Bhubaneswar, February 19 – Odisha's economy is estimated at Rs 9.9 lakh crore in 2025-26, an increase of 9.5 per cent over the previous financial year, according to the Economic Survey report tabled in the state assembly on Thursday. This is higher than the national average.
All sectors have shown robust growth rates during the current fiscal year, the survey report said.
"The real economic growth is estimated at 7.9 per cent in 2025-26, which is higher than the preceding year's growth of 7.2 per cent. This is also higher than the all-India average growth rate of 7.4 per cent," the report said.
The report added that the state is poised for rapid expansion in the years ahead due to increasing private and public investment.
According to the report, the state's per capita income has increased by 9.2 per cent to reach Rs 1,86,761 in 2025-26 (AE - Aggregate Expenditure), while per capita income at the All India level has also increased by 6.9 per cent. "Odisha's rapid growth is translating into faster convergence of per capita income with the national level," it said.
The Labour Force Participation Rate (LFPR) for those aged 15 plus rose sharply in Odisha to 64.5 per cent in 2024 from 58.1 per cent in 2022, exceeding the national average. Female LFPR also showed a notable jump from 37.6 per cent to 48.7 per cent during the same period, well above the all-India figure of 40.3 per cent.
According to the survey report, agriculture and allied activities contributed 19.6 per cent to Odisha's economy in 2025-26, higher than the national share of 16.8 per cent.
Food grain production reached a record 150.5 lakh metric tonnes in 2024-25, driven by higher rice output, expanded procurement, MSP payments, and crop diversification, it said.
In 2024-25, the state procured 92.6 lakh metric tonnes of paddy from around 20 lakh farmers, disbursing Rs 21,300 crore as MSP and Rs 7,140 crore as input subsidy. The government procurement covered nearly 78 per cent of total paddy production, while the Ragi procurement was more than doubled, supported by an MSP of Rs 4,290 per quintal and additional incentives.
The report stated that Odisha's irrigation potential expanded to 74.2 lakh hectares, while cropping intensity improved to 165 per cent and milk production rose to 27.1 lakh metric tonnes, egg production grew at a CAGR of 14 per cent, and fish output increased to 11.92 lakh metric tonnes.
"Odisha also emerged as the third-largest marine exporter, with shrimp exports reaching Rs 4,708 crore," the report said.
Industry contributed 41.3 per cent to GSVA (Gross State Value Added) in 2025-26, with manufacturing growth estimated at 8.3 per cent, above the national average.
During 2025, the state approved 244 projects worth Rs 5.66 lakh crore, with employment potential for 3.35 lakh people. Business reforms under BRAP 2024 achieved a 98% implementation rate, alongside legislative reforms to decriminalise minor offences, the report said.
The services sector accounted for 39.1 per cent of GSVA and is projected to grow by 9.3 per cent. Financial services are expected to expand by 11.9 per cent, supported by deeper banking and fintech penetration. New policies on Artificial Intelligence, Global Capability Centres, and semiconductors aim to position Odisha as a future-ready digital economy, it said.
Odisha budgeted the highest capital outlay-to-GSDP ratio among major states at 6.6 per cent in 2025-26. The debt-to-GSDP ratio stands at 13.6 per cent, the lowest among major states and well below FRBM (Fiscal Responsibility and Budget Management) norms, ensuring long-term fiscal sustainability.
The report noted growth in infrastructure like ports, railways, the aviation sector and also in health, education and skills.
"With strong fundamentals, rising investments, and a young workforce, the survey projects Odisha to remain on a path of sustained, inclusive, and future-ready growth in the coming years," an official statement said.
