According to a report by JSW Group and PwC India Odisha can help India become a $10 trillion economy, by becoming a manufacturing hub of metal and allied sectors. 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”. According to this report to achieve one trillion economy, Odisha has to become the biggest manufacturing hub of metal and its downstream sectors.
Drawing the example of mineral-rich Hebei province of China, the report said that the province constituted about 1.96% of China, but it contributed about 4.35% of the country’s GDP. It possesses 12% of China’s iron ore, but produces 23% of China’s crude steel production. Hebei’s economy has been driven by heavy industries manufacturing and processing ferrous metals. It contributes 22% of sales output value and has been developed as China’s ferrous metal hub.
The report stated that Odisha, not only has 35% of India’s iron ore reserves, but also 92% of nickel, 53% of bauxite, 96% of chromites and 45% of manganese. The state has the potential to produce 200 million tonnes (mt) of steel, 15 mt of aluminium, 400 mt of iron ore and 250 mt of coal.
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.
Naveen Patnaik, Chief Minister, Odisha has confirmed the growth driver being 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 report said that 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% of the country’s steel production.