Comprehensive overview of Odisha's industrial sector growth trajectory, policy reforms, deregulation measures, and services sector expansion based on the official Odisha Economic Survey 2025-26.
The industrial sector has played a pivotal role in Odisha’s growth trajectory. In FY 2025-26 (AE), the size of the state’s industrial sector reached ₹3.6 lakh crore, contributing 41.3% to the Gross State Value Added (GSVA). The sector consists of mining and quarrying, manufacturing, construction, and electricity, gas, water supply & utilities.
Workforce Expansion: The industrial sector provides employment to nearly 59 lakh workers (as per GOI estimates for 2023-24), representing a significant increase from 39 lakh workers in 2011-12, reflecting the expanding role of industries in the state’s socio-economic development.
Odisha possesses a robust geographical and resource layout that supports scale-level industrial operations:
With road and rail connectivity improving significantly over time, these abundant factors have enabled local industries to produce basic metals at a competitive scale, serving both domestic Indian markets and exporting to the rest of the world.
Odisha has implemented comprehensive reforms to optimize the business environment. Under the Business Reforms Action Plan (BRAP) 2024, the state achieved an outstanding 98% implementation rate, successfully completing 425 out of 434 identified reforms.
Odisha Jan Vishwas Ordinance Bill 2025: The State undertook large-scale compliance rationalization addressing 161 burdensome compliances across 16 Acts and 9 Departments. This was achieved by shifting minor contraventions from criminal liabilities to civil/penalty-based outcomes.
The state is actively creating industry-ready infrastructure through mega industrial regions, sector-specific parks, and MSME clusters to foster robust value chains:
Odisha undertook a structured deregulation exercise across 23 priority areas identified by the Government of India and assigned to 8 nodal departments. All 23 areas have been fully implemented. Key deregulation measures include:
The charts below detail the comparative Gross Value Added (GVA) performance of Odisha and India for the year 2025-26 (Anticipated Estimates - AE).
Odisha's manufacturing sector composition as compiled by the Annual Survey of Industries (ASI) and the Annual Survey of Unincorporated Sector Enterprises (ASUSE).
Analytical Insight: While the unorganised sector hosts the vast majority of units (99.6%) and provides 78.1% of employment, the organised sector contributes 96.3% of the total manufacturing output in value terms.
Based on the Odisha Vision Document 2036 & 2047, the Government of Odisha has outlined a clear path for future expansion:
By 2047, Odisha envisions becoming one of the top 5 manufacturing states by GSVA and creating at least two major green industry hubs.
Target to achieve 7.5% share in India's total exports by 2047, with an interim target of 5% by 2036, up from the current 3%, including MSME contributions.
The state aims to attract investments exceeding ₹30 lakh crore over the next 15-20 years while doubling manufacturing employment and ensuring compliance with labor welfare standards.
Prioritize employment-intensive sectors including textiles & apparel manufacturing, food processing, and MSMEs with focus on employment generation every year within the State.
State envisages to achieve top 3 ranking in ease of doing business by 2036.
Odisha’s services sector showed a robust growth rate of 9.3% in FY 2025-26 (AE) compared to India's average of 9.1%. This represents a major acceleration from the historical growth trend (CAGR of 5.5% between 2014-15 and 2024-25).
The services sub-sectors in Odisha demonstrate varied growth performance (comparing CAGR vs 2025-26 AE) alongside their relative structural shares in the services GVA: