Economy of Odisha

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Economy of Odisha
Bhubaneswar, the capital city of Odisha.
Population41,974,218 (2014) [1]
GDP 4.43 lakh crore (US$64 billion) (2017-18 est.) [2]
GDP rank 16th
GDP growth
6.6% (2017-18) [2]
GDP per capita
92,727 (US$1,300) (2017-18) [2]
GDP per capita rank
24 [2]
GDP by sector
Agriculture 28%
Industry 28%
Services 44% (2017-18) [2]
0.31 (2009-10) [3]
Unemployment7.1% (2017–18) [4]
Public finances
20.7% of GSDP (2018-19 est.) [2]
Revenues1 lakh crore (US$14 billion) (2018-19 est.) [2]
Expenses1.20 lakh crore (US$17 billion) (2018-19 est.) [2]

All values, unless otherwise stated, are in US dollars.

The economy of Odisha is one of the fastest growing economy in India. [5] According to 2014-15 economic survey, Odisha's gross state domestic product (GSDP) was expected to grow at 8.78%. [6] Odisha has an agriculture-based economy which is in transition towards an industry and service-based economy. According to recent estimates, the size of Odisha's economy has increased by 122.27 per cent during the last six years in terms of the gross state domestic product (GSDP). Thereby, Odisha achieved an annual average growth rate of 6.23 per cent during that period. [7] Odisha is also one of the top FDI destinations in India. In the fiscal year 2011-12, Odisha received investment proposals worth 49,527 crore (US$ 9.296 billion). [8] According to the Reserve Bank of India, It received 53,000 crore (US$ 8.33 billion) worth of new FDI commitments in the 2012-13 fiscal year. [9]

India Country in South Asia

India, officially the Republic of India, is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the southwest, and the Bay of Bengal on the southeast, it shares land borders with Pakistan to the west; China, Nepal, and Bhutan to the north; and Bangladesh and Myanmar to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives; its Andaman and Nicobar Islands share a maritime border with Thailand and Indonesia.

Odisha State in Eastern India

Odisha is one of the 28 states of India. Located in eastern India, it is surrounded by the states of West Bengal to the northeast, Jharkhand to the north, Chhattisgarh to the west and northwest, and Andhra Pradesh to the south. Odisha has 485 kilometres (301 mi) of coastline along the Bay of Bengal on its east, from Balasore to Ganjam. It is the 8th largest state by area, and the 11th largest by population. The state also has the third largest population of Scheduled Tribes in India. Odia is the official and most widely spoken language, spoken by 36.6 million according to the 2016 Census.

Agriculture Cultivation of plants and animals to provide useful products

Agriculture is the science and art of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to live in cities. The history of agriculture began thousands of years ago. After gathering wild grains beginning at least 105,000 years ago, nascent farmers began to plant them around 11,500 years ago. Pigs, sheep and cattle were domesticated over 10,000 years ago. Plants were independently cultivated in at least 11 regions of the world. Industrial agriculture based on large-scale monoculture in the twentieth century came to dominate agricultural output, though about 2 billion people still depended on subsistence agriculture into the twenty-first.



In 2013-14, the GSDP growth rate dropped to 2.21%. This slown down was attributed to the Phailin cyclone, which caused a negative growth of 9.78% in the agricultural sector and also affected several other sectors. [6] According to the 2011 Census of India, Odisha has a working population of 17,541,589, among them 61% are main workers and rest are marginal workers. 33.9% of the total working female population are main workers. [10] As of June 2014, Odisha has 10,95,151 people registered in various employment exchanges of the state. Of them, 10,42,826 reported themselves educated. [11] Odisha had a rural unemployment rate of 8.7% and an urban unemployment rate 5.8% calculated based on the current daily status basis in the 68th National Sample Survey (2011-2012). [12] The per capita income of the state was 98,983 (US$ 1,531) in 2013-14. [13] The state has a public debt of 38,666 crore (US$ 6.34 billion), which is 8,909 per capita (US$ 146), at the end of 2013-14. [14]

The decennial Census of India has been conducted 15 times, as of 2011. While it has been undertaken every 10 years, beginning in 1872 under british Viceroy Lord Mayo, the first complete census was taken in 1881. Post 1949, it has been conducted by the Registrar General and Census Commissioner of India under the Ministry of Home Affairs, Government of India. All the censuses since 1951 were conducted under the 1948 Census of India Act. The last census was held in 2011, whilst the next will be held in 2021.

