Odisha’s Industrial Sector: Growth, Investment and Innovation

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ODISHA’S INDUSTRIAL SECTOR: GROWTH, INVESTMENT AND INNOVATION

CHAPTER 5

Abstract ---

The industrial sector has been a key driver of Odisha’s economic progress with a share of 41.3 per cent to State’s economy (GSVA). The Sector provides employment to more than ¼ of the workers in the State. Odisha’s industrial strength is built on its abundant mineral resources, surplus power availability, and strategic coastal access.

Government of Odisha is investing in building requisite industrial infrastructure across the State to foster balanced development. This includes Mega Food parks in Western Odisha, Sea food park in Khordha, Multi-modal logistics parks, Electronic Manufacturing Cluster in Bhubaneswar. Series of pro-active measures such as Odisha Jan Vishwas Ordinance, deregulation measures, Utkarsh Odisha 2025, investor meets across India, and sector specific events is improving State’s attractiveness to wider investor community. While mineral based industries remain the mainstay of industrial sector, the State has seen rapid growth in non-mineral industries. This includes both labour intensive sectors such as apparel and textiles, food processing, as well as high-tech sectors such as advanced machinery.

As the State attracts investment across diverse sectors, it is improving its economic complexity (number of different products that the state can produce). Literature suggests that long-term growth/income levels is positively related to economic complexity. Therefore, it is expected to boost long-term income and lead to virtuous cycle of economic growth.

Construction sector, which is the largest employment generating sector within industries sector, is also growing rapidly. With the urbanization target set by the State, there is significant growth potential in the sector. Several initiatives are ongoing to boost MSME competitiveness. The State has set the target to increase share in India’s merchandise export to 5 per cent by 2036 from nearly 3 per cent currently. India has signed several free trade agreements and Odisha aims to leverage opportunities unleashed through such agreements.

5.1 INTRODUCTION

5.1.1 Industry sector has played an important role in Odisha’s growth trajectory. In 2025-26 (AE), size of Industrial sector reached ₹3.6 lakh crores which is 41.3 per cent of the Gross State Value Added (GSVA). Industry sector consists of mining and quarrying, manufacturing, construction and electricity, water and utilities. The sector provides employment to nearly 59 lakh workers as per last available Government of India estimates for 2023-24 which is an increase from 39 lakhs workers in 2011-12. This reflects the sector’s expanding contribution to the state’s economic development.

5.1.2 Odisha possesses abundant mineral resources including coal, iron ore, aluminum, and bauxite. These resources are critical for India’s increasing energy demand and steel/aluminum consumption. Odisha maintains power surplus status. The state has 575 km long coastline and hosts India’s largest port by average output per ship berth day. Road and rail connectivity have improved significantly over time. These factors have enabled industries to produce basic metals at scale in the State to meet domestic demand, and export to rest of the world.

5.1.3 In 2025, the Government of Odisha approved 244 new projects with an estimated budget of ₹5.66 lakh crores, projected to generate employment for approximately 3.35 lakh individuals. Notably, 80 projects were successfully implemented during the year, attracting ₹1.75 lakh crores in investments and directly creating 1.4 lakh jobs. These projects span through sectors such as Chemicals, Green Hydrogen, Food Processing, Textiles, Information Technology, Electronics, and Pharmaceuticals. This broad sectoral engagement underscores Odisha’s evolving economic base and its steady progression towards sustained industrial growth and job creation, positioning the state as a competitive investment destination.

5.1.4 Odisha has implemented comprehensive reforms to improve the business environment. The state achieved 98% implementation rate under the Business Reforms Action Plan (BRAP) 2024, completing 425 out of 434 reforms. Key initiatives included launching the GO-SWIFT single window system, digitizing inspection processes through GO-SMILE, and introducing deregulation measures across 23 priority areas. Through the Odisha Jan Vishwas Ordinance Bill 2025, the State has undertaken large-scale compliance rationalization addressing 161 burdensome compliances across 16 Acts and 9 Departments by shifting minor contraventions from criminal to civil/penalty-based outcomes.

Reforms implemented under BRAP span multiple dimensions including End-to-End integration of online systems for business-centric services with GO-SWIFT, time bound service delivery through the Odisha Right to Public Services Act for all G2B approvals, and grievance redressal, Integration with Indian Industrial Land Bank & National Single Window System and publishing of online public dashboards showing real time status of applications received, approved, rejected etc.

5.1.5 The state focused on creating industry-ready infrastructure through mega industrial regions, sector-specific parks, and MSME clusters. Major developments include progress in Paradip PCPIR and Kalinga Nagar zones, completion of Seafood Park, Electronic Manufacturing Cluster, and development of 30 MSME parks across all districts. Odisha also launched the Pharmaceutical and Medical Devices Policy 2025, targeting ₹25,000 crores investment and one lakh jobs by 2030.

Odisha undertook a structured deregulation exercise across 23 priority areas identified by the Government of India and assigned to 8 nodal departments. All 23 priority areas have been implemented. Key deregulation measures include:

• Rationalization of building regulations, including removal of Floor Area Ratio (FAR) restrictions for industrial buildings.
• Reduction in mandatory parking norms for industrial plots from 30% to 8%.
• Enabling night-time employment of women (7 PM–6 AM) across factories and commercial establishments, including hazardous industries, with safety safeguards.
• Introduction of self-certification for low-risk buildings and third-party inspections for medium-risk buildings.
• Digitisation and simplification of land use change processes, including exemption from Change of Land Use (CLU) for newly registered MSMEs and Startups (only state in the country to do so)
• Reduced number of lands “kissam” from over 7,000 to 22. Enabled online portal process CLU.

5.1.6 Through comprehensive policy reforms, world-class industrial infrastructure development, and strategic focus on emerging sectors like green energy and aerospace, Odisha has positioned itself as an investment-ready destination that balances traditional industries with future-oriented manufacturing, creating a sustainable pathway for inclusive industrial growth.

5.2 PERFORMANCE OF INDUSTRIAL SECTOR

Industrial performance

5.2.1 In 2025-26 (AE), the industry sector contributed 41.3 percent to Odisha’s GSVA at current prices, amounting to approximately ₹3.6 lakh crore. The sector registered a real year-on-year (Y-o-Y) growth of 6.4 percent, slightly above the national average growth of 6.2 percent. The industrial sector is driven by manufacturing sector. Manufacturing GVA in Odisha is expected to grow at 8.3 percent compared to 7 percent at the national level. Its share in the industrial GVA has increased from around 41.9 percent in 2015-16 to 45.6 percent in 2025-26 (AE), reaching an estimated value of ₹1.6 lakh crore. This indicates Odisha’s expanding manufacturing capacity, enhanced utilization of mineral resources, and a gradual diversification of industrial base.

Figure 5.1: Industry and industry sub-sectors GVA growth at constant prices, Odisha, 2025-26 (AE) (in per cent)

Sector	Odisha (%)	India (%)
Overall	6.4%	6.2%
Manufacturing	8.3%	7.0%
Construction	9.4%	7.0%
Electricity & Other Utility Services	5.3%	2.1%
Mining & Quarrying	1.4%	-0.7%

All estimates are advance estimates

Source: Directorate of Economics & Statistics, Government of Odisha

5.2.2 Mining and Quarrying contributes about 23.1 per cent of industrial GVA, with a value of around ₹0.8 lakh crore and grew by 1.4 per cent in 2025-26 (AE) from the last year. The sub-sector supplies key minerals to metal and other industries and remains an important source of fiscal revenue and industrial linkages, especially in mineral-rich districts.

Figure 5.2: Share of sub-sectors GVA within industry GVA, Odisha, 2025-26 (AE)

Sub-sector	Share (%)
Manufacturing	45.6%
Construction	23.3%
Mining and Quarrying	23.1%
Electricity, Gas, Water Supply & Other Utility Services	8.0%

All estimates are advance estimates

Source: Directorate of Economics & Statistics, Government of Odisha

5.2.3 Construction accounts for 23.3 per cent of industrial GVA (₹0.8 lakh crore) and grew by 9.4 per cent in 2025-26 (AE) over the previous year. Electricity, gas, water supply and other utility services contribute 8 per cent (₹0.3 lakh crore) and grew by 5.3 per cent during the same period, meeting rising demand for power and basic services from both industry and households

Workforce scenario across the industry sector

5.2.4 In 2023-24, industry in Odisha employed a workforce of 58.9 lakh. Construction accounted for 40.3 lakh workers, while manufacturing employed 16.3 lakh workers. Electricity and mining together engaged 2.3 lakh workers. Within the industry workforce, construction had a share of 68.5 per cent, while manufacturing had a share of 27.6 per cent, electricity accounted for 2.4 per cent and mining accounted for 1.5 per cent. Industrial employment in the State is thus concentrated in construction and manufacturing, with a small share in mining and electricity.

Figure 5.3: Workforce distribution across the industry (in lakhs) in Odisha in 2023-24

Construction	40.3
Manufacturing	16.3
Electricity	1.4
Mining	0.9

Source: Periodic Labor Force Survey, 2023-24, MoSPI, Government of India

Box 5.1: Women workforce participation in Manufacturing Sector

#Women workforce participation: In manufacturing sector, as compared with all sectors combined, female constitute larger share of total workforce. In 2023-24, female share in total manufacturing workforce was 47 per cent as compared with 37 per cent in all sectors combined. Major sectors with highest female employment include custom tailoring, tobacco products, products made of bamboo, articles made of palm leaf, papads, cotton fabrics, and wearing apparel.

Table 5.1: Women workforce participation in Manufacturing Sector, Odisha, 2023-24

Sector	NIC Code	Workforce (in no.)	Share
Custom tailoring	14105	241,585	32%
Tobacco Products	12002	170,513	22%
Market basketry, grain storage bins and similar products made of bamboo or reed	16233	67,294	9%
Articles made of palm leaf, dhak leaf, screw-pine leaf and khajoor leaf; articles of vegetables fibre	16296	55,784	7%
Various articles made of bamboo, cane and grass	16294	27,323	4%
Papads, appalam and similar food products	10796	20,705	3%
Cotton and cotton mixture fabrics	13121	20,220	3%
Other cordage or rope	13949	16,880	2%
Wearing apparel	14109	13,835	2%
Other dairy products	10509	13,486	2%
Cereal breakfast foods obtained by roasting or swelling cereal grains	10616	12,777	2%
Others		98,623	13%
Total Women Workforce in Manufacturing sector		759,026

Source: Periodic Labor Force Survey, 2023-24, MoSPI, Government of India

Government of Odisha has taken several initiatives to boost female workforce participation in manufacturing sector. This includes (i) enabling night-time employment of women (7 PM-6 AM) across factories and commercial establishments, including hazardous industries, with safety safeguards, (ii) developing network of Workers’ Hostels across key industrial locations. A total of 13 workers’ hostels are being established across 9 districts and 12 industrial estates, with a cumulative bed capacity of approximately 25,000 beds. The hostels are located at major industrial centres including Rourkela, Khordha, Kalinga Nagar, Paradip, Jharsuguda, Sambalpur, Balasore and Cuttack, and include dedicated facilities such as a working women’s hostel at Deras. This initiative is expected to improve living conditions for industrial workers, enhance workforce availability near industrial estates, and contribute to sustained and inclusive industrial development in the State.

5.2.5 Between 2017-18 and 2023-24, the industry workforce in Odisha grew at a CAGR of 7.2 per cent. The construction workforce grew at 8.4 per cent per year, electricity at 7.3 per cent and manufacturing at 6.2 per cent, while the mining & quarrying workforce declined at 9.7 per cent over the same period. Mining & quarrying is capital intensive and uses more machinery relative to workers, which may be one of the reasons for low and falling employment in this segment despite its role in output. This pattern indicates a shift of the industry workforce towards construction and manufacturing sub-sectors.

5.2.6 Overall, Industrial GSVA and employment performance indicate that the State’s industrial sector is expanding, with manufacturing, construction and utilities contributing to both value

added and employment, while mining continues to play a central role in output and revenues with limited employment growth. The rising share of manufacturing in industrial GVA, along with the increase in construction employment, indicates a gradual shift towards more diversified and employment-intensive activities within industry.

Box 5.2: Vision for Manufacturing sector for 2036 and 2047

#Vision for Manufacturing Sector: Manufacturing sector globally is subject to two key trends, i.e. intensification of Technology (also referred to as Industry 4.0) and focus on sustainability (clean manufacturing, circular economy). Odisha in its Vision 2036 and 2047 intends to channelize development of manufacturing sector in the State around these themes. The State aims to achieve manufacturing GVA of nearly ₹ 40 lakh crores from current ₹1.6 lakh crores. Odisha has set a goal to be India’s leading end-to-end manufacturing hub leveraging both domestic and export opportunities. Some of the key targets are outlined in figure 5.4.

Figure 5.4: Key targets for Odisha to be achieved by 2047

• 1** By 2047, Odisha envisions to become one of the top 5 manufacturing states by GVA and create at least two major green industry hubs.
• 2** The state aims to attract investments exceeding ₹30 lakh crore over the next 15-20 years while doubling manufacturing employment and ensuring compliance with labor welfare standards.
• 3** Prioritize employment-intensive sectors including textiles & apparel manufacturing, food processing, and MSMEs with focus on employment generation every year within the State.
• 4** State envisages to achieve top 3 ranking in ease of doing business by 2036, advancing from the current sixth position.
• 5** Target to achieve 7.5% share in India’s total exports by 2047, with an interim target of 5% by 2036, up from the current 3%, which includes MSME contributions.

Source: Odisha Vision Document 2036 & 2047, Government of Odisha

Odisha has developed a holistic plan to convert its vision for manufacturing sector into reality. ‘Odisha Manufacturing Mission’ will create large industrial parks (1000-3000 hectares) with ready plug and play infrastructure. MSMEs will be supported through supplier development programs for better market access. Digital platforms will be developed for MSMEs to access finance from diverse pools of investors. The State shall also design appropriate interventions such as zero collateral loans, interest subsidies, and credit guarantee to enhance access to finance to MSMEs. The State shall invest in ensuring availability of required skilled workforce through skill mapping, expanded training centers, and women-led business parks etc. Innovation hubs will also be supported with technology upgrade subsidies for State to move up the value chain.

Industrial Investment in Odisha

5.2.7 From 2022-23 to 2025-26, State received cumulative committed industrial investment of ₹15.6 lakh crore across various sub sectors with an estimated employment potential of 9.3 lakh jobs. The industrial investment increased 1.5 times from 2022-23 to 2025-26 while employment potential has nearly doubled over the same period.

Figure 5.5: Industrial Investment in Odisha, 2022-23 to 2025-26

Year	Investment (in ₹ Crores)
2022-23	2,47,373
2025-26	3,79,076

Figure 5.6: Potential employment generation, Odisha, 2022-23 to 2025-26

Year	Employment (in numbers)
2022-23	1,08,720
2025-26	2,15,403

Source: IPICOL, Government of Odisha

5.2.8 In the year 2024-25, the High-Level Clearance Authority (HLCA) and State Level Single Window Clearance Authority (SLSWCA) approved 187 industrial projects with potential investment of ₹ 4.34 lakh crore generating employment of 2.8 lakh jobs. The increase in industrial investment can be attributed to state governments’ robust policies, real time tracking and faster issue resolution for priority projects. A dedicated Industrial Project Monitoring Dashboard is operationalized by the state to track approvals, clearances and No objection Certificates.

5.2.9 Odisha government has been actively engaging with investors through various roadshows to attract industrial investments. Over the past two years (2023-24 and 2024-25), the state has successfully organized 21 road shows in key cities such as Hyderabad, Kolkata, Mumbai and others. These roadshows are part of Odisha’s broader strategy to transition from a resource driven economy to a future ready industrial hub, emphasizing the state’s focus on high growth, technology led sectors.

Roadshow and Investor Outreach

Table 5.2: Roadshows and Investors meet organised by State Government across various locations in India, 2025

Event	#MoUs	Investment Commitment (in Cr.)	Employment Potential
Make in Odisha 2025	145	1289367	890605
IOCL Delhi Event 2025	13	95186	16054
Odisha TEX 2025	33	7778	53300
Odisha Pharma Summit 2025	44	6261	38556
Hyderabad Investors Meet 2025	13	25950	15755
Kolkata Investors Meet	27	81864	63161

Source: IPICOL, Government of Odisha

5.3 MANUFACTURING SECTOR

5.3.1 Odisha’s manufacturing sector comprises both registered factories and unincorporated enterprises. Annual Survey of Industries (ASI) covers all factories under the Factories Act 1948 (10+ workers with power or 20+ without power), bidi & cigar units, and non-CEA (Central Electricity Authority) electricity undertakings, excluding defense, oil storage, hospitality, and departmental establishments. Annual Survey of Unincorporated Sector Enterprises (ASUSE) covers unincorporated non-agricultural enterprises in manufacturing, trade, and services sectors, covering proprietorships, partnerships, cooperatives, and non-profit organizations while excluding incorporated companies, ASI-covered establishments, government entities, and CEA-non registered electricity units. For the purpose of this chapter, enterprises covered under ASI are referred as Organized sector and enterprises covered under ASUSE are referred as unorganized sector.

5.3.2 As per latest available estimates for 2023-24, the unorganized sector comprises 8.05 lakh enterprises (constituting 99.6 per cent of total manufacturing enterprises). It employs nearly 13.2 lakh workers (78 per cent of total manufacturing employment). However, unorganized sector’s economic contribution is relatively modest, generating nearly 3 per cent of total manufacturing output and 8-9 per cent of total manufacturing GVA. Traditionally, ASI covers units registered under the Factories Act, 1948 (10+ workers with power / 20+ without power), Bidi and Cigar Workers Act, 1966, and non-CEA-registered electricity undertakings. A major expansion happened when SCIS extended ASI beyond factory-based manufacturing. However, in Odisha, the manufacturing sector dominates with a 97.3% share of total ASI output, thus the total ASI sector in Odisha is considered as the organized manufacturing sector.

5.3.3 In comparison, the organized sector, though significantly smaller with 3,281 enterprises employing 3.7 lakh workers, demonstrates far greater productivity. It contributes ₹5.25 lakh crore in output and nearly ₹75,000 crore in gross value added. This provides tremendous opportunity to boost industrial output. There are untapped gains from formalization of high potential unorganized sector enterprises, supporting in their expansion journey through all-round assistance such as market access, supply chain integration, ease of doing business, access to finance and talent, and technology upgradation.

Figure 5.7: Manufacturing Sector Profile, organized sector and unorganized sector enterprises combined, Odisha, 2023-24

	Number of Enterprises	Total Output	Gross Value Added	Employment	GVA per worker
Total	8.08 lakh enterprises	₹ 5.4 lakh crores	₹ 82,192 crores	16.9 lakh workers	₹ 4.9 lakhs
Organised sector enterprises	3281 enterprises	₹ 5.2 lakh crores	₹ 74,947 crores	3.7 lakh workers	₹ 19.9 lakh
Un-organised sector enterprises	8.05 lakh enterprises	₹ 0.2 lakh crores	₹ 7245 crores	13.2 lakh workers	₹ 55 thousand

Note: In this chapter, persons engaged is considered as total employment or total workers. ASI also covers some non-manufacturing enterprises. Profile presented above includes full organised industries sector as per Annual Survey of Industries.

Source: Annual Survey of Industries (ASI) and Annual Survey of Unorganized Sector Enterprises (ASUSE), MoSPI, Government of India, 2023-24

5.3.4 Nearly 65 percent of Gross Value Added of manufacturing sector in Odisha comes from Basic Metals (₹ 52,862 crores in 2023-24). However, sectors such as Textiles and Apparel, and Food Processing are among the highest employment-generating sectors as compared to other sectors (Figure 5.8). Apparel generates about 51 employment per ₹1 crore of capital investment, followed by Textile generates about 13 workers per ₹1 crore capital investment. Development of these sectors can contribute to job-generative growth. Similarly, the fabricated metals sector as compared to basic metal generates more employment per ₹ 1 crore capital investment. Pharma, Food, Food, Rubber are few others high employment generating sectors. At present, although these sectors are at nascent stage but with Odisha’s proactive policy measures, these sectors are expected to experience substantial growth.

Figure 5.8: Employment and GVA scenario across industries in Odisha, 2023-24

Employment & Gross Value Added by Industries

Industry	Workers	GVA (₹ crores)
Metal	2,25,410	₹ 52,862 crores
Coke & refined petroleum products	11,929	₹ 8,098 crores
Apparel	2,99,008	₹ 1,384 crores
Total Workforce	16,93,604
Total GVA	₹ 82,193 Crores
Non-metal Products	1,57,787	₹ 5,077 crores
Chemical	11,388	₹ 3,009 crores
Paper	15,987	₹ 1,645 crores
Fab Metal	82,799	₹ 1,011 crores
Food	2,99,522	₹ 3,915 crores
Textiles	1,60,274	₹ 623 crores
Machinery & Equipment	1,22,932	₹ 1093 crores
Rubber & Plastic products	10,385	₹ 450 crores
Electrical Equipments	4,309	₹ 469 crores
Furniture	63,105	₹ 795 crores
Beverages	51,568	₹ 993 crores
Wood & wood products	1,64,182	₹ 770 crores

Source: Annual Survey of Industries, 2023-24 and Annual Survey of Unincorporated Sector Enterprises, 2023-24, MoSPI, Government of India

Figure 5.9: Number of workers engaged across sectors for per ₹ 1 crore invested

Number of workers per ₹ 1 Crore Capital Invested

Sector	Number of workers per ₹ 1 Crore Capital Invested
Apparel	50.6
Textiles	12.5
Fab Metal	9.3
Wood	6.4
Pharma etc.	5.6
Food	4.9
Rubber	4.2
Furniture	4.0
Elec. Equip	3.8
Beverages	2.2
Paper	2.2
Non-metal pdt	1.8
Metal	0.7
Chemical	0.7
Coke	0.2

Source: Annual Survey of Industries (ASI) and Annual Survey of Unincorporated Sector Enterprises (ASUSE), MoSPI, Government of India, 2023-24

Box 5.3: Framework for assessment of manufacturing sector performance

#Manufacturing sector performance: Manufacturing activity can be assessed through multiple lens, not merely from the perspective of output growth. Sustainable manufacturing development requires efficient use of resources. Manufacturing sector development should contribute to employment creation and wealth sharing with the working class. Similarly, manufacturing development can be assessed from the perspective of productivity, competitiveness, and scale achieved.

Figure 5.10: Organized sector performance measurement framework

Dimension A Scale and Infrastructure	Dimension B Economic Performance	Dimension C Employment	Dimension D Resource Efficiency
Factory Density Average Factory Size Capital Stock per Factory	Value Addition Rate Profitability Ratio Capital Productivity Return on Investment	Employment Intensity Labor Productivity Wage Level Index Managerial Intensity Employment Quality	Material Efficiency Energy Efficiency Capital Efficiency Technology Intensity

Source: Annual Survey of Industries, MoSPI, Government of India

(Definitions: Factory Density = Number of factories in operation per sq km area. Average Factory Size = Total output per factory. Capital Stock per Factory = Fixed capital per factory. Value Addition Rate = Gross value added per unit of total output. Profitability Ratio = Net profit per unit of total output. Capital Productivity = Total output per unit of fixed capital. Return on Investment = Net profit per unit of invested capital. Employment Intensity = Total persons engaged per factory. Labor Productivity = Gross value added per worker. Wage Level Index = Average wage relative to national average wage. Managerial Intensity = Number of managers per total person engaged. Employment Quality = Permanent workers as percentage of total workers. FLFPR = Female workers as percentage of total workforce. Material Efficiency = Material consumption per total output. Energy Efficiency = Total output per unit of fuel consumed. Capital Efficiency = Net value added per unit of fixed capital. Technology Intensity = Plant and machinery value per unit of fixed capital.)

Odisha is achieving scale economies with average factory size of ₹ 160 crores output and ₹ 112 crores of invested capital per factory in 2023-24. The scale of industrial sector in Odisha is also reflected by employment creation. Per-factory employment creation in organized sector was 114 workers as compared with 75 at All-India level.

Figure 5.11: Component wise manufacturing sector performance (organized sector), Odisha, 2023-24

A. Manufacturing Sector Performance Index Score

Entity	Index Score
All India	0.395
Odisha	0.417

B. Average Factory Size (Output per factory)

Entity	Output per factory
All India	5,894
Odisha	15,934

C. Capital Stock per factory

Entity	Capital Stock per factory
All India	1,778
Odisha	11,219

D. Value addition rate (GVA/Output)

Entity	Value addition rate (%)
All India	16%
Odisha	15%

E. Capital Productivity (Output per unit of fixed capital)

Entity	Capital Productivity
All India	3.31
Odisha	1.42

F. Employment Intensity (Persons engaged per factory)

Entity	Persons engaged per factory
All India	75
Odisha	115

G. Labor Productivity (GVA per worker)

Entity	GVA per worker
All India	16
Odisha	25

H. Wages (Odisha’s average worker’s wage as % of India’s average worker)

Entity	Wages (%)
All India	100%
Odisha	103%

I. Managerial Intensity (Share of managerial workforce in total workforce)

Entity	Managerial Intensity (%)
All India	9.4%
Odisha	10.4%

J. Material Efficiency (1 - (Materials consumed/Total output))

Entity	Material Efficiency (%)
All India	34%
Odisha	35%

K. Energy Efficiency (Output per fuel consumed)

Entity	Energy Efficiency
All India	25.44
Odisha	13.11

L. Capital Efficiency (Net value added/capital)

Entity	Capital Efficiency (%)
All India	45%
Odisha	16%

M. Technology Intensity (Plant/Capital)

Entity	Technology Intensity (%)
All India	99.4%
Odisha	91.1%

Source: Annual Survey of Industries, 2023-24, MoSPI, Government of India

Organized sector

5.3.5 The industrial base expanded steadily during the last five years (2018-19 to 2023-24). Operational factories increased from 2,700 to 2,948. Industrial output grew by around 1.7 times, rising from about ₹3 lakh crore to over ₹5 lakh crore in 2023-24. This growth was supported by sustained capital formation. Cumulative invested capital increased by around 25 percent reaching ₹4.39 lakh crore in 2023-24. Capital efficiency also improved, rising from below 1 to above 1.2 in 2023-24, showing improved capacity utilization.

5.3.6 From 2018-19 to 2023-24, manufacturing sector growth was also accompanied by job creation. The workforce expanded by over one third, from about 2.3 lakh to over 3.1 lakh workers over the same period. Productivity improved alongside employment growth. GVA per worker increased from about 23 to 25. Overall value-addition rose by nearly 1.5 times, with GVA increasing from about ₹0.5 lakh crore to nearly ₹0.8 lakh crore. Wage bill rose strongly, but the wage to GVA ratio remained stable at around 18 percent, indicating balanced growth. The managerial workforce share crossed 10 percent, pointing to gradual skill and organizational upgrading.

5.3.7 Organized sector output remains highly concentrated. Basic metals account for over 60 percent of total output, highlighting the dominance of capital-intensive industries. Petroleum products, chemicals, and food processing also play an important role. At the same time, several other sectors grew rapidly. Wearing apparel expanded by more than four times over the period. Wood products and machinery & equipment recorded strong double digit annual growth, signaling emerging diversification toward labor-intensive and engineering industries.

