Odisha To Grow At 7.2% In 2024-25, 10.6% Rise In Per Capita Income: Economic Survey
Bhubaneswar: The state’s economy is estimated to grow at 7.2% in 2024-25, surpassing the national growth rate of 6.4%, said the Odisha Economic Survey report for 2024-25, tabled in the Assembly on Saturday.
“Odisha’s economy size proxied by GSDP at current prices is estimated to be Rs 9.5 lakh crore in 2024-25, which has increased by 10% from 8.6 lakh crores in 2023-24. The real economic growth is estimated at 7.2% in 2024-25 which is higher than all India growth rate of 6.4%. All the sectors have shown robust growth in 2024-25 and the state is poised for rapid growth in the years ahead,” it said.
Higher capital investment and investment intent received through Utkarsh Odisha would further increase growth rate in the state in future, it added.
However, it is a drop from the previous fiscal’s estimation of 8.5%.
The report further stated that the per capita income of Odisha has increased by 10.6% to reach Rs 1,82,548 in 2024-25 as per the advanced estimation. “The state’s per capita income is 8.8% less than India’s per capita income of Rs 2,00,162 in 2024- 25 and on a convergent path.”
According to the economic survey, the industry sector in Odisha is expected to grow at 6.1% in 2024-25 as per advance estimates contributing 43.9% to the Gross State Value Added (GSVA). “Investment in industrial sector witnessed a sharp rise in 2024-25 which will further increase industrial growth rate in the state. Between June 2024 and January 2025, the state government approved 133 new investments worth more than Rs 2.4 lakh crore with employment potential of more than 1.8 lakh. Further, investment commitments worth of Rs 16.7 lakh crore was received in Utkarsh Odisha 2025. This will create employment opportunities for 12.9 lakh people across 20 sectors.”
Odisha’s mineral production also grew at an annual compound growth rate of 21.4% between 2017-18 to 2023-24, which is the highest among major mineral-producing states. “Odisha is actively promoting industrial diversification focusing on employment intensive sectors like textile, apparel, automobile, green equipment etc through enabling infrastructure and policies aided by single window clearance and best-in-class investment facilitation.”
Agriculture and allied sector have registered a robust growth rate of 3.3% in 2024-25, which contributed 19% to Gross State Value Added (GSVA). “Agriculture sector in Odisha is growing on an average higher than India. Over the last five years, agriculture sector in Odisha grew at 7% compared to 4.1% in the country.”
Production of food grains in Odisha also reached a record high of 143 lakh metric tonne (MT) in 2023-24 from 116.9 lakh MT in 2019-20. Odisha is the fifth largest rice producer in the country with 8% share in total rice production. Rice production in the state has increased from 97.6 lakh MT in 2019-20 to 115.4 lakh MT in 2023-24. “Provision of providing input subsidy of Rs 800 over and above MSP of Rs 2300 per quintal would ensure remunerative prices for their produce, enhance their income and encourage higher production levels. Crop diversification is on rise with increase in cultivation of cash crops like cotton, maize, vegetables, and spices, which will enhance farmers’ income.”
The survey report claimed that Odisha is the seventh largest vegetable producer in the country, contributing 5.2% to national production. “Odisha’s vegetable production grew from 97.34 lakh MT in 2019-20 to 109.3 lakh MT in 2023-24, achieving a 3% growth rate (CAGR).”
It further stated that cropping intensity in the state has gone up from 154% in 2019-20 to 164% in 2023-24 due to improve irrigation infrastructure.
Services Sector
The services sector is estimated to grow at 10% in 2024-25 (AE) contributing around 37.1% to the state economy.
Bhubaneswar is becoming as the next IT/ITes hub in the country with several IT/ITes companies operating from the city. Additionally, multiple IT parks are being set-up which will drive the IT sector in the State.
Software exports has been increasing from the state. Software/electronics exports have reached Rs 12904.5 crore in 2023-24 from Rs 4500 crore in 2019-20, recording annual growth rate of 30% during this period.
The state has also made significant strides in branding, promotion, and publicity to boost tourism. In 2024-25, hotels and restaurants output (GVA) are estimated to grow at impressive 14.3 per cent.
The real estate sector is expected to grow at 8.1% during 2024-25, higher than the average of 3.7% in the last 10 years.
Credit-Deposit ratio has increased in the State from 60.4 per cent in March 2020 to 76.4 per cent in September 2024 which will stimulate economic growth.
Number of Bank branches has increased in the state from 5450 in March 2020 to 6015 branches in September 2024. While public sector account for major share in number of bank branches (51.9%), the share of private sector has increased from 16.8% in March 2020 to 20.9% in September 2024.
Labour Force Participation
Labour Force Participation Rate (LFPR) (for age 15+) in Odisha has increased from 51.2% in 2018-19 to 64.9% in 2023-24. LFPR in the state is higher than all India level (58%).
Female labour force participation rate (for age 15+) in Odisha has also increased from 24.4% in 2018-19 to 49.4% in 2023- 24. It is higher than all India level, which is 42%.
