It is needless to say that mere growth in National Income and State Domestic Product and even a faster increase in per capital income both at the macro and micro levels becomes meaningful only if there is an improvement in the ‘quality of life’ of people in general and particularly those in the low income groups. The Ninth Five Year Plan document rightly stressed the need to assign priority to human development and improvement in the quality of life. Any planned action therefore need to focus on the social sector development, specifically aiming to expand and improve social infrastructure such as health care, education, housing, water supply and sanitation.

Poverty:
As per the latest figures available for the year 1999-2000, Orissa has the dubious distinction of having highest percentage (47.15) of population living below poverty line among the States. This is nearly double the all India average of 26.10 for the same year. The rate of urban poverty and rural poverty in the State is respectively 42.83% and 48.01% as against the All India figures of 23.62% and 27.09%, it is pertinent to note that the percentage of people below poverty line in Orissa has declined from 66.18% in 1973-74 to 47.15% in 1999-2000 i.e. by only 19.03% points, where as at the all India level it has declined from 54.88% in 1973-74 to 26.10% in 1999-2000 i.e. by 28.78% points.

Though incidence of poverty has declined over time, the pace of reduction is sluggish. A Poverty Task Force (PTC) has been constituted by the State Govt. to devise actionable poverty reduction target.  The PTF has noted that by 2015, the incidence can be reduced by 24% which appears to be a Herculean task. It has set a target of poverty reduction step by step during the 10th, 11th & 12th Five Year Plan and during the initial three years of the 12th Five Year Plan up to 2015 at about 7%, 10% and 6% respectively.  Some of the poverty alleviation and wage employment programs specifically launched for the targeted group to enable them to cross the poverty line are SWARNA JAYANTI GRAMA SWAROJGAR YOJANA (SGSY) and SAMPURNA GRAMIN ROJGAR YOJANA (SGRY). The program aimed to provide additional wage employment ensure food security, create durable community assets and develop rural infrastructure. 

Per-Capita Income:
Per-capita Income is a better indicator of economic status and standard of lining of people. Available data regarding Per Capita Net-State Domestic Product for the year 2002-03 at 1993-94 prices shows that Orissa has a NSDP of Rs.5665 which is nearly half of the All-India average of Rs.10, 964. The said figure at current prices for the year 2002-03 for Orissa is Rs.10, 208 and at the all-India level Rs.18, 912. Orissa’ NSDP for the year 2002-03 (at 1993-94 constant  prices) of Rs. 5665 is much below the NSDP of States like Punjab (Rs.15,216), Maharashtra (Rs.15484), Haryana (Rs.14757).