Table 5.3: Performance indicators of Organized sector, Odisha, 2018-19, 2022-23 and 2023-24

#	Indicators	2018-19	2022-23*	2023-24
1	Number of Factories	3063	3244	3281
2	Number of Operational Factories	2700	2835	2948
3	Total Output (In ₹ lakh crores)	3.02	5.08	5.23
4	Invested Capital- Cumulative (In ₹ lakh crores)	3.49	4.03	4.39
5	Number of Persons Engaged	281520	330687	377053
6	Gross Value Added (in ₹ lakh crores)	0.53	0.69	0.79
7	GVA per Worker (in ₹ lakh crores)	22.77	24.80	25.05
8	Output per Capital Invested (Capital Efficiency)	0.9	1.3	1.2

#	Indicators	2018-19	2022-23*	2023-24
9	Energy / Fuels Consumed (in ₹ lakh crores)	0.3	0.4	0.4
10	Wages & Salaries (in ₹ lakhs)	974023	1238554	1429931
11	Wage/GVA (in percent)	18	18	18
12	Share of managerial workforce	9.7	9.8	10.4
Top three sectors in terms of their share of output
13	Product & NIC code	Basic Metals (56.2 percent) NIC: 24	Basic Metals (61.8 percent) NIC: 24	Basic Metals (61.3 percent) NIC: 24
14	Product & NIC code	Coke and refined petroleum products (20.1 percent) NIC: 19	Coke and refined petroleum products (19.3 percent) NIC: 19	Coke and refined petroleum products (18.9 percent) NIC: 19
15	Product & NIC code	Chemical and Chemical products (4.8 percent) NIC: 20	Chemical and Chemical products (5.3 percent) NIC: 20	Food products (5.7 percent) NIC: 10
Top three high growing sectors (CAGR) 2018-19 to 2023-24
16	NIC code	Wearing Apparels (81.9 percent) NIC: 14
17	NIC code	Wood & wood products (43.4 percent) NIC: 16
18	NIC code	Machinery & Equipment (30.1 percent) NIC: 28

Source: Annual Survey of Industries, 2018-19, 2022-23, 2023-24, MoSPI, Government of India. *It may be noted that manufacturing sector experienced contraction in 2022-23. Gross Value added declined by nearly 30 per cent due to several factors. Odisha’s manufacturing sector has high export orientation and therefore vulnerable to external sector developments including commodity price fluctuations.

5.3.8 The organized sector exhibited growth in non-traditional sectors too during the review period. This was led by the wearing apparel industry which achieved an exceptional compound annual growth rate (CAGR) of 81.9 percent from period 2018-19 to 2023-24. Wood and wood products emerged as the second fastest-growing sector at 43.4 percent CAGR, followed by machinery and equipment at 30.1 percent, indicating strong expansion in both consumer-oriented and capital goods manufacturing.

5.3.9 Traditional sectors also demonstrated robust performance, with tobacco products growing at 29.8 percent and crop and animal products at 25.2 percent CAGR. Consumer goods industries showed steady momentum, including food products (19.1 percent), rubber and plastics (17.1 percent), and beverages (12.6 percent), while pharmaceuticals expanded at 16.3 percent and basic metals maintained solid growth at 13.5 percent. This comprehensive growth across diverse subsectors reflects successful industrial transformation, with the manufacturing base evolving from traditional heavy industries towards higher value-added production in textiles, consumer goods, and advanced manufacturing equipment.

Table 5.4: Top 10 manufacturing sub-sectors in terms of CAGR in total output, Odisha, 2018-19 to 2023-24, in per cent

S. No.	Manufacturing sub-sector	CAGR 2018-19 to 2023-24
1	Wearing apparel	81.9
2	Wood & Wood products	43.4
3	Machinery and equipment	30.1
4	Tobacco products	29.8
5	Crop & animal products, hunting etc.	25.2
6	Food products	19.1
7	Rubber and plastics products	17.1
8	Pharmaceuticals	16.3
9	Basic Metals	13.5
10	Beverages	12.6

Source: Annual Survey of Industries, MoSPI, Government of India, 2023-24

Box 5.4: Framework for assessment of manufacturing sector performance

#Sustainability in Industrial Sector in Odisha: Odisha aims to be among the top 5 states in manufacturing Gross State Value Added (GSVA) and establish at least two major green industry hubs by 2047. Sustainability has become a key factor for long-term industrial growth in Odisha. The shift to sustainable practices is both an environmental responsibility and economic necessity. The state faces the challenge of balancing industrial growth while reducing carbon emissions, meeting international sustainability standards, and addressing local environmental concerns.

Odisha has already started several initiatives including an Industrial Policy focused on sustainability, renewable energy projects using solar and wind power, circular economy programs like waste-to-energy projects and fly ash utilization, and support for clean technologies and energy efficiency. Under Vision 2047, the state aims for carbon neutrality in key industrial sectors, development of green industrial corridors with eco-industrial parks, and establishment of a robust innovation ecosystem with clean technology research centers.

To achieve these goals, Odisha draws inspiration from global innovations such as carbon capture and storage technologies, green hydrogen applications, AI-driven energy optimization, and industrial symbiosis networks. Recent approved projects demonstrate the state’s commitment to sustainable manufacturing. The state has approved one project under the circular economy sector by BEIL Infrastructure Limited, which provides landfill services for hazardous solid waste disposal, incineration of hazardous waste, and treatment of effluent. Located in Ganjam district, this project costs ₹320.7 crores and is estimated to create employment for 145 people. Additionally, a project by Gravita India Limited under the Waste Management sector has been approved with an annual capacity of 1,47,000 MT at Angul District, involving a total investment of ₹350 crores and employment potential for 270 people.

Figure 5.12: Sectoral diversification in Industrial ecosystem

Key sectors 2021-22

Category	Key sectors 2021-22
Minerals	Aluminium
	Steel
	Steel- Upstream & Downstream
	Coke & Refined Petroleum
Agro Industries	Food Processing
	Cement
Heavy Metals	Coke & Refined Petroleum
	Chemicals
	Paper & Paper Products
Manufacturing	Plastics
	Logistics & Infrastructure
Infrastructure	Power & Renewable Energy
	Textile & Apparels
Textiles & Apparels	Aerospace
	Defence
Aerospace	Tourism
Tourism

Additional Sectors 2025-26

Additional Sectors 2025-26
Circular Economy
Renewable Energy
Heavy Energy Equipment
Mechanical & Electrical Capital Goods
Cold Storage & infra
Green Energy Equipment
Rare Earth Processing
Rail Wheelset
Shipbuilding & Repair
Automobile & Auto Components
Green Hydrogen & Ammonia
Compressed Bio-gas
E-Vehicles
Pharmaceutical & Biotechnology
Aviation Fuel
Data Centres
Technical Textiles
Aerospace & Defence
Tourism
Rubber
Plastic and Packaging Materials

Legend:

• Green/Environmentally sustainable products/services
• Basic Metals, Minerals & its byproducts
• Non-Mineral products & byproducts/services

Source: IPICOL, Government of Odisha

Non-Metal sectors

5.3.10 While metal sector remains most significant sector, Odisha is also attracting investments into non-metal sectors, indicating a strategic shift towards more balanced industrial ecosystem. Figure 5.12 highlights the trend of investment in Metal and Non-Metal sectors over the past 5 years (2018-19 till 2023-24).

Figure 5.13: Cumulative Invested Capital for metal* and non-metal sectors, Odisha, 2018-19 to 2023-24

Year	Metal (₹ billion)	Non-Metal (₹ billion)
2018-19	2,957.9	536.0
2019-20	3,019.7	588.5
2020-21	3,002.5	468.2
2021-22	3,277.3	562.6
2022-23	3,468.3	558.4
2023-24	3,776.5	615.9

Source: Annual Survey of Industries, MoSPI, Government of India (Various years)

*Metal sector includes Manufacture of basic metals (NIC 24), Manufacture of coke & refined petroleum products (NIC 19) and Manufacture of fabricated metal products, except machinery & equipment (NIC 25)

5.3.11 During 2018-19 to 2023-24, investment across various non-metal industries is creating potential upstream and downstream linkages to other industries.

Figure 5.14: Investment in non-metallic sector and its upstream and downstream linkages, Odisha, 2018-19 to 2023-24

Machinery and Equipment (NIC code: 28) ₹ 402.3 crores		Wood, Rubber and Related Products (NIC code: 16 & NIC code: 22) ₹ 399.4 crores		Electrical Equipment and Furniture (NIC code: 27 & NIC code: 31) ₹ 201.6 crores		Wearing Apparel (NIC code: 14) ₹ 98.4 crores
Upstream linkages	Downstream linkages	Upstream linkages	Downstream linkages	Upstream linkages	Downstream linkages	Upstream linkages	Downstream linkages
Basic Metals (steel, iron) Electrical Equipment Rubber & Plastics	Manufacturing sectors Construction Agriculture, Mining	Chemicals (petrochemicals) Natural rubber Forestry Logging Machinery	Automobiles parts, packaging Footwear & Consumer goods Furniture & Construction Paper & Packaging	Electronic components Wood & Products & bedding accessories	Power sector & Construction Manufacturing consumer durables Households, Hotels, Offices, Real Estate	Yarn & Thread Manufacturing Synthetic fiber production Zipper, lace etc.	Retail, Merchandise exports Uniforms
Non-metallic mineral products (NIC code: 23) ₹ 8141.6 crores		Food Processing (NIC code: 10) Beverage Industry (NIC code: 11) ₹ 6597.6 crores		Chemical and Chemical Products (NIC code: 20) ₹ 1938 crores		Crop and Animal Products (NIC code: 01) ₹ 694.9 crores
Upstream linkages	Downstream linkages	Upstream linkages	Downstream linkages	Upstream linkages	Downstream linkages	Upstream linkages	Downstream linkages
Mining (limestone, silica, clay) Chemical Electricity & Coal Natural gas	Construction Infrastructure Real Estate Glass industry	Packaging (plastics/paper) Food Products (sugar, fruits) Bottled Water & Beverage Production Machinery	Retail Hotels & Restaurants Transport & warehouse Beverages	Petroleum refining Natural gas Basic inorganic chemicals	Pharmaceuticals Plastics Textiles Fertilizers Paints and Agro-chemicals	Seeds Machinery Agriculture credit & Insurance service	Food Products Textiles (cotton/jute) Animal feed Agri Machinery repair

Source: Annual Survey of Industries, MoSPI, Government of India

Box 5.5: Investments in Non-Metallic Sector

#Non-metallic sector and Investment: Odisha is experiencing increasing capital inflows into non-metallic manufacturing sectors such as food processing, textiles and apparel, consumer goods, and railway equipment manufacturing. This shift reflects Odisha’s improving ease of doing business, infrastructure readiness, skilled workforce availability, and its growing attractiveness as a consumption and manufacturing-oriented investment destination.

In the food processing and consumer goods sector, Odisha has attracted large domestic investors seeking to serve both national and export markets. Nestlé India Limited is setting up a food processing facility at Mundamba, Jankia Block in Khordha district, with an investment of ₹ 894.10 crore and an employment potential of 827 persons. The unit will manufacture products such as noodles, chocolates and masala, strengthening value-added food processing in the State.

Similarly, Reliance Consumer Products Limited is establishing an integrated manufacturing facility for beverages, biscuits and confectionery in Khordha district, involving an investment of ₹ 938 crore and expected employment of around 600 persons. These investments underline Odisha’s emergence as a competitive destination for large-scale FMCG and food processing industries, supported by improving logistics and market access.

The textile and apparel sector, a key non-metallic manufacturing segment, has also witnessed significant investments. KPR Mill Limited is setting up a large-scale knitted garment manufacturing unit in Khordha district, with a production capacity of 46.8 million garment pieces per annum. The project entails an investment of ₹ 350 crore and is expected to generate employment for approximately 5,000 people, contributing substantially to labor-intensive manufacturing and women’s employment.

Odisha has also made notable strides in railway equipment and engineering manufacturing, reflecting diversification into high-value industrial manufacturing beyond core metals. Jupiter Tatravagonka Railwheel Factory Private Limited is establishing a rail wheelset machining and assembly plant with an annual capacity of 80,000 wheelsets at Haldiapada in Khordha district, with an investment of ₹1,090 crore and employment potential of 495 persons. In addition, Lalbaba Engineering Limited is setting up a 75,000 MT precision tubes manufacturing facility in Cuttack district, with an investment of ₹200 crore and employment potential of 500 persons. These projects highlight Odisha’s growing role in the railway and heavy engineering value chain, driven by improved industrial infrastructure and proximity to major transport corridors.

Future Growth Hotspots

5.3.12 There are several future growth hotspots in the manufacturing sector. The upcoming new age sectors / focus sectors for the State are Green Hydrogen, Green Ammonia, Green Energy Equipment and Aerospace and Defence.

5.3.13 For Green Hydrogen and Green Ammonia, marquee investments include ACME Akshay Energy Private Limited and Shree Tech Data Limited, while companies such as Luminous Power Technologies Private Limited, Kshomo Green Energy Technologies Ltd., Sova Solar Limited, and INOX Solar Limited are investing in Odisha. The state has also received investments in the Aerospace and Defence sector, with the State Government signing an MoU with M/s Air Works India (Engineering) Pvt. Ltd. (India’s leading third-party MRO service provider) for establishing a Maintenance, Repair & Overhaul facility for domestic and international aircraft carriers at the Biju Patnaik International Airport.

Approved in the 141st SLSWCA, ABI-Showatech India Private Limited (a unit of TVS group) has signed a MoU with the State for an investment of ₹ 200 crore for setting up of automotive component manufacturing space creating 300 jobs in Khordha district.

Figure 5.15: Investments in Green hydrogen, green energy and Aerospace & Defence industry sectors in Odisha, 2024-25

Sector	Approved projects	Investment (₹ Crores)	Potential employment (persons)
Green Hydrogen & Green Ammonia	5	16,616	2607
Green Energy Equipment	13	17,010	16,828
Aerospace & Defence	2	500	1060

Source: IPICOL, Department of Industries, Government of Odisha

5.3.14 The Paradip–Kendrapara and Gopalpur areas have emerged as the main centres for green hydrogen and green ammonia projects, supported by port-based industrial infrastructure. Most of these projects are located close to the Paradip and Gopalpur Ports, which help with efficient movement of raw materials and enables export-oriented production.

SRF chemicals is set to invest ₹ 10,000 crore in setting up a unit for production of refrigerants, solvents, chloromethane, flouro-polymers, and intermediates for the agro and pharmaceutical industries. The unit will be set up in 300 acres of land at Gopalpur Industrial Park in Tata Steel Special Economic Zone and will generate employment opportunities for approximately 20,000 people.

5.3.15 Investments in the Aerospace and Defence sector are concentrated in the Khordha district, benefiting from good connectivity, availability of skilled manpower, and access to industrial and institutional support in and around Bhubaneswar. This clustering of new-age sectors highlights Odisha’s shift towards planned, infrastructure-led industrial development.

5.3.16 Overall, the growing pipeline of non-metallic investments reflects a structural shift in Odisha’s industrialization strategy from a predominantly resource-led model to a more diversified, value-added, and employment-intensive industrial ecosystem. This diversification enhances economic resilience, broadens the employment base, and strengthens Odisha’s position as a multi-sector industrial destination, extending well beyond metals and mining.