Full employment is a situation in which everyone who wants a job can have work hours they need on fair wages. Because people switch jobs, full employment involves a positive stable rate of unemployment. An economy with full employment might still have underemployment where part-time workers cannot find jobs appropriate to their skill level. In macroeconomics, full employment is sometimes defined as the level of employment at which there is no cyclical or deficient-demand unemployment.

Per capita income mean income of the people in an economic unit such as a country or city

Per capita income (PCI) or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population.

According to ASSOCHAM, in the fiscal year 2011-12, Odisha received investment proposals worth 49,527 crore (US$ 9.296 billion). [8] According to the Reserve Bank of India, Odisha received new FDI proposals worth Rs 53,000 crore (US$8.333 billion) in the 2012-13 fiscal year. [9] In 2012-13, 125 crore (US$ 19.66 million) worth of foreign aid was received by NGOs in the state. [15]

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is one of the apex trade associations of India. The organisation represents the interests of trade and commerce in India, and acts as an interface between issues and initiatives. The goal of this organisation is to promote both domestic and international trade, and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India.

Indian rupee The official currency of the Republic of India

The Indian rupee is the official currency of India. The rupee is subdivided into 100 paise, though as of 2019, coins of denomination of 1 rupee is the lowest value in use. The issuance of the currency is controlled by the Reserve Bank of India. The Reserve Bank manages currency in India and derives its role in currency management on the basis of the Reserve Bank of India Act, 1934.

A crore (; abbreviated cr) or koti denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local style of digit group separators (a lakh is equal to one hundred thousand and is written as 1,00,000).

Contribution of each sector to the GSDP (in percent)

  Service (51%)
  Agriculture (15.4%)
  Industry (33.6%)
GSDP by year [16]
YearGSDP (in crore Indian rupees)


Agriculture and Livestock

According to the 2011 Census of India, 61.8% of the working population are engaged in agricultural activities. [10] However, the agricultural's contribution to the GSDP was 16.3% in the fiscal year 2013-14 and it was estimated to be 15.4% in 2014-15. The area under cultivation was 5,691 hectares in 2005-06 and it dropped to 5,424 hectares in 2013-14. Rice is the dominant crop in Odisha. It is grown on 77% of the area under cultivation. Odisha produced 8,360 metric tonnes of rice in 2013-14, a drop from 10,210 metric tonnes due the cyclone Phailin. [17] Given below is a table of 2015 national output share of select agricultural crops and allied segments in Odisha based on 2011 prices [18]

Rice cereal grain and seed of different Oryza and Zizania species

Rice is the seed of the grass species Oryza sativa or Oryza glaberrima. As a cereal grain, it is the most widely consumed staple food for a large part of the world's human population, especially in Asia. It is the agricultural commodity with the third-highest worldwide production, after sugarcane and maize.

SegmentNational Share %
Cow pea45.0
Niger seed30.5
Sweet potato30.4
San hemp24.7
Water melon12.1
Bitter gourd11.1
Fuel wood8.4
Cashew nut7.3
Bottle gourd6.0

During 2013-14, the state exported 4.13 lakh tonnes and 1,800 crore worth of seafood. In 2014-15, the value of exports rose by 26% to 2,300 crore with 4.67 tonnes being exported. Odisha is the fourth largest shrimp producing state in India. [19] [20] [21] On 22 November 2017, Odisha government decided to launch "Nabakrushna Choudhury Seccha Unnayan Yojana" to provide irrigation facility to about 55,000 hectare of agricultural land across Odisha. The scheme would be implemented with an outlay of Rs 635 crore over a period of three years. Under the scheme, 46,296 hectare command area of 14 major and medium irrigations and 284 minor irrigation projects will be revived.

A lakh (; abbreviated L; sometimes written Lac or Lacs) is a unit in the Indian numbering system equal to one hundred thousand (100,000; scientific notation: 105). In the Indian convention of digit grouping, it is written as 1,00,000. For example, in India 150,000 rupees becomes 1.5 lakh rupees, written as 1,50,000 or INR 1,50,000.

