Services Sector in Odisha: Trends and Opportunities

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SERVICES SECTOR IN ODISHA: TRENDS AND OPPORTUNITIES

CHAPTER 6

Abstract

Services sector is the second largest major sector with a share of 39.1 percent to the Gross State Value Added (GSVA) in 2025-26 (AE). The State is expected to grow at 9.3 per cent in 2025-26 (AE) as against its long-term average of 5.5 per cent. The growth is broad-based, particularly high among modern services i.e., hotels and restaurants (proxy for tourism activity), financial services, professional services.

Digital Public Infrastructure has led to democratization of financial services (credit, savings, payments etc.). Odisha, therefore, is experiencing rapid growth in the financial service sector. More than half of bank branches (52.2 per cent) serve rural areas, with cooperative banks continuing to play a vital role in rural finance. The BALARAM Scheme extends credit support to landless and tenant farmers, and the Mission Shakti Loan Scheme supports Women Self-Help Groups with interest-free loans. The development of FINTEK City in Bhubaneswar carries the State’s ambition, to establish the city as eastern India’s fintech hub with the potential to generate over 50,000 jobs.

Tourism is another growth driver where Odisha is gaining traction. The State attracted 114 lakh tourists in 2024-25, registering a 14 per cent increase over the previous year. The Eco-Retreat glamping programme offers unique experiences at locations like Konark and Satkosia. The Caravan Tourism initiative supports the ‘Odisha by Road’ campaign opening up new ways to explore the State. Puri and Pati Sonapur beaches have earned the prestigious Blue Flag certification, and the Mahanadi Riverfront Project is expected to create new recreational spaces along the river.

Technology enabled services are growing rapidly, underpinned by the Odisha IT Policy focused on world-class infrastructure and employment generation. Initiatives such as the GO SWIFT single-window system facilitate ease of doing business, while state’s push to attract Global Capability Centres, data centres, and an undersea Cable Landing Station at Puri enhance Odisha’s position as an emerging IT and digital hub. The State’s AI Policy is encouraging data-driven governance, while platforms like Odisha One and Ama Seba Kendras are reshaping how citizens access public services, making the experience simpler and more efficient.

These developments collectively signify Odisha’s steady transformation into a vibrant services economy, one that is driving inclusive progress and laying the ground for sustained diversification and technological advancement in the years ahead.

6.1 INTRODUCTION

6.1.1 The service sector has contributed immensely to India’s growth trajectory in the last few decades. Within services, specific sectors such as IT/IT-enabled services, financial services, tourism, real estate and professional services are key contributors. In the last 10 years, i.e. 2015-16 to 2025-26, India’s Gross Value Added (GVA) has grown from ₹ 125 lakh crores to ₹ 323 lakh crores. Out of the ₹198 lakh crore addition, nearly ₹116 lakh crore came from services. Within services, financial services, professional and IT services together contributed ₹ 50 lakh crores.

6.1.2 There are several factors which have led to the service sector’s outperformance. First, India offers a large pool of English-speaking IT professionals at relatively low labor cost and time zone advantage with Western markets allowing 24X7 service delivery. Second, relative to manufacturing, service sector is less capital intensive and is subject to limited regulatory control. Third, demand side factors have also played a role. A rising middle-income class in India has led to higher demand for services. Urbanization has increased demand for modern services such as business services and personal services. Fourth, relative to manufacturing, services faced less global competition in terms of prices and quality. This is because some of the services are produced and consumed at the same time and at the same place (such as hair dressing, retail trade, large part of financial services etc.).

6.1.3 At the state level too, there is a strong correlation between service sector’s share in GSVA and state’s per-capita income. In Odisha, the Service sector has nearly 39.1 per cent share in GSVA in 2025-26 (AE) with a per-capita income of ₹ 1.9 lakhs. States with relatively higher per-capita income reported higher share of service sector with a few exceptions such as Gujarat.

6.1.4 The impact of service sector on state’s per-capita income depends on composition of services. Presence of high value services improves states’ per-capita income. Some of the high value services could include financial services, professional services, IT/ITeS services, retail sale of electronics, pharmacy and jewelry. These services on a relative basis are skill-intensive with high technological content and generate higher value addition. State may have higher share of services sector in GSVA but report low per-capita income. This could be due to limited presence of high value services.

6.2 SERVICES SECTOR GVA

6.2.1 In 2025-26, the services sector contributed 39.1 per cent to the State’s GSVA at current prices, amounting to about ₹3.4 lakh crore. The CAGR of the services sector GVA in Odisha over the period from 2014-15 to 2024-25 was 5.5 per cent, slightly below the national CAGR of 6.4 per cent during the same period. However, the service sector in Odisha is projected to grow by 9.3 per cent 2025-26 (AE), slightly surpassing the national growth rate of 9.1 per cent. This underscores a sustained increase in the volume of services delivered within the State, indicating robust economic activity across the sector.

6.2.2 The services sector is primarily driven by Trade & Repair services and Professional & Real Estate services. Trade & Repair Services dominated the sector with the largest share of 19.2 per cent of services GVA at current prices and recorded a real growth rate of 7.8 per cent, reaffirming its role as a key pillar of Odisha’s service economy. Professional & Real Estate services, which accounted for 15.8 per cent of the sector’s value, registered 9.9 per cent growth in real terms, suggesting expanding market activity and increasing asset ownership, supporting economic stability and urban development.

Figure 6.1: Growth of services sector for 2025-26 (AE) vis a vis CAGR growth from 2014-15 to 2024-25, Odisha

Growth Type	Odisha	India
CAGR 2014-15 to 2024-25	5.5%	6.4%
Year-on-Year growth (2025-26)	9.3%	9.1%

Source: Directorate of Economics and Statistics, Government of Odisha

6.2.3 Hotels and Restaurants services registered the highest real growth of 19.4 percent, with a CAGR of 8.4 per cent between 2014-15 and 2024-25, signaling rapid expansion in tourism and related hospitality services, along with emerging opportunities for employment and income generation. Other Services also recorded notable growth, indicating diversification and rising demand for various personal and business services.

6.2.4 Financial services accounted for around 10.6 per cent of the sector’s value and are expected to exhibit 11.9 per cent growth, reflecting deepening financial intermediation and increasing penetration of banking and insurance services. Public Administration, with 11 per cent share, is expected to register 8.8 per cent growth, underscoring the significant role of governance in the State economy.

6.2.5 Transport services, including railways, road, water, air, and services incidental to transport and storage, together formed approximately 15.8 per cent of the sector’s value. These services are expected to expand at 8.6 per cent in 2025-26 (AE), driven by investments in infrastructure enhanced connectivity and logistics. Within transport services, air transport recorded significant real growth rate of 14.9 per cent during the same period. This surge can be attributed to shifts toward more time-efficient transport modes, rising disposable incomes among households and businesses, improved air connectivity and infrastructure in the State.

6.2.6 Communication & Broadcasting services, contributing 4.8 per cent, grew in real terms at 8.1 per cent during the same period, buoyed by increasing digital access.

Figure 6.2: Growth of various subsectors from 2014-15 to 2024-25 vis a vis growth in 2025-26 (AE) (in per cent)

Subsector	CAGR 2014-15 to 2024-25 (%)	2025-26 (AE) (%)
Hotels & Restaurants	8.4	19.4
Financial Services	6.4	11.9
Professional Services	4.6	9.9
Public Administration and Defence	5.3	8.8
Other Services	7.4	8.7
Transport	4.8	8.6
Communication & Broadcasting	5.7	8.1
Trade & Repair Services	4.8	7.8

Source: Directorate of Economics & Statistics, Government of Odisha

6.2.7 The prominence of trade, real estate, and financial services alongside rising contributions from transport and hospitality highlights the sector’s increasing role in driving economic diversification and supporting inclusive development

6.3 EMPLOYMENT LANDSCAPE OF SERVICE SECTOR

6.3.1 Odisha has witnessed rapid growth in service sector employment over the past few years. In 2023-24, nearly 59.5 lakh workers were employed in the service sector, an increase from 46.3 lakh workers in 2019-20 (CAGR of 6.5 per cent). The growth was marginally higher in case of female workers.

Figure 6.3: Service sector employment (in Lakh workers), Odisha, 2019-20 and 2023-24

Category	2019-20 (in lakh workers)	2023-24 (in lakh workers)	CAGR
Total	46.3	59.5	6.5%
Male	36.1	46.4	6.4%
Female	10.1	13.1	6.7%

Source: Periodic Labor Force Survey, MoSPI, Government of India, 2019-20 to 2023-24

6.3.2 In 2023-24, the workforce distribution across Odisha’s services sector reveals trade as the predominant subsector, accounting for 8.8 percent of total employment. The ‘Other Services’ subsector, comprising repair and maintenance (automotive, machinery, electronics etc.), personal care (laundry, hairdressing etc.), or advocacy services, constitutes 6.1 percent of employment. Transport and storage, includes logistics and warehousing, employs 3.4 percent, Hotel Industry accounts for 2.1 percent, while real estate and professional services covering IT services, business brokerage, and rental ownerships constitute 1.8 percent.

6.3.3 Smaller portions of employment are found in public administration (0.9 percent), finance (0.6 percent), and communication (0.2 percent). This sectoral breakdown shows the critical contribution of trade and diversified service activities to Odisha’s evolving economic landscape.

Figure 6.4: Percentage of workers distributed across various subsectors under Services sector, Odisha, 2023-24

Subsector	Percentage
Trade	8.8
Other services	6.1
Transport & Storage	3.4
Hotel	2.1
Real estate & Professional	1.8
Public Administration	0.9
Finance	0.6
Communication	0.2

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

Quality of Employment (Advanced and Basic Services)

6.3.4 Odisha has seen an improvement in the quality of employment in the service sector. Quality of employment could be assessed through various lenses. Four criteria are used to classify employment in Advanced or Basic Services. Advanced services are high on skill intensity, technology content, value addition and market structure. As an example, IT/IT-enabled services could be considered as advanced services as compared with retail sales of cereals, retail sales of newspaper and magazines due to difference in skill-intensity, value addition, and technology intensity.

6.3.5 Similarly, within major service sectors such as retail trade, there could be differences in skill-intensity. For example, retail sales of jewelry and pharmacy could be more skill intensive than other retail sale services such as sale of cereals. Based on this framework, the number of workers in advanced services and basic services are estimated. In Odisha, from a compositional perspective, greater number of workers earn their livelihood from basic services. The State, however, is experiencing higher growth in employment in advanced services. This is more particular in case of women. Women experienced substantially higher growth in employment in advanced services at 13.4 per cent as compared with men at 5.6 per cent only.

Figure 6.5: Workforce composition by gender and by their service types, Odisha, 2019-20 and 2023-24

Total Workforce

Advanced Services

Year	Workforce (in lakh workers)
2019-20	6.69
2023-24	8.77

CAGR: 7.0 %

Basic Services

Year	Workforce (in lakh workers)
2019-20	39.56
2023-24	50.70

CAGR: 6.4 %

Female

Year	Workforce (in lakh workers)
2019-20	1.06
2023-24	1.75

CAGR: 13.4%

Male

Year	Workforce (in lakh workers)
2019-20	5.64
2023-24	7.02

CAGR: 5.6%

Legend:

• Advanced Services 2019-20
• Advanced Services 2023-24

Source: Periodic Labor Force Survey, MoSPI, 2019-20 to 2023-24, Government of India

6.4 HOUSEHOLD CONSUMPTION OF SERVICES

6.4.1 From a consumption perspective, households in Odisha spent nearly ₹ 60,000 crores on high value services in Odisha in 2023-24. This is nearly 30 per cent of total household consumption in Odisha (which is ₹ 1.9 lakh crores). Healthcare was the leading spending category (67 per cent) followed by education services, retail sales of high value items such as electronics, spectacles, musical instruments, telecom services, retail sale of beauty products, travel services such as rail/air/taxi, skill intensive household services (such as plumber, electrician) and digital services. Spending on digital services is expected to increase substantially given increased access to high-speed internet in the recent past. Top 10 districts in each category of high value services are shown in Table 6.1.

Figure 6.6: : Household spending on high value services, Odisha, 2023-24

Household Consumption (2023-24), In Percent share

Service Category	Percentage Share
Healthcare	67.0%
Education Services	9.3%
Retail Sale of Electronics, spectacles, musical instruments etc.	7.9%
Telecom	7.6%
Retail Sale of Beauty Products	3.7%
Retail Sale of Jewelry	3.3%
Rail/Air/Taxi Service	1.0%
Skill-Intensive HH services	0.11%
Digital Services	0.05%

Source: Household Consumption Expenditure Survey, MoSPI, 2023-24, Government of India

Table 6.1: Top service expenditure categories among households and leading districts (high value services), 2023-24

Service Expenditure Category	Household Consumption (In per cent)	Top 10 Consuming Districts
Healthcare	67.0%	Khordha, Bolangir, Kalahandi, Balasore, Sundargarh, Sambalpur, Subarnapur, Dhenkanal, Bargarh, Kendrapara
Education Services	9.3%	Khordha, Sundargarh, Cuttack, Balasore, Mayurbhanj, Sambalpur, Bolangir, Keonjhar, Bargarh, Puri
Retail Sale of Electronics, spectacles, musical instruments etc.	7.9%	Sundargarh, Cuttack, Bolangir, Khordha, Sambalpur, Ganjam, Mayurbhanj, Bargarh, Balasore, Keonjhar
Telecom	7.6%	Cuttack, Khordha, Mayurbhanj, Bolangir, Balasore, Sundargarh, Keonjhar, Ganjam, Bargarh, Puri
Retail Sale of Beauty Products	3.7%	Mayurbhanj, Balasore, Keonjhar, Bolangir, Sundargarh, Cuttack, Khordha, Sambalpur, Bargarh, Jajpur
Retail Sale of Jewelry	3.3%	Cuttack, Khordha, Sundargarh, Bolangir, Balasore, Bargarh, Ganjam, Puri, Mayurbhanj, Sambalpur
Rail/Air/Taxi Services	1.0%	Sambalpur, Bolangir, Balasore, Khordha, Cuttack, Sundargarh, Bargarh, Kendrapara, Dhenkanal, Koraput
Skill-Intensive HH services	0.11%	Sundargarh, Bolangir, Sambalpur, Bargarh, Subarnapur, Khordha, Ganjam, Rayagada, Keonjhar, Nabarangpur
Digital Services (Internet expenses (cable broadband, mobile data charges, etc. if separable))	0.05%	Khordha, Sundargarh, Sambalpur, Cuttack, Ganjam, Mayurbhanj, Puri, Bargarh, Kandhamal, Bolangir

Source: Household Consumption Expenditure Survey, MoSPI, 2023-24, Government of India

Box 6.1: Services sector growth aspirations as per Vision 2036 & 2047

#Service Sector Growth Aspirations: The vision 2036 and 2047 recognized the increasing role of services and technology in achieving the goal of Viksit Odisha. The overall services sector’s contribution is targeted to be 49 per cent of GSVA with robust employment growth and export expansion. Table 6.2 lists priority areas along with the strategies that the state aims to adopt in the coming decades.

Table 6.2: Areas in services and strategies defined in Vision 2036 and 2047

Area	Target set for 2047	Key Strategies
Overall Services Sector contribution	49% share to State GSVA (from current level of 36%) 10% share in India’s service GVA 5% of share in India’s services exports, 10% CAGR to ₹ 74 lakh crore GSVA, 2.5x increase in employment	State to target 15 sub-sectors Build 7 major services parks across the State Targeted incentives, skilling & startup integration
FINTEK City (Bhubaneswar)	Make Odisha as eastern India’s fintech hub contributing ₹ 1 lakh crore GSVA 50,000 high-paying jobs.	Development of Special Economic Zones with world-class infrastructure Private sector partnerships, dedicated facilitation agency and integration of digital tools for faster solutions
Data Centres	Develop a network of International Data Centres in Bhubaneswar-Cuttack-Puri-Paradip economic region ₹ 10,000 crore investment by 2036 generating 25,000 jobs in data management & security	Plug & play model for Multi-National Corporations (MNCs) in the State Establishment of undersea cable landing station at Puri
Global Capability Centres (GCCs)	Make Odisha as East India’s top GCC destination ₹ 25,000 crore investment in GCC with target employment creation of 2 lakh jobs.	State to develop 5 dedicated GCC hubs in the State Provide plug and play facilities with high-speed internet connectivity, skilled workforce with focus on R&D
Aviation & Allied Services	Developing Odisha as Regional aviation hub ₹ 5,000 crore revenues from aviation related service 10,000 people trained as aviation professionals per year.	Establishment of training academies & MRO facilities in the State Focus on R&D of drone tech and services Leverage infrastructure growth.

Area	Target set for 2047	Key Strategies
Edu-city & Medi-city	Odisha to become a regional education & healthcare excellence hub To generate more than 1 lakh jobs in manufacturing and allied industries Focus on generating ~20% of tourism from medical tourism	Establish two Edu-cities (Sambalpur & Bhubaneswar), Establish one Medi-city at Cuttack with super-specialty hospitals
Knowledge Hub for Steel & Minerals	To make Odisha as global leader in green steel Focus on generating more than ₹ 50,000 crore value-added mineral exports and create more than 1 lakh jobs	Build R&D centres focusing on low-carbon tech, Industry- academic collaborations for enhanced technology advancements

Source: Odisha Vision Document 2036 & 2047

²15 sub sectors categorized in two buckets:

a) High skill sub sectors: Air-transport related services (passenger, helicopter, cargo), Advanced financial services and fintech, IT & ITes, Software & Cybersecurity services, Real estate development & management, Research & development in emerging technologies, Specialized healthcare services.

b) High employment sub sectors: Tourism & hospitality, Retail trade & e-commerce, Repair & maintenance services, Services incidental to transport, Construction services, Educational & vocational training, Healthcare & care-giving services & Arts, entertainment & recreation

6.5 FINANCIAL SECTOR

6.5.1 Financial Services sector is broadly guided by policy framework at the national level. The sector has seen robust growth in the past few decades particularly due to transformational reforms such as India Stack, a digital public infrastructure which has democratized access to various financial services in India. India Stack has mainly three layers, first data layer under which individual data can be securely shared across service providers, second, identity layer under which individual is able to digitally identify himself or herself through Aadhaar, e-KYC, e-sign, and third, payment layer through which payments can be digitally made to each other at zero or negligible cost in reliable and fastest possible way.

6.5.2 While there have been several other reforms too in the financial sector, India stack and series of solutions built on top of this public infrastructure have unleashed opportunities to design new financial products and services for underserved segments in the country. One of the main barriers to financial inclusion for traditional financial institutions has been customer acquisition and customer service. Through India Stack and improvement in basic digital infrastructure such as internet penetration and access to smart phones, financial institutions can now, securely and at negligible cost, verify the identity of the customer and serve underserved segments.

Supply Side

6.5.3 Odisha has a robust supply side ecosystem for various kinds of financial services, i.e. savings, credit, insurance, payments and wealth. With technological adoption in the financial sector, access to these financial services has improved substantially. While Banks remain a key delivery model for various kinds of financial services, other non-banking service providers such as Post office, non-bank financial corporations, fintech players are also filling the unmet demand.

Banking Infrastructure

6.5.4 The banking landscape in Odisha demonstrates a robust infrastructure expansion with strategic focus on rural penetration. Between June 2024 and June 2025, the state witnessed a net addition of 235 bank branches, growing from 5,948 to 6,183 branches. The rural-centric approach remains evident with 52.2 per cent of branches located in rural areas, followed by semi-urban (26.6 per cent) and urban regions (21.2 per cent). This distribution pattern underscores the sector’s commitment to ensuring banking services reach the remotest corners of the state. In rural areas, except for southern part of Odisha, access to bank branches and ATMs in or nearby villages remain high.

6.5.5 Public sector banks continue to dominate the physical infrastructure with 51.7 per cent of all branches, though private sector banks are gradually expanding their footprint from 20.9 per cent to 21.2 per cent. The slight decline in ATM numbers from 7,690 to 7,602 indicates a potential shift toward digital banking solutions, while the Business Correspondent network contracted from 42,446 to 41,105, suggesting consolidation in last-mile banking services. These changes reflect the evolving nature of banking delivery mechanisms in the state.

Figure 6.7: Banking Sector Key Indicators, Odisha

Key Indicators

June 2024 to June 2025

Bank Branches: 5948 | 6183

Business Correspondent’s: 42446 | 41105

ATMs: 7690 | 7602

ATMs by region (in 2025)

	Rural	Semi-Urban	Urban
ATMs	1845	3147	2610

In 2025

Advances Utilized (June 2024 to June 2025): ₹ 4.0 lakh crores | ₹ 4.4 lakh crores

Deposits (June 2024 to June 2025): ₹ 5.3 lakh crores | ₹ 5.9 lakh crores

MSME Credit (June 2024 to June 2025): ₹ 34,199 crores | ₹ 36,992 crores

Customer Service Plus Outlets in Odisha (as on February 2026)

Total Outlets Opened: 3682

Total no. of transactions: 2 crore

Total transaction amount: ₹ 10,625.88 crore

Co-operative Banks: 348 | 348

Small Finance Banks: 280 | 347

Regional Rural Banks: 982 | 979

Private Sector Banks: 1246 | 1311

Public Sector Banks: 3092 | 3198

■ Jun-24 ■ Jun-25

Source: State Level Bankers’ Committee (SLBC), Odisha (176th, 179th, and 180th Agenda)

*UBI- Union Bank of India

Figure 6.8: District wise share in outstanding credit (utilized) in 2018 and CAGR during 2018-2025

CAGR (2018-25)

Share in credit outstanding 2018 (in percent)

Districts plotted: Malkangiri, Gajapati, Nuapada, Bhadrak, Nayagarh, Balangir, Sambalpur, Ganjam, Boudh, Kendrapara, Anugul, Kandhamal, Jharsuguda, Puri, Nabarangpur, Koraput, Bargarh, Baleshwar, Sundargarh, Sonepur, Kalahandi, Mayurbhanj, Rayagada, Jagatsinghpur, Deogarh, Keonjhar, Jajpur, Dhenkanal, Cuttack.

*Khordha: 37% share in 2018
CAGR: 16%

Source: Reserve Bank of India

Priority Sector Lending

6.5.5 From inclusive growth perspective, it is important to direct credit towards activities that boost development. Some of the priority sectors include agriculture, MSME, education, housing, and export credit. These sectors play a key role in the region’s socio-economic life. In 2024-25, the total priority sector credit in Odisha stood at ₹ 195 thousand crore, achieving 92.6 percent of the target. Compared to 2023-24, the priority sector credit increased by 17.7 percent, from ₹ 166 thousand crores. W.r.t 2025-26 (till 30.06.2025), the total priority sector credit in Odisha stood at ₹ 61 thousand crore, up by 9.2 per cent compared to previous year June 2024 (as on 30.06.2024).

6.5.6 In 2024-25, advances to agriculture grew by 5.1 per cent, and their share in Adjusted Net Bank Credit (ANBC) stood at 26.6 per cent, exceeding the 18 per cent target. Advances to MSMEs increased by 10.2 per cent, with their ANBC share reaching 13.3 per cent, higher than the 7.5 per cent target. Advances to weaker sections and women also grew significantly by 15.3 per cent and 14.1 per cent respectively, with the weaker sections’ ANBC share reaching 40.3 per cent, well above the 12 per cent benchmark. Advances to minority communities jumped by 15.3 per cent, reflecting focused inclusion efforts. Loans to all the mentioned priority sectors experienced double-digit growth.

Figure 6.9: Annual Credit to priority sectors, Odisha
(in ₹ thousand crores)

Sector	2023-24 (₹ thousand crore)	2024-25 (₹ thousand crore)
Agriculture	69.4	76.1
MSME	76.9	94.6
Education	4.8	4.4
Housing	1.7	1.3
Export Credit	0.0	0.0
Other PS	13.6	18.6
Total	166	195

Source: State Level Bankers’ Committee (SLBC), Odisha (179th, and 180th Agenda)

Demand Side

6.5.7 Apart from improvement in digital infrastructure, Odisha has also seen substantial progress in digital literacy. Among the age group of 15-24 who are part of or would be entering the workforce, ability to use phone (particularly smart phone) is significant. This is prevalent across districts in Odisha. Financial Institutions can therefore design appropriate digital products.

Box 6.2: Digital Dividend

#Digital Dividend: Digital Technologies are creating profound impact across the spectrum. Adoption of basic digital tools such as internet and computer at firm level is expected to contribute to improved productivity. It is estimated that Information and Communication Technology (ICT) adoption contributed nearly 23 per cent of total factor productivity increase in United States during 1995-2002¹. From production function perspective, adoption of digital tools can impact productivity in four ways: (i) Labor augmented technical change: Worker’s capability is enhanced with the ability to do more tasks conditioned on relevant training, (ii) Digital Capital deepening: some of tasks gets automated or replaced with digital tools which could be delivered efficiently at lower cost, (iii) Total Factor Productivity channel: Access to internet and computer also makes processes and management more efficient and effective, (iv) Scale economies: Unlike other factors, adoption of digital tools can deliver increasing returns to scale assuming complementary factors are in place (like training, governance, infrastructure etc.).

An attempt is made to analyze the use of basic digital technologies, i.e., internet and computer, among the unincorporated enterprises in Odisha. It is tested whether there is any relationship between the use of internet/computer and firm productivity (GVA per worker). Results suggest that there is a positive relationship between firm productivity and use of digital tools. At an aggregate level, firm productivity using digital tools is 1.8 to 2.2 times that of their counterpart not using digital tools. The digital dividend holds in case of both manufacturing as well as services sector at the sub-sector level. The dividend varies from 1.6x to 3.5x in these sectors.

Figure 6.10: Digital Dividend of use of basic digital tools (internet and computer) among unincorporated enterprises in Odisha, 2023-24

Used Computer in last 365 days

Used Computer in last 365 days	GVA per worker (₹)
No	75,430
Yes	1,68,461

2.23 times

Used Internet in last 365 days

Used Internet in last 365 days	GVA per worker (₹)
No	69,830
Yes	1,28,903

1.85 times

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

¹ https://www.chicagofed.org/publications/chicago-fed-letter/2003/september-193

It may be argued that digital dividend may be due to the scale effect (large size enterprises who adopt digital tools more, also report higher productivity). Firm productivity improves with size of the enterprises. In first GVA quantile, the labor productivity was ₹ 31,462 as compared with ₹ 2.18 lakhs in highest quantile (Q4).

