Odisha is one of the most mineral-rich states in India. Key minerals found in the state are iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite, graphite, decorative stones, beach sand, China clay, and tin ore. Odisha has emerged as the key state with regard to the mineral and metal-based industries. In 2019-20^, Odisha contributed to the largest share (43.0%) of mineral production (by value) in India. Value of minerals produced in the state reached Rs. 87,086 crore (US$ 10.78 billion) in 2021-22.

Odisha accounts for over 55% of India’s bauxite reserves, making it an ideal location for setting up aluminium and aluminium-based companies. The state ranks first in the country in terms of both production capacity and actual output of aluminium.

Odisha is one of the favoured investment destinations for domestic and international iron and steel players as well as among the largest producers of iron and steel in India. In 2022-23, total exports of iron ore from Odisha stood at US$ 1,033.34 million (~9.21%).

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 a key state with regard to the mineral and metal-based industries.

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.

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.

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.

Odisha has vast potential for the development of tourism. It is one of the critical sectors of the state’s economy, in terms of foreign exchange earnings as well as employment generation opportunities.

Below are some of the major initiatives taken by the Government to promote Odisha as an investment destination:

• 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 25, 2024, the Odisha government announced a significant road development initiative, planning to construct 15,000 kilometres 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 kilometres of roads and develop 20 bridges, alongside additional funding for rural infrastructure and various road projects.
• In the State Budget 2023-24, Odisha had allocated 13.2% of its expenditure towards education, 7.6% of its total expenditure towards health, 6.2% of its expenditure towards water supply and sanitation, 7.1% of its budget towards rural development, 2.1% of its total expenditure towards police, and 7.9% of its total expenditure towards roads and bridges.
• 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%).
• The Odisha state cabinet approved a new port policy in November 2022. The new policy aims to facilitate private sector investments in the maritime sector and the development of ports and port-related industries.
• In a bid to conquer the top spot among major ports of the country, Paradip Port is aiming at 150 MMT of cargo handling in FY24 and implementing a strategy to raise its capacity to 500 mt by 2047.
• On July 10, 2023, the Odisha State Cabinet approved the Energy Department’s proposal of Rs. 1,284.49 crore (US$ 155.4 million) for strengthening the power distribution system across Odisha under the Chief Minister’s Power Development Programme (CMPDP).
• In the State Budget 2022-23, Odisha has allocated 7.8% of its total expenditure on roads and bridges, which is significantly higher than the average allocation by states (4.7%).
• In 2021-22, 3,898,770 domestic tourists and 3,153 foreign tourists visited Odisha.
• By 2022, Odisha was planning to reach a generation of 2,200 MW of solar power, 200 MW of wind power, 180 MW of bio-mass power, 150 MW of small hydropower and 20 MW of Waste-to-Energy (WTE) power.

*- Excluding fuel minerals, atomic minerals and minor minerals, ^- Until February month of that particular fiscal year