5.3.17 The state has strategically identified key emerging sectors with immense potential for future growth and employment generation, including semiconductor industry, green energy solutions, Aerospace and Defence, apparel and textiles, and chemicals and petrochemicals.

5.3.18 The semiconductor sector is promoted through dedicated policies including the Semiconductor Manufacturing and Fabless Policy-2023 and Odisha Electronics Component

Manufacturing Policy-2025. SiCSem Private Limited is establishing a ₹2,000 crore compound semiconductor fab in Bhubaneswar. In Aerospace and Defence, Vedanta’s planned aluminum parks in Jharsuguda will support aerospace and defense components. Odisha is also becoming the first eastern state with a flight Maintenance, Repair and Overhaul (MRO) facility.

5.3.19 The apparel and textiles sector targets to generate one lakh job by 2030. This will be achieved through six state of the art textile and footwear parks to be setup in Bolangir, Keonjhar, Sambalpur, Jagatsinghpur, Ganjam and Cuttack with plug-and-play facilities for global standard manufacturing.

5.3.20 These sectors align with national priorities under initiatives like Make in India, Atmanirbhar Bharat, and the National Solar Mission, positioning Odisha to capture significant market share in India’s evolving industrial ecosystem while contributing to the target of generating employment annually.

Box 5.6: Low Altitude Economy and its potential in Odisha

#Low Altitude Economy: Given the technological advancements particularly in aerospace domain, a new stream of economic growth pillar is shaping up globally. The Low Altitude Economy (LAE) is expected to transform the way we connect, feed, make, build, and govern. The LAE covers commercial activity in low airspace (typically up to ~300–1,000 metres / ~1,000 m above ground) enabled by drones (UAVs), eVTOLs (electric vertical take-off/landing vehicles), air taxis and associated digital services (traffic management, data analytics, charging/energy, vertiports). It includes logistics, precision agriculture, mapping/remote sensing, infrastructure inspection, public safety, tourism, and passenger air mobility as it matures.

Low altitude economy has the potential to reduce delivery times, create employment in manufacturing and services sectors including tourism, training, software development, and enable new transport models with poor ground connectivity.

In Odisha’s context, low altitude economy can lead to transformation impacts in following ways:

• a) Agriculture:** Drones are a game-changer in farming, enabling precision agriculture. The drones can be used to spray pesticides, monitor crop health with high-resolution cameras, and even plant seeds, leading to more efficient use of resources and higher yields.
• b) Logistics and emergency Services:** In disaster zones or during search and rescue missions, every minute counts. Drones can provide a live aerial view of a situation, helping first responders locate victims, assess damage, and coordinate their efforts more effectively.
• c) Aerial tourism, mapping & media:** Coastal sightseeing routes, film shoots, geospatial services.
• d) Manufacturing & services:** Drone manufacturing, batteries, software, maintenance, pilot training etc.

Sectors deep-dive

5.3.21 State has identified eight priority sectors which have the potential to deliver substantial industrial growth in the future. Some of them are discussed in detail below:

a. Chemicals and Pharmaceuticals

5.3.22 Odisha’s chemical industry is evolving driven by port access (Paradip & Gopalpur) and resources for basic chemicals like soda ash (Jayshree Chemicals), caustic soda, fertilizers (Paradip Phosphates Limited), and petrochemicals (IOCL).

5.3.23 Invested capital in Odisha’s chemical and pharmaceutical sector increased from ₹51644.8 crores in 2018-19 to ₹72414.2 crores in 2023-24, showing a 40 percent increase. During this period, total output jumped by 54 percent. The sector’s Gross Value Added grew by 30 percent, rising from ₹8277.4 crores to ₹10783.1 crores.

Figure 5.16: Increase in invested capital vis a vis total output generated for Chemical and Petrochemicals sector, Odisha, 2018-19 to 2023-24

Metric	2018-19 (In crores)	2023-24 (In crores)	% Increase
Invested Capital	51644.8	72414.2	40%
Total Output	74494.0	114462.6	54%

Source: Annual Survey of Industries, MoSPI, Government of India

Indian Oil Corporation Limited (IOCL) has signed an MoU with the Government of Odisha for setting up a ₹ 61,000 crore mega petrochemical complex at Paradip in Odisha strengthening Odisha’s petrochemical value chain and anchoring the Paradip Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) ambition.

b. Electronics System Design and Manufacturing

5.3.24 Odisha Electronics Component Manufacturing Policy-2025 aims to extend complementary incentives to units approved under Electronics Component Manufacturing Scheme (ECMS) by providing matching additional support to accelerate investment in electronics component manufacturing.

Under India Semiconductor Mission (ISM), SiCSem’s state of the art Integrated Device Manufacturing (IDM) is expected to be operational by 2027-28 for processing of 60,000 SiC wafers annually and packaging approximately 96 million units. The project is expected to create over 1000 direct employments in the State.

5.3.25 The State intends to roll out a flagship programme – Tech Odisha – Silicon to Software and position Odisha as a national hub for IT/ITES, ESDM hub. This would focus on creating innovation corridors and attract investment from anchor industries in Khordha and Ganjam district.

5.3.26 Capital Investment in Electronics System Design and Manufacturing (ESDM) sector has increased from ₹78.7 crores to ₹274 crores between 2018-19 to 2023-24.

Figure 5.17: Increase in invested capital vis a vis total output generated for Electronics System Design and Manufacturing sector, Odisha, 2018-19 to 2023-24

Metric	2018-19 (In Crores)	2023-24 (In Crores)	% Increase
Invested Capital	78.7	274.0	248%
Total Output	339.1	1074.5	217%

Source: Annual Survey of Industries, MoSPI, Government of India

c. Metals, Downstream & Intensive Industries

5.3.27 Value added manufacturing and processing of primary metals into finished or semi-finished products industry has increased in the State with number of factories increasing from 140 in 2018-19 to 181 in 2023-24. Capital invested in this sector also increased from ₹ 843.5 crores to ₹ 1379.7 crores during the period from 2018-19 to 2023-24 while the total output increased by 91 percent. The Capital-Output ratio changed from 0.48 to 0.41, indicating improved capital efficiency in the sector.

Figure 5.18: Increase in invested capital vis a vis total output generated for Metals, downstream and intensive sector, Odisha, 2018-19 to 2023-24

Category	2018-19 (In crores)	2023-24 (In crores)	% Increase
Invested Capital	843.5	1379.7	64%
Total Output	1757.0	3358.8	91%

Source: Annual Survey of Industries, MoSPI, Government of India

IDCO has initiated the development of Metal Downstream Parks at Badamal (Jharsuguda) and at Kalinga Nagar (Jajpur) covering 126.06 acres with a project cost of ₹74.75 crore and 100 acres with cost of ₹69.75 crore respectively. The state envisions to attract capital investment of ₹ 2 lakh crore to establish mega metal parks and energize the downstream metal-processing Industry by 2047.

d. Food and Seafood Processing

5.3.28 Odisha is fast emerging as an attractive destination for food processing industries. The state, given its location, can serve as an export hub for processed food to Eastern India and Southeast Asia.

5.3.29 As on July 2025, the State has approved investments of more than ₹ 6500 crore covering 40 investment proposals by major firms like ITC, Britannia, Parle Agro, Anmol biscuits, Indo Nissin and Nestle. State has created a world class Sea Food Park near Deras, Bhubaneswar which is attracting export-oriented industries in the park.

Figure 5.19: Increase in invested capital vis a vis total output generated for Food and Seafood Processing sector, Odisha, 2018-19 to 2023-24

Metric	2018-19	2023-24	Growth (%)
Invested Capital	1210.62	3936.67	225%
Total Output	5202.8	10852.6	109%

Source: Annual Survey of Industries, MoSPI, Government of India

e. Textiles, Apparels & Technical Textiles

5.3.30 Odisha is rapidly emerging as a significant apparel and textile hub in Eastern India, driven by State Government Initiative like the Odisha Textile & Apparel Policy 2022. Odisha is all set to push on Apparel Manufacturing, promote handloom, handicraft and coir-based products along with synthetic textiles.

5.3.31 The sector saw increase in capital investment by 45 percent and total output increased from ₹ 269.3 crores to ₹ 631.6 crores from 2018-19 to 2023-24. The Capital-Output ratio improved from 0.73 during 2018-19 to 0.43 in 2023-24 indicating efficient utilization of the capital.

5.3.32 Several major industries are operating in Odisha. These include Page Industries (Jockey), Welspun Group, Wild Lotus, Shahi Exports. These industries are manufacturing apparels both for domestic and international markets. Under this, two major parks are being developed in Odisha (Dhamra, Bhadrak and Malipada, Bhubaneswar) with focus in technical textiles, integrated infrastructure (power, water, hostels), skill development and attracting investments for activewear (Technosport) and Polyester Yarn (IOCL).

Figure 5.20: Increase in invested capital vis a vis total output generated for Apparels and Technical Textiles, Odisha, 2018-19 to 2023-24

Textiles, Apparels

Category	2018-19 (In crores)	2023-24 (In crores)	% Increase
Invested Capital	186.0	269.3	45%
Total Output	255.3	631.6	147%

Source: Annual Survey of Industries, MoSPI, Government of India

f. Automobiles and Auto Components

5.3.33 Automobiles and Auto Component sector saw a huge leap during the period from 2018-19 to 2023-24. The industry comprises of Manufacture of motor vehicles and automotive specific parts and accessories including engines, chassis, vehicle bodies, braking, suspension and automotive electrical systems. Capital investment increased from ₹ 65.4 crores to ₹ 377.8 crores during the period from 2018-19 to 2023-24.

Figure 5.21: Increase in invested capital vis a vis total output generated for Automobiles and Auto Components, Odisha, 2018-19 to 2023-24

Automobiles & Auto Components

Category	2018-19 (In Crores)	2023-24 (In Crores)	% Increase
Invested Capital	65.4	377.8	477%
Total Output	131.5	840.1	539%

Source: Annual Survey of Industries, MoSPI, Government of India

g. Other Sectors (Plywood, Pharma & Medical Devices)

5.3.34 Plywood, Pharmaceutical industry and medical devices manufacturing industries are growing in the State. Categorized into “Other” sector, these industries grew at CAGR of 30 percent with capital investment increasing from ₹ 55.7 crores in 2018-19 to ₹ 161.6 crores in 2023-24. Utilization of wood product such as plywood can be attributed to the growth of real estate sector.

5.3.35 Odisha has approved a new Odisha Pharmaceuticals & Medical Devices Policy- 2025 designed to position the state as a competitive hub for pharmaceutical manufacturing, medical device production and healthcare innovation. This could boost economic activity in pharma and medical device sector too.

Figure 5.22: Increase in invested capital vis a vis total output generated for plywood, pharma and medical devices sector, Odisha, 2018-19 to 2023-24

Metric	2018-19	2023-24	Growth (%)
Invested Capital (In crores)	55.7	161.6	190%
Total Output (In crores)	10.2	125.5	1131%

Source: Annual Survey of Industries, MoSPI, Government of India

Steel Industry

5.3.36 Odisha holds a significant advantage in India’s steel industry due to its abundant iron ore reserves, contributing 55 percent to the country’s total iron ore production in 2024-25. The State leads India in steel and stainless-steel production. To promote investment, the government signed several Memorandum of Understanding (MoUs) aimed at increasing steel production capacity.

5.3.37 The Steel & Mines Department of the Government of Odisha has implemented a Long-Term Linkage (LTL) policy to ensure steady supply of iron ore, chromite, bauxite, and limestone to State-based industries through Odisha Mining Corporation Limited. This policy supports uninterrupted supply of raw material and forms part of Odisha’s mineral development strategy focused on value addition, mass employment, and welfare-oriented revenue.

5.3.38 In alignment with the National Steel Policy 2017, which seeks to raise per capita steel consumption from about 100 kg to 158 kg by 2030, Odisha aims to contribute 100 million tons annually to the national target of 300 million tons of steel production by 2030. Approvals have been granted for setting up and expanding major steel plants including:

• 24 MTPA capacity Integrated Steel Plant by ArcelorMittal Nippon Steel India Ltd. at Kendrapara.
• 24 MTPA capacity Integrated Steel Plant by JSW Utkal Steel, at Jagatsinghpur.
• 19.2 MTPA capacity Integrated Steel Plant by Jindal Steel Odisha Ltd. at Angul.
• 5 MTPA capacity Integrated Steel Plant by JSW Steel Ltd. At Keonjhar.
• JSW-Bhusan Steel and Power Ltd., Sambalpur, from 2.8 MTPA to 5.5 MTPA.
• Tata Steel Ltd., Kalinga Nagar, Jajpur, from 3 MTPA to 8 MTPA.
• Jindal Stainless, Jajpur, from 1.1 MTPA to 3.2 MTPA.

5.3.39 Between 2023-24 and 2024-25, Odisha’s steel sector exhibited significant growth. Installed capacity rose from 41.2 MTPA to 45.5 MTPA, accounting for about 23 per cent of country’s total steel capacity. Production also increased from 27.3 MTPA to 29.6 MTPA, reflecting better capacity utilization and operational efficiency. This growth underscores Odisha’s strengthening role in the national steel industry and its capacity to meet increasing demand.

Figure 5.23: Status of Steel capacity and production (in MTPA), Odisha, 2023-24 and 2024-25

Category	2023-24	2024-25
Installed Capacity	41.2	45.5
Production	27.3	29.6

Source: Department of Steel and Mines, Government of Odisha

Aluminum industry

5.3.40 Aluminium has become a key driver of Odisha’s industrial growth, reflecting the State’s rich natural resources and growing manufacturing capabilities. Known for its strength, lightness, and recyclability, aluminium is in high demand across sectors such as power, automotive, aerospace, packaging, and construction. Odisha’s leading position in India’s aluminium industry is built on a combination of vast bauxite reserves, significant smelting capacity, and enhanced production capacity.

5.3.41 In the country’s total aluminium production, Odisha holds a substantial share and stands out as a major producing state. The presence of key industry players based in Odisha, namely NALCO, Hindalco, and Vedanta contribute significantly to the State’s output.

5.3.42 In the last five years aluminium production has grown from 36.1 lakh tonnes in 2020-21 to 42 lakh tonnes in 2024-25. NALCO’s production has remained relatively stable around 4.6 lakh tonnes, reflecting steady output. BALCO has shown a slight consistent increase, reaching 5.8 lakh tonnes in 2024-25. Hindalco’s production peaked in 2023-24 at 13.3 lakh tonnes and remained close to that level in 2024-25. Vedanta’s production fluctuated but saw an increase in 2024-25 to 18.2 lakh tonnes after a dip in 2022-23. Table 5.5 shows the aluminium production over the last five years.

Table 5.5: Production of Aluminum in India (in lakh tonnes), 2020-21 to 2024-25

Company	2020-21	2021-22	2022-23	2023-24	2024-25
NALCO	4.1	4.6	4.6	4.6	4.6
BALCO	5.6	5.8	5.7	5.8	5.8
HINDALCO	12.4	13	13.2	13.3	13.2
Vedanta Ltd.	19.5	22.7	17.2	17.8	18.2
Total	36.1	40.3	40.8	41.6	42

Source: Monthly Summary Report on Minerals & Non-ferrous metals, Ministry of Mines, Government of India

5.3.43 Aluminum has also become an important export commodity for Odisha. Its export share in State’s total exports grew significantly from 23.4 per cent in 2020-21 to 38.3 per cent in 2024-25. This growth highlights how the aluminum sector not only supports domestic industries but also plays a vital role in Odisha’s external trade and economic development.

Figure 5.24: Aluminum export share in Odisha’s total export

Year	Aluminum export share (%)
2020-21	23.4%
2024-25	38.3%

Source: Dashboard, Ministry of Commerce and Industry, Government of India

Unorganized Manufacturing Sector

5.3.44 The state stands out with second-highest number of operational establishments per lakh population (7343 industries per lakh population), after Kerala. Despite their significant presence, the contribution of unorganized manufacturing units to the overall output of the sector remains relatively modest. However, in terms of employment, the unorganized enterprise sector plays a crucial role, engaging around 13 lakh people or roughly 78 percent of the workforce in manufacturing, underlining its importance as a source of livelihood for a large segment of the state’s population.

Figure 5.25: State wise number of operational factories per lakh population in unorganized enterprise sector, 2023-24

State	Number of operational factories per lakh population
Kerala	7,368
Odisha	7,343
Telangana	7,227
Andhra Pradesh	6,813
Gujarat	6,420
Punjab	6,051
Tamil Nadu	5,869
Karnataka	5,358
India	5,240
Maharashtra	5,060
Madhya Pradesh	4,551
Haryana	4,204

Source: Annual survey of unincorporated Sector Enterprises, MoSPI, 2023-24

Box 5.7: Industrial Development in Odisha from Spatial lens

#Industrial development in Odisha: Odisha has experienced substantial industrial progress over time. From the spatial lens, in organized sector, economic activity is concentrated in north-western Odisha. On the other hand, in unorganized enterprise sector, manufacturing is relatively more scattered in eastern and western part of Odisha as shown below.

Figure 5.26: Distribution of total output and workers in organized and unorganized manufacturing sector, Odisha, 2020-21 & 2023-24

Distribution of workers in unorganized manufacturing across districts, 2023-24

Unorganized workers (‘000)

<30 30-60 60-90 90-120 >120

Distribution of total output in unorganized manufacturing across districts, 2023-24

Total Output (in lakh)

<30 30-60 60-90 90-120 >120

Distribution of workers in organized sector across districts, 2020-21

Organized workers (‘000)

0-5 5-10 10-20 20-30 >30

Distribution of total output in organized sector across districts, 2020-21

Total Output (in crores)

<5 5-10 10-20 20-30 >30

Source: Directorate of Economics and Statistics, Government of Odisha, and Annual Survey of Unincorporated Sector Enterprises (2023-24)

Odisha is experiencing cluster-based development. Key manufacturing sectors including food products, beverages, textiles, wearing apparel, chemicals, petrochemicals, non-metallic minerals, and paper products have developed through cluster-based industrial development, where related industries concentrate in specific geographical regions to create specialized ecosystems.

For example, districts such as Khordha, Cuttack, Ganjam, and Keonjhar have established themselves as key hubs for food processing and beverage industries. Likewise, Khordha, Sambalpur, Balasore, and Ganjam stand out as prominent centers for textiles and apparel manufacturing. Additionally, the chemical and petrochemical sectors are predominantly concentrated in the regions of Cuttack, Khordha, and Jagatsinghpur, forming vital industrial clusters.

Figure 5.27: Major districts of selected non-metal products in unorganized manufacturing sector, Odisha, 2023-24

• Food Products:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Beverages:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Textiles:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Wearing Apparels:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Chemicals & Chemical Products:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Other Non-metallic Mineral product:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Paper & Paper Products:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.
• Plastic and Plastic Products:** Sundargarh, Sambalpur, Boudh, Nuapada, Bolangir, Nayagarh, Khordha, Puri, Jagatsinghpur, Kendrapara, Bhadrak, Balasore, Mayurbhanj, Keonjhar, Deogarh, Jharsuguda, Bargarh.

Source: Annual Survey of Unincorporated Sector Enterprises, MoSPI, Government of India, 2023-24

Promoting cluster development by linking districts with similar industrial strengths brings multiple benefits. Clusters enable industries to share common infrastructure, skilled labor, and supply chains, reducing costs and attracting larger investments. For example, food processing and beverage industries in districts like Khordha, Cuttack and Jajpur can focus on expanding cold storage, packaging, and agro-processing units. Textile and apparel clusters in Bargarh, Sambalpur and Sonepur can promote garment manufacturing and technical textiles. Similarly, chemical and petrochemical clusters in Paradip, Gopalpur and Khordha can encourage the growth of specialty chemicals and eco-friendly products. Developing these clusters can make Odisha’s industrial sectors more competitive in national and international markets.

Beyond existing industries, cluster development opens opportunities for downstream industries that add greater value. Food clusters can support ready-to-eat, ready-to-cook and organic food production, while chemical clusters can expand into bio-based and specialty chemicals. Paper and paper products clusters can grow packaging material manufacturing. The tobacco industry cluster can diversify into safer alternatives and byproduct-based industries. Supporting such downstream growth will create more jobs, foster innovation, and strengthen Odisha’s overall industrial ecosystem.

5.4 INITIATIVES

5.4.1 Odisha has taken several initiatives to boost ease of doing business in Odisha. The smaller land parcel initiative is leading manufacturing transformation by providing plots of 5 to 50 acres to industries, with the objective of making them operational within one year.

5.4.2 Under key deregulation measure taken by the state, focus is on enabling night-time employment of women (7 PM–6 AM) across factories and commercial establishments, including hazardous industries, with safety safeguards.

At the Udyog Samagam 2025, Odisha was recognized as a Top Achiever under BRAP for its key reform in areas such as Business entry, Labor Regulation Enablers and Healthcare sector—reflecting its strong inter departmental execution and focus on improving Ease of Doing Business in the state.

Figure 5.28: Government Initiatives and Achievements, Odisha

Odisha Jan Vishwas Ordinance

• Odisha Jan Vishwas Ordinance 2025 approved for large scale compliance rationalization of 161 burdensome compliances across 16 Acts and 9 Departments
• The ordinance shifted minor contraventions from criminal to civil/penalty-based outcomes.

Business Reforms Action Plan (BRAP) – 2024

• 434 reforms implemented with 98 per cent rate
• Conferred the ‘Top Achievers’ for Business entry, Labour regulation enablers & Healthcare
• Integration of online systems with GO SWIFT
• Integration with Indian industrial land bank & National single window system

E-Governance and Digital Investor Facilitation

• GO SWIFT (Single Window System): It aligned with the Single Window System Guidebook 2025 issued by DPIIT
• GO-SMILE (Inspection and Enforcement Digitisation): Introduction of digital inspection forms, Digital signature integration for inspection report and mandatory geo-tagged photographic evidences for inspections
• Industrial Project Monitoring Dashboard

Deregulation and Compliance Reduction

• Deregulation exercise across all 23 priority areas have been implemented
• Enabled night-time employment for women (7 PM–6 AM)
• Self certification for low-risk and third-party inspection for medium risk buildings
• Digitization and simplification of land use including exemption from CLU
• Enabled online portal process CLU, reduced number of lands ‘kisan’ from 7,000 to 22

Latest Initiatives & Achievements

Source: IPICOL, Government of Odisha

e-Governance and Digital Investor Facilitation

5.4.3 Through GO-SWIFT (Single Window System Guidebook 2025 issued by DPIIT), all identified departmental services are enabled end-to-end for digital investor lifecycle management. The key features of GO-SWIFT include a) Single Sign-On and Single Business ID, b) Unified payment Services, c) Strengthened Common Application Form (CAF) and d) Progressive integration of departmental services.

5.4.4 Under GO-SMILE, inspection processes were digitized through introduction of digital inspection forms, digital signature integration on inspection reports and mandatory geo-tagged photographic evidence for inspections. Capacity-building and training programs were conducted for inspectors and field officials to ensure consistent and transparent implementation. Orientation sessions for inspectors and field officials were conducted to demonstrate the use of digital inspection forms, digital signature integration etc.

5.4.5 The industrial project monitoring dashboard is designed to track the real-time progress of industrial projects, covering both 10 pre-construction approvals and 13 pre-operation approvals. The dashboard enables milestone-level tracking to support timely identification of bottlenecks and their prompt resolution.

5.4.6 Government of Odisha has introduced the ‘Odisha Pharmaceutical and Medical Devices Policy’, 2025, to establish the state as the Eastern Gateway of India’s Health Economy. The policy focuses on pharmaceuticals, bulk drugs, and medical devices as key sectors, targeting ₹25,000 crore in investment and an on-employment potential of one lakh jobs by 2030.

5.4.7 The state aims to develop the Odisha Pharma Park and Odisha MedTech Park, covering 200 acres with modern infrastructure including plug and play facilities, common utilities, and efficient waste management systems. The policy offers attractive incentives including 30% Capital Investment Subsidy, 100% SGST reimbursement, land and power subsidies, and employment incentives for skilled professionals. The comprehensive framework aims to attract investment, reduce import dependence, promote exports, and position Odisha as a major life sciences hub in Eastern India.

5.5 INDUSTRIAL INFRASTRUCTURE

5.5.1 Competitiveness of any industry depends on the industrial infrastructure it leverages in its value chain. Industrial infrastructure is one of the most critical differentiator in its ability to attract investments across sectors. Availability of reliable, relevant, and cost-efficient industrial infrastructure are unique propositions of Odisha.

5.5.2 Government of Odisha is building industrial infrastructure through following channels:

A. Development of Industrial Parks/Estates/Areas: Industrial estates and parks are established to provide shared infrastructure for companies. This includes water supply, power, road networks, logistics and warehousing facilities, 24x7 surveillance managed by private operators, common facility centers, skill development programs, and medical services. These industrial estates support businesses to achieve competitiveness through cost efficiencies, operational advantages, and peer learning. A broad coverage of an industrial estate is shown in figure 5.28.

¹ Odisha Pharmaceutical and Medical Devices Policy, 2025, Industries Department, Government of Odisha

Figure 5.29: Industrial Estate Scheme

• Electricity**: Continuous electric Power supply to all the units inside the Industrial Estates
• Hospital**
• Park**: For better eco-system and clean environment provision of Public Park within the Industrial Estates.
• First-Aid-Centres**
• Afforestation**: Roadside and Outside plantation
• Sewerage System & Effluent Treatment Plant**: Adequate sewerage system inside the Industrial Estates for better health and hygiene
• Worker Hostel**
• Public Convenience**: Provision of public convenience like public toilet, urinal, inside industrial Estates
• Recreational Hall/Community Hall**: Hall for employees and workers of different units located in Industrial Estates
• Established Infrastructure** in terms of Internet Connectivity
• Water Supply**: Regular water supply to all units of Industrial Estates
• Street Light**: Provision of Street Lights for Safety and easy movement
• Bus Stop**
• Road Connectivity**: All weather roads inside/outside the Industrial Estate/Growth Centres

Source: Compendium of Industrial Parks-Infrastructure- 2016, IPICOL, Government of Odisha

As of 2024-25, Odisha has nearly 140 estates spread over 13 thousand acres of land. Within the 140 estates, out of 1542 constructed sheds, 97 per cent have already been allotted. Out of 13,355.8 acres of land, as on 2024-25, 55 per cent of land has been allotted (7,395.4 acres). This implies that the remaining 45 per cent of land (nearly 6,000 acres) is available for allotment to various industrial units.

Table 5.6: Profile of Industrial Estate in Odisha - 2024-25

No. of Industrial Estates Developed	Area of Industrial Estates (in acre)	Build up Sheds	Sheds Allotted	Land Allotted (in acre)
140	13355.8	1542	1502	7395.4

Source: Odisha Industrial Development Corporation, Government of Odisha

B. Provisioning critical infrastructure, i.e. land:

• To further strengthen large-scale industrial development, the State is in the process of additional land acquisition. As of 2024-25, over 77,000 acres of land have been allotted to various projects in steel, aluminum, ferro-alloys, cement, and power sectors.
• Development of Land Bank:** The State has a land bank of 77,812 acres (26,456 acres in category A, and 51,355 acres in category B).
• Land parcels for FDI parks:** The State is in the process of identifying suitable land parcels of at least 500-acre contiguous patch for development of an FDI Park in the State Capital Region. These initiatives will focus on attracting foreign investment in sectors such as automobiles, EVs, semiconductors, IT/ITES, and BFSI.

C. Development of Industrial Corridors: Odisha is developing an industrial corridor that connects key areas across the region, Paradip – Choudwar – Dhenkanal – Angul – Sambalpur – Jharsuguda – Sundergarh – Rourkela. This corridor aims to improve connectivity across the region and to provide a smooth, seamless environment facilitating the integration of upstream and downstream industries, thereby enhancing overall industrial development in the State.

D. Flagship Industrial Infrastructure Projects: The State is in the process of developing several flagship industrial infrastructure aimed towards intensifying State’s strength in mineral and downstream industries as well as expanding its presence in other sectors such as Electronics manufacturing, Seafood, Textiles & Apparels. Further details can be seen in figure 5.29.