However, it is also found that digital dividend persists across firm sizes (Figure 6.11). GVA per worker among those enterprises who used internet and computer was 1.4 times than those who used none of them. Across GVA quantiles, GVA per worker was higher among internet and computer users than their counterparts. While it does not indicate any causality, several economic theories do suggest potential benefits of adoption of digital tools on firm productivity assuming complementary factors are satisfied.

Figure 6.11: GVA per worker (in ₹) across firm sizes (by GVA quantiles) in unincorporated enterprise sector, Odisha, 2023-24

Manufacturing

Category	GVA per worker (₹)
Used neither	47,771
Used computer and internet	1,77,146

3.71 times

Services

Category	GVA per worker (₹)
Used neither	79,610
Used computer and internet	1,69,892

2.13 times

GVA per worker(in ₹) across quantiles

Quantile	Used computer and internet (₹)	Used neither computer nor internet (₹)
Overall	170155	69834
Q4	237886	217923
Q3	140881	136844
Q2	106120	87165
Q1	48732	30752

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

Note: There is not sufficient sample size for enterprises in GVA quantile 1 of manufacturing sector. Hence, data is not reported.

Further analysis shows that top five uses of internet among the firms are internet banking (55.8 per cent), other financial services (29 per cent), seeking information on goods and services (24.5 per cent), sending and receiving mail (13.5 per cent), and seeking information from general government organization (11.3 per cent). This could be critical for several reasons for firm productivity.

Use of internet banking and other digitally delivered financial services not only reduces cost of financial transactions but also creates digital footprint and thus opens opportunity for cheaper formal credit. Similarly, firms using internet could be benefiting from better access to market intelligence (input price, output price, potential customers, suppliers etc.), potentially reducing information asymmetries between market participants. This could benefit smaller firms proportionately more than large size firms which have better network access. Interestingly, productivity gap between large and small size firms (Q4 vis-à-vis Q1) is smaller among internet and computer using enterprises. Therefore, improvement of digital connectivity across Odisha with high speed internet at affordable rates is important to boost firm productivity through various channels listed above.

While no causality has been established in this section, several other factors could also play a role too in relationship between adoption of digital technology and firm productivity. This includes management quality, skill, internet connectivity, quality of power, organizational process. Further research in this area could test the validity of any causal relationship.

Source of Finance

6.5.8 Odisha demonstrates strong bank penetration, particularly in rural areas where 34.2 per cent of households rely on bank finance compared to the national rural average of 22.8 per cent (2020-21), indicating effective banking infrastructure and accessibility in the state’s rural regions. However, this banking strength is counterbalanced by an exceptionally high dependence on alternative financing sources (43.4 per cent overall compared to 35.3 per cent nationally), suggesting that despite good bank penetration, households frequently turn to informal networks, community lending, employer assistance, or family support for their financing needs.

6.5.9 The most notable aspect is the significantly low utilization of own finances (22.4 per cent vs national average of 35.4 per cent), indicating limited personal savings among households. This financing pattern reflects that banking services are relatively accessible, yet families still depend heavily on external support systems – whether through informal channels, family networks, or community-based arrangements – to meet their financial requirements.

Table 6.3: Source of finance of households, Odisha and All-India (Rural, Urban and Over-all), 2020-21

Sources of Finance	Rural		Urban		Overall
	Odisha	All-India	Odisha	All-India	Odisha	All-India
Bank Finance	34.20%	22.80%	23.70%	41.90%	32.80%	28.00%
Private Finance	1.30%	1.20%	1.70%	1.80%	1.40%	1.40%
Own Finance	20.30%	35.50%	36.30%	35.10%	22.40%	35.40%
Any Other Source	44.10%	40.40%	38.30%	21.20%	43.40%	35.30%
Total	100%	100%	100%	100%	100%	100%

Source: Multiple Indicator Cluster Survey in India, 2020-21, MoSPI, Government of India

6.5.10 There is significant growth potential in financial sector in Odisha. As the economy matures and achieves greater diversification, the demand for credit is expected to increase. In 2023-24, per establishment credit outstanding was ₹ 31,369 which is significantly higher in other states.

Figure 6.12: Outstanding credit per unincorporated enterprise, 2023-24

State	Outstanding credit per unincorporated enterprise (₹)
Kerala	181918
Rajasthan	117664
Andhra Pradesh	116696
Gujarat	113415
Maharashtra	106962
Telangana	87410
Chhattisgarh	73796
Tamil Nadu	67611
Haryana	64557
Odisha	31369
Karnataka	30210
Punjab	20735
Jharkhand	18732
West Bengal	14020
Madhya Pradesh	10288
Uttar Pradesh	7611
Bihar	4198

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

Credit-Deposit Ratio

6.5.11 The Credit-Deposit Ratio (CD Ratio) represents the proportion of loans advanced by banks in comparison to the deposits collected. A high CD Ratio indicates that banks are disbursing more credit in relation to the deposits, while a low ratio suggests the opposite. In India, the national benchmark for the CD Ratio is 60 percent.

6.5.12 Odisha’s CD ratio has consistently surpassed recommended benchmark of 60 percent. As of March 2025, Odisha’s CD ratio, which includes advances sanctioned in other states but utilized within Odisha, stands at 74.6 percent, marginally lower than 76.5 percent in March 2024. As of June 2025, CD ratio was 75.0 per cent.

Figure 6.13: CD ratio of all banks, Odisha, March 2021 to June 2025 (in percent)

Date	CD Ratio (in per cent)
March, 2021	56.5%
March, 2022	72.2%
March, 2023	80.8%
March, 2024	76.5%
March, 2025	74.6%
June, 2025	75.0%

Source: State Level Bankers’ Committee (SLBC) 180th Agenda, Odisha

Postal Financial Services

6.5.13 Odisha has shown remarkable progress in expanding postal services and deepening financial inclusion. The state’s postal network has expanded to 8,912 post offices, with 8,315 rural and 597 urban units. The majority of postal units are concentrated in rural areas (over 93.3 per cent), reflecting the critical role of postal services in providing connectivity and financial inclusion to rural population in Odisha. This aligns with the broader objective of postal services to bridge the urban-rural divide.

Table 6.4: Scheme wise account holders and deposits in post office, Odisha, up to March 2025

Name of scheme	No. of Account holders (in lakh)		Total deposits (in ₹ Crore)
	up to March 2024	up to March 2025	up to March 2024	up to March 2025
Saving Bank Account	34.3	37.8	9815	10010
Recurring Deposit	54	54.8	9512	9929
Senior Citizen Saving Scheme	1	1.2	5437	6022
Time Deposit	11.4	12.7	10949	12161
Monthly Income Scheme	2.4	2.5	6695	7085
Sukanya Samridhi Account	14	15.3	5651	7172
Public Provident Fund	0.9	1.1	1792	2013
National Saving Scheme 87/92	0	0.03	35	36
Kisan Vikas Patra	19.5	14.6	-	10815
National Saving Certificate	23.3	20.4	-	8787
Mahila Samman Saving Certificate	3.2	4.6	1734	2371
Total	164.2	164.9	51620	76409

Source: Chief Postmaster General, Odisha

6.5.14 Diverse postal schemes influence savings behavior. Postal services have a total of nearly 1 crore 65 lakh account holders. Among these, nearly 97.3 lakh are male, and 67.6 lakh are female account holders. This has integrated a large portion of the population into the formal financial system. Savings Bank (SB) accounts highlight a widespread saving habit. Nearly 37.8 lakh Savings Bank (SB) accounts holders cover deposits amounting to ₹ 10,010 crore. Recurring Deposit (RD) schemes follow closely, with 54.8 lakh accounts and deposits of ₹ 9,929 crore. This highlights disciplined savings behavior in the State.

6.5.15 Notably, Sukanya Samriddhi Accounts (SSA) reflect a targeted savings behavior focused on female beneficiaries. These accounts have 15.3 lakh holders with deposits of ₹ 7,172 crore. They showcase a dedicated effort to secure the financial future of girl children and promote gender-inclusive financial practices. The total deposits across all schemes amount to ₹ 76,409 crore, highlighting the immense role of postal services in the savings behavior of the population.

6.5.16 Figure 6.14 illustrates the number of policies issued under Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) in the Odisha circle from 2023-24 (up to March 2024) to 2024-25 (up to March 2025).

Figure 6.14: Cumulative Number of Postal Life Insurance policies (in ₹ Lakhs) and Cumulative Premium collected (in ₹ Crores), Odisha

Year	Total Number of Policies (cumulative) (In Lakhs) PLI	Total Number of Policies (cumulative) (In Lakhs) RPLI	Total Premium collected (cumulative) (in ₹ Crores) PLI	Total Premium collected (cumulative) (in ₹ Crores) RPLI
2023-24	2.7	13.0	451.3	373.7
2024-25	3.0	14.3	562.2	490.7

Source: Chief Postmaster General, Odisha

6.5.17 The activities of Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) in the Odisha circle have demonstrated steady growth from 2023-24 to 2024-25. Premium collection has increased significantly, indicating rising public trust and awareness, particularly in rural areas. For PLI, the total number of policies issued increased from 2.7 lakhs 2023-24 (as on 31.03.2024) to 3.0 lakhs in 2024-25 (as on 31.03.2025). Correspondingly, cumulative premium collections surged from ₹ 451.3 crores in 2023-24 to ₹ 562.2 crores in 2024-25. RPLI showed even more pronounced growth, with cumulative number of RPLI policies issued rising from 13.0 lakh in 2023-24 to 14.2 lakh in 2024-25, with cumulative premium collections stood at ₹ 490.6 crores in 2024-25. Overall, both PLI and RPLI continue to expand, with RPLI covering a broader rural base and PLI achieving higher premium growth per policy.

Co-operatives Sector

6.5.18 The cooperative sector in Odisha consists of credit and non-credit institutions, with credit cooperatives forming the backbone. The system involves a three-tier structure: Primary Agricultural Credit Societies (PACS)/Large-sized Adivasi Multipurpose Cooperative Societies (LAMPCS), District Central Co-operative Banks (DCCBs), Odisha State Cooperative Bank (OSCB) for the agricultural sector and Urban Co-operative Bank for non-agriculture sector. Odisha’s cooperative sector remains a key pillar of inclusive rural finance, with strong government support, expanding digital infrastructure, and focused outreach to small, tenant, and landless farmers. These credit cooperatives provide short-term agricultural credit, long-term agricultural credit, and non-agricultural credit.

Short-term Agricultural Credit

6.5.19 Short term agricultural credit is central to Odisha’s agriculture led economy. Credit is mainly extended through Kisan Credit Cards (KCCs) to support seasonal input requirements. As of March 31, 2025, a total of 44.5 lakh KCCs have been issued, including 43,613 new cards in 2024-25 and 4,847 new cards during Kharif 2025 (up to July 18, 2025), the highest number in the state.

6.5.20 The delivery system includes 4,252 PACS (including LAMPCS and FSCS), 17 DCCBs with 334 branches, and Odisha State Cooperative Banks (OSCBs) as the apex institution. Cooperatives handled 50 per cent of short-term agricultural credit in 2024-25, despite their smaller deposit base.

Quantum of agricultural credit under Seasonal Agricultural Operations (SAO)

6.5.21 Although cooperative banks account for only about 5 per cent of deposits, they disburse nearly 50 per cent of short-term crop loans. Credit flow is supported through NABARD refinance (45 per cent), Odisha State Cooperative Bank (OSCB) covers 30 per cent, and District Central Cooperative Banks (DCCBs) contribute 25 per cent. During 2024-25, cooperatives financed ₹ 19,361.7 crore to 36.0 lakh farmers, marginally below the annual target of ₹ 20,000 crore.

Implementation of Interest Subvention Scheme

6.5.22 The State Government provides interest subvention to make crop loans affordable. Crop loans up to ₹ 1 lakh are interest-free for prompt-paying farmers, while loans up to ₹ 3 lakh attract a concessional 2 per cent interest rate. Table 6.5 depicts the interest subvention provided by the State Government to Cooperative Credit Institutions in last five years. During 2025-26, the State has provisioned ₹ 1200 crore for crop loan subvention and ₹ 10 crore for interest support on agricultural term loans.

Table 6.5: Interest subvention provided by the State Government to Cooperative Credit Institutions, 2020-21 to 2024-25

Sl. No.	Year	Released by State Govt (In ₹ Crore)	Number of farmers (in Lakh)	Total Amount financed (In ₹ Crore)
1	2020-21	600.00	34.40	15189.00
2	2021-22	736.24	34.64	16048.76
3	2022-23	856.99	34.57	16683.58
4	2023-24	785.61	36.31	18606.28
5	2024-25	800.00	36.01	19361.70

Source: Registrar, Cooperative Society, Odisha

Share Capital Assistance

6.5.23 To strengthen cooperative institutions and enable them to borrow more funds from higher institutions the government provides share capital assistance to OSCB, CCBs, and PACS. Allocations stood at ₹ 165 crore each in 2023-24 and 2024-25, with ₹ 150 crore earmarked in 2025-26, improving lending capacity and institutional stability.

Agricultural Term Loan

6.5.24 Cooperative institutions also provide medium and long term loans for asset creation such as farm equipment, land development, plantations, horticulture, and allied activities. In 2024-25, ₹ 57.4 crore was disbursed to 2,316 members. During 2025-26 (up to July 2025), ₹ 17.7 crore was extended to 719 farmers

Promotion and Credit Linkage to SHG

6.5.25 Institutional credit to Self Help Groups (SHGs), particularly Women SHGs, supports livelihood diversification and entrepreneurship. Under the Mission Shakti Loan Interest Subvention Scheme, interest on loans up to ₹ 10 lakh is reimbursed for prompt paying SHGs. By July 2025, 1,909 SHGs were linked with credit amounting to ₹ 72.4 crore.

Table 6.6: SHGs credit by cooperative Banks, Odisha, 2022-23 to 2024-25, (in ₹ Crore)

Year	SHG Target (in ₹ Crore)		SHG Finance		Loan Outstanding
	Physical	Financial	No. of WSHGs	Amount financed to WSHGs (in ₹ Crore)	No. of WSHGs	Amount financed to WSHGs (in ₹ Crore)
2022-23	21316	462.88	18138	422.96	40732	480.98
2023-24	21766	701.11	18114	573.57	40177	682.00
2024-25	21756	932.94	15885	581.20	38896	696.34

Source: Registrar, Cooperative Society, Odisha

Credit linkage to Joint Liabilities Groups (JLGs)

6.5.26 To support landless farmers, sharecroppers, and oral lessees, Joint liability Group (JLG) are financed without collateral. In 2024-25, 37,165 JLGs received ₹ 284.96 crore in credit through cooperative banks.

BALARAM Scheme

6.5.27 The BALARAM scheme extends institutional credit to tenant and landless farmers without land titles. In 2024-25, 11,948 groups received ₹ 110.7 crore under BALARAM. With temporary relaxation of certification norms, cooperative banks financed 49,113 groups with ₹ 395.6 crore. Cooperative banks remain the largest provider of credit to landless and tenant farmers in Odisha As of July 18, 2025, 12,032 groups have been financed ₹ 91.6 crores under both schemes.

Table 6.7: JLG credit linkage status, Odisha, 2021-22 to 2024-25, (in ₹ crore)

Year	JLG Finance		BALARAM Finance		Total Finance		Loan Outstanding
	No. of Groups	Amount in ₹ Crore	No. of Groups	Amount in ₹ Crore	No. of JLG	Amount in ₹ Crore	No. of Groups	Amount in ₹ Crore
2021-22	39657	278.38	5617	49.38	45274	327.76	72938	395.8
2022-23	45861	306.30	10448	94.06	56309	400.36	71876	419.2
2023-24	42434	317.30	14008	114.99	56442	432.29	75653	468.1
2024-25	37165	284.96	11948	110.70	49113	395.66	67292	474.0

Source: Registrar, Cooperative Society, Odisha

BALIA Finance

6.5.28 The BALIA scheme provides interest-free loans up to ₹ 1 lakh to weavers and allied workers. Cooperative banks exclusively implement the scheme. In 2024-25, 1,677 loans amounting to ₹ 12.5 crore were disbursed. During 2025-26 (up to July 2025), ₹ 1.1 crore was extended to 132 beneficiaries.

Urban Co-operative Banks

6.5.29 Currently, nine Urban Cooperative Banks licensed by the RBI are operating in the state. These banks provide financial assistance primarily for self-employment to unemployed youth and offer basic banking services such as deposit acceptance in urban and semi-urban areas. They also disburse loans to artisans, small business units, and others to support self-employment ventures.

Table 6.8: JLG credit linkage status, Odisha, 2021-22 to 2024-25, (in ₹ crore)

Financial Year	Deposits mobilized (in ₹ crores)	Loans advanced (in ₹ crores)
2022-23	1250.88	751.22
2023-24	1224.35	769.33
2024-25	1228.88	750.38

Source: Registrar, Cooperative Society, Odisha

Pradhan Mantri Fasal Bima Yojana (PMFBY)

6.5.30 PMFBY provides comprehensive crop insurance covering against yield loss and localized risks. Farmers pay low uniform premiums, while the State bears the farmer’s share for holdings up to 2 hectares. The scheme is voluntary and inclusive of tenant and sharecropping farmers. By September 2025, claims worth ₹ 122.6 crore were settled for 99,582 farmers under Kharif 2024 (Table 6.9).

Table 6.9: Achievement under PMFBY, Odisha, 2022-23 to 2024-25

Year	Type	Farmers covered	Sum Insured (in ₹ lakh)	Premium collected (Farmer premium+ State Premium+ GOI Premium) (in ₹ crores)	No. of Farmers paid compensation (Actual)	Total Compensation paid (in ₹ crores)
2022-23	Kharif	1141752	646905	1264	210316	570
	Rabi	28144	21971	10	3623	12
2023-24	Kharif	2254489	1138121	1448	170562	229
	Rabi	132444	71172	48	1491	4
2024-25	Kharif	2241621	1206412	1517	99582	123
	Rabi	181326	113863	72	408	0

Source: Registrar, Cooperative Society, Odisha

Application of Information Technology in Cooperative Credit Sector Computerization of PACS

6.5.31 Out of 2,711 PACS, 2,628 are computerized and connected to OSCB for real-time transactions. Implementation of National Level PACS Software (NLPS) is underway, with full computerization of newly formed PACS targeted by June 2026.

Distribution of Ru-pay Kisan Credit Card and Establishment of Micro-ATMs

6.5.32 To promote digital access, 18.48 lakh RuPay KCCs have been issued. Around 3,000 Micro-ATMs are operational at PACS, along with AePS across OSCB and DCCBs.

Computerization of Urban Cooperative Banks

6.5.33 All Urban Cooperative Banks are computerized and linked to OSCB’s CBS platform, improving operational efficiency and service delivery.

6.6 GLOBAL CAPABILITY CENTRES: ODISHA OPPORTUNITY

6.6.1 Global Capability Centres (GCC) are emerging as Centres of Excellence and Innovation Hubs across the globe. India is home to over 1700 GCCs, employing 1.9 million professionals and generates $ 64.6 billion in revenue as of 2024². The sector is projected to expand to $105 billion by 2030, with around 2,400 GCCs employing over 2.8 million people, solidifying India’s role as a global hub for enterprise operations and innovation.

6.6.2 Odisha has launched its first ever GCC Policy 2025 and the state is focusing on talent development and a research-oriented ecosystem. Key drivers of GCC that could shape the transformation and impact of GCCs are highlighted below.

Figure 6.15: Key drivers of GCC that shape the transformation and impact of GCCs

• 1 Data Driven Decision Making**
  GCCs will have to harness the power of data analytics to inform strategic decision-making. By analyzing vast datasets, these centres will gain actionable insights that guide operational improvements, resource allocation and innovation strategies.
• 2 Cybersecurity guardrails**
  As technology integration intensifies, cybersecurity will become a cause for concern. GCCs will need to prioritize robust cybersecurity measures to protect sensitive data in the light of the new DPDP Act.
• 3 Talent development and upskilling:**
  Offshore units will focus on nurturing a culture of continuous learning and upskilling. Investing in employee development and providing opportunities to acquire new skills will be crucial to attract and retain specialized talent.
• 4 ESG initiatives**
  Given the heightened emphasis on ESG considerations, GCCs need to walk that extra mile to position themselves as champions of sustainability and responsible business practices.
• 5 Redefining the organizational structure**
  Clients are now looking to redefine their organizational structures to be coherent with the parent organization and redefine their operating model which is fit-for-purpose.

Source: India’s global capability centre market. Six imperatives to scale up further, 2023, PwC

² https://www.pib.gov.in/PressReleasePage.aspx?PRID=2106222&reg=3&lang=2

Box 6.3: Transforming Odisha into a Global FinTech Hub & Developing Global Digital Finance Talent

#The BharatNetra Initiative: The Odisha Government has collaborated with Singapore’s Global Finance and Technology Network (GFTN) to establish the BharatNetra Initiative, featuring the newly unveiled Integrated Global Financial Technology Capability Hub (I-GFTCH) in Bhubaneswar. This strategic hub accelerates FinTech and InsurTech development through a comprehensive four-pillar framework encompassing Global Learning, Global Mindshare, Global Innovation, and Global Capability Centre.

Capitalizing on Odisha’s advantageous position along India’s eastern seaboard and its access to the multi-billion-dollar Asia-Pacific financial technology ecosystem, this initiative establishes Odisha as a premier gateway for world-class FinTech advancement and comprehensive digital transformation.

A cornerstone of the BharatNetra Initiative is the development of skilled professionals through the certificate in FinTech & InsurTech (CFI) program, launched in partnership with the National University of Singapore’s Asian Institute of Digital Finance (NUS-AIDF). This innovative five-month hybrid training program combines online coursework with two weeks of intensive in-person training in Bhubaneswar, followed by an eight-week industry-partnered capstone project.

Running two cohorts annually, the initiative will train 7,000 students over five years, creating industry-ready professionals equipped to drive financial technology innovation and support the expansion of Global Capability Centres (GCCs) in Odisha and across India. Program graduates receive preferential placement support and international exposure through the extensive GFTN network, positioning them as the next generation of global digital finance professionals.

6.6.3 Over the past decade, Odisha has evolved into a promising hub for IT and IT-enabled services, driven by a strategic focus on economic diversification, supported by progressive policies and a growing pool of skilled professionals.

6.6.4 Odisha is developing an ecosystem, including substantial investments in infrastructure in technology parks such as info-city and info-valley in Bhubaneswar. The parks are equipped with modern facilities and amenities including high-speed internet connectivity, data centers and co-working spaces. Apart from this, Odisha has strong presence of academic and R & D institutions such as IIT Bhubaneswar, IIM Sambalpur, NISER Bhubaneswar, NIT Rourkela, among others.

6.6.5 Bhubaneswar is witnessing significant expansion in its IT and Global Capability Center (GCC) landscape, with new establishments like Logile Inc. and Linde GCC setting up operations in the city. To further accelerate this growth, the state has launched its GCC Policy 2025, which targets over ₹1,000 crore in investments, 5 State-of-the-art GCC hubs, and 50,000+ jobs by 2030 across BFSI, IT, healthcare, BPM, and engineering services sectors. The policy offers attractive incentives including 30 per cent capital subsidy, SGST reimbursement, rental assistance up to ₹6,000 per seat per month, recruitment support, internship stipends, patent filing reimbursements, and relocation benefits. Additionally, the initiative aims to strengthen the startup ecosystem while positioning multiple cities, i.e. Bhubaneswar, Cuttack, Puri, Paradip, Sambalpur, Jharsuguda, and Bargarh as emerging GCC destinations across the state

At present ~95 percent of the GCCs are situated in Tier-1 cities such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and the National Capital Region (NCR). However, the Tier 2/3 cities are rapidly emerging as next destination for GCC hubs. As per reports by CII, between FY2019 to 2024, GCC units in emerging cities grew by ~1.4X, the local talent pool expanded to 82,000 professionals, and ~6% of all new GCCs were launched in Tier-2/3 locations.

Figure 6.16: Potential growth drivers for making Odisha a GCC hub

Key Growth Drivers for GCC in Odisha

• Talent Pool**
  • Diversified talent pool with AI & Tech experts
    • Strong educational Institutions and skill development programs
• Innovation & Startup Ecosystem**
  • Presence of Anchor Industries
  • Tech startups under Atal Innovation Mission and Start-up India
• Robust Infrastructure**
  • Power Surplus
  • High Speed Internet connectivity
  • Better transport to existing technology parks
• Ease of Doing Business**
  • Single window approval
  • Targeted incentives simplified regulatory process
• Cost Competitiveness and Efficiency**
  • Lower operating cost
  • Lower manpower cost

Source: State IT policy, Electronics and Information Technology Department, Government of Odisha

Policy Framework

6.6.6 Odisha’s strategic policy interventions (Odisha IT Policy 2025) are designed to enhance talent development through incentives like land subsidies and provisions for IT parks, fostering innovation through partnerships between academia and industry. This approach positions Odisha on a path to integrate its rich industrial ecosystem with digital transformation initiatives, thereby boosting investment, employment, and sustainable growth in the region.

Box 6.4: Odisha as potential investment destination for Global Capability Centres (GCC)

India has firmly cemented its leadership as the global epicenter of Global Capability Centres, and specializes in domains such as business processes, IT services, R&D centers, innovation hubs etc. The combined revenue from GCCs operating in the country is growing at a healthy pace of 9.8 percent annually. With this, India envisages to add over 2400 new GCCs by 2030 and expects to generate revenue of USD 105 billion employing over 2.8 million professionals.

Tier-1 cities such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai and Delhi host 95 percent of the GCCs in the country. While these cities form the major cluster of the GCCs, tier-2/3 cities are rapidly emerging as credible, competitive alternatives for global enterprises seeking efficiency, talent diversity, and resilience. Tier-2 cities such as Bhubaneswar is emerging as attractive choice for GCCs³.

Bhubaneswar remains a strong choice as a GCC hub for industries . Bhubaneswar positions itself as hotspot for GCC expansion, with strong push in entrepreneurship, presence of IT/ITes industries, AI, and manufacturing.

