Odisha Economic Survey: High petroleum prices and low iron ore prices pull down Odisha’s growth rate to 7.14% in 2017-18

Bhubaneswar: Surge in petroleum prices and slump in demands for iron ore and steel is likely to pull down Odisha’s  growth rate to 7.14% in 2017-18 from 7.94%  in 2016-17.

This is what says the state’s latest Economic Survey Report.

The Economic Survey Report 2017-18, tabled in the state assembly on Thursday, has, however, points out that the state’s growth rate would continue to be higher than the national average during the current fiscal. The state’s Gross State Domestic Product (GSDP) is estimated to grow at 7.14% at 2011-12 prices, which surpasses all India growth rate of 6.5%, says the Report. The GSDP is expected to rise up to Rs 3.46 lakh crore in 2017-18 as compared to Rs 3.23 lakh crore in 2016-17. It was Rs 2.30 lakh crore in 2011-12.

The per capita income at base year price of the state in terms of GSDP is estimated to be Rs 77,193 in 2017-18, which experienced a 6.06 per cent rise from Rs 72,780 in 2016-17.

At current prices, the per capita income of the state during 2017-18 is likely to touch the level of Rs 92,727, while it will be Rs 126,349 at the national level.

The Survey Report says that the service sector as a leading contributor to the GSDP has contributed 45.22% in 2017-18 and surpasses agriculture and industry sector. It was 38.54 per cent in 2011-12. The sector exhibited an accelerated growth rate of 10.7 per cent in 2016-17 and is estimated to grow at 12.4 per cent in 2017-18, it adds.

Stating that the share of agriculture has declined to 20 per cent from an overbearing 60 per cent in the 1960s, the Survey expresses  concern over the fact that the share of population dependent on the sector continues to be significant at around 50 per cent.

The mining, manufacturing and construction sectors were estimated to grow moderately at 4.6 per cent, while electricity, water supply and other utility services sub-sector is expected to clock a growth rate of 9.6 per cent, the report added.

The consumer price inflation in the state exhibited a fluctuating trend and was the lowest level of 1.3 per cent in 2017 (up to November 2017) as against all India level of 3.1 per cent.