Figure 5.30: Spatial distribution of Industrial Infrastructure projects in Odisha

Legend:

• Mega Food Parks:**
  1. Bandhupali, Bargarh
  2. Kurlapada & Kesinga, Kalahandi
  3. Bamani, Nabarangpur
  4. Koraput
  5. Golabandha, Deogarh
• Workers’ Hostel:**
  1. Kalibeti
  2. Ballanta
  3. Mancheswar
  4. Aranga
• Multi-Modal Logistics Parks**
• National Investment Manufacturing Zone, Kalinga-Nagar**
• Technical Textile Park, Dhamnagar, Bhadrak**
• Apparel Parks:**
  1. Barapali, Ganjam
  2. Tirtol, Jagatsinghpur
  3. Ainlasari, Balangir
  4. Balabhadrapur, Keonjhar
  5. Badsinghari, Sambalpur
• Petroleum, Chemical and Petrochemical Investment Region, Paradip and Plastic Part at Paradip**
• Electronic Manufacturing Cluster, Info Valley Bhubaneswar**
• Foreign Direct Investment (FDI) Park, State Capital Region**
• Sea Food Park, Deras, Khordha**

Odisha Economic Corridor: Gopalpur–Bhubaneswar–Kalinga Nagar to Paradip–Kendrapada–Dhamra–Subarnarekha

Source: Infrastructure Development Corporation of Odisha (IDCO), Government of Odisha

Resource and location advantage	Manufacturing Infrastructure	Processing and Value Addition	Connectivity and Trade Enablement	Workforce and Investment Support
Aluminum Park, Angul Promote downstream Aluminium industries Increase in area allotment from 223 acres to 500 acres Focus on Employment generation & Value Chain Development	Electronic Manufacturing Cluster (EMC) Electronics manufacturing hub to boost Make in India initiative ₹ 200.7 crores investment Focus on job creation	Industrial Estate Upgradation Modernize existing industrial infrastructure for MSME Growth Development of 6 industrial Estates across the State along with establishment of Med Tech Parks and Pharma Parks	Odisha Economic Corridor ₹3000 crores budget Integrated economic zone across Gopalpur-Bhubaneswar-Kalinga Nagar and Paradip-Kendrapada-Dhamra Subarnarekha routes Focus on Port Led Development and Coastal Economic Development State envisages in creating 8 multimodal logistics parks, and 5 Mega Food Park locations across the state.	Worker’s Hostel 13 locations across the State Provide Industrial workforce support with enhanced worker productivity
Kalinga Nagar National Investment Manufacturing Zone (KNIMZ) 9 industries sprawled across 13,000 acres of land producing 3.5 million tonnes of steel annually employing 40,000 plus workers	Textile and Apparel Parks To develop comprehensive textile manufacturing sector Garment and Apparel manufacturing across 5 districts in the State Women employment opportunities	Dedicated Industrial Zones Plastic Park Paradip Sea Food Park, Deras Focus on Industrial Diversification by leveraging existing chemical and food industry		Atal Expressway for Fast-track growth trajectory of Odisha Links Malkangiri to Mayurbhanj along with critical road corridors such as Jharsuguda-Balasore, Nuapada- Astarang, Brundabahal-Gopalpur, Brahmapur-Jeypore, Jeypore-Rourkela, and Rourkela-Jaleswar

Source: IPICOL, Government of Odisha

5.6 MINING AND QUARRYING

5.6.1 Odisha is the largest mineral producing state in India, accounting for 43.7 per cent of the country’s total value of mineral production (including metallic and non-metallic minerals but excluding fuel oil and atomic minerals) in 2024-25. Over the last five years, the value of mineral production has witnessed remarkable growth, increased at a CAGR of 21.2 per cent, rising from ₹ 30,044 Crore in 2020-21 to ₹ 64,785 Crore in 2024-25, which is the highest growth among all major mineral producing states except Maharashtra.

5.6.2 Odisha’s strong performance in mineral production highlights both its rich resource endowment and its sustained commitment to retaining a leading position in the country’s mining sector. In 2025-26 (AE), mining and quarrying contributed 9.5 per cent to the State’s GSVA and 23.1 per cent to Industry GVA, emphasizing its pivotal role in the State economy.

Figure 5.32: Share of major mineral producing States in mineral production at the national level in 2020-21 and 2024-25 (in percent)

State	2020-21 (%)	2024-25 (%)
Odisha	36.9	43.7
Rajasthan	19.3	16.1
Chhattisgarh	17.6	14.0
Karnataka	13.3	12.3
Maharashtra	1.5	4.3
Jharkhand	3.7	3.4
Madhya Pradesh	3.3	2.7
Andhra Pradesh	1.2	1.0

Source: Indian Bureau of Mines, Nagpur

5.6.3 Odisha’s abundant mineral wealth positions the state as a critical supplier of key minerals to the national economy, with production reaching 4741.7 lakh tonnes during 2024-25. The state demonstrates exceptional mineral dominance by contributing the entire national production of Chromite (100%), while accounting for nearly three-quarters of India’s Bauxite production (72.7%) and more than half of the country’s Iron Ore output (55%), underscoring its strategic importance in India’s mineral resource landscape.

Figure 5.33: Odisha’s rank and share in national major mineral production, 2024-25

Mineral	Rank	Share (%)
Manganese Ore	4	16%
Coal	1	26%
Iron Ore	1	55%
Bauxite	1	72.7%
Chromite	1	100%

Source: Indian Bureau of Mines (IBM), Nagpur, 2024-25

Production of Major Minerals

5.6.4 Odisha is continuing to lead the chromite production and produced 31.9 lakh tonnes in 2024-25. During the same period, bauxite production also witnessed growth, reaching 179.3 lakh tonnes, primarily led by Koraput and Rayagada district.

Figure 5.34: Production of major minerals (volume in lakh tonnes)

Mineral	2023-24 (lakh tonnes)	2024-25 (lakh tonnes)
Manganese Ore	6.6	6.2
Chromite	31.6	31.9
Bauxite	175.4	179.3
Iron Ore	1690.3	1789.9
Coal	-	2630.2

Source: Directorate of Mines, Government of Odisha

5.6.5 Iron ore production saw a significant increase in 2024-25, rising to 1,789.9 lakh tonnes. This growth was largely driven by Keonjhar and Sundargarh districts, with Keonjhar alone contributing more than half of the State’s total iron ore output. Coal production, a major part of Odisha’s mineral sector, also rose to 2630.2 lakh tonnes in 2024-25. Most of the coal comes from Angul, Sundargarh, and Jharsuguda districts, and all manganese ore production comes from Keonjhar district.

Box 5.8: Harnessing the potential of State’s natural wealth

#Potential of State’s natural wealth: Natural resources are critical factors of production. Access to natural resources such as minerals (iron ore, coal, bauxite, Chromite etc.) supports development of critical infrastructure and serves as input in production of various value-added products. Odisha recognizes the importance of minerals in its endeavor to achieve USD 1.5 trillion economy target by 2047. Therefore, the state has set several targets for Mining Sector.

Production Targets by 2047:

Figure 5.35: Existing production in 2023 vs Target Production by 2047 for different minerals in Odisha

Mineral	Existing Production (2023)	Target Production (2047)
Iron Ore Production	155 MMTPA	320 MMTPA
Steel Production	23 MMTPA	165 MMTPA
Bauxite Production	18 MMTPA	32 MMTPA
Chromite Ore Production	3 MMTPA	7 MMTPA
Aluminum Production	3 MMTPA	5 MMTPA

Source: Odisha Vision Document 2036 & 2047

Figure 5.36: Key targets and milestones for Odisha

Economic Targets

• ❑ Mining GSVA: ₹ 4.8 lakh crore by 2047 (from current ₹ 68,000 crore)
• ❑ Basic metals GSVA: ₹ 22.2 lakh crore by 2047
• ❑ Total investments in metal MSME: ₹ 2 lakh crore

Employment Targets

• ❑ Direct employment in mining: 6 lakh jobs by 2047 (from current 2 lakh)
• ❑ Employment in primary metals: 21 lakh jobs by 2047
• ❑ Employment in metals MSME: 1.25 lakh jobs by 2047

Operational Targets

• ❑ Reduce mine operationalization time from 4.5 years to 3 years by 2036
• ❑ Increase share of multi-modal transportation (railways, slurry pipelines, ports, waterways) to 80% of the transportation mix
• ❑ Achieve 65% mechanized evacuation by early 2030s

Milestones

• ❑ Retain leadership as India’s top state in mineral production
• ❑ Become Asia’s premier hub for mining and metals by 2047
• ❑ Establish mega metal parks of 5,000 to 8,000 acres with plug-and-play model

Source: Odisha Vision Document 2036 & 2047

Revenue and Exploration

5.6.6 Mineral revenue is the largest source of Odisha’s non-tax revenue which contributes nearly 80 per cent of the state’s non-tax revenue in 2024-25. Up to 2nd quarter of financial year 2025-26 (provisional) the state collected mineral revenue of about ₹ 20 thousand crore. This is in the continuation of states’ strong mineral revenue collection performance, following a record collection of over ₹ 42 thousand crore in 2024-25. The steady revenue growth over recent years highlights Odisha’s robust mineral production and efficient management of mineral resources.

5.6.7 Odisha has also registered significant progress in mineral exploration. Twenty Geological Reports (GRs) have been approved, adding substantial mineral resources to the state’s inventory. These include 50.7 million tonnes of iron ore, 73.1 million tonnes of bauxite, 0.7 million tonnes of manganese, and 0.3 million tonnes of graphite, among others. Six of these blocks have been recommended for auctions, helping to further expand mineral development opportunities.

5.6.8 Several exploration projects are underway, with 15 projects approved in 2024-25, two completed, and eight are under progress. Two exploration projects are being implemented in Kandhal (Manganese) and Kalychchora (Bauxite), under the National Mineral Exploration Trust (NMET). Additionally, a gold exploration project near Jaldihi in Keonjhar district is progressing in collaboration with the Geological Survey of India. The state has also achieved noteworthy drilling milestones, with over 28,000 meters drilled across multiple blocks, enhancing resource findings.

5.6.9 Specialized laboratories have characterized hundreds of rock and gemstone samples, contributing to revenue generation and quality assurance in the sector. These combined efforts in exploration, resource augmentation, and regulatory compliance highlight Odisha’s commitment to increase the size of the mineral economy.

Key Initiatives to Strengthen Mining Sector

5.6.10 Odisha has undertaken a series of initiatives aimed at enhancing production, sustainable management, and revenue augmentation from minerals. Key measures and achievements undertaken by the State are given in Table 5.7.

Table 5.7: Key Initiatives for mining sector in Odisha

Initiative	Achievements
Integrated Mines & Minerals Management System (i3MS)	Flagship ICT platform enhancing transparency, accountability, and efficiency 1,928 users registered (FY 25-26 quarter 2) ₹46.6 Cr collected in user/application fees 73,621 electronic permits, 44 lakhs plus e-passes issued
Initiatives for Minor Minerals

Initiative	Achievements
Minor Minerals Regulatory and Digital Integration	Transferred minor mineral management to Steel and Mines Department Introducing e-auction & Integrated Minor Mineral Mining Management System (i4MS) for transparent operations Strengthened controls against illegal mining
Operational Status and Resource Mapping	Identified 3,723 minor mineral sources 2,150 operational Returned 210 extinct quarries to Revenue Department
E-Transport Permits and Decentralization	Replaced manual permits with e-transport permits via i4MS. Proposed handing select sand sources to Panchayati Raj & Drinking Water departments to ensure supply and local governance.
Royalty and Lease Revision	Study group constituted to revise royalty, dead rent, surface rent after last revision in 2016 Targeted enhancement of State revenue from minor minerals
Illegal Mining Prevention	Issued theft prevention guidelines Strengthened enforcement to curb theft and unauthorized mining
E-Auction & Scientific Surveys	Conducted e-auctions via MSTC Limited, 53 sources auctioned in FY 25-26 DGPS surveys completed for 2,235 minor minerals sources
Enforcement Mechanism Strengthening	Multi-tier enforcement taskforces formed Odisha Industrial Security Force (OISF) deployment initiated with 51 specialized units. Till August 2025 4,426 raids, 4,676 vehicles seized, ₹48.44 Cr penalties imposed

Source: Steel and Mines Department, Government of Odisha

Critical Minerals

5.6.11 Government of India has identified 30 critical minerals that are essential for the country’s economic development and national security, based on their economic importance and supply risk. Odisha stands out as a significant contributor, with reserves for 11 out of these 30 critical minerals. However, most of these minerals are not currently being produced at significant levels. By adopting strategic resource management and sustainable practices, Odisha has the potential to maximize the benefits from these minerals, thereby supporting its long-term economic and social development.

5.6.12 Among the critical minerals found in Odisha are cobalt, copper, graphite, nickel, platinum group elements (PGE), rare earth elements (REE), silicon, tin, titanium, vanadium, and zircon. Odisha holds a dominant share of India’s resources for several of these minerals for example,

69% of cobalt reserves, 93% of nickel ore, and 67% of PGE resources. These minerals are vital for a range of high-value industries, including electric vehicles, batteries, aerospace, electronics, renewable energy, and defense technologies. For instance, cobalt and nickel are crucial for battery production, while REEs are indispensable for electronics and wind energy sectors.

5.7 CONSTRUCTION

Overview

5.7.1 The construction sector plays a vital role in Odisha’s economy and is the second largest employer in the State after Agriculture Sector. In 2025-26 (AE), the construction sector contributes 23.3 per cent to the GVA of the industry segment, highlighting its significance within the industrial landscape. Further, the construction sector accounts for 9.6 per cent of the State’s GSVA, reflecting its important role in Odisha’s economic activities.

5.7.2 The sector’s GVA at constant prices has demonstrated robust growth over recent years, with a CAGR of 14.3 per cent between 2020-21 and 2025-26 (AE). This strong performance underlines the rapid expansion and increased investments in infrastructure, housing, and other construction activities across Odisha. The growth of the construction sector not only supports the State’s development endeavor but also provides widespread employment opportunities.