Shrimp Decapod crustaceans

The term shrimp is used to refer to some decapod crustaceans, although the exact animals covered can vary. Used broadly, shrimp may cover any of the groups with elongated bodies and a primarily swimming mode of locomotion – most commonly Caridea and Dendrobranchiata. In some fields, however, the term is used more narrowly and may be restricted to Caridea, to smaller species of either group or to only the marine species. Under the broader definition, shrimp may be synonymous with prawn, covering stalk-eyed swimming crustaceans with long narrow muscular tails (abdomens), long whiskers (antennae), and slender legs. Any small crustacean which resembles a shrimp tends to be called one. They swim forward by paddling with swimmerets on the underside of their abdomens, although their escape response is typically repeated flicks with the tail driving them backwards very quickly. Crabs and lobsters have strong walking legs, whereas shrimp have thin, fragile legs which they use primarily for perching.


The primary industries in Odisha are manufacturing; mining and quarrying; electricity, gas and water supply and construction. The industrial sector's contribution to the state's GSDP was estimated at 33.45% in 2014-15. Most of Odisha's industries are mineral-based. Odisha has 25% of India's iron reserves. It has 10% of India's production capacity in steel. Odisha is the top aluminium producing state in India. Two of the largest aluminium plants in India are in Odisha, NALCO and Vedanta Resources. Mining contributed an estimated 6.31% to the GSDP. [12]

Iron Chemical element with atomic number 26

Iron is a chemical element with symbol Fe and atomic number 26. It is a metal that belongs to the first transition series and group 8 of the periodic table. It is by mass the most common element on Earth, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust.

Steel alloy made by combining iron and other elements

Steel is an alloy of iron and carbon, and sometimes other elements. Because of its high tensile strength and low cost, it is a major component used in buildings, infrastructure, tools, ships, trains, automobiles, machines, appliances, and weapons.

Aluminium Chemical element with atomic number 13

Aluminium is a chemical element with the symbol Al and atomic number 13. It is a silvery-white, soft, non-magnetic and ductile metal in the boron group. By mass, aluminium makes up about 8% of the Earth's crust; it is the third most abundant element after oxygen and silicon and the most abundant metal in the crust, though it is less common in the mantle below. The chief ore of aluminium is bauxite. Aluminium metal is highly reactive, such that native specimens are rare and limited to extreme reducing environments. Instead, it is found combined in over 270 different minerals.


Odisha has 9036.36 MW installed capacity of electricity production, out of which 6753.04 MW is coal-generated. 2166.93 MW is generated by hydro power and 116.39 MW by other renewable sources. [22]

Odisha was the first state in India to reform its power sector. In 1996, it passed the Orissa Electricity Reform Act to restructure and privatize the sector. Before the Act, the single public-sector company Orissa State Electricity Board (OSEB) had been producing and supplying electricity in the state since its establishment in 1961. But by 1994-95, OSEB had run into heavy losses and there was a gap of 45% between consumption and production. The reforms unbundled power generation from transmission and distribution. Following the reforms, hydro power plants were handed over to Odisha Hydro Power Corporation (OHPC) and the existing thermal power plants were transferred to Odisha Power Generation Corporation (OPGC). Grid Corporation of Odisha (Gridco) was given the task of power supply. Initially, these were operated as state-owned farms, but later were corporatised. [23]

In August 2014, the government announced a plan to invest 54,000 crore in the power sector over the next 5 years, to provide 24-hours electricity to both the urban and rural regions. [24] Odisha expects to reach a power surplus during its peak consumption months by 2015-16. [25]


The service sector contributed an estimated 51% to the GSDP in 2014-15. The primary sub-sectors are: community, social and personal services, which contributed 13.45% to the GSDP; trade, hotels and restaurants, which contributed 13.09%; financial and insurance services, which contributed 13.64%; and transport, storage and communication, which contributed 10.99%. [12] The state has a well-developed banking network compared to many states of India. There is one bank branch for every 12,000 people. 90% of the branches are in the rural region. [12]

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  18. 2015 agricultural output of Odisha based on 2011 prices
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