Odisha is located in the eastern region of India. The state shares its borders with West Bengal on the north-east, Jharkhand on the north, Andhra Pradesh on the south, Chhattisgarh on the west, and the Bay of Bengal on the east.
At current prices, the state’s gross state domestic product (GSDP) was estimated to be Rs. 10.63 trillion (US$ 124.43 billion) in FY26.
Odisha’s GSDP is expected to increase at a CAGR of 11.70% between FY17 and FY26.
According to the DPIIT, cumulative FDI inflows in the state stood at Rs. 1,476 crore (US$ 172.79 million) between October 2019- Dec 2024.
Odisha has emerged as the key state with regard to the mineral and metal-based industries.
Odisha has a well-developed social, physical, and industrial infrastructure, and the state government has undertaken several infrastructural projects to further promote overall development. The state's infrastructure includes well-connected road and rail networks, airports, ports, power, and telecom.
Total merchandise exports from Odisha stood at Rs. 77,912 crore (US$ 9.12 billion) in FY25 (Until Feb). Iron ore, iron & steel and aluminium & aluminium products accounted for a majority share in the overall exports from the state.
Key Sectors
As of March 2025, Odisha had a total installed power generation capacity of 8,334.73 MW, of which 1,980.22 MW was under the central utilities, 3,840.52 MW (under state utilities) and 2,513.99 MW (under private sector). Of the total installed power generation capacity, 5,251.21 MW was contributed by thermal, 643.27 MW by hydro, and 62.67 MW by renewable energy.
As of Dec 2024, Odisha had 34.34 million wireless and 0.61 wireline subscribers.
Allocation under state budget:
Rs. 16,030 crore (US$ 1.88 billion) has been allocated as capital expenditure on roads and bridges.
Godabarisha Mishra Adarsha Prathamika Vidyalaya has received an allocation of Rs. 2,960 crore (US$ 346.5 million), including Rs. 943 crore (US$ 110.4 million) designated for the development of sports infrastructure.
Rs. 6,249 crore (US$ 731.5 million), with Rs. 3,881 crore (US$ 454.3 million) specifically designated for the Mukhya Mantri Swasthya Seva Mission.
On August 25, 2024, the Odisha government announced a significant road development initiative, planning to construct 15,000 kilometers of new roads over the next five years, with an allocation of Rs. 5,295.12 crore (US$ 634 million) for the current fiscal year to build 2,000 kilometers of roads and develop 20 bridges, alongside additional funding for rural infrastructure and various road projects.
On June 30, 2024, Hon’ble Minister of Railways, Information & Broadcasting, Electronics & Information Technology Mr. Ashwini Vaishnaw reviewed ongoing railway projects in Odisha, focusing on timely completion and practical solutions. He announced simultaneous construction of tunnels for the Khurda Road-Balangir and Talcher-Bimalagarh rail lines. The Minister also highlighted a Rs. 10,536 crore (US$ 1.26 billion) budget for railway infrastructure, aimed at connecting all districts and boosting economic growth.
On August 31, 2024, Union Minister for Education Mr. Dharmendra Pradhan announced Rs. 500 crore (US$ 59.94 million) for Odisha under the PM-USHA scheme, aimed at enhancing higher education. The initiative will reform universities and colleges, improve infrastructure, and increase employability for around one crore students. With a 60-40 funding ratio between the Centre and states, he emphasized the importance of maintaining the autonomy of educational institutions.
Under the State Budget 2023-24, Rs. 27,593 crore (US$ 3.31 billion) was allotted to the Education, Sports, Arts, and Culture. Out of which Odisha Adarsh Vidyalaya programme and Mo School Abhiyan has been allocated Rs. 842 crore (US$ 101.08 million) and Rs 805 crore (US$ 96.64 million), respectively
Under the State Budget 2023-24, Rs. 4,906 crore (US$ 588.9 million) was allotted to the Urban development out of which Rs. 996 crore (US$ 119.57 million) has been allocated towards the AMRUT scheme and Rs. 300 crore (US$ 36.01 million) has been allocated towards new city development.
In State Budget 2023-24, Odisha allocated 7.6% of its total expenditure on health, (higher than the average allocation for health by other states 6.3%), 7.1% on rural development (higher than the average allocation for rural development by other states 5.7%) and 7.7% on roads and bridges (higher than the average allocation by states 4.5%).
As of July 2022, the state had five operational, five notified and seven formally approved SEZs.
Odisha’s industries are based mainly on the natural resources available in the state. It carries more than 35% of the country’s natural resources. The state has significant reserves of iron ore, bauxite, nickel, coal, etc. Hence, it is an attractive destination for mineral-based industries. In March 2021, ArcelorMittal-Nippon Steel India and the Odisha government signed a MoU to establish a 12 MT integrated steel plant in the state, with an investment worth Rs. 50,000 crore (US$ 6.88 billion).
*- Excluding fuel minerals, atomic minerals and minor minerals, as per first advance estimates
