Odisha's economy size is estimated to be INR 8.3 lakh crore in 2023-24 (1st advance estimates). This is equivalent to USD 100.6 billion. The size of the economy determines the ability of the State to provide a better standard of living for its population, strengthens the State's capacity to raise funds from the market for development, reflects the resilience of the State to various shocks, and boosts investor confidence. In terms of the size of the economy, Odisha ranks 13th among 17 major states. Gross State Domestic Product can be influenced by differences in population size. Therefore, state economies could be compared after scaling for population, i.e. comparing based on per-capita income which is also a proxy for standard of living. In 2023-24, as per advance estimates, Odisha's per-capita income is estimated to be INR 1,61,437. Among the 17 major states1, Odisha is ranked 11th in terms of per-capita income according to 2022-23 estimates. Odisha is estimated to grow at 8.5 percent in 2023-24 (Advance Estimate) against 7.9 percent in 202223 (1st RE). 

Odisha economy has witnessed high growth rates during the last decade. Odisha reported an average annual growth rate of 8.23 per cent during the 11th Five Year Plan (2007-12). The anticipated growth rate of Odisha is estimated to be 9.14 percent in 2012-13.

Odisha economy continues to be on a high growth trajectory. Diversification of economic activities has led to a visible structural shift from an agriculture based economy to an industry-led and service-led economy in Odisha. The service sector accounts for about 58.3 percent of the Gross State Domestic Product (GSDP) followed by industry (24.2 percent) and agriculture (17.5 percent)

Micro, Small & Medium Enterprises (MSME) are the backbone of Odisha's economy, contributing to employment generation, value addition, exports, and overall growth and development of the State's economy. As per the UDYAM Registration Portal, Government of India, 8.4 lakh MSME units are registered from Odisha as of June 2024. Out of this, 98.2 percent (8.26 lakh) registered units are micro-enterprises and 1.7 percent are small enterprises (14.3 thousand) and the remaining 0.1 percent are medium enterprises which comprises of merely 1073 units. If scaled by per thousand population, the number of Udyam registered MSMEs in Odisha is 18 as of June 2024, which is lower as compared to the All-India average of 20. Odisha is ranked 9th among 17 major States in this regard. Maharashtra tops the list with 36 Udyam registered MSME per thousand population, followed by Tamil Nadu (35), Punjab (34), Haryana (29) and Gujarat (27).  

The industry sector holds a prominent position in Odisha's economy, accounting for 43.3 percent of Gross State Value Added (GSVA) in 2023-24 (AE). The sector employs around 26 percent of the total workforce in the State as per PLFS 2022-23. Within the industry, manufacturing contributes the highest share of 54 percent to the industry GSVA, followed by mining and quarrying at 22 percent, construction at 16 percent, and electricity and other utilities at 8 percent in 2023-24 (AE). Odisha is ranked 9th among 17 major States in terms of share in India's industrial GSVA (4.1 percent) in 2021-22. The industry sector in Odisha is estimated to grow at 8.7 percent in 2023-24 (AE) over 2022-23, as compared to the All-India average of 9.5 percent as per provisional estimates. Growth in industries in the State is led by manufacturing (9.5 percent) and mining and quarrying (9.0 percent) sub-sectors in 2023-24 (AE). This is followed by the other two sub-sectors, viz. electricity, gas, water supply, and other utilities services (8.0 percent) and construction (6.2 percent). Odisha is ranked 7th in terms of State-wise growth in industrial GSVA between 2017-18 and 2021-22 with an average of 6.2 percent.

Odisha is a mineral-rich State with mining and quarrying accounting for 9.4 per cent of GSVA and 22 per cent of Industry GVA in 2023-24 (AE). As per the Indian Bureau of Mines, the State contributed 41.9 per cent of total mineral production (excluding fuel oil and atomic minerals) in the country during 2022-23. Coal and Iron Ore collectively constituted over 92 per cent in terms of volume and 88 per cent in value in terms of the total mineral production in Odisha in 2022-23. Odisha is the highest producer of steel in the country, producing more than 31 MT in 2022-23. All major steel manufacturers including SAIL, Tata Steel, JSPL, and JSW, among others are operating in the State.  The State also has approximately 75 per cent of India's total Bauxite reserves in 2022-23, which is a raw material for producing Aluminium. Being the largest producer of Aluminium in the country, Odisha produced 2.5 55 MT of Aluminium in 2022-23. All the major Aluminium producers like National Aluminium Company Limited (NALCO), Hindalco Industries and Vedanta Ltd. are operating in the State.

