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Odisha can help India become a $10 trillion economy, by becoming a manufacturing hub of metal and allied sectors, a report by JSW Group and PwC India said. For this, the state must leverage its vast mineral resources.
Sajjan Jindal, Chairman, JSW Group, said that India has the potential to become $10 trillion economy, which is driven by the robust development of regional economies.
Globally, the growth of regional economies are fuelled by the presence of mineral resources, skilled man power, connectivity and trade infrastructure, he said, in the Vision Report titled, “Economic possibilities for Odisha — towards a one trillion dollar economy”. “To achieve one trillion economy, Odisha has to become the biggest manufacturing hub of metal and its downstream sectors,” he said.
Chinese example
Drawing the example of mineral-rich Hebei province of China, the report said that the province constituted about 1.96 per cent of China, but it contributed about 4.35 per cent of the country’s GDP. It possess 12 per cent of China’s iron ore, but produces 23 per cent of China’s crude steel production. Hebei’s economy has been driven by heavy industries manufacturing and processing ferrous metals. It contributes 22 per cent of sales output value and has been developed as China’s ferrous metal hub.
“Odisha, not only has 35 per cent of India’s iron ore reserves, but also 92 per cent of nickel, 53 per cent of bauxite, 96 per cent of chromite and 45 per cent of manganese. The state has the potential to produce 200 million tonne (mt) of steel, 15 mt of aluminium, 400 mt of iron ore and 250 mt of coal,” the report said.
The basic GVA (gross value add) in steel, iron and non-ferrous has the potential to contribute over $250 billion to the targeted state GDP of $1 trillion, it said
Growth driver
Naveen Patnaik, Chief Minister, Odisha said the state will take a central role in driving the national growth as a manufacturing hub with investment-friendly policies, infrastructure connectivity and skilled manpower.
“The state has the potential to add 80 mt of steel production, taking its overall output to 100 mt by FY31 with right policy and regulatory support and account for 40 per cent of the country’s steel production,” the report said.
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