Key factors for Bhubaneswar as a suitable destination for GCC:

1. Cost effective: Affordable real estate and office space as compared to metro cities.
2. Talent Pool Diversification: Tier-2 cities like Bhubaneswar provides opportunities to diversify workforce pool.
3. Startup Ecosystem: The state provides plug and play facilities for R&D centers and Startups. Along with infrastructure support, state is providing capital subsidies for power, human resource, thus catalyzing further growth.
4. Infrastructure Maturity: State has well established Tech Parks and is well connected with road and rail network. State has one international airport connecting destinations such as Dubai and Singapore and two domestic airports connected through UDAAN scheme. The state is also leading in Gati Shakti initiatives further developing the digital and physical infrastructure.

³ Press Information Bureau and https://media.zinnov.com/wp-content/uploads/2025/02/zinnov-tier-2-cities-report-2024-india.pdf

6.7 TOURISM SECTOR: THE EASTERN MAGNET

6.7.1 Odisha is known for its religious, heritage, and cultural tourism. The tourism industry provides livelihood to many communities engaged in hotel industry, sports, leisure activities, logistics etc. As per Odisha Tourism Policy 2022, tourism in Odisha contributed 13 per cent to the State GDP.

6.7.2 Tourism industry connects multiple sectors such as construction, agriculture, fishing, food processing, furniture manufacturing and essential services relies on robust infrastructure including electricity, telecommunications, roads, and airports.

The Odisha Tourism (Amendment) Policy 2026 aims to transform Odisha into a leading eco and cultural tourism hub in Asia by 2047, targeting 5 crores domestic and 7 lakhs foreign tourists annually, while focusing on creating 2.5 million direct tourism jobs. It significantly enhances capital investment subsidies up to ₹100 crore, with special emphasis on women, Scheduled Caste (SC), Scheduled Tribe (ST), and differently abled entrepreneurs. The policy broadens support for caravan tourism, water-based tourism infrastructure, and niche sectors like heritage museums and destination weddings, while encouraging the promotion of authentic Odia cuisine across Odisha and major metro cities. It also aims to increase the average length of tourist stays from 3 to 5 days for domestic tourist and 9 to 12 days for foreign tourists.

6.7.3 The sector encompasses a comprehensive value chain which generates employment, economic value, and positive outcomes across every link. It has the potential to broaden markets for both existing and new products and services, directly benefiting disadvantaged and remote communities. When developed sustainably, tourism can also promote biodiversity conservation, protect cultural heritage, and support environmentally friendly livelihoods. The State is focusing on providing immersive experience for tourists throughout the value chain, i.e. pre-travel, during travel and post-travel.

Figure 6.17: Tourism linked value chain

• Pre-travel:**
  • Destination Awareness:** Includes Destination Management Organization Marketing.
  • Organization of Travel:** Involves Travel Agent, Tour Operator, and Individual Online Booking.
• During Travel:**
  • Transport to and Within Destination:** Includes Airlines, Bus Services, and Car Rentals and Drivers.
  • Tour Organization within Destination:** Includes Inbound Tour Operator, Guides, and Activity Providers.
  • Accommodation:** Includes Hotels & Lodges, Cruise Ships, and Home Stays.
  • Excursions:** Includes Inbound Tour Operators, Experiences, and Attractions.
  • Shopping:** Includes Retail, Local Markets, and Artisans & Incubation centers.
• Post-travel:**
  • Destination Awareness:** Includes Social Media and Word of Mouth Marketing.

The entire value chain is supported by the Foundation of the Tourism: Natural, cultural heritage, and intangible cultural assets in Tourism destination.

Source: Tourism & Competitiveness, World Bank Group, 2025

6.7.4 Odisha received 113.8 lakhs of tourists in 2024-25, up by 14 percent from 2023-24. This includes both domestic and international tourists. Domestic tourists comprised of 99.5 percent while international tourists comprised 0.5 percent of the total tourist visit to the State. Initiatives such as eco-tourism projects, heritage walks, and cultural festivals have been instrumental in attracting tourists to the state.

Figure 6.18: Total number of Tourists visited Odisha, 2023-24 and 2024-25 (in lakhs)

Year	Total number of Tourists (in lakhs)
2023-24	100.1
2024-25	113.8

According to the 2024-25 report by the Archaeological Survey of India (ASI) on the most popular centrally protected monuments by ticket sales, the Sun Temple at Konark ranks second in domestic visitor with 35.7 lakh visitors after Taj Mahal in Agra (62.6 lakh visitors). The Sun Temple accounts for 6.5 percent share of the total domestic visitors.

Source: Department of Tourism, Government of Odisha

Tourist Visit to Odisha in 2024

6.7.5 Monthly distribution of tourist visits to Odisha shows seasonal variation. In December, Odisha received highest number of tourists at 11.7 lakhs, due to favorable weather and holiday seasons, making it a peak tourist month. In contrast, in month of May, lower number of tourists visit Odisha (7.9 lakh), which may be attributed to the hot summer conditions. Other months like September (10.5 lakh) and January (9.9 lakh) also witness high visitor inflows, indicating a strong tourism pattern during the cooler and post-monsoon periods. Odisha witnesses most tourist visits in the Month of December (peak period).

Figure 6.19: Tourist arrival in Odisha (in lakhs), 2024-25

Month	Tourist Arrival (in lakhs)
December	11.7
September	10.5
January	9.9
April	9.6
October	9.5
July	9.2
February	8.7
August	8.6
November	8.4
March	8.4
June	8.1
May	7.9

Source: Department of Tourism, Government of Odisha

6.7.6 The number of domestic tourists in the state increased by 8.2 lakhs between 2023-24 to 2024-25. West Bengal (14 percent) accounted for largest source of domestic tourists to the state followed by Maharashtra (2.6 percent), Madhya Pradesh (2.5 percent) and Andhra Pradesh (2.4 percent).

Figure 6.20: Top 10 states with visitors inbound to Odisha, 2024-25

Figure 6.21: States with major share tourist’s inflow towards Odisha, 2024-25

State	Tourists (‘000)
West Bengal	1540
Maharashtra	288
Madhya Pradesh	275
Andhra Pradesh	273
Chhattisgarh	253
Uttar Pradesh	252
Jharkhand	224
Tamilnadu	176
Bihar	174
Karnataka	132

Source: Department of Tourism, Government of Odisha

6.7.7 Similarly, tourists from across the globe visited Odisha to experience the rich heritage and culture of the state. The number of tourists from abroad increased by 0.1 lakh over the previous year (2023-24 to 2024-25). Tourists from countries in Western Europe, Eastern Europe, Africa and ASEAN countries visited the state.

6.7.8 U.S.A. accounted for highest number of tourists from abroad (6529) followed by Japan (4423), Germany (3722) and United Kingdom (3715). Odisha accounted for 0.55 percent share of total foreign tourists visit to India.

Figure 6.22: Tourists from top 7 countries visiting Odisha; 2024

Country	Number of Tourists
U.S.A.	6529
Italy	3830
France	3008
United Kingdom	3715
Germany	3722
Japan	4423
Australia	2648

Source: Department of Tourism, Government of Odisha

Tourist Spending

6.7.9 In 2024-25, out of 113.3 lakhs domestic tourists, 20.7 per cent arrived via air to Odisha. On the other hand, in case of foreign tourists (0.5 lakhs), nearly 36.1 percent came via air.

6.7.10 With an increase in tourist arrivals in the state, overall tourist spending has increased in the State too. However, a detailed tourist profile survey conducted by the Department of Tourism, Government of Odisha highlights that the average tourist spending over the period from 2018-19 to 2023-24 has declined for domestic and foreign tourists.

Tourism Potential in the State

6.7.11 The spending patterns of different tourists vary based on their preferences and needs. Families tend to spend more on accommodation and sightseeing, while youngsters prioritize adventure sports, nightlife, and tech-enabled services, balancing these with cost effective dining and public transportation.

6.7.12 Elderly tourists generally focus on comfortable lodging and wellness services, complemented by low-cost, low-intensity sightseeing and shopping. Foreign tourists predominantly engage in luxury cultural tours, heritage visits, and eco-tourism experiences.

Table 6.10: Odisha’s offerings by Tourist Categories

Tourist Type	Luxury Tours	Budgeted Tours
Family (Parents + Children)	Luxury accommodation & heritage hotels stay at premium beach front hotels in Puri, Konark Gopalpur and Mayurbhanj etc. Cultural immersion packages with guided tours at Simlipal & Bhitarkanika in the state.	Accommodation in Government guesthouse (Panthani-vas) Temple tourism circuits (Puri-Konark-Bhubaneswar) & budget wildlife safaris (Nandankanan, Debrigarh wildlife Sanctuary)
Youngster Groups (Gen Z)	Glamping at Eco Retreats includes water sports (surfing, parasailing etc.) at Hirakud and Puri. Premium music festivals and cultural events at Bhubaneswar & Sambalpur	Youth hostels and budget accommodation including group camping’s & local food trails in Bhubaneswar, Berhampur, Cuttack
Elderly (50+ years)	Premium spiritual retreats at luxury accommodations in Puri & Berhampur Comfortable heritage hotel stays at Baripada, Rambha & Berhampur Medical tourism package in Bhubaneswar	Pilgrim packages to temples (Puri, Sambalpur, Bolangir) including senior citizen discounted tours (Baristha Nagarika Tirtha Yatra Yojana)
Foreign Tourists	Luxury heritage hotels with international standards, private guided cultural tours, tribal village experiences with luxury eco stays, high end ayurvedic wellness retreats at Beachfronts at 5-Star hotels at Gopalpur
Business Travelers (Offsite & Conferences)	4-Star ,5-star business hotels with conference facilities (MICE tourism) at state capital and beachfront locations	Group packages for team outings such as Puri-Konark tour Co-work meeting spaces

Source: Analysis of tourist spending in the State, data accessed from Department of Tourism, Government of Odisha

6.7.13 The tourism sector is built on key pillars that directly contribute to the visitor experience, including attractions, accommodation, transportation, tourism services, and food & beverages. Supporting these are crucial enablers such as robust infrastructure, enabling policies, skilled human resources, advanced technology, active community participation, environmental sustainability, and strong safety and security measures. Together, these pillars and enablers create a holistic ecosystem that drives sustainable growth, enhances competitiveness, and ensures positive socio-economic impacts. Figure 6.23 shows various offerings by the State across the Tourism sector pillars and enablers.

Figure 6.23: Tourism sector pillars and enablers

TOURISM SECTOR PILLARS		TOURISM SECTOR ENABLERS
Attractions Natural wonders, cultural heritage sites, festivals, wildlife sanctuaries, and historic landmarks	Accommodation Hotels, resorts, homestays, guest houses, and alternative lodging options	Infrastructure Quality roads, airports, waterways, ports, reliable electricity, telecommunications, and internet	Policy & Regulatory Framework Tourism promotion policies, visa facilitation, business regulations, environmental laws, safety
Transportation Air, road, rail, sea transport, and local mobility options (taxis, buses, ferries)	Tourism Services Tour operators, travel agencies, guides, entertainment, and experiential services	Technology Online booking platforms, digital marketing, virtual tours, mobile apps	Community Participation Engagement of local communities in tourism planning, culture, preservation, benefit sharing
Food & Beverage Restaurants, cafes, local culinary experiences, and food festivals		Safety & Security Tourist safety protocols, emergency response

Source: Department of Tourism, Government of Odisha

Table 6.11: Odisha’s offering across Tourism Pillars and Enablers

Category	Odisha’s offering
Pillars
Accommodation	• 3-Star, 4-Star & 5-Star Beachfront hotels across the coastal districts (Ganjam, Puri, Jagatsinghpur, Balasore) of Odisha • Luxury hotels at Bhubaneswar, Sambalpur & Rourkela
Attractions	• Natural trails, Heritage buildings & temple network, Food Trails, Beachfront Promenades & Riverfronts at strategic locations
Tourism Services	• Last mile connectivity, Government recognized tour operators & travel agency • Government Certified tour guides at strategic locations
Transportation	• One international airport at Bhubaneswar • Two domestic airports connected through UDAAN at Jharsuguda & Jeypore
Enablers
Infrastructure	• Strong road network connecting all 378 tourist sites in Odisha (National Highways and State Highways of 5753 km & 1.4 lakh km respectively) and railway network of 3243 km running across the State
Policy and Regulatory	• Odisha Tourism Policy 2022 for strengthening & promoting Sustainable & Responsible Tourism while positioning Odisha as a leading MICE destination
Community Participation	• Eco-tourism home stays, cultural preservation and eco-tourism guides at forest trails, national parks
Technology	• Availability of internet across the State • Reservations through digital booking and cashless transactions
Safety and Security	• Destination wide security by local police presence, surveillance and availability of 24 X 7 emergency systems including safe hospitality practices

Source: Analysis from data obtained from Department of Tourism, Government of Odisha

6.7.14 Odisha has 378 tourist spots spread across 30 districts covering temples (Puri Temple, Konark Sun Temple, Lingaraj Temple), natural wonders (Chilika Lake, Simlipal National Park, Deomali mountains, Daringbadi) and cultural sites, making it a rich destination with diverse experiences from beaches to tribal areas.

