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127<br />

Orissa<br />

State Overview<br />

Orissa has a population of 36,706,920 221 and the state’s total<br />

GDP was Rs. 1,033 billion in 2007-08. In terms of the number<br />

of people living in poverty, it is the poorest state in India.<br />

Currently, almost half or 46.4 per cent of its population are<br />

classed as living below the poverty line. 222 With 85 per cent of<br />

the population inhabiting rural areas, the vast majority of the<br />

people living in poverty, 15 million, can be found in the rural<br />

parts of the state. Orissa has not been a focus of investment<br />

by the central government, causing its infrastructure and<br />

development indicators to lag behind the rest of the country.<br />

In rural areas, less than 35 per cent of the population has<br />

access to safe drinking water.<br />

With its abundant natural resources and a large coastline, the<br />

state has recently started to attract vast amounts of private<br />

investment, particularly in steel mills, power plants and<br />

alumina refineries. The state contains a fifth of India’s coal,<br />

a quarter of its iron ore, a third of its bauxite reserves and<br />

most of its chromite. 223 The central government has agreed<br />

to accord SEZ status to eight sites in Orissa. However, these<br />

plans are facing strong resistance from the local population,<br />

who mainly depend on agriculture for their livelihood and<br />

who are experiencing wi<strong>des</strong>pread displacement. Agriculture<br />

continues to constitute the major contribution to the state’s<br />

economy and forms the chief occupation in Orissa, with<br />

around 76 per cent of the total working population engaged<br />

in agriculture.<br />

Orissa is one of the largest producers of rice in India, growing<br />

almost 10 per cent of the total rice produced. The state also<br />

Forest and agricultural land threatened by mining in Kasipur<br />

(Photo October 2009)<br />

produces pulses, coconuts, sugarcane, tea, rubber, cotton,<br />

potatoes and numerous other crops. Orissa has fertile soils,<br />

but shortage of water in many areas. Lack of irrigation<br />

facilities in drought prone areas currently creates a serious<br />

obstacle for many people working in agriculture. There is a<br />

serious disparity between the investment in agriculture and<br />

the investment in industry in the state as priority is being given<br />

to the development of industries. Large-scale displacement of<br />

rural and adivasi populations in the state is having a serious<br />

impact on agriculture and livelihoods, pushing the already<br />

struggling population further into poverty. Orissa has one of<br />

the largest concentrations of STs in the country. Over onefifth<br />

of the population or 22.13 per cent are STs and 16.53<br />

per cent are SCs. This is substantially higher than the Indian<br />

average—only 8.2 per cent of the total population of India<br />

constitute STs. There are 62 different adivasi groups living in<br />

Orissa and some are exclusive to the state. The vast majority<br />

of them live in forest areas and are engaged in subsistence<br />

221. Census of India, 2001.<br />

222. Planning Commission, Government of India, Number and Percentage of Population Below Poverty Line By States, 2004-05.<br />

223. Industrial Growth and Status of Orissa, http://www.amazingorissa.com/INDUSTRIES.HTML, uploaded: 5 September 2009.

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