Academic journal article Journal of Management and Public Policy

Structure, Policy and Prospects of Rural Industrialization in Orissa (India): A Strategic Approach for Sustainable Development

Academic journal article Journal of Management and Public Policy

Structure, Policy and Prospects of Rural Industrialization in Orissa (India): A Strategic Approach for Sustainable Development

Article excerpt


The new province of Orissa was born on 1 April, 1936. Since long, Orissa continues to be symbol of abysmal poverty and backwardness. Acute underdevelopment combined with the onslaught of natural calamities has made the life of the Oriya people miserable. While droughts and floods are regular invaders, cyclones and. super cyclones make their routine visits, taking heavy tolls. Besides all this misfortunes, nature has blessed the state with natural resources to fill up the gap. Orissa is the richest state in minerals. The State Government is determined to take full advantage of the sweeping changes in the national and international scenario and forge ahead with its program of industrialization.1 The State Government is fully committed to attract large investment in development and its people. While the past industrial policies starting from of infrastructure, mining and industry including power generation to harness the vast promise and potential to improve the economy, to state 1980 have created a favorable industrial climate in the state with many new industries coming up, the state has to take full advantage of the create employment and generate resources for all round development of the liberalized economic and industrial regime to attract substantial private investment for infrastructure and industrial development of the state. Accordingly, the new Industrial Policy, 1996 and 2001 are formulated by the State Government to spell out the strategies and modalities to translate this commitment into concrete action.2 As per the census of Orissa, 2001, the total population of Orissa is 36,706,920, out of which the rural population is 31,210,602. Accordingly, 85.03% of the population lives in the rural villages. The Oriyas dwelling in rural Orissa.3 Hence, industrialization in Orissa means rural industrialization.

Structure and Policies

The structure is built by its resources. Orissa has vast reservoirs of natural resources to spur industrial growth and development. The resources are land, mineral, forest, water, fisheries and animal resources and knowledgeable human resources. These resources put foundation stone for industrialization in Orissa. The structure covers a wide variety of Industries which differ in the nature of products, techniques and scale of production, location pattern and marketing channels etc. This can be divided into several groups of industries.


Orissa occupies 4.74% of India's landmass is endowed with a wide range of fertile soil along with adequate rainfall and suitable climate for agriculture nearly 70% of the population in the state depend on agriculture. Agriculture is the mainstay of state's economy and sustenance of life of the people. Agriculture and Animal Husbandry contributed 25.75% of the net domestic product of the state in 2004-05 at 1993-94 prices and provided employment directly and indirectly to around 65% of the total workforce as per 2001 census. The per-capita availability of cultivated land was 0.39 ha. in 1950-51 and has declined to 0.15 ha. in 2004-05.4

Development of Agriculture in Orissa has lagged behind due to several constraints, such as traditional method of cultivation, inadequate capital formation and low investment, inadequate irrigation facilities and uneconomic size of holdings. This dominant sector of the State's economy has become, more often than not, a helpless victim of natural calamities like flood, drought and cyclone. For sustaining economic development, much emphasis has been laid during the planning process for accelerating the pace of agricultural development, by increasing both production and productivity, by taking steps to remove regional imbalances in cropping pattern and agricultural practices, to evolve new variety of seeds, to expand irrigation facilities, to extend the supply of institutional credit and also a price support to farmers which shall place this dominant sector on a sound and safe footing. …

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