Figure 6.24: District wise major tourist spots across Odisha

• Pradhanpat**: Water falls
• Rourkela**: The steel city of India
• Simlipal**: National Park
• Vikramkhol**: Pictographic Inscriptions
• Khiching**: Religious centre
• Satkosia**: Scenic spot
• Hirakud**: Dam & Reservoir
• Khandadhar**: Water falls
• Badaghabara**: Water falls
• Talasari**: Sea beach
• Chandipur**: Sea beach
• Debrigah**: Scenic spot and wild life
• Saptasajya**: Scenic spot
• Eram**: Historical site
• Sambalpur**: City and religious centre
• Tikarpada**: Scenic spot and wild life
• Cuttack**: Vintage city
• Harishankar**: Scenic spot and religious centre
• Bhimkand**: Religious Centre
• Kapilas**: Temple
• Ansupa**: Lake
• Ratnagiri & Udayagiri**: Temple
• Bhitarkanika**: Scenic spot and wild life
• Ranipur Jharial**: Scenic spot and religious centre
• Barapalli**: Artisan village
• Nandankanan**: Zoological park
• Paradip**: Port & Sea Beach
• Mandasaru**: Scenic spot
• Dhauli**: Buddhist site
• Khandagiri**: Caves
• Daringbadi**: Scenic spot
• Chandaneswar**: Temple
• Pipili**: Applique art work
• Kapilash**: Religious centre
• Konark**: Temple
• Athagada Patana**: Historical site
• Gandahati**: Water falls
• Chilika**: Lake
• Puri**: Sea beach
• Taptapani**: Hot spring
• Potagarh**: Fort
• Bhubaneswar**: State Capital/Temple City
• Deomali**: Scenic spot
• Humari Tampara**: Scenic spot/Lake
• Atri**: Hot spring
• Gupteswar**: Temple
• Jirang**: Buddhist site
• Gopalpur**: Sea beach
• Satpada**: Scenic spot
• Nandapur**: Historical site
• Mahendragiri**: Religious Centre & Scenic spot
• Duduma**: Water falls

Source: Department of Tourism, Government of Odisha

Tourism Infrastructure

6.7.15 For seamless experience in tourism, Odisha Government is committed to enhance infrastructure at key destinations and ensure last mile connectivity with world class facilities for the visitors. Odisha currently has one international airport (Biju Patnaik International Airport at Bhubaneswar) and two domestic airports (Veer Surendra Sai Airport, Jharsuguda & Jeypore Airport) connected with major airlines. The state also boasts well connected roads and railways network through its length and breadth ensuring last mile connectivity for visitors.

6.7.16 Department of Tourism has approved tourism projects worth ₹ 1505.49 crores from 2020-21 to 2024-25 for development of infrastructure across the State. Khordha and Puri are the top districts with high investments accounting for 34 percent and 28 percent of total investments respectively.

Figure 6.25: Year wise investments under Tourism Department, Odisha, 2020 to 2025

Year	Investment (₹ crores)
2020	202.6
2021	639.7
2022	201.6
2023	213.7
2024	320.5
2025	151.6

Year	Investment (₹ crores)
2020	351.3
2021	1497.5
2022	1011.8
2023	647.8
2024	1421.5
2025	639.2

Source: Department of Tourism, Government of Odisha

6.7.17 State has disbursed an amount of ₹ 134 crore under capital investment subsidy for 21 tourism projects during past five years. Hotel Industry, Amusement Parks and Resorts in Bhubaneswar, Khordha and Puri and Ganjam received the major subsidy. During Utkarsh Odisha-2025, Odisha received expression of interest for 121 projects across 10 categories amounting to ₹ 8154 crore.

6.7.18 In addition, state has major projects in pipeline to develop its Tourism Infrastructure. To promote cultural tourism and eco-tourism in the state, Odisha Government has prepared an integrated masterplan for 15 key sites in the State. This includes cultural tourism destinations as well as eco-tourism destinations and upgradation of airports, road and rail networks for seamless travel.

Odisha Government approved an ambitious ₹240 Crore Mahanadi Riverfront Project to transform riverbanks into recreational hubs and eco-friendly spaces with Parks and Ghats. The State has allocated ₹160 crore to riverfront between Chaunpur and Mandalia in Sambalpur stretch and ₹80 crore allocated to Kuakhai and Kusabhadra riverbanks in Bhubaneswar Stretch. This fully state funded project planned over 2025-2028 focuses on building Public Urban recreational and Cultural spaces with the aim of sustainable riverfront development, boosting Tourism and Urban living standards.

Figure 6.26: Key sites to be developed by the State under Culture Tourism and Eco-tourism

Culture Tourism Destinations

• 1 Puri
• 2 Konark
• 3 Buddhist Circuit (Ratnagiri, Udayagiri, Lalitagiri)
• 4 Cuttack
• 5 Dhauli

Eco- Tourism Destinations

• 6 Bhitarkanika
• 7 Simlipal
• 8 Satkosia-Baliput
• 9 Hirakud-Debrigarh
• 10 Koraput
• 11 Chilika
• 12 Daringbadi
• 13 Talsari
• 14 Mahendragiri
• 15 Tampara

Source: Department of Tourism, Government of Odisha

Hotel Infrastructure

6.7.19 The development of hotel infrastructure is vital for the growth of the tourism industry. Odisha hotel industry is experiencing investment interest through state government support, focusing on MICE (Meetings, Incentives, Conferences and Exhibitions) tourism, and cultural attractions.

6.7.20 Factors such as increasing disposable income, improved transportation, and easier access to information have led to a rise in international and domestic travel, positively impacting the hotel industry.

6.7.21 The number of hotels in High Spending Groups (HSG) has increased by 22 percent from 2022 to 2024 while for Middle Spending Group (MSG) and Lower Spending Group (LSG) increased by 17 percent and 2 percent respectively from 2023-24 to 2024-25. This indicates a strong investment in high end luxury resorts and accommodation facilities in the State.

6.7.22 In the past year 2024-25, Odisha witnessed hotel and accommodation facilities opening in multiple locations across the State. Luxury hotels such as Taj Puri Resort & Spa at Puri, Welcome by ITC hotels in Bhubaneswar and Mayfair Bay Resort at Paradip opened in the state featuring Odisha as preferred destination in the tourism Industry.

Initiatives

6.7.23 The State has taken several initiatives to attract diverse sets of tourists:

a. Luxury Glamping (Eco-Retreat): Odisha organizes Eco-retreat at seven locations in the state to provide a tailored unique experience to visitors. Started in 2019, at present Eco-retreat is organized in Konark, Bhitarkanika, Sonapur, Satkosia, Daringbadi, Putsil and Hirakud in the State. These retreats provide leisure sports, water sports and luxury stay along with giving an experience of Odisha’s culinary taste.

b. Culinary Tourism: The Odisha Government started “Nimantran” chain of restaurants in 2021 to popularize authentic Odia cuisine and introduce culinary tourism to the visitors and to its own people of the state. These restaurants are located at Bhubaneswar, Puri and Sambalpur with the latest one inaugurated at Delhi Haat.

c. Promenades: Beach side promenades are recreational spaces where people can walk, jog, bike and rejuvenate along the coastlines. As compared to promenades in foreign nations, Odisha Government has undertaken such developments in Talasari, Chandrabhaga and Ramchandi beaches in Balasore and Puri districts respectively.

d. Cruises/Houseboats: Odisha, with its rich river networks, lakes, and coastal areas, offers some unique opportunities for cruise tourism and houseboating, though these activities are still emerging compared to other parts of India like Kerala or Goa. At present cruise operations are

Department of Tourism, Government of Odisha was conferred with “Best Wildlife Conservation Effort in India” at India International Travel Mart (IITM), Hyderabad for its initiatives in protecting wildlife habitats, conserving endangered species, and promoting sustainable tourism across ecologically sensitive regions.

operating in Bhitarkanika, and 40-seater cruise under central scheme Swadesh Darshan has been deployed by Odisha Government as part of cruise tourism development.

e. MICE Tourism: (Meetings, Incentives, Conferences, Exhibitions/Events): Odisha combines growing infrastructure, rich cultural heritage, government support, and improving professional services, positioning itself as an emerging MICE tourism destination. Strategic enhancements in connectivity, facilities, and marketing can help Odisha attract more business travelers and events, contributing to its overall tourism and economic growth.

Odisha has achieved a major milestone in sustainable tourism, with Pati Sonapur and Puri beaches once again securing the prestigious Blue Flag certification for 2025-26. This recognition reaffirms their standing among the world’s cleanest and most environmentally responsible beaches. The achievement marks a proud moment for India, showcasing Odisha’s continued commitment to eco-friendly coastal management and high-quality tourism standards

f. Caravan Tourism: The state has taken an innovative step in the tourism industry by launching Caravan Tourism to attract young travelers, adventure seekers, and offbeat explorers from within the state and beyond who are interested in nature and experiential tourism. The initiative supports the “Odisha by Road” campaign to promote travel and tourism across the state.

Figure 6.27: Targeted improvements aligned with key MICE drivers, Odisha

Infrastructure Development

Odisha has been developing modern convention centers and exhibition spaces, especially in Bhubaneswar, the capital city, which hosts several government and corporate events. Ongoing investments in high-quality hotels and hospitality facilities support this growth. Improved air connectivity through Biju Patnaik International Airport further enhances accessibility.

Destination Branding

Odisha’s rich cultural heritage, including monuments like the Sun Temple at Konark and vibrant tribal festivals, offers a unique backdrop for MICE events. Promoting these attractions alongside business facilities can enhance the appeal to organizers seeking authentic and engaging experiences for attendees.

Support Services & Amenities

Advances in communication infrastructure, such as improved internet connectivity and AV technology in key venues, facilitate seamless event execution. Additionally, Odisha’s focus on safety and healthcare infrastructure adds to attendee confidence.

Integrating Local Experiences

Odisha offers rich cultural programs, traditional cuisine, and natural attractions like Chilika Lake that can be incorporated into incentive tours or cultural evenings, providing MICE visitors with diverse and memorable experiences beyond the conference halls.

Source: Department of Tourism, Government of Odisha

6.7.24 With a vision to conserve heritage and diversify tourism, and expand Odisha’s global footprint, Odisha Government has signed Memorandum of Understandings (Figure 6.31) for promoting heritage conservation, adventure tourism and Buddhist pilgrimage circuits.

Figure 6.28: Memorandum of Understandings signed for diversifying tourism in the State

MoU with IIT-Madras	MoU with NIWS, Goa	MoU with LBDFI
❑ The collaboration focuses on heritage conservation through advanced scientific techniques to preserve Odisha’s iconic monuments. ❑ The collaboration includes sustainable reuse plans and project management consultancy to ensure long-term heritage preservation	❑ The collaboration with National Institute of Water Sports, Goa, aims to boost adventure tourism. ❑ Leveraging Odisha’s extensive coastline and water resources, the partnership will introduce global safety standards, safety audits, and training programs for adventure tourism operators and lifeguards.	❑ Light of Buddhadharma Foundation International (LBDFI) and the Odia Language, Literature & Culture Department, along with Department of Tourism has collaborated and seek to revive Odisha’s Buddhist heritage. ❑ The collaboration will result in annual prayer at key sites enhanced visitor amenities, digital engagement infrastructure, and cultural programs highlighting Guru Padmasambhava’s teachings.

Source: Department of Tourism, Government of Odisha

The Odisha Homestay Establishment Scheme 2025 promotes community-based tourism by incentivizing authentic homestay experiences rooted in the state’s cultural and natural heritage. The scheme addresses accommodation shortages, enhances tourist access to lesser-explored destinations, and offers traditional Odia hospitality, cuisine, indigenous arts, and immersive tribal experiences. With a ₹50 crore budget allocated for FY 2025-26 to 2028-29, the initiative generates sustainable livelihoods for communities while positioning Odisha as a premier authentic cultural tourism destination.

Central Sponsored Schemes

• ❑ Under the “Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive” (PRASHAD) scheme, Odisha Government has identified for development of Maa Mangala Temple, Kakatpur & Maa Kichakeswari Devi Temple, Khiching with an estimated budget of ₹ 57.5 crores and ₹ 52.9 crores respectively.
• ❑ Under Swadesh Darshan Schemes 2.0 (SDS), Odisha Government has outlaid a budget of ₹ 39.6 Crore for development of Debrigarh Wildlife Sanctuary and ₹ 65.8 crore for integrated development of Khandagiri, Udayagiri in Bhubaneswar.
• ❑ Under Special Assistance for Capital Investment (SASCI), Odisha Government has identified development of Hirakud and Satkosia with a budget of ₹ 99.9 crores each.

Source: Department of Tourism, Government of Odisha

Awards & Accolades

6.75.25 Odisha has been honored with numerous prestigious awards recognizing it as one of the best travel destinations. These accolades highlight the state’s rich cultural heritage, diverse landscapes, and exceptional tourism experiences, solidifying its reputation as a must-visit location for travelers from around the world.

Figure 6.29: Awards and Accolades for Odisha

Image: Infographic showing awards and accolades for Odisha with icons and a trophy image.

Best Culinary destination at Travel + Leisure India’s Best Awards 2025

Maniabandha has been awarded as the ‘Best Tourism Village of India 2024’ in the Craft category by Ministry of Tourism, Government of India.

