By Bizodisha Bureau, Bhubaneswar, February 21, 2021: Odisha’s economy is expected to contract by 4.92 per cent (pc) in 2020-21 which is lower than the contraction of the national economy by 7.7 per cent.

Covid-19 pandemic has severely impacted the economies all over the globe and economic contraction is experienced by most of the economies, but the pandemic’s blow has been cushioned by State government’s effective financial management and governance during the year of health crisis, the State Economic Survey said on Saturday.

The period between 2012-13 and 2019-20 points to a positive differential trend in the State’s average annual growth rate.

While its growth trajectory has been higher than the national rate, the contraction caused by Covid crisis is lower than the national economy. The Odisha economy grew at an average annual rate of 7.1 pc, higher than the national rate 6.6 pc and 13 other states of the country during eight year period.

The Economic Survey also said that the State’s per capita income bettered most of its counterparts in last nine years showing a story of sustained growth and prosperity. The per capita income of Odisha showed a rise from Rs 48,499 (2011-12) to Rs 1,04,566 (2019-20), registering a 115.6 per cent jump over the period.

During the same time, national per capita income rose from Rs 63,462 to Rs 1,34,226 registering a 111.51 per cent growth. “This suggests that over about a decade, the per capita income of Odisha has grown faster than national average. Odisha’s per capita income which was about 76.42 pc of the national average in 2011-12 increased to 80.46 pc in 2020-21.

However, the per-capita income of the State is expected to decline by 2.30% as against the decline of 5.41% at national level in 2021 FY, the Survey said adding that the rural poverty in the state came down by 25 percentage points between 2004-05 and 2011-12 (i.e from 60.8% to 35.69%) which is much higher than the national reduction of 16 percentage points. Similarly, the Poverty Gap Ratio (PGR) was reduced by 10.36% for rural Odisha against the rate of reduction for rural India as 4.59% the Survey added.

The average annual growth rate in agriculture (4.42 pc), industry (7.13 pc) and GSDP (7.13 pc) in Odisha clocked a faster growth than the national average. Only in services sector, the State recorded lower growth of 7.11 pc against the country average of 7.99 pc.

Pointing to the State’s good governance, the Economic Survey said, even when Covid impacted a negative growth in agriculture in 2020-21 at – 6.54 pc, Odisha exhibited a long-term growth in GSDP at 5.72 pc, higher than the national average at 5.01 per cent.

The growth decline in different sectors in Odisha was also less than that at the national rate. The contraction in industry (- 8.83 per cent) and services (-3.18 per cent) sectors as well as in GSDP (- 4.92 per cent) was slower than the the national rate of -9.57 per cent, -8.77 per cent and -7.73 per cent respectively.