New Delhi: Odisha is among the major states that spearheaded India’s recovery from pandemic lows in between FY20 and FY25, by witnessing a CAGR of over 6% in Gross State Domestic Product or GSDP, India Ratings has stated in a report.
Odisha’s share of manufacturing increased to 26.7% of real Gross State Value Added (GSVA) in FY24 from 22.8% in FY20. The state has been traditionally a manufacturing base of basic metals and petroleum products, and an upcycle in commodity prices in the said period have had the ripple effect in increased production of such products at a rapid pace in the state. But, what has been favourable is the gradual diversification of manufacturing base, the report states.
While Gujarat, Rajasthan, Andhra Pradesh, Uttar Pradesh, Jharkhand, and Chhattisgarh recorded a CAGR between 5%-6%, contributing significantly to the national growth, Maharashtra, Telangana, Punjab, Madhya Pradesh, and Bihar saw a CAGR of less than or equal to 5%.
“Despite this, the overall economic growth from FY20 to FY25 has been impressive, with the national economy growing at a CAGR of 5.3% compared to multi-year low growth in FY20 (due to the economic slowdown) before the pandemic,” Paras Jasrai, economist, India Ratings, has said.
While the national share of agriculture in GVA declined, states like Uttar Pradesh and Bihar saw significant growth in agriculture sector.
In manufacturing, Odisha, Assam, Jharkhand, Punjab, and Andhra Pradesh witnessed notable increases in manufacturing shares, driven by diverse sectors such as apparel, machinery, chemicals, and food products.
There were some states wherein the manufacturing sector lost its share in the economic activity at a sharper pace (more than 1pp) during FY20-FY24. These were Uttarakhand, Maharashtra, Uttar Pradesh and Madhya Pradesh.
The services sector was the leading growth engine for Uttarakhand, Himachal Pradesh, Chhattisgarh, Karnataka and Telangana during FY20-FY24.
For Assam, the share of manufacturing increased to 18.4% of the real GSVA in FY24 from 15.8% in FY20. This was propelled by a phenomenal recovery in the output of fabricated metal products, chemicals, petroleum products, beverages and others during FY20-FY23.
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