TTF Patna, Kolkata and Ahmedabad - most innovative product award for Eco Retreat and stall received “Best Design & Decoration” Awards.

Best Community Based Tourism Award at India International Travel Mart Hyderabad in 2024.

Odisha was awarded “Most Promising New Destination Award” at Travel and Tourism Fair Ahmedabad 2025

“Best Beach Destination” for Puri Blue Flag Beach at India Today Tourism Survey and Awards 2025

Source: Department of Tourism, Government of Odisha

6.8 TECH-ENABLED SERVICES

6.8.1 Over the years, Odisha has progressed from establishing essential Information Communication Technology (ICT) infrastructure to nurturing a strong and sophisticated digital ecosystem. These foundations have propelled rapid growth in software, electronics, and semiconductor exports, increasing from ₹4,500 crore in 2019-20 to nearly ₹12,900 crore in 2023-24. At the same time, direct employment in IT and IT enabled services has grown to approximately 60 thousand and is expected to surpass 2 lakhs by 2036.

Figure 6.30: Growth story of ICT industry, Odisha

• Digital Infrastructure Foundation**: Built core ICT infra like OSWAN, OCAC, STPI centers, and IT Parks.
• Ecosystem Scale-Up**: Expanded IT hubs, incubation centers, and broadband access.
• Export & Employment Growth**: Achieved significant growth in exports and created direct IT/ITeS jobs.
• Policy Push**: Introduced progressive policies like IT, GCC, and data centre, among others.
• Inclusive Digital Economy**: Aims for 100 per cent digital service coverage and AI-powered governance.

The final step of the wavy line points to an illustration of a person working at a computer with multiple monitors, representing the digital economy.

Source: Electronics & Information Technology Department, Government of Odisha

6.8.2 Odisha’s IT infrastructure includes nine government notified IT towers, six privately-run towers, eight STPI centers, and major tech parks such as InfoValley and InfoCity. The launch of a FinTech hub in Bhubaneswar alone is projected to create over 50,000 jobs in financial technology and related sectors.

As per the Odisha IT policy 2025, Government of Odisha has mandate of spending 1 percent of budget by every department towards IT implementation. The E&IT department will plan and assist other departments in finding technology-driven solutions related to individual department’s activities. It will identify and recommend the most appropriate technology, solution for them to improve the efficiency of the department, increase the output or can contribute to better delivery of citizen services.

6.8.3 Participation in national programs such as the India BPO Promotion Scheme has led to IT-related employment beyond Bhubaneswar to smaller cities like Balasore, and Rourkela, encouraging more balanced regional development. Moreover, Odisha is expanding high-capacity data centers certified at Tier-III and Tier-IV levels to meet growing needs for cloud services, disaster recovery, and secure digital infrastructure, reinforcing the state’s reputation as a technology hub in Eastern India.

Policy Framework

6.8.4 To maintain the momentum and accelerate these gains, Odisha introduced several forward-looking policies in domains such as IT, electronics, Global Capability Centers, and data centers to attract new investments and support innovation. Looking ahead, State is committed to achieve 100 per cent digital service coverage and embed AI-powered governance, driving an inclusive and knowledge-driven inclusive digital economy.

6.8.5 Odisha is embracing emerging technologies through AI Policy 2025, placing strong emphasis on data-driven governance and innovation. The STPI Centre of Excellence in Emerging Technologies further supports Industry 4.0 adoption and cybersecurity, supporting Odisha for its competitive position. Additionally, customized incentives such as capital subsidies, land allotments, tax reimbursements, and interest subsidies are some of the incentives to investors to establish and expand operations sustainably.

Odisha moved towards becoming an east-coast digital gateway with plans for its first undersea Cable Landing Station (CLS) at Puri, aimed at connecting Odisha directly to global submarine fiber-optic networks. The project is expected to strengthen international data connectivity, attract hyperscale data centers, and significantly reduce latency for IT, cloud, and digital services.

6.8.6 Odisha has established a solid and future-oriented policy structure to become a leading destination for ICT investments. The Odisha IT Policy 2025 focuses on generating over a million direct and indirect jobs by creating world-class infrastructure, promoting innovation, and expanding the IT ecosystem beyond the capital to Tier-II and Tier-III cities in the State. This policy provides suite of incentives, including capital subsidies, full State GST reimbursement, power and rental subsidies, as well as recruitment support emphasizing local talent. These initiatives, combined with the streamlined GO SWIFT single-window system, make Odisha an investor-friendly state that simplifies business and builds investor confidence.

Figure 6.31: Odisha’s IT policy framework

Odisha’s IT Policy Framework

• 1. Odisha IT Policy 2025**
  • Approved in August 2025, aims to create over 1 million direct and indirect IT sector jobs with inclusive growth, innovation, and digital empowerment.
• 2. Odisha GCC Policy 2025**
  • The newly launched GCC policy is focused to make the state a preferred destination for Global Capability Centres (GCCs). The Policy targets ₹1,000 plus crore investments and 50,000 plus job creation.
• 3. Odisha Data Centre Policy 2025 (upcoming)**
  • Focus on developing Odisha a leading hub for data infrastructure, promoting centers with capital subsidies, electricity discounts, Tier-3+ uptime standards and green technology adoption.
• 4. Odisha Fintech Policy 2025 (upcoming)**
  • Aims to develop Odisha as a FinTech hub providing regulatory support, incubation, mentoring, and incentives aligned with wider IT policies.
• 5. Odisha Semiconductor and Fabless Policy**
  • Second amendment was approved in July 2025 to align with India Semiconductor Mission and to become a national leader in semiconductor and innovation.

Source: Electronics & Information Technology Department, Government of Odisha

6.8.7 To further strengthen the policy framework, the State has introduced the second amendment to the Semiconductor and Fabless Policy 2025, which provides enhanced fiscal support, including up to 50 per cent assistance on initial projects and performance-linked incentives aimed at attracting cutting-edge investments. Aligned with the objectives of the Indian Semiconductor Mission (ISM), this policy places strong emphasis on research and development, skill enhancement, and sustainability. Through these focused initiatives, Odisha is positioning itself as a national hub for semiconductor innovation and fabless design, promoting a vibrant ecosystem for cutting-edge technology development.

6.8.8 The State is in the process of finalizing additional sector-specific policies designed to seize emerging opportunities and broaden the ICT landscape. The Global Capability Centre (GCC) Policy 2025 targets investments exceeding ₹1,000 crore and aims to create over 50 thousand employment opportunities in strategic sectors such as BFSI, healthcare, information technology, and engineering services. Further, the upcoming Data Centre Policy 2025 seeks to position Odisha as a premier hub for data infrastructure by offering attractive incentives related to capital expenditure, electricity costs, and land acquisition, while emphasizing green technology adoption and resilient infrastructure design.

6.8.9 The upcoming FinTech Policy 2025 is poised to strengthen Odisha’s standing as a hub for financial technology innovation by promoting entrepreneurship, advancing research and development, and offering dedicated mentorship and incubation support. These strategic policy initiatives underscore Odisha’s commitment to fostering innovation, attracting high-value investments, and building a future-ready digital ecosystem that drives sustained economic growth.

6.8.10 Development of ICT sector is contingent on availability of digital infrastructure, particularly internet connectivity across the state and digital literacy. As per 2022-23 estimates, nearly 65.3 per cent of households had access to broadband/internet.

Box 6.5: Public digital service delivery ecosystem, Odisha

#Public Digital Service Delivery Ecosystem: Odisha has developed a citizen-centric public digital service ecosystem to improve transparency, accessibility, and efficiency. Guided by the Odisha Right to Public Services Act, it integrates multiple services across departments through advanced ICT platforms, ensuring timely and accessible service delivery. Flagship programme like Higher Education Information Management System (754 institutions onboarded), Odisha One, State Animal Helpline, e-dispatch for revolutionizing governmental communication, Ama Seba Kendras, and Go Sugam exemplify this approach by enhancing citizen engagement and improving governance through technology. A list of these flagship programmes is outlined in Figure 6.35

Figure 6.32: Flagship Digital Governance Programme, Odisha

• Direct Benefit and Social Protection**
  • Subhadra**: End to End automated DBT transfer with benefits transferred to 10 million women
  • Social Protection Delivery Platform**: Real time payment monitoring by use of AI and integrated databases
• Citizen Services and Access**
  • Odisha One Portal**: Unified digital gateway providing 214+ Government to Citizen (G2C) services through 11,000 Ama Seva Kendras across the State
  • State Scholarship Portal**: 13,000 + students approved for scholarships through unique ID generated
• Labor and Industry**
  • PARESHRAM Portal**: Web portal providing 67 labour and factories approval services online, covering registrations, renewals, licenses etc.
  • Nirman Shramik**: ₹ 277 crores disbursed across 5 schemes benefitting 3.5 lakh workers
• Grievance Redressal and Transparency**
  • Jana Sunani and Sanjog Helpline**: Over 1.5 million grievances registered through SMS, WhatsApp, social media etc. of which 89 % are resolved. Facilitates Monday Grievance hearing by Hon’ble Chief Minister
  • State Dashboard**: Consolidation of 34 schemes and 256 KPIs with enhanced data driven decision making
• Legal and Judicial Automation**
  • iLMS**: Over 2 lakh cases disposed out of total registered cases with real time monitoring of active cases and improved litigation management
  • OJWAS and Paperless court**: Implemented across 30 districts for faster and transparent judicial administration
• Social Justice and Relief**
  • CCTV Surveillance System**: Network of 17,325 cameras implemented across all 645 police stations and 295 outposts recording all activities 24 X 7
  • Odisha Right to Public Service (ORTPS) Act**: Guaranteed timely delivery of notified public services with legal backing
• Agriculture and Rural Empowerment**
  • Go-Sugam**: First single window platform for farmers and Agri-entrepreneurs
  • Krushak Odisha**: 89.1 lakh farmers registered data linked to unified digital platform for streamlining agriculture benefits 9.8 lakh soil cards generated
• Other Innovations**
  • Aadhar authentication and e-KYC**: Over 13 crore completion of Aadhar storage and authentication (OAAF). Remote Aadhar e-KYC and seamless pension disbursement
  • OSWAS**: About 50,000 users using the system towards fulfilling the Government objective to make all Government offices paperless

Source: Electronics & Information Technology Department, Government of Odisha

ICT Infrastructure

6.8.11 Odisha has progressively developed a comprehensive and resilient ICT infrastructure backbone that serves as the foundation for its digital governance and public service delivery initiatives. The Odisha Computer Application Centre (OCAC) plays a central role in managing core digital resources such as the Odisha State Data Centre (OSDC) and the Odisha Statewide Area Network (OSWAN). These platforms provide secure, scalable, and integrated environments for hosting a wide array of departmental applications, ensuring interoperability and robust data security across government agencies. To enhance administrative efficiency, the State has also expanded high-speed connectivity to district and block levels, strengthened Paperless office (OSWAS) implementation, and promoted the use of digital signatures, video conferencing, and other online platforms.

Figure 6.33: Digital foundations of governance

Telecom Infrastructure Facilitation and Management System (TIFMS)
A digital platform streamlining approvals for telecom infrastructure deployment, boosting mobile tower and optical fiber expansion projects.

IPv6 Transition
Progressing to the next generation IPv6 protocol across key government networks to future-proof internet addressing, security and network performance.

BharatNet Project
Implemented by the state to connect 6,805 Gram Panchayats with high-speed optical fibre broadband, BharatNet bridges the digital divide for rural Odisha, enabling broadband-enabled services across the state.

Odisha Statewide Area Network (OSWAN)
Covers government offices statewide including Secretariat, 30 district headquarters, 314 blocks, Tehsils, health institutions, municipalities etc.

Odisha State Data Centre (OSDC) 2.0
provides scalable, secure cloud and hosting infrastructure for government applications. It supports 83 racks with advanced power backup, cooling, and disaster recovery systems to ensure 99.9 per cent uptime.

Cyber Security Operation Centre (CSOC)
Operates 24x7 threat detection, security auditing, and vulnerability management supporting bug bounty programs to safeguard government applications and infrastructure.

Source: Electronics & Information Technology Department, Government of Odisha

6.8.12 The Odisha Statewide Network (OSWAN) network forms the communication backbone linking Secretariat, 30 district headquarters, 314 blocks, health institutions, urban local bodies, and other government offices. Recent upgrades include migrating all offices to MPLS connectivity, provisioning secondary bandwidth via RailTel, and implementing Software Defined Wide Area Networking (SDWAN), resulting in improved bandwidth management, enhanced security, and higher uptime. Video conferencing capabilities

National Informatics Center (NIC), Odisha was honored with 19th National Digital Transformation Gold Award- 2025 for its project, ‘Odisha Disaster Resource Network - Every Life is Precious,’ in the ‘Crisis Response Digital Innovation Award’ category.

This innovative system is designed to significantly enhance disaster preparedness, response, and recovery across Odisha.

have also been upgraded to facilitate software-based interactions across government departments.

6.8.13 To meet increasing demands for data hosting and cloud services, Odisha is expanding its State Data Centre with the Tier-III certified OSDC 2.0, equipped with advanced power backup, cooling, and security infrastructure. This facility will host multiple departmental applications with guaranteed uptime exceeding 99.9 per cent, supporting better resource utilization and reduced operational costs. Alongside this, the State’s Cyber Security Operation Centre (CSOC) provides continuous real-time monitoring, vulnerability detection, and bug bounty programs to safeguard critical digital assets.

