Mt Rs 10tn in range: Odisha economy grows at 7.9%, faster than national average

BHUBANESWAR: Odisha's economy is on an upswing, with a 7.9% growth in 2025-26 putting the economy at Rs 9.88 lakh crore and within striking distance of the Rs 10-trillion mark, the Economic Survey revealed on Thursday.

The state's real growth is higher than last year's 7.2%, above the national average of 7.4% as well as Odisha's 10-year average (2014-2024) of 6.6%, the survey, tabled in the assembly, said. Last year, the state economy was Rs 9 lakh crore.

The survey attributed the upswing to steady expansion across sectors and increased public and private investment. It also underlines the size of the state's economy - measured through GSDP - as central to sustaining long-term and inclusive growth.

A major highlight of the report is the sharp easing of inflation. Between April and Dec 2025, inflation dropped to 0.1%, down from 6% in 2024-25. The fall is linked to co-ordinated steps by the Centre and the state, including higher buffer stocks, market releases of food grains and supply-side interventions.

Softer food prices played a key role in reducing pressure on household budgets.

Industry remained the strongest growth engine. The sector contributed 41.3% to Odisha’s Gross State Value Added (GSVA) in 2025-26 fiscal — about Rs 3.6 lakh crore — and grew 6.4% at constant prices. Manufacturing is expected to expand at 8.3%, outpacing the national average of 7%.

Investment activity remained robust. The state approved 244 new projects in 2025 with proposed investments of Rs 5.66 lakh crore, expected to create 3.35 lakh jobs. Another 80 projects were completed during the year, adding Rs 1.75 lakh crore in investments and generating 1.4 lakh direct jobs. Odisha is drawing investments across labour-intensive as well as high-tech sectors, the survey pointed out.

With 69% of its population in the working age group, the state considers its demographic profile a major strength for accelerating economic growth and building a skilled workforce. The services sector accounted for 39.1% of GSVA this fiscal, and is projected to grow 9.3% this year.