Odisha Economic Survey 2025-26 | 20 Feb 2026

Why in News?

Tabled by Chief Minister Mohan Charan Majhi on 19th February, 2026, the Odisha Economic Survey 2025–26 presents a narrative of a fast-expanding state economy outperforming national averages.

Key Points:

  • Macro-Economic Indicators:Odisha’s Gross State Domestic Product (GSDP) at current prices is estimated at around ₹9.9 lakh crore in 2025–26, approaching the ₹10 lakh crore milestone.
    • Real GSDP Growth: Projected at 7.9% for 2025-26, surpassing the national average of 7.4%.
    • GSDP Size: Estimated at ₹9.9 lakh crore (current prices), a 9.5% increase over the previous year.
    • Per Capita Income (PCI): Increased by 9.2% to ₹1,86,761, significantly narrowing the gap with India's average PCI.
    • Fiscal Prudence: Debt-to-GSDP ratio remains healthy at 13.6%, well within FRBM limits.
  • Sectoral Performance:The survey highlights a robust manufacturing ecosystem alongside significant agricultural resilience.
  • Agriculture and Allied Activities: Agriculture contributed 19.6 % to the state economy in 2025–26, above the national share of 16.8 %.
    • Sector growth in 2025–26 was 5.3 %, outpacing the national average.
    • Record foodgrain production of 150.5 lakh tonnes in 2024–25 demonstrates strong agricultural performance, aided by expanded procurement, MSP support and irrigation improvements.
    • Increased irrigation potential, livestock outputs, fisheries expansion and marine exports further strengthen the primary sector.
  • Industry: The industry sector accounted for roughly 41.3 % of Gross State Value Added (GSVA) in 2025–26, contributing about ₹3.6 lakh crore.
    • The sector grew by 6.4 %, bolstered by manufacturing, which is expected to expand by 8.3 %, above the national manufacturing average.
    • Odisha approved 244 investment projects worth ₹5.66 lakh crore with the potential to generate 3.35 lakh jobs; 80 projects worth ₹1.75 lakh crore were implemented in the year, creating 1.4 lakh direct jobs.
    • Business reforms under BRAP 2024 achieved a 98 % implementation rate, reflecting an enabling regulatory environment for industry.
  • Services and Digital Economy:The services sector contributed around 39.1 % of GSVA and is projected to grow at 9.3 %.
    • Financial services are expected to expand around 11.9 %, supported by expanding banking, insurance and fintech penetration.
    • Emerging policy frameworks — such as Odisha AI Policy 2025, Odisha GCC Policy 2025 and Odisha Semiconductor & Fabless Policy 2025 — signal the state’s aspiration to evolve into a digital and high-tech growth hub.
  • Infrastructure and Connectivity:Infrastructure development emerged as a key pillar of Odisha’s growth strategy:
    • Capital outlay increased significantly, rising to around 6.6 % of GSDP, the highest among major Indian states, with robust spending on roads, bridges, irrigation and other long-term assets.
    • The rail network expanded to over 3,243 km, and aviation links now connect Odisha to 30 cities, enhancing passenger and freight mobility.
    • Programs like B-MAAN (Building and Management of Aviation Assets and Network) with planned investment of over ₹4,000 crore will further elevate aviation infrastructure.
  • Debt and Fiscal Health:Total state debt is estimated to rise to ₹1.34 lakh crore in 2025-26 (≈13.6 % of GSDP), remarkably low compared with many other Indian states, reflecting prudent fiscal management.
    • This debt level remains comfortably within the state’s fiscal responsibility thresholds, with interest payment to revenue receipts ratio around 2.8 %, far below the 15 % benchmark.
    • Future projections anticipate a slight increase in the debt-to-GSDP ratio up to about 15.7 % by 2029–30, driven by planned capital expenditures but remaining sustainable.
  • Education and Skills: Odisha reported education as the second-highest household expense after food, reflecting rising awareness of educational investment but also indicating affordability challenges.
    • Increased state allocations for education and strengthened school infrastructure are part of wider human capital investment.
    • Skill development outcomes improved with high placement rates at the Odisha World Skill Centre and newer centres planned in multiple cities.
  • Health and Welfare:Public health spending tripled since 2019–20, reaching nearly ₹19,700 crore, improving access to healthcare.
    • Targeted initiatives like SUBHADRA and Lakhpati Didis focus on women’s financial inclusion; around 16.42 lakh Lakhpati Didis (self-help entities) have been created.
    • Social inclusion measures reduced disparities in education and employment among SC, ST and marginalised communities, signalling broader welfare progress.
  • Labour Market and Demographic Dividend:Odisha’s labour force participation improved significantly, with overall participation increasing from 58.1 % in 2022 to 64.5 % in 2024, above the national average.
    • Female labour force participation surged to 48.7 %, indicating stronger gender inclusion in productive activities. 
  • Livelihoods: 16.42 lakh "Lakhpati Didis" were created through various livelihood initiatives.
  • Poverty Reduction: Extreme poverty has declined to 5.3% under revised international poverty lines.
  • Digital Hub:Odisha is positioning itself as a hub for emerging technologies and modern logistics.
    • Digital Economy: New policies including the AI Policy 2025, Odisha GCC Policy 2025, and Semiconductor & Fabless Policy 2025 aim to build a future-ready digital ecosystem.
  • Maritime Power: Paradip Port handled 18% of India's total cargo in 2024-25 and has been identified as a Green Hydrogen Hub.