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Odisha’s annual industrial growth rate better than the national average: NABARD

Odisha’s industry sector has contracted by 8.83% in comparison to the 9.57% contraction rate at the national level in 2020-21.

Statesman News Service | BHUBANESWAR |

The annual average growth rate of the industry sector in the coastal State during the last 9 years is projected at 5.36% as against 3.77% at the national level, according to the State Focus Paper (2022-23) study conducted by National Bank for Agriculture and Rural Development (NABARD).

The industry sector continues to have a growing contribution in the State’s Gross value added (GVA) economic productivity metric, with a 36.26% share to 26% at the National level.

Odisha’s industry sector has contracted by 8.83% in comparison to the 9.57% contraction rate at the national level in 2020-21.

The manufacturing sector is the largest contributor with a share of over 48.4% in 2020-21, followed by the mining sector (24.60%). The State government has taken numerous measures like Make in Odisha and reforms under “Ease of Doing Business” accomplish steady and fast industrialization in large, medium and small industries, the report said.

In the steel sector, the State stands as the largest steel and stainless steel producer in the country. The State has 2 large Public Sector Undertakings (PSUs)- Rourkela Steel Plant & Neelachal Ispat Nigam. Also, Odisha is the highest producer of Aluminium in the country today with two of the largest Aluminium plants viz., Nalco and Vedanta Limited.

The Service Sector continues to be the leading broad sector in the State’s economy and as per advance estimate; it is expected to contribute about 42.47% of Odisha’s GVA in 2020-21.

Trade, repair, hotels and restaurants sub-sectors are expected to account for about 22% share of output from services, followed by transport and communication. With the increasing stress on providing banking services to the unbanked population, the financial services sector may get a boost.

An extensive and reliable infrastructure network is the prime requirement for sustainable economic growth. It not only facilitates functioning of the economy and social sectors, but also accelerates economic growth with better competitiveness, the NABARD study suggested

Odisha, has immense scope for improving the extent and quality of its infrastructure facilities. The socio-economic development is the key to overall growth of the economy. Besides agricultural infrastructure, there also exists immense scope for creation of other infrastructure in areas like housing, food and safe drinking water and social needs like education, health care and domestic energy. Such interventions are always crucial to enhance the standard of living of the people, the NABARD’s State Focus Paper pointed out.