Odisha's service sector share in GSVA stands at 36.3 percent (2023-24 AE). The service sector is the second-highest contributor to the State economy. In terms of sub-sectoral share, services in Odisha is dominated by 'trade, repair, hotels and restaurants' and 'other services'. In 2023-24 (AE), the share of these two sectors in services GSVA stood at 23.3 percent and 21.8 percent respectively. This is followed by transport and services related to broadcasting (18.4 percent), real estate & professional services (16 percent), public administration (12.5 percent), and financial services (7.9 percent).

Tourism has immense potential to boost Odisha's services sector growth and employment. The State has identified 358 tourist destinations, located across 30 districts. The sector is yet to recover from the pandemic shocks with number of tourist footfalls, both domestic and international, yet to reach its pre-pandemic levels. In 2022-23, 86 lakh domestic tourists and 40 thousand foreign tourists visited the State, which is lower than the tourism footfall figures in 2019-20 (1.5 crore domestic tourist and 1 lakh international tourist). Similarly, the total inflow of money via. tourist spending in 2019-20 was INR 15, 389 crore, which was 1.8 times of the current inflow of INR 8,705 crore in 2022-23. As per the statistical bulletin 2022, the Government of India, although the average percentage of hotel occupancy in the State has increased from 20 percent in 2020 to 46 percent in 2022, the same is yet to get back to the pre-pandemic levels (61 percent). Envisioning the promotion of eco-retreat destinations and nature camps with the involvement of local communities is likely to encourage tourists to gradually moving from traditional means of travelling to 'Glamping' (glamorous camping). As the State is endowed with several pristine beaches, mountains, lakes, forests, waterfalls, sanctuaries, rich culture, and heritage, these can be harnessed to take Odisha's tourism to the next level.

Hotel and tourism industries are strongly linked. This sub-sector is expected to contribute 14 percent share in the real gross state domestic product (GSDP) of Odisha and is expected to grow at 12.41 percent in 2012-13. During 2011, there were 1328 hotels of which 150 catered to high-spending groups (HSG), 245 to middle spending groups (MSG) and 933 to lower spending groups (LSG). Given the trend, this sector has high potential to contribute to the tourism sector in the state.

Odisha's IT sector holds promise with Bhubaneswar set to become a preferred IT outsourcing destination while simultaneously generating employment opportunities in the State. Odisha exported software worth INR 6,104 crore in 2022-23, of which 48 percent came from Software Technology Park of India (STPI) registered firms, and 51 percent from firms/companies functioning inside SEZs. The State is well positioned to emerge as a leading IT cluster in eastern India with over 96 units registered with the STPI as on today. STPI Bhubaneshwar has expanded its geographical footprint by setting up sub-centers in the nearby cities of Rourkela in 2001 and Berhampur in 2010. As per the NASSCOM report, with a focused attention on improving the quality of IT education towards meeting industry demands and nurturing a sizable pool of STEM graduates, Bhubaneswar has the potential to produce a future-ready workforce for the IT/ITeS sector.

Agriculture and allied sectors remain key constituents of Odisha's economy with around 60 percent of the rural households depending on agriculture for their livelihood. Agriculture and allied sectors contributed 20.4 percent to GSVA in 2023-24 but employed 48.1 percent of the total workforce (PLFS 2022-23). There is a need to develop non-farm sectors which will help absorb surplus labour from agriculture and increase agriculture growth and farmer's income. Agriculture and allied sectors comprised of four key sub-sectors. These are crops, livestock, fisheries, and forestry. In 2023-24 (AE), crop accounts for 59.0 percent of total agriculture & allied GSVA, while the share of livestock and fisheries in agriculture & allied GSVA stands at 16.7 percent and 10.6 percent respectively. Forestry constituted the remaining 13.8 percent of agricultural GSVA. Though the share of crop in agricultural GSVA has been declining, it is still high at 59 percent. Additionally, the share of the livestock sector in agricultural GVA (16.7 percent) is low as against all India level of 30 percent. The fisheries sector contribution in Odisha is low in comparison to major fish producing states in India. There is a need to accelerate the growth of the livestock and fisheries sector to increase agricultural growth in line with the recommendations of the committee on doubling farmer's income. In 2023-24 (AE), agriculture and allied sectors is estimated to grow at 3.5 percent in Odisha. The crop sector is estimated to grow at 3.2 percent while livestock and fisheries growth rates are estimated at 2.5 percent and 3.6 percent respectively. The forestry and logging sector is estimated to grow at 5.5 percent in 2023-24 (AE).

