Odisha’s Economy Poised for 7.2% Growth in 2024-25, Outpacing National Average
Odisha’s economy is set to grow by 7.2% in the 2024-25 financial year, surpassing India’s projected growth rate of 6.4%, according to the State Economic Survey 2024-25 presented in the Legislative Assembly. The Gross State Domestic Product (GSDP) at current prices is estimated to reach ₹9.5 trillion, marking a 10% increase from the previous year’s ₹8.6 trillion.
The per capita income has also seen a notable 10.6% rise, reaching ₹1,82,548 in 2024-25, compared to the national average increase of 8.7%. Although Odisha’s per capita income remains 8.8% lower than India’s overall ₹2,00,162, the state is on a path toward economic convergence.
Sectoral Growth and Investments
The agriculture and allied sector has expanded at a 3.3% growth rate, contributing 19% to the Gross State Value Added (GSVA). Over the past five years, Odisha’s agriculture sector has grown at 7%, significantly higher than India’s 4.1% national average. The industry sector is projected to grow by 6.1%, contributing 43.9% to the GSVA, while the services sector is expected to expand by 10%, contributing 37.1% to the state’s economy.
Odisha’s emphasis on capital investment has been reflected in its ₹58,195 crore allocation for capital outlay in 2024-25, which accounts for 6.1% of the GSDP, the highest among major Indian states. The Utkarsh Odisha initiative is expected to drive further growth by attracting investment across key sectors.
Fiscal Management and Debt Sustainability
The fiscal deficit has been contained at 3.4% of GSDP, while the revenue surplus stands at 2.9%, ensuring adherence to fiscal discipline. Odisha has maintained a debt-to-GSDP ratio of 13.2%, the lowest among major Indian states, well below the 25% threshold recommended by the Central Finance Commission and outlined in Odisha’s Fiscal Responsibility and Budget Management (FRBM) Act, 2005.
With robust fiscal management, strategic capital investment, and steady growth across all key sectors, Odisha’s economy is on a strong trajectory for sustained expansion and industrialization.
Odisha Chief Minister Mohan Charan Majhi, who also oversees the Finance portfolio, will present the state budget for 2025-26 in the Legislative Assembly on Monday. The budget is anticipated to emphasize economic growth, while reinforcing key welfare programs and infrastructure development.
