Odisha’s economy to grow 9.5% in 2025–26, outpacing national average, with strong gains in agriculture, industry, services, and exports: Economic Survey
OdishaPlus Bureau
Odisha’s economy is projected to reach Rs 9.9 lakh crore at current prices in 2025-26, reflecting a growth of 9.5 per cent compared to the previous financial year, surpassing the national average, as stated in the Economic Survey report presented in the state assembly on Thursday.
The survey report for 2025-26 indicates that all sectors have demonstrated strong growth rates during the current fiscal year.
“The anticipated real economic growth for 2025-26 is 7.9 per cent, which exceeds the growth of 7.2 per cent from the previous year. This figure is also above the all-India average growth rate of 7.4 per cent,” the report noted.
Furthermore, it mentioned that the state is on the brink of significant expansion in the coming years, driven by increasing private and public investments.
The report highlights that the per capita income in the state has risen by 9.2 per cent, reaching Rs 1,86,761 in 2025-26 (AE-Aggregate Expenditure), while the all-India per capita income has increased by 6.9 per cent. “Odisha’s swift growth is facilitating a quicker convergence of per capita income with the national average,” it stated.
The Labour Force Participation Rate (LFPR) for individuals aged 15 and above in Odisha surged to 64.5 per cent in 2024, up from 58.1 per cent in 2022, surpassing the national average. The female LFPR also experienced a significant rise from 37.6 per cent to 48.7 per cent during the same timeframe, well above the all-India figure of 40.3 per cent, according to the report.
As per the survey report, agriculture and related activities accounted for 19.6 per cent of Odisha’s economy in 2025–26, exceeding the national share of 16.8 per cent.
Food grain production achieved a record high of 150.5 lakh metric tonnes in 2024–25, propelled by increased rice production, expanded procurement, MSP payments, and crop diversification, the report concluded.
In the years 2024–25, the state acquired 92.6 lakh metric tonnes of paddy from approximately 20 lakh farmers, distributing Rs 21,300 crore as Minimum Support Price (MSP) and Rs 7,140 crore as input subsidy. The government procurement encompassed nearly 78 percent of the total paddy production, while Ragi procurement more than doubled, bolstered by an MSP of Rs 4,290 per quintal along with additional incentives.
The report indicated that Odisha’s irrigation potential increased to 74.2 lakh hectares, with cropping intensity rising to 165 percent and milk production reaching 27.1 lakh metric tonnes. Egg production experienced a compound annual growth rate (CAGR) of 14 percent, and fish output grew to 11.92 lakh metric tonnes.
“Odisha also became the third-largest marine exporter, with shrimp exports amounting to Rs 4,708 crore,” the report stated.
In 2025–26, the industry contributed 41.3 percent to the Gross State Value Added (GSVA), with manufacturing growth projected at 8.3 percent, surpassing the national average.
During 2025, the state sanctioned 244 projects valued at Rs 5.66 lakh crore, which are expected to create employment opportunities for 3.35 lakh individuals. Business reforms under the Business Reform Action Plan (BRAP) 2024 achieved a 98% implementation rate, alongside legislative reforms aimed at decriminalizing minor offences, as reported.
The services sector represented 39.1 percent of GSVA and is anticipated to grow by 9.3 percent. Financial services are projected to expand by 11.9 percent, supported by enhanced banking and fintech penetration. New policies regarding Artificial Intelligence, Global Capability Centres, and semiconductors are designed to position Odisha as a future-ready digital economy, according to the report.
Odisha has allocated the highest capital outlay-to-GSDP ratio among major states at 6.6 percent for 2025–26. The debt-to-GSDP ratio is recorded at 13.6 percent, the lowest among major states and significantly below the Fiscal Responsibility and Budget Management (FRBM) norms, ensuring long-term fiscal sustainability.
The report highlighted advancements in infrastructure, including ports, railways, and the aviation sector, as well as improvements in health, education, and skills.
“The survey indicates that Odisha is expected to continue on a trajectory of sustained, inclusive, and future-ready growth in the upcoming years, supported by robust fundamentals, increasing investments, and a youthful workforce,” stated an official announcement.