Odisha, being a maritime state, has considerable scope for development of inland, brackish water and marine fisheries. The state is endowed with a long coastline of 480 km with continental shelf are 24000 sq km along the Bay of Bengal. The state offers tremendous opportunities for development of fresh water, brackish water and marine fisheries with scope of fish production. According to the Fishery Survey in India (FSI), the fisheries potential in Odisha is 513,667

Fish is a popular food item in Odisha. The state ranks ninth in terms of production of fish. During 2011-12, Odisha produced 381.83 TMT of fish of which 267.53 TMT came from inland sources and 114.30TMT from marine sources. Crab and shrimp production has also been increasing over the years. The seafood export sector has been reporting impressive growth during the last few years.

The state has a total brackish water area of 4.18 lakh hectares out of which 32,587 hectares is suitable for prawn culture. 11975.77 MT brackish water shrimps were produced during 2011-12.

Odisha is considered the land of handicrafts, which are an integral part of the state's cultural heritage. As many as 50 different crafts are produced by about 1.30 lakh artisans, dispersed throughout the state.

Handicrafts is an integral part of Odisha's cultural heritage. The total number of handicraft units in Odisha is nearly 40 thousand in 2022-23. Employment generation from the handicraft sector has increased by 3 times between 2015-16 and 2022-23 with the sectoral employment touching nearly 65 thousand marks. However, its share is negligible in the State export basket of 2022-23. Handlooms in Odisha exceeded 57 thousand units till 2023, catering to around 70 thousand State households. Bargarh topped the list with the highest number of looms, followed by Cuttack, Subarnapur, Bolangir, and Boudh. However, the same is yet to reflect in the State export basket.

Merchandise exports from Odisha touched nearly INR 90 thousand crore in 2022-23. The State is ranked 10th among all states with a 2.5 percent national share. The first three states in terms of the highest share of merchandise exports in India are Gujarat (33.1 percent), Maharashtra (16.1 percent) and Tamil Nadu (9.0 percent). Major contributors to State exports are concentrated in metallurgical products (69.1 percent), minerals (15.2 percent), and engineering, chemical, and allied products (9.6 percent). Other exports include marine products (4.9 percent) and textiles (0.6 percent). Between 2019-20 and 2022-23, the share of metallurgical products has increased by 21 percentage points, from 48 percent to 69 percent. However, the same in the case of engineering, chemical, and allied products increased by 1 percent and that of marine products have declined by 1 percent between the given period. This indicates a lack of diversification in the export basket. There is a need to diversify the export portfolio by creating value addition in downstream and ancillary industries, encouraging agriculture and fisheries exports, improving multi-modal connectivity imperatives, increasing cargo handling capacity at Bhubaneswar airport, and promote better market access for MSMEs, among others.

Manufacturing is the largest sub-sector within the industry in Odisha. It constitutes 54 percent of the industry GVA and 23 percent of the State's overall GSVA in 2023-24 (AE). The list of approved sectors in the State for investment has increased from 13 in 2015-16 to 32 in 2023-24, with additional traction on non-mineral products & byproducts and green/environmentally sustainable products. However, the sectoral contribution of basic metals to organized manufacturing GVA of the State is more than 78.1 percent as per ASI 202122. This is followed by coke & refined petroleum products and chemical & allied products with shares of 7.4 percent and 4.1 percent respectively. Nonmineral sectors such as food products, beverages, rubbers & plastics, electrical equipment, etc. are yet to make significant contributions to the industrial GSVA of the State. Further, the growth (CAGR) of basic metals between 2017-18 to 2021-22 is higher (25.0 percent) as compared to food products (21.3 percent), beverages (14.7 percent), rubber & plastics (-3.6 percent) and electrical equipment (-17.0 percent) during the same period. This indicates the scope for industrial diversification.

