Odisha’s economy is projected to grow at 7.2% in 2024-25, surpassing the national average of 6.4%, according to the state’s Economic Survey for the year. This growth is driven by improvements across various sectors, positioning Odisha for accelerated economic progress in the coming years.
Economic Growth and Per Capita Income
Odisha’s Gross State Domestic Product (GSDP) is expected to reach ₹9.5 lakh crore in 2024-25, marking a 10% increase from ₹8.6 lakh crore in the previous year. Despite this positive growth, the state’s projected economic growth of 7.2% is slightly lower than the 8.5% estimated for the last fiscal year.
Odisha has seen a significant rise in per capita income, with an expected 10.6% increase, bringing it to ₹1,82,548 in 2024-25. Although still lower than the national average of ₹2,00,162, Odisha is on a steady path of economic convergence with the rest of India.
Industrial Growth
The industrial sector in Odisha is projected to grow at 6.1% in 2024-25, contributing to nearly 44% of the state’s Gross State Value Added (GSVA). A surge in industrial investments is fueling this growth, with 133 new projects worth over ₹2.4 lakh crore approved between June 2024 and January 2025, expected to create around 1.8 lakh jobs. Additionally, the state has received investment commitments worth ₹16.7 lakh crore under the “Utkarsh Odisha 2025” initiative, potentially creating 12.9 lakh more jobs across 20 sectors.
Odisha continues to be a leader in mineral production, with an impressive growth rate of 21.4% in mineral output between 2017-18 and 2023-24, the highest among major mineral-producing states in India. The state is also diversifying its industrial base, with a focus on labor-intensive sectors like textiles, automobiles, and green equipment.
Agriculture and Rural Development
The agriculture sector in Odisha has shown steady growth, with a 3.3% increase expected in 2024-25. Agriculture continues to be a key contributor, accounting for nearly 19% of the GSVA. The state has achieved record-breaking food grain production, reaching 143 lakh metric tonnes in 2023-24, up from 116.9 lakh metric tonnes in 2019-20. Odisha remains the fifth-largest rice producer in the country, with production growing from 97.6 lakh MT in 2019-20 to 115.4 lakh MT in 2023-24.
Alongside food grain production, the state has seen a rise in the cultivation of cash crops like cotton, maize, and spices. The state’s vegetable output has also grown by 3%, and its cropping intensity has improved, reaching 164% in 2023-24.
Services Sector
Odisha’s services sector is expected to grow by 10% in 2024-25, contributing to 37.1% of the state’s economy. Bhubaneswar, the state capital, is becoming a growing hub for IT and IT-enabled services (ITeS), with new IT parks and rising software exports. Software and electronics exports from the state rose from ₹4,500 crore in 2019-20 to ₹12,904 crore in 2023-24, a remarkable annual growth of 30%.
Tourism and hospitality are also experiencing growth, with the state’s hotel and restaurant sector expected to grow by 14.3% in 2024-25. Additionally, the real estate sector is projected to see a growth rate of 8.1%, higher than the 10-year average of 3.7%.
Employment and Labour Force
Odisha’s labor force participation rate (LFPR) has seen a significant jump, rising from 51.2% in 2018-19 to 64.9% in 2023-24. The participation of women in the workforce has increased notably from 24.4% to 49.4% over the same period, surpassing the national average of 42%.
The state is also promoting oil palm cultivation to increase farmers’ incomes and meet the growing demand for edible oil. The area under oil palm cultivation has grown from 6,700 hectares in 2019-20 to 8,800 hectares in 2023-24, and the government plans to add more in the coming years.
Infrastructure Development
Odisha has been ramping up its infrastructure investments. In 2024-25, the state allocated ₹58,195 crore for capital outlay, representing 6.1% of its GSDP. The government is prioritizing infrastructure to drive economic growth, with major investments in roads, railways, and civil aviation.
The state’s road network has seen significant investment, with an allocation of ₹19,456 crore for roads and bridges in 2024-25. The state aims to develop 75,000 km of quality roads, improving connectivity across urban and rural areas.
The railway infrastructure has also expanded, with Odisha receiving a record ₹10.6 thousand crore for railway development in 2024-25. This will help improve connectivity to previously underserved districts, including tribal areas.
Health and Education Initiatives
Odisha is also focusing on enhancing its healthcare and education systems. The state has integrated the Gopabandhu Jan Arogya Yojana (GJAY) with the national Ayushman Bharat scheme, ensuring cashless treatment for vulnerable families. Additionally, the state is building specialized pediatric cancer units and expanding nutrition programs for pregnant women and children.
In education, the government has introduced several initiatives, including the “Godabarisha Mishra Adarsha Prathamik Vidyalaya Yojana” to improve infrastructure in primary schools and the “PM SHRI” scheme to upgrade 462 schools into model institutions. Over 20,000 teachers were recruited in 2024-25 to strengthen the education system.
Women’s Empowerment and Social Welfare
The government launched the SUBHADRA Yojana in September 2024 to provide financial support to women, with a target of reaching 80 lakh women over five years. The scheme aims to empower women economically and enhance their participation in decision-making. Additionally, the “Lakhpati Didi Yojana” supports Self-Help Groups (SHGs) by providing resources to help women achieve economic independence.
Tribal Welfare
The state has introduced the “PM JANMAN Scheme” to ensure that tribal communities receive their entitlements, focusing on improving health, education, and livelihoods. Other initiatives, like the Shahid Madho Singh Haath Kharcha scheme and the PM JUGA program, are aimed at improving the quality of life in tribal areas.
Conclusion
Odisha is on a strong economic trajectory, driven by growth in industrial, agricultural, and services sectors. With focused investments in infrastructure, education, healthcare, and social welfare, the state is poised to achieve sustainable development while improving the living standards of its citizens.
