At 9.5% annual GSDP growth, survey portrays rosy picture of Odisha’s economy

The Odisha Economic Survey (OES) 2025-26, presented in the State Assembly on Thursday, portrayed a rosy economic scenario on multiple fronts, with both the Gross State Domestic Product (GSDP) at current prices and per capita income logging over 9% rise compared to the preceding financial year.

Odisha’s economy, measured through GSDP at current prices, is estimated as Rs 9.9 lakh crore in 2025-26. It increased by 9.5% from Rs 9 lakh crore in 2024-25.

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The real economic growth of Odisha is projected at 7.9 per cent in 2025-26, which is higher than the 7.2 per cent growth in 2024-25. This is also higher than the all-India average growth rate of 7.4 per cent, the OES said.

All sectors have shown robust growth rates in 2025-26, and the state is poised for rapid expansion in the years ahead as private and public investments continue to rise.

The per capita income of Odisha has increased by 9.2 per cent to reach Rs 1,86,761 in 2025-26, while per capita income at the national level of India has gone up by 6.9%. Odisha’s rapid growth is translating into faster convergence of per capita income at the national level, the survey report stated.

The Labour Force Participation Rate (LFPR) and female LFPR are increasing in the state. Overall LFPR (for age 15+) in Odisha has increased from 58.1 per cent in 2022 to 64.5 per cent in 2024, as against the all-India average of 59.6 per cent in 2024.

Female Labour Force Participation Rate (for age 15+) in Odisha has increased from 37.6 per cent in 2022 to 48.7 per cent in 2024, as against the all-India average of 40.3 per cent in 2024.

Agriculture and allied sectors have contributed 19.6 per cent to the state economy in 2025-26, which is higher than the national level of 16.8 per cent.

Agriculture and allied sectors have registered a robust growth rate of 5.3 per cent in 2025-26 against 3.1 per cent at the national level. The agriculture sector in Odisha is growing at an average rate higher than that of India, according to the OES.

Food grains production in Odisha has reached a record high of 150.5 lakh metric tonnes (MT) in 2024-25 from 143.04 lakh MT in 2023-24, reflecting a 5.2 per cent growth rate.

Crop diversification in Odisha has been increasing with the cultivation of cash crops like cotton, maize, vegetables, spices, etc., which will enhance farmers’ income.

Rice production in 2024-25 stood at 118.6 lakh MT, growing at 2.8 per cent since 2023-24. The increase in rice production was supported by various programmes such as Samrudha Krushak Yojana, CM-Kisan, higher MSP and input subsidy, among others.

Paddy and ragi procurement have significantly increased, benefiting largely small and marginal farmers in the state.

In 2024-25, 92.6 lakh metric tonnes of paddy were procured from around 20 lakh farmers, and payments totalling Rs 21,300 crore towards MSP and Rs 7,140 crore as input subsidy were made to the farmers.

The government procurement accounted for nearly 78 per cent of the state’s total paddy production, up from 61 per cent in 2023-24, reflecting enhanced outreach and support.

Government procures ragi at an MSP of Rs 4,290 per quintal, with an additional incentive of Rs 210 per quintal. In 2024-25, 8.8 lakh quintals of ragi were procured, which has more than doubled since 2023-24.

Odisha has made significant investments in irrigation infrastructure. The state’s irrigation potential now stands at 74.2 lakh ha, covering both Kharif and Rabi seasons. Cropping Intensity in the State has improved over time to reach 165 per cent in 2024-25 from 158 per cent in 2020-21 due to expansion in irrigation facilities and implementation of rice fallow management programme, among others.

In the 2025-26 fiscal, the industrial sector contributed 41.3 per cent to Odisha’s Gross State Value Added (GSVA) at current prices, amounting to approximately Rs 3.6 lakh crore. The sector registered a growth of 6.4 per cent at constant prices. This is fuelled primarily by robust expansion in manufacturing, which is expected to grow at 8.3 per cent as against the national average of 7 per cent, it added.