The metals sector is projected to contribute 25 per cent to Odisha's economy, which expected to touch a size of one trillion dollars by 2030.
A Vision Report titled 'Economic Possibilities for Odisha Towards a One Trillion Dollar Economy' jointly commissioned by JSW Group and PwC India says besides the mineral based industries, sectors like agriculture, food processing, creative industries, MSMEs (micro, small & medium enterprises) and women entrepreneurship will propel Odisha's economy towards the envisaged $1 trillion milestone.
The findings of the report reviewed by Business Standard show the Gross State Value Added (GSVA) in basic iron, steel and non-ferrous metal sectors has a potential of contributing more than $250 billion towards the targeted State Gross Domestic Product (GSDP) of one trillion dollar for the state. Odisha has the potential to ramp up its overall steel production to more than 100 million tonnes (mt) by 2031.
“This would mean that more than 40 per cent of the country’s steel production would be within Odisha. With abundant availability of mineral resources, Odisha has the potential to produce 200 mt of steel, 15 mt of aluminium, 400 mt of iron ore and 250 mt of coal in the future”, the report noted.
Releasing the report, chief minister Naveen Patnaik said, “Odisha having huge natural resources, is on its way to achieve this objective through its investment friendly polices, infra connectivity and skilled manpower. Odisha will take a central role in driving the national growth as a manufacturing hub”.
JSW Group chairman Sajjan Jindal emphasized the role of regional economies in catapulting India to $10 economy. He labeled Odisha the 'hidden gem of India'.
As per the state Budget for 2019-20, Odisha's GSDP is projected to be Rs five trillion (or $70 billion). The Vision Document attaches thrust on the unique competitive advantages of Odisha over other states and its potential to become the exports hub for metal products across the world.
From 2011-12 to 2017-18, Odisha grew at CAGR (compounded annual growth rate0 of 12.74 per cent, indicating the state's potential to experience higher sustained growth and move towards a 'trillion dollar economy'. In case the GSDP of Odisha continues to grow at a similar growth rate of eight per cent as in the past five years, and the sector grows at the required CAGR of 11.3 per cent, the GSVA in basic iron, steel and non-ferrous metal sectors, may contribute to at least 13.4 per cent of the GSDP by FY 2031. As Odisha moves towards a trillion dollar economy, the GSVA in these sectors alone have the potential to contribute nearly 26.1 per cent to the GSDP of the state assuming that all other sectors continue to expand at their current growth rates.
Likening Odisha's potential which China's resource rich Hebei region which emerged as the country's growth driver, Odisha with its proven strength in metals and downstream sectors can spur the growth of India's GDP, the report observed.