Despite the debilitating effect of second and third wave of Covid-19, the state’s economy has registered a rebound in the 2021-22 with Gross State Domestic Product (GSDP) growing at a rate of 10.1 per cent as against the national growth rate of 8.8 per cent, according to Odisha Economic Survey (2021-22) report tabled before the Odisha Assembly on Tuesday.

The State’s GSDP contracted by 5.3 per cent in 2020-21 which is lower than the contraction experienced at all India levels, i.e. 6.6 per cent. In spite of the adverse impact of COVID-19 second wave, the state economy is likely to grow by 10.1 percent in 2021-22. The rebound in growth is attributed to robust growth in the manufacturing sector, the report pointed out.

The rebound was made possible due to the development approach of the Government, effective handling of the pandemic and pro-active fiscal measures.

The Per capita income of Odisha has grown at a double-digit rate of 16.8 percent in 2021-22. In absolute terms, the per capita income of Rs 48,499 in 2011-12 has gone up to Rs 1,27,383 in 2021-22.

This is attributed to rapid economic growth, capital investment, employment generation and stabilization in population, it said.

The Agriculture & Allied sector exhibited contraction of 3.37 per cent in 2021-22, due to multiple natural calamities like heavy rain, unseasonal cyclonic rain and severe cyclonic storm ‘Yaas’ followed by flood water inundation, cyclone ‘Gulab’ and ‘JAWAAD’ in December, 2021. Incessant rain on standing and harvested crops in December 2021 and January, 2022 brought widespread damage to paddy and vegetable crops in the state.

The broad industries sector has shown steady recovery from the impact of COVID-19 loss and registered 14.46 per cent growth in 2021-22 over 2020-21, against a negative base.

The State is gradually becoming the industrial hub of the eastern region of the country. Industries and Service sector have become the lead sectors and the new driver of growth in Odisha. In 2021-22, Agriculture and Allied Activities contributed 20.61 per cent, Industry contributed 39.51 per cent and Services contributed the remaining 39.88 per cent to Gross Value Added (GSVA).

Odisha Economic Survey of 2021-22 provides a snapshot of the State’s Economy, composition of Gross State Domestic Product, sectoral developments, development in mining and industries, services sector and its growth prospects, social sector development including education, health, nutrition and social protection measures, governance reform and the state’s finances.

Odisha’s mineral resources were largely catering to the production needs of other states. Multiple industries are coming to set up their plant here in the State. State’s industry sector is diversifying with focus for more downstream and ancillary industries.

The new industrial units are now much more diversified and covering the vast hinterlands and erstwhile uncovered districts. It will provide better employment opportunities to our people. It will also increase per capita income. The government aims to grow with nature and adopt environmental sustainable measures, the report maintained.