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

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

Odisha’s economy isestimated to contract by 4.92 per cent in the 2020-21 fiscal,amid the COVID-19 pandemic, a state government report showedon Saturday.

The per-capita income is also expected to decline by2.3 per cent to Rs 1,02,156 in the current financial year fromRs 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 economyduring the period between 2012-13 and 2020-21 is alsoestimated at 5.72 per cent as against the national average of5.01 per cent, it said.

The COVID-19 pandemic has severely impacted manyeconomies all over the globe, and the contraction isexperienced in most of the countries, it said.

Citing the advanced estimates released by the Centre,the state government report pointed out that the country‘seconomy is expected to contract by 7.7 per cent during the2020-21 fiscal.

”Odisha’s economy is expected to have a relativelylower contraction of 4.92 per cent during 2020-21,” it said.

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

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

The economic base of the state has become stable andis capable of managing fiscal risks, Development CommissionerPK Jena said.

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

Industrial development, which is an engine of economicgrowth, has brought a perception change, constituting 36 percent of the GSVA, the report said.

The state budget will be presented in the assembly onFebruary 22.

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