6.8.14 Broadband access has extended deeper into rural Odisha through BharatNet, connecting Gram Panchayats via fiber optic and GPON technology. The state is also migrating networks to the IPv6 internet protocol for future scalability and enhanced security. Telecom project management is streamlined through the Telecom Infrastructure Facilitation and Management System (TIFMS), ensuring efficient approvals and transparency. Collectively, these initiatives strengthen the technology foundation, powering Odisha’s inclusive digital transformation.

6.9 EMBRACING ARTIFICIAL INTELLIGENCE WAVE

6.9.1 Artificial intelligence is no longer the future: it’s reshaping our present. As per World Bank, Artificial Intelligence (AI) is a branch of Computer Science which is dedicated to creating systems capable of performing tasks that typically require human intelligence (Page 2, Chapter 1, Digital Progress and Trends Report 2025, World Bank). It is also used as an umbrella term for various loosely related technologies. The canvas of AI is evolving over time. There is tremendous potential for AI to transform our economies, societies and our lives particularly, the way we work, move, learn, communicate, build, and enjoy leisure.

Figure 6.34: 4 Cs framework for AI development

• Connectivity** (top-left box):
  • Reliable, high-quality broadband
  • Sustainable Energy
  • Access to digital services
• Compute** (top-right box):
  • Affordable, accessible, high-performance computing
  • AI chips, data centres
  • Cloud Services
• Context** (bottom-right box):
  • Quality data and content appropriate for local context
• Competency** (bottom-left box):
  • AI skilled workforce
  • Digital skills for adoption

Arrows indicate a clockwise flow between the boxes: Connectivity to Compute, Compute to Context, Context to Competency, and Competency back to Connectivity. All four boxes point towards the central ‘AI READINESS’ circle. To the right of the framework, there is a stylized graphic of a large letter ‘A’ and a vertical bar, both composed of circuit board patterns.

Source: Designed based on World Bank. 2025. Digital Progress and Trends Report 2025: Strengthening AI Foundations. Washington, DC: World Bank. doi: 10.1596/978-1-4648-2264-3. License: Creative Commons Attribution CC BY 3.0 IGO

6.9.2 It is estimated that a ‘positive shock’ of AI could boost global GDP by 15 per cent by 2035 over ‘no-shock’ estimates (Page 13, The Leader’s guide to value in motion, PwC, April 2025). But its adoption, adaptation and innovation is contingent on several factors such as availability of digital skills, computing infrastructure (AI chips, data centers etc.), basic digital infrastructure, regulatory regime and access to datasets. Consequently, such estimates remain susceptible to multiple assumptions and qualifying factors.

6.9.3 World Bank points towards concerning uneven progress in AI adoption, adaptation and innovation between high income countries and middle-income countries. To leverage the benefit of AI, countries need to build foundational infrastructure for AI, i.e. 4 Cs- Connectivity, Compute, Context and Competency. Connectivity forms the core base of AI journey comprising of reliable digital infrastructure, sustainable sources of energy and cooling options (such as water), access and ownership of digital devices so that individuals, firms and governments can access AI technologies. AI models need a significant amount of computational power to process and store data to respond to a multitude of queries. This requires access to chips, data centers, servers, and cloud platforms. Context layers ensure that AI models are relevant to local conditions and governance framework. This requires widening the type of data feeding the AI models to ensure inclusivity, minimize biases, development of AI models and applications suited to local users. Last, Competency encompasses digital skills and broader capabilities essential to integrate AI into all what we do and build on that.

6.9.4 Odisha recognizes AI’s potential to enhance public services, improve industrial competitiveness, and foster innovation. The state government has made AI adoption a priority to strengthen its knowledge-based economy.

6.9.5 The flagship Centre of Excellence in AI and Machine Learning, based in Bhubaneswar, serves as a hub for training, research, and industry collaborations. Odisha’s Emerging Technology Centre pilots AI applications in agriculture, healthcare, education, and disaster management. The state also promotes startup incubation, innovation challenges, and supports tech entrepreneurs to develop scalable AI solutions.

Figure 6.35: Strategic goals of Odisha AI Policy

Task Augmentation
Use AI to augment human abilities, improve efficiency, and promote inclusive development aligned with state’s long-term objectives

Drive Sustained Impact
Building a robust AI ecosystem aligned with the State’s long-term goals

Innovation with Protection
Encourage experimentation within a robust ethical and regulatory environment that balances innovation and citizen protection

Partner with External Entities
Leverage expertise and resources by collaborating with private sector companies, research institutions, and international organizations

Scaling AI solutions
State intended to scale existing proven AI solutions to achieve quick results, while fostering steady investment to develop tailored AI innovations

Source: Odisha Artificial Intelligence Policy, 2025

6.9.6 Odisha is building the AI foundations in the State which can deliver benefits in the long-term. The recently launched Odisha Artificial Intelligence Policy 2025 lays out a strategic plan to position Odisha as a leading AI hub in the country. The State has adopted a phased implementation approach comprising three stages: preparing the necessary systems and capabilities, executing AI initiatives effectively, and continuously monitoring outcomes to ensure lasting impact.

6.9.7 Foundational Pillar 1 Connectivity: Internet penetration has improved in the last three years from 48.89 internet subscribers per 100 population to 63 per 100 population. Nearly 78 per cent of households now have internet within their household premises, an increase of more than 12.7 percentage points from 2022-23. The state targets to increase internet penetration to 90 per cent by 2029 and 130 per cent by 2036.

Figure 6.36: Internet penetration in Odisha

Internet Subscriber per 100 population

Year	Subscriber per 100 population
Sept 2022	48.89
Sept 2025	63

Percentage of Households with internet within the premises (%), Odisha

Category	2022-23 (%)	2025 (%)
Rural	61.9	75.2
Urban	82.6	91.4
Overall	65.3	78

Source: Performance Indicator Report, Telecom Regulatory Authority of India, Comprehensive Annual Modular Survey 2022-23 and Telecom Survey, 2025, MoSPI, Government of India

6.9.8 Mobile phone usage has improved since 2022-23 although marginally. Among those who owned mobile phone, 78.1 per cent owned a smart phone. Government of Odisha targets to further expand smart phone ownership. This would ensure AI applications developed in the future are accessible to wider part of the population and benefits are shared with all.

6.9.9 Foundational Pillar 2 Compute: Computational power will be a critical physical infrastructure to adopt, adapt and innovate various AI technologies. Odisha aims to follow a hybrid approach which balances scale, cost-efficiency, and control. Both data centers and cloud solutions shall be leveraged. Odisha currently has 5 MW computational power and aims to double to 10 MW by 2029 and reach 45 MW by 2036. AI chips are essential part of AI model development and processing. The State strives to license Tensor Processing Units or Language Processing Units which are cost effective alternative to Gross Processing Units. Tensor Processing Units (TPUs) are energy efficient, relevant for large scale citizen-facing AI services and requires limited upfront cost leveraging cloud services. Given the high energy intensity of AI computational processes, Odisha targets to achieve 50 per cent Renewable energy consumption in AI infrastructure by 2029 and scale it to 65 per cent by 2036.

6.9.10 Foundational Pillar 3 Context: AI model capabilities depend on quality, quantity and diversity of training data. More than 50 per cent of open-source AI training data are in English. India is one of few middle income countries with substantial investment in training data. In 2023, nearly USD 1 billion was invested in training data. Odisha intends to leverage the growing AI ecosystem in the country by integrating its state data platform with IndiaAI dataset platform. The State shall develop Odia-specific datasets supported by 1 lakh students enrolled in different undergraduate/postgraduate courses across the state. There shall be inter-operability frameworks and open-data platforms driving cross-sector AI innovation.

Odisha’s AI Vision

Artificial Intelligence (AI) is transforming governance by boosting efficiency and innovation worldwide. Odisha aims to leverage AI to accelerate socio-economic development and improve public services

Figure 6.37: Odisha’s AI ambitions

Skills

State will invest in developing a talent pool with the necessary skills to create, implement and manage AI systems. Already launched “Odisha for AI” integrating AI across school curricula and higher education, providing workforce skilling and upskilling government officials to build a competent talent pipeline

Infrastructure
Expanding universal internet connectivity, building data center capacity and establishing innovation centres focusing on Odisha specific AI challenges, including language preservation through Large Language Models (LLMs)

Energy
State will equip its data centres with clean energy sources and adopt energy efficient technologies to ensure sustainability and meet growing computational power demands

Policy
Implementing ethical guidelines, robust data governance, cybersecurity frameworks and ease of research initiatives to foster AI innovation responsibly

Source: Odisha Artificial Intelligence Policy 2025

6.9.11 Once training data is in place, different types of models need to be developed addressing local needs. Odisha shall develop seven AI Innovation centres who shall, among others, develop Odia and tribal large language models such as Santali, Saura and Koya. AI use cases will be developed across the priority sectors such as agriculture, education and health care, governance.

ODIA AND TRIBAL LARGE LANGUAGE MODELS

ODIA
SANTALI
SAURA
KOYA

6.9.12 A dedicated AI Cell within the Electronics & Information Technology Department actively identifies high-impact AI use cases, facilitates pilot projects, and oversees the scaling of successful solutions across sectors. Several Centres of Excellence are being developed to function as focal points for advanced research, skill enhancement, industry collaboration, and startup incubation.

6.9.13 Foundational Pillar 4 Competency: Variety of digital skills would be needed to achieve AI aspirations of Odisha. Basic digital skills are needed to access information, services and participate in modern workforce and use AI-powered tools. Odisha has seen improvement in basic digital skills. Odisha has seen improvement in Digital Skill indicators over time as shown in Table 6.12.

Table 6.12: Digital Skills Indicators, 2022-23 and 2025, Odisha, in percent

Percentage of 15+ age persons who can:	2022-23	2025
Send messages (e.g. email, messaging service, SMS) with attached files using mobile or computer like devices in last three months	43.9	53.4
Used internet, at least once, in last three months	47.5	62.1
Send or receive email	34.5	34.1
Perform online banking transactions	29.2	40
Used mobile phone during last three months	76.8	78.1
Among those who used mobile phone, percentage of persons used smart phone	-	77.1

Source: Comprehensive Annual Modular Survey 2022-23 and Telecom Survey, 2025, MoSPI, Government of India

6.9.14 In order to build strong AI ready digital skills pool, the state is addressing the foundation with the aim to achieve 90 per cent of schools with AI curriculum by 2036. This includes students with exposure to specialized AI modules and computational thinking from an early age and gradually transitioning to data science, basic coding and ethics of AI in secondary classes. The State also aims for 55 per cent of science, technology, engineering and mathematics (STEM) students specializing in AI per year by 2036. It would, however, also be critical to improve the proportion of graduates from science and technology. In 2022-23, in the age group of 21-35, nearly 30.9 per cent of graduates were from science and technology which was 37.8 per cent at All-India level. Odisha will promote India AI PhD Fellowship program. Additionally, 8,000 citizens will be trained annually in AI-related skills, while 75 per cent of government officials will be upskilled by 2029 to support effective AI adoption and management. To build a vibrant AI ecosystem, Odisha is fostering public-private partnerships, startup financing, and open data initiatives that drive innovation and collaboration.

Governance

6.9.15 The Odisha AI Mission governs the execution of the State’s AI policies and programs through a structured framework. A high-level Taskforce provides strategic guidance and oversight, while an AI Cell within the Odisha Computer Application Centre (OCAC) manages day-to-day implementation activities. This governance mechanism fosters close cooperation among government departments, academia, startups, industry stakeholders, and civil society organizations.

6.9.16 Responsible AI practices are ensured through ethical frameworks addressing fairness, privacy, and transparency, aligned with the Digital Personal Data Protection Act, 2023. AI-enabled cybersecurity centres protect critical infrastructure. Intellectual property and legal procedures are being enhanced to encourage innovation and strengthen collaboration between researchers and industry.

6.10 CONCLUSION

6.10.1 The services sector in Odisha has emerged as a crucial driver of economic growth, employment generation, and social development. With a significant contribution of 39.1% to the State’s GSVA and robust growth across key sub-sectors such as trade, finance, tourism, and technology, this sector is transforming Odisha’s economic landscape. Continued expansion of financial inclusion, supported by strong banking and cooperative networks, is facilitating equitable access to credit and financial services across rural and urban areas. Similarly, tourism is gaining momentum with increased tourist arrivals, enhanced infrastructure, and diversified offerings that promote sustainable and community-based tourism. The rapid growth of technology-enabled services, underpinned by progressive policies and digital infrastructure, is positioning Odisha as an emerging hub for IT and innovation in Eastern India.

6.10.2 Looking ahead, Odisha’s strategic focus on developing advanced services, expanding investments in fintech, global capability centres, and digital governance, alongside harnessing emerging technologies such as artificial intelligence, will be vital for sustaining momentum. Strengthening skill development, improving technology adoption, and enhancing inclusive access remain key priorities for the sector to realize its full potential. By fostering a conducive ecosystem that balances growth with inclusivity, Odisha is well poised to build a resilient and diversified services economy that contributes significantly to long-term prosperity and improved quality of life for its people.