State’s Economic Growth and Comparative Performance: The Economic Survey of Odisha 2025–26 presents a picture of a fiscally strong, fast-growing, and structurally transforming state—moving from a resource-led economy to a diversified growth model.
The Economic Survey of Odisha 2025-26 offers a comprehensive picture of the state’s economic performance, strengths, challenges and future growth trajectory. Prepared ahead of the annual budget, this assessment evaluates macro-economic indicators, sectoral dynamics, structural reforms, and policy outcomes that will shape Odisha’s medium-term development strategy.
Key Indicators at a Glance
1️⃣ Macro-Economic Snapshot
- GSDP (Current Prices): ~₹9.5 lakh crore
- Real Growth Rate (2024-25): 7.2%
- Growth Outlook (2025-26): 8–8.5% (projected)
- Growth vs India: Odisha above national average
➡️ Odisha emerges as one of the faster-growing major states.
2️⃣ Sectoral Contribution to GSVA
- Industry: ~44%
- Services: ~37%
- Agriculture & Allied: ~19%
➡️ Balanced structure with strong industrial base and expanding services.
3️⃣ Agriculture & Rural Economy
- Agri Growth: ~3.3%
- 5-Year Average Agri Growth: ~7% (higher than national average)
- Focus Areas: MSP procurement, irrigation, millets, fisheries, livestock
➡️ Agriculture stabilising rural incomes and food security.
4️⃣ Industry & Mining
- Industrial Growth Driver: Mining & manufacturing
- Mineral Output CAGR (2017-24): ~21% (among highest in India)
- Key Sectors: Steel, aluminium, power, chemicals, semiconductors
➡️ Odisha remains India’s mineral and metal backbone.
5️⃣ Services Sector
Growth Rate: ~10% (fastest among sectors)
Growth Engines:
- Tourism
- Trade & transport
- IT/ITeS
Urban services
➡️ Services now a major growth accelerator.
6️⃣ Income & Employment
- Per Capita Income: ~₹1.83 lakh
- Annual Increase: ~10.6%
- Labour Force Participation Rate: ~64.9%
Women Workforce Participation: Rising steadily
➡️ Income gap with national average narrowing.
7️⃣ Fiscal Health
- Fiscal Deficit: ~3.4% of GSDP
- Debt-to-GSDP Ratio: ~13.2% (among lowest in India)
- Revenue Position: Strong own-tax and non-tax revenues
➡️ Odisha continues prudent fiscal management.
8️⃣ Investment & Infrastructure
- New Industrial Proposals (2024-25):
- Value: ~₹2.4 lakh crore
- Potential Jobs: ~1.8 lakh
- Utkarsh Odisha Conclave Commitments: ~₹16.7 lakh crore
➡️ Strong investor confidence and future job creation.
9️⃣ Urbanisation & Regional Growth
- High-Growth Urban Clusters:
- Bhubaneswar–Cuttack–Puri
- Rourkela belt
- Paradip–Jagatsinghpur
Focus: Planned urban expansion, housing, transport
➡️ Urban clusters driving next-phase growth.
🔟 National Recognition
Cited in Economic Survey of India 2025-26 as a
“Model State for Growth & Inclusion”
Recognised for:
- Skilling ecosystem
- Tribal livelihood models
- Semiconductor policy
- Climate & urban reforms
➡️ Odisha positioned as a policy leader, not just a resource state.
1. Macroeconomic Performance & Growth Outlook
According to the Economic Survey 2025-26 presented in the state assembly:
Growth Trends
Odisha’s real economic growth in 2024-25 was estimated at 7.2%, exceeding the all-India growth rate of 6.4%. This signals resilient demand and broad-based economic momentum.
The Gross State Domestic Product (GSDP) at current prices reached approximately ₹9.5 lakh crore in 2024-25, reflecting a 10% increase from the previous year’s ₹8.6 lakh crore.
Projections for FY26 (2025-26) suggest Odisha’s economy may grow between 8% and 8.5%, driven by expansion in industry, services, investment and urbanisation clusters.
Per Capita Income
Per capita income showed significant improvement, rising by 10.6% to approximately ₹1.83 lakh in 2024-25, narrowing the gap with the national average of ₹2.0 lakh.
These figures demonstrate strong state-level economic fundamentals relative to national performance.
