Integrated Growth Strategies: Enhancing the Agricultural-Industrial Nexus in Odisha

This study investigates the structural dynamics of Odisha’s agricultural and industrial sectors, analyzing their growth patterns, inter-sectoral linkages, and contribution to the state economy from 1950 to 2024. Relying on secondary data, sectoral performance was measured through GVA of Odisha contributions using CAGR, while cointegration and Error Correction Models (ECM) were applied to capture long-run equilibrium and short-run dynamics between the two sectors. The findings reveal that while agriculture remains vital, its share in GSDP has declined with the rising prominence of industry and services. Agricultural growth has been driven mainly by expansion in cultivated area, though yield growth has been limited, whereas livestock’s share in agricultural GDP increased from 12.9% in 2013–14 to 23% in 2020–21, and fishery production nearly doubled between 2010–11 and 2018–19. Industrial growth gained momentum after 2002–03, led by manufacturing and mining, although capital productivity recorded a negative trend. Johansen cointegration confirmed a long-run equilibrium between agriculture and industry, with about 23.12% of disequilibrium corrected each period. The study concluded that Odisha’s sustainable and inclusive economic growth requires balanced development of agriculture and industry, supported by productivity-enhancing reforms, infrastructural investment, energy-efficient industrial expansion, and integrated policies fostering agro-industrial linkages, diversification, and technological adoption.