Promoting Oil Palm
The state is promoting oil palm cultivation in order to enhance farmers’ income and meet increasing demand for edible oil. Oil palm area has increased to 8.8 thousand hectares in 2023-24 from 6.7 thousand hectares in 2019-20, reflecting 7.1% annual growth rate (CAGR). The State plans to add 6500 ha in 2024-25 and 9000 ha in 2025-26 under oil palm cultivation. Further, State is promoting establishment of oil processing units which will create jobs and enhance growth in the State.
Livestock
Milk production has increased by 6.8% in 2023-24 over 2022-23 to reach 26.4 lakh MT against the national growth rate of 3.8%.
Despite this progress, the state’s per capita milk availability at 156 grams/day in 2023-24, with potential for future growth.
To boost the dairy sector, the government launched initiatives like GOMATA and the Mukhyamantri Kamdhenu Yojana (MKY) in 2024- 25 to increase milk production and per capita availability by enhancing the population of high-yielding cows, improving health and feed management, and developing infrastructure.
Poultry
Poultry sector in Odisha has seen a tremendous growth over the years through large-scale development of poultry hubs and boosting entrepreneurship, as well as strategic promotion of commercial, semicommercial, and small-scale poultry units.
Egg production in Odisha has increased to Rs 372.3 crore in 2023-24 from Rs 341.1 crore in 2022-23 registering a remarkable 9.2% increase, higher than the national growth rate of 6.8%.
Per capita egg availability in Odisha stands at 72 eggs in 2023-24. The government is undertaking several initiatives including promoting commercial poultry to make the state self-sufficient in egg production and increase availability of eggs.
Fisheries
Odisha is the fourth-largest fish-producing state in India, contributing 6% to the national output.
In the last five-year, fish production has increased from 8.2 lakh MT in 2019-20 to 11.2 lakh MT in 2023-24, growing at a CAGR of 8.3% against 6.6% at all India level.
In 2024-25, the government has launched Mukhyamantri Maschyajibi Kalyan Yojana (MMKY), a flagship scheme comprising of 17 sub-schemes with a total budget outlay of Rs 2,239 crore over a period of five years to augment fish production, exports, create employment and increase fishers’ income in the state.
Capital Outlay
The state allocated nearly Rs 58,195 crore towards capital outlay in 2024-25 (BE), which is 6.1% of GSDP. The state has highest capital outlay to GSDP among major states in India.
The government has prioritised CAPEX to improve infrastructure development and economic growth in the state.
Fiscal Management and Fiscal Reform
Odisha has adhered to prudent fiscal management principles that include keeping the fiscal deficit of 3.4% and revenue surplus of 2.9% of GSDP in 2024-25 BE within prescribed limits, ensuring high-quality expenditure, maintaining debt at a sustainable level.
Odisha has maintained its debt-to-GSDP ratio below the 25% threshold prescribed by the Central Finance Commission and Odisha’s FRBM Act, 2005. The debt-to-GSDP ratio stood at 13.2% in 2024-25 (BE) which is lowest among all major states in India.
Because of prudent fiscal management, Odisha tops among states in the Fiscal Health Index (FHI) 2025, published by the NITI Aayog, with the highest overall FHI score of 67.8.
Rail Network
Railway infrastructure and rail network is increasing in Odisha with focus on connecting the unconnected districts and tribal areas of the state.
Odisha has received a record allocation of Rs 10.6 thousand crore in 2024-25 for railway infrastructure development in the State.
Railway length in Odisha increased from 2,652 km in 2019-20 to 3,093 km in 2023-24, growing at a CAGR of 4%. Recently, eight new railway projects were approved for 9 districts viz. Bargarh, Nuapada, Sundargarh, Rayagada, Kalahandi, Nabarangpur, Mayurbhanj, Keonjhar and Malkangiri which would further improve connectivity in these regions.
Road Network
Total expenditure on ‘Roads & Bridges’ in the state has increased from Rs 7,996 crore in 2019-20 to Rs 19,456 crore in 2024-25(BE).
Length of roads has increased in the state for various roads like National Highways, State Highways, district roads and rural roads.
The government is planning to develop 75,000 km of quality road across Odisha, which will improve connectivity and economic growth in the state.
Civil Aviation
Odisha’s civil aviation sector has been growing rapidly aided by increased investment and implementation of New Destination Policy, Civil Aviation Policy and UDAN Scheme among others.
The state has five operational airports including one international airport at present. Apart from these, the state is developing 10 additional airstrips along with a greenfield international airport in Puri to improve air connectivity.
Odisha is connected to 22 cities within India via direct flights. Currently, direct flights from Odisha to four international destinations viz. Bangkok, Dubai, Singapore and Kuala Lumpur have been established with the state providing Viability Gap Funding (VGF) support for first three destinations.
Odisha recently brought New Destination Policy 2024 offering incentives to airlines launching new domestic and international flights from the State. Under the new policy, direct flight on eight domestic routes have been approved from Bhubaneswar and Jharsuguda, which will boost air travel and tourism in the State.
