Economic Survey 2025–26: Odisha Outpaces National Growth, Yet Income Gap Persists

Economic Survey 2025–26: Odisha Outpaces National Growth, Yet Income Gap Persists

CNB World Times

Bhubaneswar, 20^th February, 2026: The Economic Survey 2025–26, presented in the Odisha Legislative Assembly by Chief Minister Mohan Charan Majhi, highlights strong and steady economic growth in the state despite global economic uncertainties and supply chain disruptions. While Odisha has outperformed the national average in several key sectors, the survey also points to a continuing gap in per capita income compared to the national level.

Strong Sectoral Growth

According to advance estimates:

·        The agriculture and allied sectors grew by 5.3 percent in Odisha, higher than the national average of 3.1 percent.

·        The industrial sector expanded by 6.4 percent, slightly above the national average of 6.2 percent.

·        The services sector recorded 9.3 percent growth in the state, compared to 9.1 percent nationally.

Overall, Odisha’s Gross State Domestic Product (GSDP) is projected to grow by 7.9 percent in 2025–26, surpassing the national growth rate of 7.4 percent.

GSDP and Economic Size

At current prices, Odisha’s GSDP is estimated to reach Rs 9,88,000 crore in 2025–26, up from Rs 9,49,000 crore in the revised estimates for 2024–25. At constant (2011–12) prices, GSDP is projected to increase from Rs 5,32,000 crore to Rs 5,74,000 crore.

The state’s economy is estimated at around $109 billion in the current financial year, calculated at an exchange rate of Rs 91 per dollar. The government has set an ambitious target of expanding the GSDP to $500 billion by 2036.

However, revised estimates indicate a moderation in 2024–25 figures. The GSDP at current prices was revised down from Rs 9,49,000 crore to Rs 9,30,000 crore, while at constant prices it was reduced from Rs 5,63,000 crore to Rs 5,32,000 crore.

Per Capita Income Still Below National Average

Per capita income in Odisha is estimated to grow by 9.2 percent to Rs 1,86,761 annually in 2025–26. Despite the rise, it remains about Rs 32,000 below the national average of Rs 2,19,575.

Earlier projections had placed the 2024–25 per capita income at Rs 1,82,541, but the first revised estimate reduced it to Rs 1,71,251.

Performance in Key Sub-Sectors

In agriculture and allied activities:

 Fish production recorded the highest growth at 6.8 percent.

 Foodgrain production rose by 5.1 percent to a record 1.5 million tonnes.

 The livestock sector grew by 4.7 percent.

In industry and services:

 Forestry expanded by 8.3 percent.

 Construction grew by 9.4 percent.

 Hotels and restaurants surged by 19.4 percent.

 Transport and communication increased by 8.4 percent.

Improvement in Living Standards

The survey indicates notable improvements in living standards.

Monthly per capita consumption expenditure in rural areas increased from Rs 1,003 in 2011–12 to Rs 3,357 in 2023–24. In urban areas, it rose from Rs 1,941 to Rs 5,825 over the same period.

Asset ownership has also improved. As per 2023–24 data:

 44.4 percent of rural households own two-wheelers, compared to 59.2 percent in urban areas.

 15.4 percent of rural households use refrigerators, against 46.3 percent in urban areas.

 Mobile phone usage has reached 85.9 percent in rural areas and 95 percent in urban areas.

Fiscal Strength and Investment Push

Odisha continues to maintain one of the lowest debt service burdens among major states. As per the 2025–26 Budget Estimates, interest payments account for only 2.8 percent of the state’s revenue receipts, significantly lower than states such as Punjab, Kerala, Tamil Nadu and Haryana, where the average is around 21 percent.

To accelerate growth, the government has set a target of attracting capital investments worth Rs 30 lakh crore over the next 15–20 years. The state aims to rank among the top five industrially advanced states in India and increase its share in the country’s total exports to 5 percent by 2036 and 7.5 percent by 2047.

The Economic Survey underscores the government’s commitment to achieving the vision of a “Developed Odisha” through sustained high growth and world-class infrastructure development.