Lopsided growth stalks Orissa's economy

Regional imbalances continue to be a worrying factor for Orissa despite its economic growth momentum as the economically backward and Maoist infested Malkangiri district recorded the lowest average growth rate of 5.2 per cent during 2005-06 to 2008-09.

In glaring contrast, Sundergarh district in the state's western belt posted the highest growth of 17.9 per cent followed by industrial hub Jharsuguda and coastal Jagatsinghpur that clocked average growth of 10.9 per cent.

With the notable exception of Puri which ranks only above Malkangiri in the growth ladder with a growth of 5.7 per cent, coastal and western districts have occupied the top rungs while north and southern parts of the state have been laggards.

The same trend is more or less reflected in per capita incomes of districts with Angul wresting the top slot at Rs 20,500 followed by Jharsuguda (Rs 19,800) and Sundergarh (Rs 15,700). Nabarangpur in south Orissa fares the worst in the per capita index with a per capita income of only Rs 5,800 and Malkangiri scoring marginally higher at Rs 6,800.

On the whole, the state with a per capita income of Rs 25,708 in 2010-11 is gradually closing in the gap with the national average. Its per capita income is projected at Rs 26,900 in 2011-12.

Latest data contained in the Economic Survey for 2011-12 has anticipated growth of Orissa's GDP at 7.18 per cent for the current fiscal as against the national average of 6.9 per cent.

Quick estimates have pegged the state's growth at 8.60 per cent in 2010-11 at 2004-05 prices. The state economy has grown, in real terms (at 2004-05 prices) at an average annual rate of 8.49 per cent in the first four years of the 11th Plan despite global economic slowdown.

Agriculture sector which supports more than 60 per cent of the state's population, has grown at the rate of 4.12 per cent in the first four years of the 11th Plan. Industrial sector which has 26 per cent share in the state's economy, has posted growth of 9.12 per cent in this period while services sector has witnessed the highest growth at 9.86 per cent.

On the poverty index, the state has shown perceptible improvement with the key economic indicator plunging from 39.90 per cent in 2004-05 to 29.69 per cent in 2009-10, as per NSS (National Sample Survey) data of the 66th round.

However, widespread regional and social disparities have been noticed in development.

In the realm of public finance, the state has been able to contain fiscal deficit at 0.34 per cent of the GDP in 2010-11compared to 1.38 per cent in 2009-10. This has been achieved through lower growth of revenue expenditure and increase in revenue receipts. Fiscal deficit, has, however, been budgeted at 2.5 per cent of the GDP in 2011-12. Capital expenditure has gone up from Rs 5,733 crore in 2008-09 to Rs 6,683 crore in 2010-11. The debt-GSDP (Gross State Domestic Product) ratio has also been scaled down from 55.92 per cent at the end of 2002-03 to a more sustainable level of 20.07 per cent by the end of 2010-11. Advances estimates for 2011-12 show agriculture would account for 16.46 per cent of GSDP while services and industrial sector would have a share of 57.34 per cent and 26.20 per cent respectively.