Trajectory growth of Orissa: key issues and lessons learnt

Abstract

Orissa has registered an impressive growth rates consistently in the recent past after failing for so many decades .It has attracted maximum private investments in comparison to better performing states, a recent study says .This study intends to explore the growth trend and pattern of the state in comparison with the national trend and examine the factors responsible for the growth process. The methodologies used for the study are quantitative and qualitative. The quantitative method is used to examine the growth trends and also assess the economic revival theory in the back drop of growth pattern. Three years moving average method have been used to identify the specific period since when growth pattern has registered a significant change. Qualitative method has been used to understand the perception of the opinion builders (academicians, bureaucrats, industry representatives and legislators) and corroborate their responses with the findings of the analysis. To improve the investment climate tax reform measures and procedural simplifications have been introduced in the state. Regulations for setting up of industries have been further liberalized and made investor-friendly. The state undertook significant measures to contain unproductive public expenditure through a consultative and transparent process. Creation of Single Window Clearance system for the investment facilitation and the investment promotion is added for the investment climate improvement in the state. As a result of which Orissa has attracted 11.3 lakh Crores private investments as on December 2010 .Investments came over a period of time. Private investments have driven the growth of the state. Some key issues like growing demand for the infrastructure, development of manpower with marketable skills, improvement of delivery mechanism, land acquisition, development of ancillary and downstream industries for forward and backward linkages of newly set up companies and more importantly the agriculture and allied sector productivity and production needs are to be addressed urgently.