Mr. Naveen Patnaik has clearly laid down the
marker. At a time when most opposition
leaders are busy painting a gloom and doom scenario for Indian economy he
firmly believes that the time has come for Odisha and its people to take an
exponential leap in its economic journey. For starters, such a mind-set must
be appreciated especially when one observes Chief ministers of neighbouring
states busy either clamouring for special economic status or deeply concerned
about IT exemption for Durga Puja pandals. Secondly, it sends out a powerful
and positive message to the nation at large. Growth and development narrative
cannot be monopolised by the national parties. The States are a powerful engine
of growth and they play a key role in achieving the larger economic goal of the
nation. This announcement of
intent is a welcome development and
comes in as a whiff of fresh air with the potential of re-aligning the tangled
skein of center-state relations.
However,
articulating a dream is the easier part. Converting the dream into a vision and
translating the vision into a reality demands a high level of statecraft and statesmanship. Aligning the different arms of the
Government, the divided political diaspora and the masses to achieve the seemingly
impossible is the need of the hour. Recently the
Indian Chambers of Commerce (ICC) was ideating in a day long seminar on the
challenges in the Human Resources front to achieve this trillion dollar dream.
While there was a consensus that a quantum economic growth is possible, speaker
after speaker simultaneously gave the impression that somewhere the missing
blueprint to achieve this dream was
becoming the biggest impediment for a tangible and co-ordinated ground level
action.
Steel and Aluminium
are two sectors where an exponential
growth is possible and merits a closer look. It’s manufacture critically
depends on the availability of iron ore, bauxite and coal, all of which are
abundantly available within the State. It is rightly said that Odisha produces
more than 50% of the nation’s aluminium
and therefore has the bragging rights of calling itself the Aluminium capital
of the country. However, talking in percentages is clearly indulging in
self-deception. As a nation we produce a measly quantity of four million tonnes
of Aluminium compared to China that produces almost ten times more than us. By
producing 50% of this small quantity we cannot take comfort behind this figure.
Juxtaposed along with the fact that Odisha is home to more than 50% of the
nation's bauxite reserves and 30% of coal
reserves it becomes clear that a quantum growth in Aluminium production and
consumption is distinctly possible and so far Odisha has underperformed. We
must face this fact square on otherwise we will continue to lull ourselves into
complacency. Given our potential,we must now put a blueprint in place for
doubling the Aluminium production in the next five years if we are serious
about the one trillion dollar ambition.
Steel too has a similar story. Odisha’s iron
ore reserves are humungus and can support a steel production Capacity of around
100 million tonnes by 2030 - five times of what it is producing today. These
figures are not just plucked from thin air. They are rooted in the potential
that is prevalent in the state. The Hebei province of China, for example, is
producing a massive 190 million tonnes of steel. It occupies an area less than
2% of the country and yet makes a contribution of more than 4% of the GDP of
China. Just one steel company - Hesteel produces more than 45 million tonnes of
steel which constitutes almost 50% of what the whole of India produces.
Clearly, we need to put an action plan in place that will ensure Odisha’s steel
production to grow from 20 million tonnes to 100 million tonnes in the next ten
years. Besides producing steel and
aluminium our focus should be on providing an ecosystem of downstream
industries that will use this primary metal to produce the value added end
products.
A similar deep dive analysis has to be done
for other segments of the economy like agriculture and food processing, Small
scale Industries, tourism and service sector etc.
60% of the population of Odisha depends on
agriculture. The processed food market in India is poised to grow at a CAGR of
14.6%. Blessed with ten agro-climatic zones, Odisha can produce a wide array of
crops ranging from rice to millets, mangoes to cashew nuts, sugarcane to
tumeric, ginger to potato etc. It’s water bodies and coastline enables it to be
a big player in fisheries and shrimps too. Odisha can easily become the food
and seafood basket of the region and coupled with food processing and value
addition the entire rural sector can move up the value chain and usher in a
quantum growth in livelihood and prosperity.
A similar co-ordinated approach needs to be
taken about the MSME sector. For far too long we have been stuck with the idea
that a startup is possible only in the IT and Services sector. We must develop
a fund for startups in the MSME sector also. This must be preceded with a
proper analysis of the reasons of the sickness that plagues this segment followed
by development of MSME parks at every district if not block of the State.
Tourism and Hospitality segment too is another
fast growing sector and Odisha has enormous scope in making a quantum growth in
this area. According to estimates Tourism is set to generate a revenue of over
50 billion dollars compared to 27billion dollars earned in 2017. For Odisha to
be part of this growth curve it must invest in tourism infrastructure to make
it world class. It has enough of beaches, heritage sites, wildlife and eco
tourism to attract both domestic and international footfalls.
To be fair the government has set in motion a
series of administrative measures that conveys its seriousness. The 5 T’s aim at achieving progress through
Transparency, Teamwork, Technology, Time and Transformation. Identification of
aspirational districts is another positive step forward. Health, Sanitation and
Housing for all has seen a lot of progress. This goes a long way in building a
trust between the Government and its people. The urgent need of the hour
however is to first sensitize the masses and positively enthuse them with the
idea that quantum economic growth is an idea whose time has come. Secondly,
Government must create multiple task forces and expert committees that will lay
down the blueprint for each segment of the economy with specific
recommendations and time frames to achieve the target. Changing the mindset of
the people and empowering them will be the cornerstone of Odisha’s trillion
dollar economy push.