Bhubaneswar: Cost of living in rural
Orissa was one of the lowest in the country even as the state
government claimed reduction in poverty by 11.73 between
2004-05 and 2007-08.
This was part of the Economic Survey 2010-11 report
presented at the state assembly yesterday. "The cost of living
in urban Orissa also used to be lower than the rest of India
in the past. This is, however, no longer the case," the report
The rural-urban poverty gap remains larger than all
India average. While coastal region registered the sharpest
decline of poverty according to 61st round of NSS (national
sample survey), the extent of poverty in southern and northern
regions is still very high and remains a matter of concern, it
Pointing out that the state witnessed wide range of
regional and social disparities in development, the report
said that all regions have not developed uniformly.
The analysis presented in the survey 2010-11 clearly
brings out that there is perceptible structural change in
The service sector has become more and more pronounced
with its share being 54 per cent of GSDP as per quick
estimation of 2009-10.
The share of the industrial sector has increased to 28
per cent and that of the agriculture sector has come down to
18 per cent of GSDP in 2009-10.
"This pattern of diversification in the state economy
is in the line with changes at the national and international
levels," the report observed.
Though the share of agriculture sector has been
declining, the proportion of people dependent on agriculture
has not been declining in the same proportion and rate, the
report stated terming it as a major concern.
More than 60 per cent of population still depends on
the agriculture and allied sectors for their sustenance, the
report said adding that major benefits of growth in the
service sector and the industrial sector flow largely to those
section of population that are educated and have desired
The survey also noted that the state economy has been
following a high growth trajectory from 2002-03 onwards. The
economy has grown at an annual average rate of 9.51 per cent
during the 10th plan and at 9.57 per cent in the first three
years of the 11th plan, despite challenges posed by the global
economic slow down.
It has, however, been observed that the higher growth
in the economy in recent years has been contributed largely by
the industrial sector followed by service sector.