Odisha's Economy Accelerates Toward Rs 10 Trillion Milestone
The Economic Survey for 2025-26, presented in the Odisha assembly on Thursday, reveals a state economy in robust expansion. Odisha's Gross State Domestic Product (GSDP) has surged to Rs 9.88 lakh crore, marking a significant step toward the Rs 10-trillion threshold. This represents a growth rate of 7.9% for the fiscal year 2025-26, a notable acceleration from the previous year's 7.2% growth.
Outpacing National and Historical Averages
Odisha's economic performance stands out in multiple comparisons. The state's 7.9% growth rate exceeds the national average of 7.4% for the same period. Furthermore, it significantly surpasses Odisha's own 10-year average growth rate of 6.6% recorded between 2014 and 2024. The economy has expanded from Rs 9 lakh crore in the previous fiscal year, demonstrating consistent momentum.
Drivers of Economic Expansion
The survey attributes this economic upswing to steady expansion across all sectors and a substantial increase in both public and private investment. It emphasizes that the size of the state's economy, measured through GSDP, is central to sustaining long-term and inclusive growth for Odisha's population.
Dramatic Easing of Inflation Pressures
A major highlight of the report is the sharp decline in inflation. Between April and December 2025, inflation dropped to just 0.1%, down dramatically from 6% in 2024-25. This significant reduction is linked to coordinated efforts by both the central and state governments, including:
- Increased buffer stocks of essential commodities
- Strategic market releases of food grains
- Targeted supply-side interventions
Softer food prices played a crucial role in alleviating pressure on household budgets across the state.
Industry Sector Remains the Growth Engine
The industrial sector continues to be Odisha's strongest economic driver. In 2025-26, industry contributed 41.3% to Odisha's Gross State Value Added (GSVA), amounting to approximately Rs 3.6 lakh crore. The sector grew at 6.4% at constant prices, with manufacturing expected to expand at an impressive 8.3%, outpacing the national average of 7%.
Robust Investment Activity Creating Employment
Investment activity in Odisha remained exceptionally strong throughout 2025. The state approved 244 new projects with proposed investments totaling Rs 5.66 lakh crore. These projects are expected to create approximately 3.35 lakh jobs across various sectors.
Additionally, 80 projects were completed during the year, adding Rs 1.75 lakh crore in investments and generating 1.4 lakh direct employment opportunities. The survey notes that Odisha is successfully attracting investments across both labor-intensive and high-tech industries.
Demographic Advantage and Services Growth
Odisha possesses a significant demographic advantage, with 69% of its population in the working age group. The state considers this demographic profile a major strength for accelerating economic growth and building a skilled workforce for the future.
The services sector accounted for 39.1% of GSVA in the current fiscal year and is projected to grow at 9.3% this year, indicating balanced economic development across sectors.
