Odisha economy to contract by 4.92pc in FY21 due to COVID-19: Report

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Bhubaneswar, Feb 20 (PTI) Odisha's economy is estimated to contract by 4.92 per cent in the 2020-21 fiscal, amid the COVID-19 pandemic, a state government report showed on Saturday.

The per-capita income is also expected to decline by 2.3 per cent to Rs 1,02,156 in the current financial year from Rs 1,04,566 in the last fiscal, the Odisha Economic Survey- 2020-21, tabled in the assembly, said.

The annual average growth rate of the state economy during the period between 2012-13 and 2020-21 is also estimated at 5.72 per cent as against the national average of 5.01 per cent, it said.

The COVID-19 pandemic has severely impacted many economies all over the globe, and the contraction is experienced in most of the countries, it said.

Citing the advanced estimates released by the Centre, the state government report pointed out that the country's economy is expected to contract by 7.7 per cent during the 2020-21 fiscal.

'Odisha's economy is expected to have a relatively lower contraction of 4.92 per cent during 2020-21,' it said.

Notwithstanding the devastating impact of the coronavirus infection, the sectoral composition in the state economy follows almost a similar pattern like previous years, the report said.

Agriculture, industry and services sectors accounted for 21.27 per cent, 36.26 per cent and 42.47 per cent respectively in the Gross State Value Added (GSVA), it said.

The economic base of the state has become stable and is capable of managing fiscal risks, Development Commissioner PK Jena said.

The state will continue to move forward on the path of prudent fiscal management with the desired thrust on all-round socio-economic development for inclusive growth, he said.

Industrial development, which is an engine of economic growth, has brought a perception change, constituting 36 per cent of the GSVA, the report said.

The state budget will be presented in the assembly on February 22. PTI AAM BDC BDC