Figure 5.37: GVA of the construction sector in Odisha, 2025-26

The current state of construction sector in Odisha

Metric	Value
Share in State’s GSVA at current prices (2025-26)	9.6%
Share in Industry’s GVA at current prices (2025-26)	23.3%
CAGR in real terms (2020-21 to 2025-26)	14.3%

Source: Directorate of Economics & Statistics, Government of Odisha

Workforce Scenario in Construction Sector

5.7.3 The Construction Sector in Odisha engages a significant portion of the workforce compared to the national average. During 2023-24, 18 per cent of the workforce in Odisha is employed in construction activities, compared to 12 per cent at the national level.

5.7.4 The participation of male workers in the sector is 25.1 per cent in Odisha, significantly higher than 16.4 per cent recorded nationally. Female workforce participation in construction is 7 per cent in Odisha, almost double the national average of 3.7 per cent. This highlights the sector’s importance in providing employment opportunities to both men and women in Odisha.

Figure 5.38: Share of construction sector in total workforce, Odisha and India, 2023-24

Gender	Odisha (%)	India (%)
Male	25.1	16.4
Female	7	3.7
Person	18	12

Source: PLFS 2023-24, MoSPI, Government of India

Welfare Measures

5.7.5 Odisha has implemented various welfare measures to ensure the social and economic security of workers engaged in construction activities. These initiatives are primarily administered through the Odisha Building and Other Construction Workers Welfare Board.

5.7.6 The Board has registered approximately 4.01 lakh construction workers as beneficiaries and disbursed social security benefits amounting to ₹ 358.4 crores under Nirman Shramik Kalyan Yojana during 2024-25. To facilitate smooth and timely delivery of benefits, an online portal has been introduced to provide end-to-end services to registered workers. Key schemes under the Board include.

Key schemes under the Board include:

• Nirman Shramik Pension Yojana: This scheme has been implemented through the Department of Social Security and Empowerment of Persons with Disabilities, under which old age, widow, and disability pensions have been provided to eligible beneficiaries since 2016. Pension amounts are ₹ 1,000 per month for beneficiaries up to 80 years of age, increasing to ₹ 1,200 per month for those above 80.
• Construction of Rental Housing Complexes – Ashraya in Urban Areas (RHC): The scheme is being implemented in convergence with Housing and Urban Development Department for providing temporary accommodation with basic amenities at affordable rent to migrant construction workers. The cost of construction of the RHCs is borne by Odisha Building and

Other Construction Workers Welfare Board. However, the Operation and Maintenance of the RHCs is managed by the concerned ULBs.

So far, 21 locations across 10 cities namely Cuttack, Bhubaneswar, Berhampur, Sambalpur, Rourkela, Angul, Paradip, Jharsuguda, Jajpur, and Dhenkanal have been selected, with 15 rental housing complexes completed.

• Nirman Kusum: A scheme for providing financial assistance to registered beneficiaries for their wards for pursuing technical education such as ITI and diploma courses in government institutions. It is implemented in coordination with the Department of Skill Development and Technical Education, Government of Odisha.

5.7.7 In addition to these welfare measures, the Board extends various other benefits to registered construction workers, significantly enhancing their living and working conditions and promoting their overall social and economic well-being. A snapshot of these benefits is provided in Figure 5.36.

Figure 5.39: Financial assistance to construction workers

01	02	03	04	05	06
Maternity benefit of ₹ 10,000 for a Maximum of 2 deliveries for registered construction workers	Marriage assistance of ₹ 50,000 for self marriage and up to 2 girl children	Educational Assistance of ₹ 2,000 to ₹ 4,000 for a maximum 2 children in government educational institutions	Funeral Assistance of ₹ 5,000 for each registered workers up to the age of 60	Accidental Disability assistance up to ₹ 1.5 lakh for disability due to accidents at workspace	Death Benefits up to ₹ 3 lakh for natural death and ₹ 6 lakh for accidental death at workspace

Source: Odisha Building and Other Construction Workers’ Welfare Board, Government of Odisha

5.8 MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

5.8.1 Odisha is committed to enhancing the competitiveness of MSMEs across the State. MSMEs are vital to Odisha’s economy, not only by creating extensive employment opportunities but also by significantly contributing to the State’s industrial output and exports.

5.8.2 Odisha has approximately 23.5 lakh MSMEs registered on the Udyam Portal as of October 2025, which includes a large number of Informal Micro Enterprises (IMEs). The distribution among categories is predominantly micro enterprises at about 56.1 per cent (13.2 lakh units), IMEs 43.4

per cent (10.2 lakh units), while small and medium enterprises constitute less than 1 per cent (10.6 thousand units combine).

5.8.3 The MSME sector in Odisha is largely informal and micro-enterprise based, relatively similar to the national level. This offers opportunity to support smaller units to move up the value chain, formalize operations, adopt technology, and increase their scale. Organized and large enterprises are comparatively more productive and value generating.

Figure 5.40: MSME Scenario as on 31.01.2026

Category	Odisha (%)	India (%)
Micro	56.1%	59.2%
IMEs (UAP)	43.4%	40.2%
Small	0.4%	0.6%
Medium	0.03%	0.05%

Source: Performance Smartboard, Ministry of MSME, Government of India

District Level Scenario

5.8.4 MSMEs are spread unevenly across Odisha’s districts, reflecting diverse industrial and economic activities. Some districts have well-established MSME clusters, while others are gradually developing their micro and small enterprise base. Khordha district leads the State with the highest number of MSME units (32,768) supported by an investment of about ₹ 1146 crore. It also generated the maximum employment with more than 2 lakh jobs during the year.

5.8.5 Following Khordha, districts like Ganjam and Cuttack show strong MSME presence with 24,571 and 21,867 units respectively. Other districts such as Balasore, Puri, and Mayurbhanj maintain a sizeable number of MSMEs with consistent investment and employment, indicating sustained microenterprise activities and moderate growth.

5.8.6 Other districts including Boudh, Kandhamal, and Nuapada reported fewer MSME units. However, some of these districts showed improvement in employment generation, pointing towards ongoing efforts to expand MSME activities in rural and underdeveloped areas.

Policy supports to MSMEs

5.8.7 To foster the growth and competitiveness of Micro, Small and Medium Enterprises (MSMEs), the State has been actively implementing the support framework established under the MSME Development Policy 2022. As part of the State’s ongoing efforts, this framework focuses on key areas including infrastructure development, industry linkages, raw material supply, technology advancement, and financial incentives to create a supportive environment for MSMEs.

5.8.8 Infrastructure development includes establishing MSME Parks in each district with basic facilities, expanding and rejuvenating industrial estates managed by the State PSUs. This includes earmarking 10 per cent of land by large industries, subject to a limit of 300 acres, for ancillary and downstream industrial parks. Testing laboratories and logistics infrastructure will be improved. These measures are expected to enable faster business setup, improve productivity and modernization, strengthen supply chains through cluster development, ensure compliance with product standards, and reduce costs through better logistics and market access.

5.8.9 Support for ancillary and downstream enterprises involves facilitating linkages between entrepreneurs and large industries, ensuring the availability of products, by products, and waste generated by mother industries for further value addition, and providing priority allotment of land in industrial estates and MSME parks. These measures are expected to promote MSME growth, reduce input costs, accelerate enterprise establishment, and provide ongoing stakeholder support to address challenges.

5.8.10 Raw material support is provided through the Odisha Small Industries Corporation (OSIC), which acts as a nodal agency and will establish raw material banks. Central PSUs, State PSUs, and large industries will supply raw materials to OSIC at the lowest possible rates. This arrangement is expected to ensure reliable supply, reduce production delays, and improve cost efficiency. Technology up gradation is encouraged by promoting adoption of new technologies for quality enhancement, productivity improvement, cost reduction, and environment friendly production. These measures are expected to raise competitiveness, accelerate modernization through subsidies and training, and improve product quality.

Odisha has 31 SFURTI clusters, with 24 clusters operational and 6 expected to be completed by June 2026. The scheme has benefited 11,842 individuals, highlighting the state’s strong focus on boosting industries and supporting livelihoods through cluster development.

5.8.11 To holistically support the growth of MSMEs, the State is offering financial assistance that can be claimed by eligible enterprises. This financial support framework enables MSMEs to invest, upgrade technology, and expand their operations within the State.

Schemes and Policies

5.8.12 To support the growth and development of Micro, Small, and Medium Enterprises (MSMEs) across various sectors, the State has been implementing a range of focused schemes, initiatives and policies. These measures aim to provide financial incentives, enhance infrastructure, promote skill development, facilitate easier access to credit, and encourage cluster-based growth. Table 5.8 below highlights key schemes and policies along with their objectives and achievements during the year 2024-25.

Table 5.8: Key schemes and policies for MSMEs in Odisha (2024-25)

Scheme / Policy	Key Achievements 2024 25
Industrial Policy Resolution (IPR) Incentives: Financial incentives to MSMEs in manufacturing, services and export-oriented units for growth, technology adoption and capacity building.	Budget: ₹1,664 lakh 238 MSMEs benefited ₹15.94 crore disbursed
Odisha Food Processing Policy (OFPP): Promotes agro-processing, seafood and allied industries for value addition, infrastructure development and market access.	Budget: ₹4,336 lakh 52 MSMEs supported ₹19.31 crore disbursed
Odisha MSME Development Policy: Promotes growth of MSME sector in the State by providing various fiscal incentives.	Budget: ₹2,500 lakh 57 MSMEs benefited ₹14.73 crore disbursed
CM-SRIM (Chief Minister’s Scheme for Reimbursement of Interest to MSMEs): Reimburses interest on working capital loans to reduce financial burden of manufacturing MSMEs.	2,524 applications disbursed ₹2.57 crore reimbursed
Entrepreneurship Development Programmes: Provide entrepreneurship training and skill development to youth to promote MSME startups and self employment.	5,419 youths trained in 2024 25
AEM 2.0 Portal (Administration of Incentives for MSMEs & Large Industries): Integrated online portal linked with IFMS enabling direct, timely incentive/subsidy transfer to MSME bank accounts.	Fully operational portal Direct transfers to MSME Accounts reduced delays
Prime Minister Employment Generation Programme: Central scheme providing margin money subsidy for new MSMEs to generate employment, especially for youth and weaker sections.	5,325 enterprises created (244% of target) ₹175.38 crore subsidy claimed vs ₹61.76 crore target
Micro & Small Enterprises – Cluster Development Programme: Cluster based development through Common Facility Centres (CFCs) and promotion of green/sustainable technologies.	54 clusters identified 4 CFCs under implementation 3 CFCs completed
CGTMSE: Provides collateral free credit guarantees to improve MSMEs access to finance.	Since inception covered over 4.46 lakh accounts amounting to ₹ 33,579.06 crore Coverage has steadily increased till June 2025 (2025-26) 19,845 accounts covered

Source: Micro, Small & Medium Enterprise Department, Government of Odisha

Figure 5.41: Cluster based development through Common Facility Centres (CFCs), Odisha, 2024-25

Number of CFC clusters Identified → 54

→ CFC sanction and projects under implementation 4

• Cashew cluster at Brahmagiri, Puri
• Rice Mill cluster at Balasore
• Engineering cluster at Cuttack
• Printing and packing cluster at Cuttack - Bhubaneswar

→ CFC completed 3

• Cashew cluster at Rambha, Ganjam
• Rice Mill cluster at Bargarh
• Pharmaceutical cluster at Cuttack- Bhubaneswar

Legend:

• Cashew
• Rice Mill
• Printing and Packaging
• Pharmaceutical
• Engineering

Source: Micro, Small & Medium Enterprise Department, Government of Odisha

5.8.13 Through these well-coordinated schemes and programs, Odisha aims to boost MSME competitiveness, promote manufacturing, generate employment, facilitate easier access to finance and technology, and strengthen industrial clusters for inclusive economic growth.

5.9 MERCHANDISE EXPORTS

5.9.1 Several countries globally, particularly Japan, Singapore, Taiwan, South Korea, Hong Kong and China have followed export led growth model. Expanded market access provides opportunities to domestic producers to scale and optimize sales operations to garner highest price to the output. Further, exports also expose domestic producers to international competition which enhances efficiencies in production process.

5.9.2 Odisha’s exports constitute an important component of the state’s economy. In 2024-25, exports accounted for 9.5 per cent of Gross State Domestic Product (GSDP). State exported nearly ₹ 85.5 thousand crores of merchandise goods during 2024-25. The exports grew at CAGR of 12.6 per cent during the period 2019-20 to 2024-25. Odisha has set the target to enhance export to nearly ₹ 3.5 lakh - ₹ 4.5 lakh crore by 2036 and ₹ 25 lakh - ₹ 27 lakh crore by 2047.

Figure 5.42: Merchandise exports in 2024-25

• Export turnover (in ₹ thousand cr.):** 85.5
• CAGR (2019-20 to 2024-25) (in percent):** 12.6
• Share in India’s total Export (in percent):** 2.3

Source: Dashboard – Ministry of Commerce and Industry, Government of India

5.9.3 Odisha has set sector-wise export targets. Currently, the State exports nearly ₹ 370 crores worth of rice. There is significant potential to export rice given Odisha’s production of 115 lakh tonnes comparable to several states such as Chhattisgarh and Andhra Pradesh. Considering the potential, the State has set the target to export rice worth ₹ 6,200 crore by 2036 and ₹ 10,000 crore by 2047. Similarly, the State targets to export Shrimp worth ₹ 25,000 crore by 2036 from current value of ₹ 4,708 crores. Odisha has also set the target to be among top three states across India in apparel production and export.

Box 5.9: Opportunities from India’s Free Trade Agreements for Odisha

India has signed 13 free trade agreements/regional trade agreements². Free Trade Agreements provide enhanced market access with the removal of tariffs and in some cases non-tariff barriers too. This opens opportunities across sectors for Odisha. Following are the potential benefits to Odisha through India’s signing of FTAs:

Table 5.9: India’s Free Trade Agreements and export opportunities for Odisha

Free Trade Agreements	Status	Export Opportunities for Odisha
Recent FTAs
India-UK FTA	Recently Concluded	Seafood, rice, textiles steel, aluminum, petrochemicals.
India-UAE CEPA	Operational (2022)	Petrochemicals, aluminum, seafood, textiles, pharmaceuticals
India-Australia ECTA	Operational (2022)	Pharmaceuticals, chemicals, precision instruments, marine products
India-EFTA	Operational (2024)	Textiles, engineering goods, chemicals, seafood

² https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1843902&reg=3&lang=2

As per secondary estimates, India’s exports to the UK is expected to increase by 25% due to FTA³ and this is expected to largely benefit businesses in engineering goods, pharmaceuticals, chemicals, marine products, spices, textiles and apparels, gems and jewelry sectors on account of CETA. The FTA enhances market access for marine products and India’s exports to the UK in the sector is expected to increase by 70%⁴. Odisha remains a significant exporter of seafood and India-UK CETA opens up further opportunities.

