Bhubaneswar: Odisha is maintaining a trajectory of steady and resilient economic expansion, with the state real GSDP projected to grow by more than 7.5 percent during the 2025-26 fiscal year.
Shri Sanjeeb Kumar Mishra, Principal Secretary of Finance, noted that in the 2025-26 budget, the total expenditure to GSDP ratio reached 27 percent. A significant portion of these funds is directed toward long-term development, with social sector spending accounting for 41 percent and economic sector spending taking up 32 percent of the total budget.
This momentum is expected to accelerate further to over 8 percent in 2026-27. At current prices, the growth rate for the state economy is anticipated to exceed 12 percent in the coming year, signaling a robust inflationary and production environment.
The structural composition of the economy highlights a significant shift toward industrialization and modernization. Currently, the manufacturing, industry, and construction sectors contribute 37 percent to the State Gross Value Added. The service sector follows closely at 36 percent, illustrating the state’s transition into a service-based economy. While agriculture and allied activities remain vital to the livelihoods of many, their share of the economy now stands at 19 percent.
Historical data suggests that Odisha has consistently outperformed national economic growth averages over the last decade. This success is underpinned by a strategic fiscal approach.
On average, over the previous five years, Odisha has ranked as the third highest among major Indian states in terms of developmental spending as a percentage of GSDP. This level of investment consistently places the state above the average of all other States and Union Territories, reinforcing its position as a leader in fiscal commitment to growth and social welfare.