2. Sectoral Contributions to Growth
The Survey highlights a diversified structure with industry, services and agriculture each playing crucial roles:
Industry
Industrial output accounted for roughly 44% of the state economy and supported substantial employment creation. Growth was aided by strong mineral production and investment approvals.
Odisha’s mineral sector recorded an annual compound growth rate of 21.4% between 2017-18 and 2023-24—the highest among major mineral-producing states—underlining the state’s strategic advantage in minerals.
Services
The services sector was the fastest-growing, expanding at about 10% and contributing over 37% to Gross State Value Added (GSVA). The growth was driven by tourism, trade, urban services, and the emerging IT/ITeS ecosystem.
Agriculture & Allied Activities
Agriculture and allied sectors contributed 19% to GSVA, with solid growth of 3.3%. Over the past five years, agricultural output in Odisha expanded at an average of 7%, outperforming the national average of 4.1%.
3. Structural and Social Indicators
Labour Force Participation
The labour force participation rate (LFPR) increased to 64.9% in 2023-24, higher than the national average of 58%. Female labour force participation also rose, reflecting progress in inclusive employment creation.
Fiscal Metrics
Odisha maintained prudent fiscal management with a fiscal deficit around 3.4% of GSDP and a debt-to-GSDP ratio of 13.2%—one of the lowest among major states. The credit-deposit ratio improved substantially, supporting lending and investment.
4. Policy Recognition in the National Economic Survey
Beyond state-level outcomes, Odisha’s development model has been highlighted in the Union Government’s Economic Survey 2025-26:
Model State for Growth and Inclusion
The national Economic Survey repeatedly cited Odisha as a model state for policy innovation and inclusive outcomes. The state’s Semiconductor Manufacturing & Fabless Policy and its role in hosting semiconductor projects under the India Semiconductor Mission were noted for strengthening supply chains and investment appeal.
Skilling and Education Reform
Odisha’s approach to skilling—especially the ‘Fix-Accelerate-Scale’ strategy for upgrading Industrial Training Institutes (ITIs)—was recognized as a benchmark for other states to emulate.
Livelihood and Social Programmes
The Strengthening of Livelihoods of a Rural Tribal Farmer initiative showcased how combining indigenous practices with market linkages can dramatically lift household incomes and reduce distress migration.
Urban Governance and Climate Action
Reforms such as liberalised building bye-laws, enhanced women’s labour participation policies, and the ‘Garbage-Free Urban Odisha’ mission were also highlighted. Paradip Port’s designation as a green hydrogen hub underscored the state’s orientation toward clean energy pathways.
5. Drivers of Future Growth
Investment and Infrastructure
Odisha has seen significant investment momentum: the state approved 133 new industrial proposals worth over ₹2.4 lakh crore with potential to create approximately 1.8 lakh jobs (June 2024–Jan 2025). Large-scale investments committed through the Utkarsh Odisha Conclave 2025—estimated at around ₹16.7 lakh crore—are expected to further accelerate industrial growth and employment opportunities.
Urbanisation and Clusters
The Survey identifies six urban clusters (e.g., Bhubaneswar-Cuttack-Puri, Rourkela region) earmarked for rapid expansion in built-up areas and economic activity, signalling a planned regional development strategy.
Diversification
Beyond traditional sectors, Odisha is focusing on newage industries—including renewables, chemicals, processed foods, and FMCG—bolstering export capacities and enhancing value addition.
6. Implications for Odisha’s Development
The Economic Survey of Odisha 2025-26 points to solid economic fundamentals, increasing inclusivity and growing global competitiveness. Key takeaways include:
- Above-average economic growth compared to the national level.
- Sectoral balance with meaningful contributions from agriculture, industry, and services.
- Enhanced investment landscape due to robust policy frameworks and investor confidence.
- Model policy recognition at the national level, especially in skilling, manufacturing and livelihood programmes.
- Fiscal prudence, enabling sustainable long-term development.
Conclusion
The Economic Survey 2025-26 portrays Odisha as a dynamic, reform-oriented, and inclusive economy poised for accelerated growth. With strengthened fiscal health, strategic industrial diversification, and national recognition for model reforms, Odisha is well positioned to sustain its development momentum while improving living standards across its population.