Number of passengers travelling by air from Odisha has increased significantly from 21.6 lakh in 2021-22 to 41.6 lakh passengers in 2023-24, almost doubling during this period.
Health
To ensure universal health insurance, the Government is integrating Gopabandhu Jan Arogya Yojana (GJAY)with the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), offering cashless healthcare services in 29000 Government and empanelled private hospitals across the country. The Government fully covers costs for all patients in State facilities. In empanelled private hospitals, economically vulnerable families, including those under National and State Food Security schemes, are entitled for annual coverage of Rs 5 lakh per family annually, with an additional INR 5 lakh for women member of the family after the initial limit is exhausted.
Trauma Service and Ambulance Service through Casualty Emergency & Trauma Centres and Ambulance Service operates a fleet of 860 vehicles catering to over 3100 patients daily in remote areas.
Pediatric cancer units will be set up in each district across the State to enhance child and specialized healthcare services.
Mukhyamantri Sampoorna Pushti Yojana (MSPY) has been launched to improve nutrition through the Integrated Child Development Services (ICDS) by providing Take-Home Rations (THR) to adolescent girls and pregnant or lactating mothers for 300 days annually. It will also support Severe Acute Malnourished (SAM) children, and Severely Underweight (SUW) and Moderately Acute Malnourished (MAM) children.
Education
NEP 2020 has been launched in the State which will focus on 100 per cent enrolment, reduced dropout and holistic development.
The government is set to revolutionise primary education with the launch of the Godabarisha Mishra Adarsha Prathamik Vidyalaya Yojana’. This state-sponsored scheme will enhance educational infrastructure and improve quality of teaching and encourage holistic development of the students in 6794 primary schools in each Gram Panchayat across the State.
Under PM SHRI 462 schools have been identified to be transformed into model schools with state of art infrastructure and amenities and District level identification has been completed.
The Government signed a MoU for implementation of PM USHA in the State on 31st August 2024, under which, 38 colleges and universities are supported with a total grant of INR 670 crore.
NIPUN Odisha has been launched in September 2024 in the State, this scheme aims to empower all students in Government and Government aided schools to attain competency in Foundational Literacy & Numeracy by the students of Grade I to Grade III. Required infrastructure will be provided to all the schools to make those schools FLN compliant.
The Government has launched Aitihya Vidyalaya Scheme by the Government to preserve and improve the infrastructure and academic environment of the oldest schools in the State.
Under Mukhyamantri Medhabi Chatra Protsahan Yojana, Rs 22.82 crore has been allocated for Financial Year 2024-25 to provide financial support to meritorious students of Primary, Upper Primary, Secondary & Higher Secondary Schools.
Government has recruited over 20,000 teachers under various schemes during the year 2024-25. This large-scale recruitment is a massive step towards improving Pupil-Teacher Ratio, ensuring better learning outcomes and securing a bright future for Odisha’s children.
In Odisha, around 4.5 million students across 50,862 schools benefit from the PM Poshan , which provides nutritious meals to students in Classes I to VIII. The 2023-24 scheme covers over 4.4 million students, with 4,730 Women Self-Help Groups and nearly 109,000 Cook-cum-Helpers involved.
Women empowerment
The government has launched the SUBHADRA Yojana in Sept 2024 with the aims to:
i) Provide a financial safety net to women and their families, improving their socio-economic profile.
ii) Enhance women’s participation in decision-making processes and create opportunities for growth.
iii) Create a macroeconomic impact of Rs 1-1.5 lakh crores over 5 years through economic multiplier effects.
With an annual budget allocation of Rs 11,000 crore, each beneficiary receives Rs 50,000 over a period of 5 years. So far, 80 lakh women have received financial assistance under this scheme.
The ‘Lakhpati Didi Yojana’ is designed to strengthen Self-Help Groups (SHGs) by providing financial support and resources, enabling women to achieve economic self-sufficiency. More than 5 lakh SHG women were benefitted under this scheme in the state.
ST and SC Welfare
The government has launched the Shahid Madho Singh Haath Kharcha scheme to provide a one-time incentive of Rs 5,000 to ST students enrolling in classes IX and XI in Government and Government-Aided Schools.
PM JANMAN Scheme will ensure that PVTG families receive individual entitlements and that their habitations are equipped with basic facilities in the State. The programme raises awareness among these tribal communities about their entitlements. It will cover 75 PVTG communities residing in 18 states and Union Territories, including Odisha.
The Pradhan Mantri Janjatiya Unnata Grama initiative (PM JUGA) has been launched in 2024 to address critical gaps in health, education, livelihood, and social infrastructure in tribal areas. It will cover 48.2 lakh ST individuals in 7,667 tribal villages across 27 districts in the State.
47 Eklavya Model Residential Schools (EMRS) are operational in the State, and an additional 52 EMRSs are under construction.
Enhanced Social Security to persons in 80 plus age group
The government has increased monthly social security pension from INR 1500 to INR 3500 for 80 plus age group people.
