BHUBANESWAR: The Odisha government on February 19 released the Economic Survey 2025-26, presenting a comprehensive picture of a fast-expanding state economy driven by strong performance in agriculture, industry and services, rising investments, and improvements in social indicators. The survey indicates that the state’s economic growth has surpassed the national average while maintaining fiscal discipline and expanding welfare measures across sectors.
Robust Economic Growth
According to the survey, Odisha’s Gross State Domestic Product (GSDP) at current prices is estimated at ₹9.9 lakh crore in 2025-26, registering a 9.5 per cent increase from Rs 9 lakh crore in 2024-25. The real economic growth rate is projected at 7.9 per cent, higher than the previous year’s 7.2 per cent and above the national average of 7.4 per cent.
The report attributes this expansion to increased public and private investments across sectors and expects the growth momentum to continue in the coming years.
Per capita income has also risen by 9.2 per cent to Rs 1,86,761, compared to the national rise of 6.9 per cent, indicating faster convergence with national income levels.
Rising Workforce Participation
Labour force participation has improved significantly. The overall participation rate (age 15+) rose from 58.1 per cent in 2022 to 64.5 per cent in 2024, exceeding the national average of 59.6 per cent.
Female participation improved notably from 37.6 per cent to 48.7 per cent, far above the national figure of 40.3 per cent, suggesting growing economic inclusion of women.
Agriculture Remains Strong Backbone
Agriculture and allied activities continue to play a major role, contributing 19.6 per cent to the state economy, higher than the national share of 16.8 per cent. The sector grew 5.3 per cent, well above the national agricultural growth rate of 3.1 per cent.
Foodgrain production reached a record 150.5 lakh metric tonnes in 2024-25, while rice production stood at 118.6 lakh tonnes, supported by farmer welfare schemes, higher minimum support price and input subsidies.
Crop diversification into cotton, maize, vegetables, and spices is also expanding to enhance farmers’ incomes.
Procurement and Farmer Support
The state procured 92.6 lakh metric tonnes of paddy from nearly 20 lakh farmers, disbursing Rs 21,300 crore in MSP payments and Rs 7,140 crore in input subsidies. Government procurement accounted for 78 per cent of total paddy production, up from 61 per cent a year earlier.
Ragi procurement also increased, with 8.8 lakh quintals purchased at Rs 4,290 per quintal plus incentives.
Irrigation coverage has expanded to 74.2 lakh hectares, raising cropping intensity to 165 per cent.
Allied Sectors Grow Rapidly
Milk production reached 27.1 lakh tonnes, while egg production grew sharply from 242 crore eggs in 2020-21 to 406 crore eggs in 2024-25. Odisha emerged as the fourth-largest fish producer in India, with output touching 11.92 lakh tonnes and marine exports rising to Rs 4,708 crore.
Industrial Expansion and Investment
The industry sector contributed 41.3 per cent of GSVA, growing 6.4 per cent, led by manufacturing growth of 8.3 per cent.
During 2025, the state approved 244 projects worth Rs 5.66 lakh crore, expected to generate 3.35 lakh jobs. Eighty projects implemented during the year alone attracted Rs 1.75 lakh crore investment and created 1.4 lakh jobs.
Business reforms have also improved ease of doing business, with 98 per cent implementation under the Business Reforms Action Plan and the Odisha Jan Vishwas Bill simplifying compliance procedures.
Services Sector and Digital Economy
The services sector accounted for 39.1 per cent of GSVA and is projected to grow 9.3 per cent. Financial services alone are expected to expand by 11.9 per cent. Investments in technology parks, data centres and policies on AI and semiconductors aim to position the state as a future digital economy hub.
Fiscal Stability
Odisha continues to maintain strong fiscal discipline. The debt-to-GSDP ratio is projected at 13.6 per cent, well below the 25 per cent limit, and interest payments remain low at 2.8 per cent of revenue receipts. Capital outlay is budgeted at 6.6 per cent of GSDP, the highest among major states.
Infrastructure and Connectivity
The state plans to expand port handling capacity and currently operates three ports, including Paradip. Railways added about 200 km of track, raising the network to 3,243 km, while aviation connectivity expanded to 30 cities with rising passenger traffic.
Social Sector Progress
Public health spending increased to Rs 19.7 thousand crore, with more than 8,500 health institutions operational. School education allocation rose sharply to Rs 31,185 crore, and infrastructure improvements led to near-universal access to water, electricity and sanitation in schools. Skill development programmes and the Odisha World Skill Centre report a placement rate of 93 per cent.
Inclusion and Women’s Empowerment
Nearly 69 per cent of the population falls within the working-age group, offering a demographic advantage.
Women-centric programmes such as livelihood and entrepreneurship initiatives have created over 16.42 lakh “Lakhpati Didis.” Social inclusion efforts improved educational participation among SC and ST communities and increased the share of industrial employment.
Sports and Lifestyle Indicators
The state continues to invest in sports infrastructure, allocating Rs 1,319 crore in 2025-26 and developing regional sports hubs and high-performance centres. Rising ownership of household assets, such as vehicles, appliances, and mobile phones, indicates improving living standards.
The Economic Survey suggests Odisha is transitioning from a resource-based economy to a diversified growth model supported by industrialisation, technology adoption, social welfare expansion and fiscal prudence.
With growth higher than the national average, rising employment participation, and increasing investments, the state positions itself as an emerging economic powerhouse in eastern India while continuing its focus on inclusivity and rural welfare.
