Bhubaneswar, Feb 15 (PTI) Odisha's economy is estimated to grow by 7.2 per cent in the current financial year, which is higher than the all-India growth rate of 6.4 per cent, according to the state economic survey report for the 2024-25 fiscal.

The report, which was laid before the state assembly on Saturday evening, stated that the size of Odisha's economy proxied by GSDP at current prices is estimated to be at Rs 9.5 lakh crore in 2024-25 which has increased by 10 per cent from Rs 8.6 lakh crore in the 2023-24 fiscal.

All the sectors have shown robust growth in the financial year 2024-25 and the state is poised for rapid growth in the years ahead. Higher capital investment and investment intent received through Utkarsh Odisha would further increase growth rate in the state in future, an official statement highlighting the key points of the report said.

Similarly, the per capita income has increased by 10.6 per cent to reach Rs 1,82,548 in 2024-25 (advance estimate) while per capita income at all-India level has gone up by 8.7 per cent.

The state's per capita income is 8.8 per cent less than India's per capita income of Rs 2,00,162 in 2024-25 and is on a convergent path, it said.

Agriculture and allied sector have registered a robust growth rate of 3.3 per cent in 2024-25, which contributed 19 per cent to the Gross State Value Added (GSVA).

The agriculture sector in Odisha is growing on an average higher than the country. Over the last five years, the agriculture sector in Odisha grew at 7 per cent against the national growth level of 4.1 per cent.

Similarly, the industry sector in Odisha is expected to grow at 6.1 per cent in 2024-25 as per advance estimates contributing 43.9 per cent to the Gross State Value Added (GSVA).

The services sector is estimated to grow at 10 per cent in 2024-25 contributing around 37.1 per cent to the state's economy, it said.

Further, the state allocated nearly Rs 58,195 crore towards capital outlay in 2024-25 (budget estimates), which is 6.1 per cent of GSDP. The state has the highest capital outlay to GSDP among major states in India, it said.

Odisha has adhered to prudent fiscal management principles that include keeping the fiscal deficit of 3.4 per cent and revenue surplus of 2.9 per cent of GSDP in 2024-25 budget estimation within prescribed limits, ensuring high-quality expenditure and maintaining debt at a sustainable level.

The state has maintained its debt-to-GSDP ratio below the 25 per cent threshold prescribed by the Central Finance Commission and Odisha's FRBM Act, 2005. The debt-to-GSDP ratio stood at 13.2 per cent in 2024-25 (budget estimates) which is lowest among all major states in India, the statement added. PTI BBM BBM ACD

Fiscal management and sustainable debt levels underpin Odisha's growth projection and high capital outlay supporting future investment. The state projects stronger-than-national growth in 2024 25 based on robust agriculture, industry and services performance, rising per capita income, and elevated capital outlay financed and promoted through state initiatives. Fiscal management is emphasised by maintaining a fiscal deficit within budget estimates, preserving a revenue surplus, and keeping the debt-to-GSDP ratio below the FRBM-prescribed threshold to ensure sustainable debt and high-quality expenditure.