Bhubaneswar/New Delhi: Odisha has emerged as a standout example for other states in building a robust skill development ecosystem and revitalising government-run ITIs through a straightforward “Fix, Accelerate, Scale” strategy, according to the Economic Survey 2025-26 presented by the Ministry of Finance.
While lauding the skilling initiatives as a replicable model for strengthening vocational training nationwide, it also highlighted the state’s institutionalised climate adaptation through water governance and its innovative alumni engagement in higher education. Perhaps for the first time, the state was repeatedly cited for its contributions to multiple sectors in the survey tabled in Parliament on Thursday.
Skill Development
“Odisha started its skill transformation with the establishment of the Odisha Skill Development Authority (OSDA) in 2016. The mission of the OSDA was to ‘Skill in Odisha’. For that, it followed a simple strategy, ‘Fix, Accelerate, Scale.’ The idea was to ‘fix’ the ITIs, ‘scale’ the short-term training programmes and ‘accelerate’ the setting up of advanced training institutes. At the core of this strategy was converging ongoing skill initiatives across departments, ensuring quality standards, and developing market-responsive training, inclusivity, and scalability.”
It further noted that the state addressed challenges such as underutilised ITIs and poor infrastructure by reshaping perceptions of vocational education. “The strategy aimed to address key challenges, including the underutilization of ITIs and the lack of necessary infrastructure. The Odisha model addressed the demand slack by focusing on the perception of vocational education and ITIs. A role model campaign using the ‘10-6- 4-2’ formula focused on highlighting alumni success (highlighting 10 successful alumni, six employed outside Odisha, four women, and two entrepreneurs). Confidence-building was done through changes in uniforms, ITI fests, and through global exposure.”
The state was lauded for steps taken to strengthen vocational education within schools including experiential learning through structured industrial visits, mapping nearby industries to ensure regular exposure to real work environments.
Semicon India
The state’s role in emerging and strategic sectors, including India Semiconductor Mission and the Semicon India programme was appreciated. Odisha figured among six states with ten semiconductor manufacturing and packaging projects worth about Rs 1.6 lakh crore and was lauded for complementing the national framework, with initiatives such as Odisha’s Semiconductor Manufacturing an
d Fabless Policy. ” In addition, State Governments have also begun complementing the national framework, with initiatives such as Odisha’s Semiconductor Manufacturing and Fabless Policy offering additional incentives and institutional support.”
Higher Education
Programmes like the Mo College initiative and the Higher Education Programme for Excellence and Equity were cited for enhancing alumni engagement, research internships, and centres of excellence.
Tribal Livelihood & Climate Resilience
The survey recognised Odisha’s work in tribal livelihood and climate resilience, mentioning ‘Strengthening of Livelihoods of a Rural Tribal Farmer’ initiative in Gajapati district. “Across multiple states, grassroots initiatives demonstrate how tribal agriculture can be revitalised by blending indigenous knowledge with appropriate, low-cost technologies and institutional support. The experience from Odisha illustrates the practical application of this approach. Since 2023, the Strengthening of Livelihoods of a Rural Tribal Farmer initiative has been led by Odisha’s Soil Conservation and Watershed Development Department in the Gajapati district. Key interventions include excavating around 200 individual farm ponds and four cluster ponds for rainwater harvesting and year-round irrigation, alongside awareness drives for integrated farming systems that blend crops, poultry, aquaculture, horticulture, and modern drip/sprinkler technology for irrigation. This initiative is supported by a multi-departmental convergence for infrastructure, inputs, training, and market linkages. The initiative led to an increase in annual income of households from ₹1,500 to nearly ₹90,000, strengthened livelihoods, reduced distress migration, and renewed youth interest in farming.”
Odisha’s Pani Panchayat Movement, which transformed water governance by establishing over 39,000 Pani Panchayats and empowering communities through decentralised irrigation management, was also cited. The “Climate Resilient Villages” initiative, which evolved from a project into a local governance function, was highlighted as a model for building resilience.
Other Mentions
Odisha was referred to for easing building bye-laws and streamlining development norms. In the area of labour reforms, the state was one of five recognised for eliminating restrictions that previously limited women’s participation in a broader array of industries and commercial establishments.
The ‘Garbage-Free Urban Odisha’ initiative, introduced in 2023, was cited for its approach of employing bio-mining and material recovery facilities to transform legacy waste dumps into valuable economic resources. Paradip Port Authority was identified as one of India’s three green hydrogen hubs, alongside those in Gujarat and Tamil Nadu, positioning Odisha prominently within the nation’s clean energy landscape.
The survey also observed that the services sector’s contribution to Odisha’s economy fell from 38.5% to 34.9% over the period from 2011-12 to 2023-24.