Odisha’s economy to grow at 6.16 percent in 2015-16

Bhubaneswar, March 18: Odisha, despite facing a severe drought situation, should see its economy record 6.16 percent growth in the current year, said the economic survey report for 2015-16.

The survey, tabled in the state assembly on Thursday, said that the broad industry and services sectors with robust anticipated real growth rates of 10.58 percent and 9.65 percent respectively will be the major drivers of Odisha’s economic growth in 2015-16. However, the real growth rate of agriculture broad sector expects to fall sharply by 12.85 percent in the year.

“Odisha’s economy expects a real growth rate of 6.16 percent during 2015-16 at 2011-12 base and market prices,” said the report, adding that the natural shock of severe drought in 28 districts of the state might be the major reason in limiting the overall growth rate in 2015-16.

“The real growth rate of agriculture broad sector expects to fall sharply by (-) 12.85 percent primarily due to huge fall of cropped area, yield rate and production of food grains (cereals and pulses) by about 5 percent, 40 percent and 44 percent respectively in 2015-16,” it said.

The growth rate of industry services sectors will be influenced principally by mining and quarrying sectors, trade, repair, hotels and restaurants, railways, transport by other means, storage and real estates, it said.

In terms of poverty reduction, the report said Odisha, among the major states, has the distinction of achieving maximum poverty reduction by 26.6 percentage points from 57.2 percent to 36.6 percent during 2004-05 to 2011-12.

Odisha grew impressively during 2014-15 with a real growth rate of 6.24 percent at 2011-12 base and marker prices, it added. The broad agriculture and services sectors with robust real growth rate of 9.26 percent and 9.38 percent respectively were the leading contributors to overall growth rate of the state during 2014-15. (IANS)