586 crores to strengthen rail infrastructure in Odisha in 2024-25 Budget.
• Eight new rail projects worth Rs19,000 crores connecting the unconnected aspirational districts and tribal areas were approved.
• Four new National Highways totalling 360 km were announced.
• In order to pep up the services sector pie in Odisha’s GSDP, the Survey listed out the following
• State to develop cutting-edge hubs in the Bhubaneswar-Cuttack-Puri tricity area, as well as in
• Berhampur and,
• The Sambalpur-Jharsuguda-Rourkela corridor.
• In addition to six Software Technology Parks, two more parks in Sambalpur and Angul are coming up.

SURVEY LISTS HOW SUBHADRA YOJANA CONTRIBUTES TO VIKSHIT ODISHA?

The Economic Survey says Odisha BJP government’s transformative program  SUBHADRA transferring Rs 10,000 annually to women through Direct Benefit Transfer is not a populist scheme. It has also a major role in boosting Odishs’s services sector, which will give a boost to GSDP

• The Survey explains that the SUBHADRA Yojana with 1 cr beneficiaries is aiding in developing digital footprint in the State which can be important data point for Fintech companies to leverage in assessing credit worthiness and thereby lend to underserved segment for micro enterprenurship.
• The Survey says SUBHADRA Yojana will attract more Fintech cos to Odisha boosting the services sector.

FASTER URBANISATION WILL PROPEL ODISHA TO TOP LEAGUE

The Survey also takes into account the pace of urbanization in propelling Odisha to top league. In this regard, the Survey has prescribed the following.

• Odisha has significant potential for accelerated urbanisation (currently nearly 18 per cent).
•  Based on growth in built-up area since 2017, Odisha could see six clusters of rapid growth in built-up area in another 5-10 years. The 6 clusters are:
• Bhubaneswar-Cuttack-Puri (urbanization rate 48.71 per cent)
• Chhatarpur-Berhampur-Gopalpur (31.22 per cent)
• Balasore-BhadrakJajpur-Paradip (38.36 per cent)
• Sambalpur-Jharsuguda (34.67 per cent)
•  Rourkela (24.85 per cent)
• Jeypore-Sunabeda-Koraput (33.62 per cent).
• This is expected to drive demand for various consumer services such as real estate services, financial services, personal care services, entertainment services etc.