Construction is one of the important sector in Odisha. The sector contributes 6.9 percent of the State GSVA and 16 percent of the industrial GSVA in 2023-24 (AE). The growth of the construction sector in the State has been volatile with an average growth of around 4 per cent between 201213 and 2023-24 (AE). In 2023-24 (AE), the construction sector in the State is estimated to grow at 6.2 percent. About 17 percent of the total workforce in Odisha is engaged in the construction sector as per PLFS 2022-23. Nearly 23.4 percent of the male workforce in the State, earned their livelihood from the construction sector, which is the highest among major States.

In Odisha, 126 industrial estates are operating in strategic locations with an area of 11,623 acres and 1,545 number of buildup sheds in 2022-23. Some of the major industrial infrastructure projects include Infovalley electronic manufacturing cluster, Bhubaneswar, petroleum, chemical & petrochemical investment region, Paradip, Kalinganagar National investment & manufacturing zone, Jajpur, Food processing parks across multiple locations, etc. Apart from these, the Plastic Park at Paradip, Seafood Park at Deras, three Aluminum units in Angul (NALCO), Sambalpur (HINDALCO), and Jharsugda (Vedanta Ltd.) are some of the other industrial investments with a huge scope of downstream enhancements

The services sector accounted for 26.1 percent of Odisha's total workforce in 2022-23, being the second largest employer after agriculture (48.1 percent). The highest number of employment creation in services took place in the trade, repair, hotels, and restaurants sub-sector which accounted 49 percent of total services sector employment. This is followed by the transport and communication sector with a 17 percent share and the education sector with a share of 12.0 percent in total services sector employment.

In Odisha, financial services account for 2.9 percent of the state's GSVA and this sector is estimated to grow at 2.3 percent (2023-24 AE), over the previous year. There are 5,774 bank branches in the State as of 2022-23. If scaled by population, the number of branches in the State is 13 per lakh population. In terms of branch distribution in the State by bank type, 53 percent of bank branches are public sector, followed by 19 percent private sector, 17 percent regional rural, 6 percent State cooperative banks, and 5 percent small finances. However, 4,373 Gram Panchayats in the State are without an operational Brick & Mortar (B&M) branch.

Quality infrastructure is a prerequisite for resource productivity and enhancing the competitiveness of the economy. Infrastructure also contributes to social development through improving connectivity and access to basic services. In the year 2023-24 (BE), the State allocated INR 51,683 crore for capital outlay, equivalent to 6.2 percent of the Gross State Domestic Product (GSDP) for the year 2023-24.

According to 2023-24 (BE), the State has allocated INR 97,977 crore for the social development. In per capita terms, social spending is INR 21,172 in 2023-24 (BE).

Good Governance is a multi-dimensional concept occupying a central stage in the development discourse. Good Governance plays an important role in creating an enabling environment that promotes economic activities, nurtures innovation, attracts investment, and encourages sustainable and inclusive development. Odisha is committed to promote good governance across government institutions in the state to increase resource use efficiency and ensure lastmile delivery of services

Engineering Export Promotion Council (Odisha) Chapter - EEPC India

Directorate Of Export, Promotion & Marketing (DEPM), Bhubaneswar, Odisha

Marine Product Export Development Authority (MPEDA)

Bhubaneswar, the capital city of Odisha is fast coming up as a modern city with many amenities. Alongside, the city is witnessing rapid industrialization.

- Some recent initiatives to promote industry and exports in Bhubaneswar include:

- Establishment of an Info Park Establishment of an International Convention Centre

- Establishment of an IIT Development of the second INFOCITY for the Establishment of IT Industries.

- Establishment of a bio-pharma IT Park to be implemented by M/S Konark Knowledge Park.

A sector-specific SEZ for IT/ITES BPO industries named Info Valley (Infocity II) has been developed

- A mega food park.