After growing by about 115 per cent in the last 8 years, Odisha's per capita income is likely to plunge by 2.3 per cent in the current fiscal due to the economic slowdown triggered by the Covid-19 pandemic, the Economic Survey of Odisha for the year 2020-21 revealed.
The per capita income of Odisha rose from ₹48,499 in 2011-12 to ₹104,566 in 2019-20, registering an increase of about 115.60 per cent over the period. During this period, the country's per capita income rose from ₹63,462 to ₹134,226, a growth of 111.51 per cent. The per capita income of Odisha in 2019-20 at current prices was higher than that of Bihar, Uttar Pradesh, Jharkhand, Meghalaya, Madhya Pradesh and Chhattisgarh.
The survey found that the long-term increasing trend in per capita income was possible due to the adoption of new-age technology, implementation of new agricultural policy, boosting industrial investment and other such growth-promoting measures which led to higher GSDP growth in Odisha.
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Due to the impact of Covid-19, the per-capita income of Odisha is expected to decline by 2.30 per cent as against the decline of 5.41 per cent at the national level.
{{/usCountry}}Due to the impact of Covid-19, the per-capita income of Odisha is expected to decline by 2.30 per cent as against the decline of 5.41 per cent at the national level.
{{/usCountry}}"The Covid-19 surge took an unprecedented toll on the state’s economy by creating both supply and demand shocks. A contraction in economic activity and government measures to minimise the adverse impact stemming from the Covid-19 pandemic, with frequent lockdowns, weak demand conditions and the temporary suspension of company operations led to the shutdown of business, industries and services," the survey said.
However, Odisha’s real per capita income has consistently remained below the national average and the gap between the country's and state's per capita income has widened over the years. It swelled from ₹14,963 in 2011-12 to ₹29,660 in 2019-20.
As per a World Bank study (2016), consumption inequality in the state is lower than the national average. The study confirmed that poverty reduction is faster in Odisha in comparison to many low-income states. As per the Planning Commission’s report, Odisha reduced the poverty rate by 24.61 per cent since 2004-05 which is the second-highest across all the states and far ahead of the national rate of 15.28 per cent.