Odisha’s economy is showing promising growth, driven by industry and service sectors, with a focus on capital investment and fiscal responsibility
OdishaPlus Bureau
Odisha’s economy is projected to expand by 7.2 percent in the current financial year, surpassing the national growth rate of 6.4 percent, as indicated by the state economic survey report for the fiscal year 2024-25.
Presented to the state assembly on Saturday evening, the report estimates that the Gross State Domestic Product (GSDP) at current prices will reach Rs 9.5 trillion in 2024-25, reflecting a 10 percent increase from Rs 8.6 trillion in the previous fiscal year of 2023-24.
All sectors have demonstrated strong growth during the financial year 2024-25, positioning the state for significant advancement in the coming years. Enhanced capital investment and the investment initiatives facilitated by Utkarsh Odisha are expected to further elevate the state’s growth rate in the future, as highlighted in an official statement summarizing the report’s key findings.
In a similar vein, the per capita income has risen by 10.6 percent, reaching Rs 1,82,548 in the fiscal year 2024-25 (advance estimate), while the all-India per capita income has increased by 8.7 percent. The per capita income of the state is 8.8 percent lower than the national average of Rs 2,00,162 for the same period, indicating a trend toward convergence.
The agriculture and allied sectors have demonstrated a strong growth rate of 3.3 percent in 2024-25, contributing 19 percent to the Gross State Value Added (GSVA).
In Odisha, the agriculture sector has consistently outperformed the national average, achieving a growth rate of 7 percent over the past five years, compared to the national growth rate of 4.1 percent.
Furthermore, the industrial sector in Odisha is projected to grow at 6.1 percent in 2024-25, according to advance estimates, contributing 43.9 percent to the GSVA. The services sector is anticipated to grow at 10 percent in the same period, accounting for approximately 37.1 percent of the state’s economy.
Additionally, the state has earmarked nearly Rs 58,195 crore for capital outlay in 2024-25 (budget estimates), which represents 6.1 percent of the Gross State Domestic Product (GSDP). This allocation is the highest among major states in India, as noted.
Odisha has consistently followed sound fiscal management practices, which encompass maintaining a fiscal deficit of 3.4 percent and a revenue surplus of 2.9 percent of GSDP in the budget estimates for 2024-25, all within the established limits. This approach ensures high-quality expenditure while keeping debt levels sustainable. The state has successfully kept its debt-to-GSDP ratio below the 25 percent limit set by the Central Finance Commission and the Odisha Fiscal Responsibility and Budget Management Act of 2005. According to the budget estimates for 2024-25, the debt-to-GSDP ratio is recorded at 13.2 percent, marking the lowest figure among all major states in India.
