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Odisha 4th from bottom among low-growth States

| | BHUBANESWAR | in Bhubaneswar

Here is a reality check for Odisha when the State Government is aggressively on the path of image makeover as the State was tugged up along with 15 other States as a low-growth one by the country’s planning watchdog Niti Aayog in its latest report ‘Ease of Doing Business: An Enterprise Survey of Indian States’ released last month.

Significantly, the new classification of high- and low-growth States in the country by the Niti Ayog is based on the computation of a median annual Gross State Domestic Product (GSDP) from annual real GDP growth rates of the States for the period 2004-05 to 2013-14, whereby the States that experienced equal to or above the median rate are tagged as high-growth ones and those fell below as low-growth States.

Odisha in this Niti parameter could record an average year-on-year growth rate of only 6.59 per cent for the period 2004-05 to 2013-14 and, hence, fared poorer than States like Bihar, which with a year-on-year growth rate of 9.45 per cent prettily grouped among the high-growth States. The story doesn’t end there. Even among the 16 low-growth States, Odisha’s average year-on-year growth rate is only higher than three States, Assam, Jammu & Kashmir and Manipur.

More shockers the report delivered are: In Odisha, not even 32 per cent enterprises have availed the benefit of the State’s much-touted Single Window System owing to poor implementation on the ground. Also, only 22 per cent enterprises in the State have any knowledge about their environment category and, thereby, the State finished second from bottom. Moreover, in access to finance by enterprises in Odisha, the State’s entrepreneurs did speak of greater amount of obstacle in access to institutional finance.

In the important indicator of dealing with legal issues, enterprises in Odisha speak of facing legal disputes unlike States like Bihar, Meghalaya, Nagaland and Uttarakhand where none of the enterprises have reported of facing any legal disputes, reveals the Niti Ayaog report.

While the Odisha Government has pulled up its socks to come as the number one business-friendly State, the Niti Ayog report pricks the reality prevailing notwithstanding averments. Odisha didn’t figure in the top -3 in the vital indicator of time taken for getting approvals across all areas of doing business. An entrepreneur can start his business in just little over two months in Tamil Nadu and Andhra Pradesh. Odisha fared the poorest by taking 95 long days to provide electricity connection to an upcoming enterprise when Karnataka takes only 31 days.

Moreover, when Odisha claims itself as a power-surplus State, it didn’t figure in top -3 States led by West Bengal and Delhi where enterprises faced the least power shortages of 11-13 hours in a month. 

 
 
 
 
 

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