BHUBANESWAR: Odisha’s economy is on course to reach the Rs 10 lakh crore mark very soon, with its Gross State Domestic Product (GSDP) estimated at Rs 9.9 lakh crore in 2025-26, reflecting a year-on-year growth of 9.5 per cent, the latest Economic Survey on the state has revealed.
The Economic Survey report, tabled in the Assembly on Thursday, said the state’s real economic growth is projected at 7.9 per cent in 2025-26, higher than 7.2 per cent in 2024-25 and above the national average of 7.4 per cent, indicating broad-based expansion across sectors.
Per capita income in Odisha rose by 9.2 per cent to Rs 1,86,761 in 2025-26, significantly faster than the national increase of 6.9 per cent. The survey noted that this trend is helping the state steadily narrow the income gap with the national average and reflects improving living standards.
Industry continued to be a key growth driver, accounting for 41.3 per cent of Gross State Value Added (GSVA) and contributing around Rs 3.6 lakh crore. The sector registered a growth of 6.4 per cent, with manufacturing expected to expand by 8.3 per cent, above the national average.
During 2025-26, the state approved 244 projects involving investments of Rs 5.66 lakh crore with the potential to generate 3.35 lakh jobs. Of these, 80 projects with investments worth Rs 1.75 lakh crore were implemented, creating 1.4 lakh jobs.
The services sector, which contributed 39.1 per cent to the economy, is projected to grow at 9.3 per cent, driven by financial services, digital infrastructure and technology-led investments.
The survey highlighted the government’s focus on emerging areas such as artificial intelligence, semiconductor manufacturing and global capability centres to strengthen Odisha’s position as a digital economy hub.
Agriculture remained resilient, contributing 19.6 per cent to the economy, higher than the national average of 16.8 per cent. The sector recorded a growth of 5.3 per cent, supported by record foodgrain production of 150.5 lakh metric tonnes in 2024-25. Paddy procurement stood at 92.6 lakh metric tonnes, benefiting around 20 lakh farmers through minimum support prices and subsidies, the report said.
Infrastructure development further supported growth prospects. The state increased its irrigation potential to 74.2 lakh hectares, expanded its rail network to 3,243 km and improved air connectivity to 30 cities. Port capacity has also been enhanced, with Paradip port accounting for nearly 18 per cent of the country’s total cargo handling.
The state recorded a significant increase in its labour force participation rate (individuals aged 15 and above), rising from 58.1 per cent to 64.5 per cent between 2022 and 2024, outperforming the national average of 56.1- 59.6 per cent during the same period. Similarly, female labour force participation improved notably from 37.6 per cent to 48.7 per cent surpassing the national average of 40.3 per cent, suggesting growing economic inclusion of women.
The survey noted that Odisha has maintained strong fiscal discipline, with its debt-to-GSDP ratio at 13.6 per cent, well below the 25 per cent limit. Capital expenditure rose to 6.6 per cent of GSDP, the highest among major states.
With rising investments, robust industrial growth, improved infrastructure and prudent fiscal management, the survey said, Odisha is well positioned for sustained high growth and structural transformation in the coming years.