Bhubaneswar: The industries & services sector has moved ahead of agriculture in its contribution towards the Gross State Domestic Product (GSDP). The share of agriculture in GSDP has dropped to 19.9 per cent in FY17 when compared with its share of 55 per cent in 1950-51, according to the State Focus Paper 2018-19.
Nabard chief general manager KC Panigrahi said Odisha’s economy has witnessed significant structural changes over the last 65 years. The combined contribution of industries & services to the GSDP has gone up to 80.1 per cent in 2016-17 from 45 per cent in 1950-51.
He said the change in sectoral composition of GSDP is in tune with that of the Indian economy. The contribution of agriculture to GSDP has come down to less than 20 per cent as per the 2011 census, the official said, quoting statistics from the State Focus Paper 2018-19 released by Chief minister Naveen Patnaik.
The paper, which envisaged the credit potential for the state for next fiscal at Rs 71,419.85 crore, also said the agriculture sector accounts for 62 per cent of the total work force.
The total food grains production in the state has also dipped to 64.18 lakh tonne in 2015-16 as against 102.10 lakh tonne in 2012-13.
Paddy is the major crop constituting more than 92 per cent of the total production of food grains. The lack of assured and adequate irrigation is a major constraint for improving both agriculture production and productivity.
The state contributes to less than two per cent of the total production of milk and about three per cent of total egg production in the country. In total agriculture production of the state, the share of cereal production is very high.
The productivity of other crops in the state is much below than the national average, the official pointed out.
“There is a need to improve agricultural production and productivity with better technology, higher public and private investments and effective implementation of the ongoing programmes,” he added.
The state witnessed a decline in operational area from 50.81 lakh hectare in 2000-2001 to 48.52 lakh hectare in 2010-2011 due to urbanisation.
The share of broad industry sector to GSDP is at 35.56 per cent while that of manufacturing subsector is at 18.27 per cent. The share of mining and quarrying subsector stands at 7.36 per cent to GSDP at current price.
The disruption in mining and quarrying activities during 2010-11, 2011-12 and 2012-13 has negatively impacted the growth of this sector.
“The service sector has been recording impressive growth over the years. The growth of this sector is expected to be at 8.08 per cent. The important sub sector of the service sector is trade, hotel and restaurants followed by transport, including railways and real estate,” he added. (PNN)
