
The Union Budget 2025-26 sets a promising stage for Odisha’s goal of achieving a Samrudh Odisha by 2036 for a Viksit Bharat by 2047. Chief Minister Mohan Charan Majhi’s agenda of bolstering agriculture, empowering women, expanding infrastructure, and creating employment finds strong support through the budget’s four primary growth engines: agriculture, MSMEs, investments, and exports. If harnessed effectively, these measures can unlock a new era of inclusive development and rapid growth, propelling Odisha closer to its 2036 vision.
Agriculture: The Prime Minister Dhan-Dhaanya Krishi Yojana for low-yield districts, complemented by Odisha’s Samrudh Krushak Niti, can help address longstanding bottlenecks to enhance agricultural productivity through crop diversification and improving irrigation facilities. Enhanced Kisan Credit Card limits from Rs 3 lakh to Rs 5 lakh will further strengthen short-term loans for farmers. However, ensuring that these benefits reach marginal farmers with challenges of limited financial literacy will require a powerful awareness drive.
MSMEs: CM Majhi’s promise of generating 3.5 lakh jobs in five years is ambitious but feasible if Odisha leverages the revised investment and turnover limits for MSMEs and increased credit availability from Rs 5 to Rs 10 crore for MSMEs. Focus on niche sectors like toy manufacturing can spur local industrial clusters. Ultimately, the success of these measures hinges on a relentless focus on skill development to help MSMEs scale sustainably.
Infrastructure: The budget’s capital outlay and Rs 1.5 lakh crore in 50-year interest-free loans for states can catalyze the state’s plans to construct 75,000 km of roads and build industrial corridors. Tapping into the Urban Challenge Fund of Rs 1 lakh crore could help modernise Cuttack and Rourkela. The framework for setting up Global Capability Centers (GCCs) in emerging tier-2 cities is another move that could help distribute economic opportunities more evenly across Odisha.
Additionally, with 50 cities designated as hubs for tourism, spirituality, and medical services, Odisha can advocate for Puri and other destinations to bolster tourism-driven jobs and elevate local infrastructure. Such projects can lower rural-urban disparities and attract long-term investments if managed with non-negotiable timelines.
Exports: The Export Promotion Mission, supported by the BharatTradeNet, will increase access to export credit, allowing local producers to reach global markets. These initiatives go beyond mineral and textile exports, providing avenues for the state’s evolving industrial sectors.
Innovation: Rs 20,000 crore to implement private-sector-driven research, development, and innovation can help position Odisha’s youth to benefit from the emerging digital economy. A CoE in AI for Education, backed by Rs 500 crore, can drive digital literacy and high-value skills in urban and rural regions. These would likely align well with Odisha’s upcoming AI policy. Ensuring equitable access and robust outreach will be crucial for bridging the state’s digital divide.
Sustainability: The Nuclear Energy Mission for 100 GW capacity by 2047 offers a timely boost to Odisha’s clean-energy ambitions. The emphasis on developing nuclear energy, particularly through Small Modular Reactors, could boost Odisha’s energy security, reducing carbon emissions while spurring local manufacturing for critical reactor components.
Inclusivity: The Bharatiya Bhasha Pustak Scheme, with its focus on digital-form Indian language textbooks, dovetails well with Odisha’s drive to improve literacy in tribal and low-literacy regions. The budget promises to tackle persistent barriers that hinder educational progress in remote areas by providing vernacular learning materials and expanding broadband connectivity to government schools. This will require implementing teacher training and community engagement, ensuring that every child, irrespective of location or background, can tap into the transformative potential of quality education.
At the same time, the Union Budget advances structural reforms in taxation and regulatory frameworks to sharpen India’s economic competitiveness. The promised committee will look into regulatory reforms to make it easier for companies to do business in India. This is vital for a state like Odisha, where many small enterprises remain informal and wary of cumbersome regulations.
No budget meets every aspiration – this one is no exception. Coastal development, cultural industries, and other local priorities may feel overlooked. However, Odisha can fill these gaps through state-level policies, private-sector partnerships, and philanthropic collaborations.
‘Utkarsh Odisha: Make in Odisha Conclave 2025’, held just last week, marked a milestone with the signing of about 150 MoUs across 16 sectors expected to bring in investments of over Rs 12 lakh crore and generate approximately 8.94 lakh job opportunities. Odisha’s vision of a Samrudh Odisha by 2036 hinges on effective governance that translates momentum from the Utkarsh Odisha Conclave and the Union Budget announcements into meaningful, equitable, on-the-ground impact.
Vivek Agarwal
Global policy expert & India Country Director for Tony Blair Institute for Global Change