Other FTAs
India-European Union (EU) FTA	Concluded	Pharmaceuticals, chemicals, textiles, marine products, steel, aluminum products
India-USA Bilateral Trade Agreement (BTA)	Under Discussion	Petrochemicals, pharmaceuticals, textiles, processed foods, IT services
India-New Zealand FTA	Under Negotiation	Dairy alternatives, processed foods, textiles, marine products, aluminum
India-Peru FTA	Under Discussion	Mining equipment, processed foods, textiles, chemicals, pharmaceuticals
India-Oman FTA	Under Negotiation	Petrochemicals, textiles, engineering goods, pharmaceuticals, processed foods, metals

In order to maximize benefits from increasing export opportunities in the coming decade, Odisha is building a strong exports ecosystem. This includes spreading awareness about potential benefits of FTA amongst exporting community, provide market access through business to business networking opportunities, provide financing support wherever applicable, develop quality testing infrastructure within the State, develop high quality ports and logistics infrastructure, establish sector specific economic zones leveraging existing clusters, investing in creating skilled workforce in targeted sectors such as textiles, aerospace and defense, food processing, chemicals, electronics etc.

5.9.4 Odisha’s exports are concentrated in mineral and metal-based products, owing to its rich natural resources. Basic metals and articles, along with minerals constitute 84.8 per cent of total merchandise exports in 2024-25. This category includes iron ore, chromite, manganese ore, ferrochrome, aluminum, alumina, and ferromanganese. Odisha’s extensive mineral reserves underpin this strong export composition. This reflects Odisha’s current industrial landscape. With investment in various non-metallic sectors, such as aerospace and defence, apparel and textiles, electronics, chemicals, iron and steel downstream, export basket is expected to undergo significant diversification.

5.9.5 Engineering, chemical, and allied products contribute 8.22 per cent of exports, including aluminum conductors, cables, transformers, refractories, cement, paper, tyres, pesticides, explosives, and PVC pipes. Marine products account for 5.4 per cent, while textiles and agriculture and forest products account for 0.9 per cent and 0.6 per cent respectively, others include only 0.1 per cent of total merchandise exports in FY 2024-25.

³ https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1843902&reg=3&lang=2

⁴ https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1843902&reg=3&lang=2

Figure 5.43: Category wise export composition- share in total merchandise export (in percent), Odisha, 2024-25

Category	Share (%)
Metallurgical	57.8%
Mineral	27.0%
Engineering/Chemical & Allied	8.2%
Marine	5.4%
Textile	0.9%
Agriculture & Forest	0.6%
Others	0.1%

Source: Directorate of Export Promotion & Marketing, Government of Odisha

5.9.6 Between 2019-20 and 2024-25, metallurgical product exports witnessed a CAGR of 14.8 per cent. However, other product categories such as Agricultural and forest products recorded a CAGR of 22.1 per cent, textiles registered a substantial CAGR of 41.8 per cent, Pharmaceuticals also registered strong growth at 23.6 per cent. This shows that Odisha’s export basket is diversifying overtime and providing resilience to Industrial landscape of Odisha.

Figure 5.44: Category wise export CAGR between 2019-20 to 2024-25

Category	CAGR (%)
Textile	41.8%
Pharmaceutical	23.6%
Agriculture & Forest	22.1%
Metallurgical	14.8%
Engineering/Chemical & Allied	9.6%
Minerals	9.5%
Marine	8.8%

Source: Directorate of Export Promotion & Marketing, Government of Odisha

Box 5.10: Untapped potential of Odisha’s export basket

#Odisha’s export is largely driven by minerals and metallurgical products, including aluminium, iron ore, steel, and chemicals, which together form the core of its export basket. The state’s rich mineral resources and strategic port connectivity at Paradip and Dhamra provide a strong foundation for these industries. However, downstream manufacturing in iron and steel and specialty chemicals remain underdeveloped despite growing domestic and global demand. Expanding into value added segments such as finishing, coating, fabrication, and specialty chemical production offers scope to broaden its export profile.

Potential Products for Export Growth

Apparel & Textile Strong raw cotton production; potential in handloom and technical textiles. Top importer - USA, Germany, France, Japan, UK	Iron & Steel Downstream Rich in minerals like iron ore, chromite, bauxite. Top importer - USA, China, Germany, Türkiye, Italy	Electronics Has scope for components and instruments. Top importer - China, USA, Germany, Singapore, Viet Nam	Chemicals Strong position in inorganic chemicals. Top importer - China, USA, South Korea, Germany, Japan	Aerospace & Defense Presence of drone manufacturing companies. Top importer - USA, Ireland, UK, France, Germany
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Beyond these traditional strengths, Odisha is diversifying into new industries that add depth to its export basket. In electronics sector, India is currently developing its presence in assembly and aims to develop local supply chain for various components. Several global economies such as China, Taiwan, Vietnam produce various critical components at scale and at competitive prices. Government of India has identified components to be focused under ECMS scheme. In Odisha, there is potential to select production (such as sensors, flex PCBs) of some of these components at scale and cost-effective manner.

The aerospace and defense sector stands out as a rapidly emerging frontier. India’s aerospace exports are growing rapidly. Recent national events have also fast tracked investment in the Sector. Odisha’s home-grown drone manufacturing firms have been key suppliers to Indian Army. With adequate support and incentives, Odisha can expand its presence in low-altitude economy. Further, Odisha has titanium reserves which are used to build equipments in aerospace sector (engines etc.). These reserves could be processed further to develop aerospace grade Titanium and subsequently build entire ecosystem.

Odisha has strengths in raw cotton and silk production. The State is developing integrated ecosystem for apparel manufacturing firms to enhance cost competitiveness. Further, the State is taking initiatives to boost petrochemical production which can be in an input in technical textile production. Odisha’s niche textile products such as Sambalpuri, Bomkai, and Berhampuri sarees, among others with their distinctive designs like Ikat, complement this modern expansion and carry strong appeal in international markets.

5.9.7 The State has undertaken range of measures to enhance export performance. Some of the key measures and initiatives are outlined below:

Table 5.10: Steps to enhance export performance, Odisha

Measures/Initiatives	Details	Achievements/Expected
Export Promotion Measures	DEPM supports exporters with market intelligence, guidance, and coordination with councils State provides assistance to MSMEs for trade fairs and buyer-seller meets.	₹47.3 lakh reimbursed to 214 MSME exporters (2024-25) Improved MSME competitiveness. Higher export volumes and revenue
Logistics Support	VGF agreements signed with MSC and RCL Agencies for Paradip Port container services Air cargo operations launched at Biju Patnaik International Airport	Regular container services at Paradip Port and faster air cargo services
Quality Control Measures	Six labs set up at Cuttack, Rourkela, Berhampur, Balasore, Bolangir, and Angul Labs accredited under NABL/ISO standards with advanced equipment.	Better product quality and standardization Increased consumer confidence. Reliable accredited testing across sectors.
Diversification & Value Addition	Expanding exports in engineering, chemicals, and allied industries Supporting handicrafts and handlooms for global standards. Promoting processed foods, organic products, and marine exports	Growth in engineering and chemical exports Diversified portfolio with higher value addition Enhanced reach of handicrafts/handlooms

Source: Directorate of Export Promotion & Marketing, Government of Odisha

5.10 HANDLOOMS AND HANDICRAFTS

Overview

5.10.1 Odisha is considered as the land of handicrafts and is home to 61 approved crafts such as applique, brass and bell metal work, pottery, stone carving, and tribal jewelry. Around 1.61 lakh artisans practice these crafts, many of whom have received national honors including Padma Awards. The sector is a vital source of self-employment in both rural and urban areas, requiring low capital and simple technology.

5.10.2 In the handloom sector, the number of weavers rose modestly from 1.26 lakh in 2023-24 to 1.28 lakh in 2024-25, while looms increased from 57,801 to 58,649. Production climbed from ₹490 crore to ₹511 crore, and sales increased from 360 crore to ₹394 crore, showing stronger

demand and economic contribution. Many of Odisha’s handloom products carry Geographical Indication (GI) tags, preserving traditional weaving techniques, natural dyeing, and cultural motifs while enhancing market recognition.

Figure 5.45: Odisha’s GI-tagged handloom products

• Gopalpur Tussar Fabrics, Jajpur
• Khandua Saree & Fabrics, Cuttack
• Odisha Ikat, Bhubaneswar
• Dhalapathar Parda & Fabrics, Khordha
• Berhampur Patta (Phoda Kumbha) Saree & Joda, Ganjam
• Bomkai Saree & Fabrics, Ganjam
• Kotpad Handloom Fabric, Koraput
• Habaspuri Saree & Fabrics, Kalahandi
• Sambalpuri Bandha Saree & Fabrics

Source: Handlooms, Textiles & Handicraft Department, Government of Odisha

5.10.3 The Odisha Crafts Museum (Kala Bhoomi) preserves and showcases heritage. Marketing organizations drive sales, generating employment for over 82,000 artisans. In 2024-25, total sales of handloom products reached ₹393.6 crore, with Boyanika contributing ₹221.4 crore, alongside SERIFED, Sambalpuri Bastralaya and Utkalika.

5.10.4 The Directorate of Handicrafts under the Handlooms, Textiles & Handicrafts Department manages sectoral promotion. Key institutions include Utkalika, which provides marketing support, raw material banks, GI registration, and exhibitions, and SIDAC, which focuses on product innovation and cultural preservation.

Key Schemes and Achievements (2024-25)

5.10.5 State has implemented several important schemes and initiatives to support the growth and development of Odisha’s handloom and handicrafts sectors. These programs focused on enhancing artisan skills, improving infrastructure, providing financial assistance, and expanding market access, all aimed at increasing productivity and livelihood opportunities.

• Skill Upgradation Training: 1,860 weavers trained in weaving, dyeing, tie & dye etc.

• Exposure Visits: 405 weavers benefitted from 33 visits to successful clusters.

• Work-shed Construction: 491 individual workshops and 2,375 workshop-cum-housing units completed.

• BALIA Scheme: Interest-free working capital support extended to 560 weavers.

• Bayana Jyoti Yojana: 8,911 households equipped with inverter, battery, fan, and LED lights.

• Technology Intervention (POHI): Distribution of 1,624 frame looms, 738 pit looms, and 2,461 weaving accessories.

• Exhibitions: Two expos at Bhubaneswar and one at Bargarh showcasing handloom products.

• Boyanika Showroom: Inaugurated at Biju Patnaik International Airport (July 2024).

• Incubation Centre: Launched at Patia, Bhubaneswar (Sept 2024), supporting entrepreneurs and aiming to create 600 jobs.

• High-profile Promotion: Singapore President’s visit to Kalabhoomi (Jan 2025) praised Odisha’s artistry.

• Women SHG Expo: Organized at Ekamra Haat, Bhubaneswar.

Growth of Handicraft Industry

5.10.6 The handicrafts sector has shown consistent growth since 2019-20. The cumulative number of artisan units rose to 38,299 by 2024-25, supported by investments of ₹274 crore. Employment reached 61,880, with annual production valued at ₹165 crore and sales at ₹179 crore.

Table 5.11: Growth of Handicraft Industry in Odisha

Year	Total no. of units by the end of the year (cumulative since 2019-20)	Total investment made by the end of the year (in ₹ lakhs) (cumulative since 2019-20)	Total employment generated by the end of the year (cumulative since 2019)	Production during the year (in ₹ lakhs)	Sales during the year (in ₹ lakhs)
2019-20	5702	2637.4	9060	14359.1	15960.9
2020-21	8653	4894.0	13957	10042.4	9567.1
2021-22	14529	9459.2	23486	13263.6	14534.6
2022-23	21740	14610.5	35140	14867.8	16062.6
2023-24	29744	20799.2	47989	16140.5	17617.2
2024-25	38299	27436.2	61880	16561.1	17949.5

Source: Handlooms, Textiles & Handicrafts Department, Government of Odisha

5.11 CONCLUSION

5.11.1 Odisha is strengthening its position as an important industrial hub through the effective utilization of its mineral resources and focused efforts to diversify industrial base. The state’s recent policies aimed at attracting investment across high-technology sectors, such as semiconductors and electronics, indicate a forward-looking approach to enhance innovation and investment in niche sectors.

5.11.2 The state has made significant progress in improving the business environment through regulatory reforms, digitization of processes, and investor facilitation platforms. Development of industrial parks, clusters, and corridors has enhanced capacity and integration across sectors. Emerging industries like green hydrogen, aerospace, pharmaceuticals, electronics, textiles, and food processing show growing importance, indicating diversification beyond traditional mineral-based industries. MSMEs continue to be vital for employment and local economic activities, supported by targeted schemes and infrastructure. Odisha’s export profile is also broadening, with increased shipments of engineering goods, chemicals, textiles, and processed foods alongside minerals. These combined efforts position Odisha to sustain industrial growth, expand employment opportunities, and become a competitive investment destination in Eastern India in the coming years.

A detailed black and white line drawing of a city skyline. The scene is composed of various architectural elements. On the left, an industrial facility features two tall smokestacks emitting stylized clouds of smoke. Adjacent to it is a tall, modern skyscraper with a grid-like window pattern. Further right, a large factory complex includes a tall chimney and several interconnected buildings. The middle ground shows a mix of residential and commercial structures, including a prominent building with a sawtooth roof and another with a series of horizontal lines. The foreground contains more varied buildings, such as a warehouse-style structure with large doors and a smaller building with a gabled roof. The entire skyline is set against a backdrop of simple, wispy clouds. The drawing is executed in a clean, minimalist line-art style, using only black outlines on a white background. The ground level is indicated by a solid horizontal line at the bottom, with dashed lines suggesting roadways or paths.