Argus News - Odisha’s Economy Surges ahead with 7.9 Per Cent Growth in 2025-26

Bhubaneswar, Feb 19: Odisha’s economy continues its upward trend, with the latest Economic Survey 2025-26 projecting robust growth across sectors.

The Gross State Domestic Product (GSDP) at current prices is estimated to reach ₹9.9 lakh crore, marking a 9.5 per cent increase from ₹9 lakh crore in 2024-25. In real terms, the state’s economy is expected to grow at 7.9 per cent, surpassing the national average of 7.4 per cent.

Per Capita Income on a Rise

Per capita income in the state has seen a significant jump, rising by 9.2 per cent to ₹1,86,761 in 2025-26. This growth rate is notably higher than the national average of 6.9 per cent, narrowing the gap between Odisha and the rest of India. The steady rise reflects improved living standards and expanding opportunities across the state.

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Agriculture and Allied Sectors

Agriculture remains a cornerstone of Odisha’s economy, contributing 19.6 per cent to the GSDP - higher than the national average of 16.8 per cent. The sector is projected to grow at 5.3 per cent, compared to 3.1 per cent nationally.

Foodgrain production has reached a record 150.5 lakh metric tonnes, supported by increased procurement of paddy and millets, higher MSPs, subsidies, crop diversification, and enhanced irrigation capacity.

Livestock and fisheries have also shown remarkable progress, with Odisha emerging as the fourth-largest fish producer in India and recording growth in marine exports.

Industrial Expansion

Industry contributes 41.3 per cent to the state’s GSDP, with 244 new projects approved under the latest industrial policy. Odisha’s focus on business reforms and infrastructure development has positioned it as a hub for investment. The state’s industrial growth is complemented by strong performance in mining, manufacturing, and energy sectors.

Services and Digital Push

The services sector has grown by 9.3 per cent, driven by IT, data centres, AI, and semiconductor initiatives. Odisha’s digital transformation policies are fostering innovation and employment, making the state a rising player in India’s technology landscape.

Infrastructure, Health, and Education

• Capital expenditure stands at 6.6 per cent of GSDP, while the debt-to-GSDP ratio remains healthy at 13.6 per cent.
• Transport infrastructure has expanded with improved port capacity, rail connectivity, and air travel facilities.
• Health spending has increased, with over 8,500 healthcare institutions and schemes like Ayushman Bharat and state health insurance strengthening public welfare.
• Education has received a 38 per cent budget boost, with digital facilities in schools and skill development programs enhancing employability.

Social Empowerment

Women’s empowerment schemes such as Subhadra and Lakhpati Didi are promoting financial independence. SC/ST participation in higher education has risen to 34 per cent, reflecting Odisha’s commitment to inclusive growth.