Bhubaneswar, February 21: Chief Minister Mohan Charan Majhi on Friday presented the annual budget for 2026-27 fiscal with a total estimate of Rs 3.10 lakh crore, laying emphasis on infrastructure, industry and other social sectors.
The Chief Minister has proposed an allocation of Rs 1,970 crore for Industry and MSME sector, which is more than 1.5 times the previous allocation during 2023-24. However, apart from the just budgetary allocations, the industrial sector will get benefits from several projects, highways, economic corridors, etc. announced in the budget.
“For decades, Odisha powered India’s industrial rise through leadership in coal, ferrous minerals and aluminium based industries. Today, with the support of the Government of India, Odisha’s industry is evolving from minerals to microchips,” Majhi said in his Budget Speech.
Odisha is prioritising value-added manufacturing in employment intensive sectors like textiles, food processing, and electronics and green energy through enabling infrastructure, policy support and ease of doing business, he stated.
The Odisha Government has announced to set up two dedicated parks for the pharmaceutical sector.
The Odisha Industrial Infrastructure Development Corporation (IDCO) will develop a 500-acre Odisha Pharma Park in Nayagarh district and a 200-acre Odisha MedTech Park in Khordha district. These two industrial parks will have all necessary facilities, infrastructures to attract investment in the pharmaceutical sector.
his will reduce operating costs and boost export competitiveness. Consequently, Odisha will be established as the premier life sciences hub of Eastern India and generate significant employment opportunities.
With rapid industrialization in the State, multiple large industrial clusters are emerging across Odisha. There is a need for planned and structured growth around emerging industrial clusters by creating well-serviced liveable and inclusive industrial townships with adequate physical, social and civic infrastructure thereby improving investment attractiveness and quality of life for workers.
Residents’ social infrastructure near workplaces is critical to productivity, retention and completeness of workers. For the purpose, provision of Rs10 crore has been in the Budget for FY 2026-27.
The State has also announced “CM-SAMPADA” to improve the quality of life for residents in mining-affected areas through a unique four-pronged approach: Accelerate, Top-up, Initiate, and Monitor by leveraging fundings from extra budgetary resources like DMF.
The new scheme focuses on achieving 100% saturation of existing social benefits, enhancing current services with additional support, and launching new health and infrastructure interventions
As per budget documents, a National Mega Shipbuilding Cluster is coming up in Kendrapara district with an investment of Rs 22,700 crore in partnership with the Odisha Maritime Board and Paradip Port Authority.
Similarly, an all-weather Satellite Port at Bahuda Muhan in Ganjam district is being built with Rs 21,500 crore with support from Sagarmala Finance Corporation Limited.
The National Waterway-5 will be operationalised soon with Rs 12,200 crore investment to improve inland cargo transport from mining hinterlands.
An International Cruise Terminal will be set up at Puri. Costing Rs 500 crore, the project will boost tourism and global connectivity.
Under a new initiative named as “Liveable Cities Mission” and “Eight Model Industrial Cities Programme” covering more than 50 cities, the Government is planning to strengthen affordable housing, 24×7 water supply, solid waste management, public transport, walkable streets, and green and open spaces. These projects will be implemented by saturation of existing State and Central Government schemes.
To boost tourism industry, the State Government has announced a new Tourism Land Bank Scheme to meet the growing land requirement for hospitality and tourism infrastructure.
The State targets attracting more than 5 crore domestic and 7 lakh foreign tourists and creation of 25,000 hotel keys by 2047. Land has already been identified at 15 priority destinations and is under verification and processing by IDCO.
For acquisition of land parcels, payment of premium and development of trunk infrastructure, Rs 150 crore is allocated for 2026-27.
The State would come up with another new initiative named the Odisha Homestay Establishment Scheme to promote community-based tourism by encouraging homestay development across rural and emerging destinations, generating local livelihoods while offering authentic and immersive experiences to visitors.
State offers an additional 50% of capital investment subsidy, given by the government of India under India Semiconductor Mission (ISM) incentives.
The O-Chip Program is positioning the State as a key contributor to India’s semiconductor design ecosystem. The Government has allocated Rs 26 crore this year and plans Rs108 crore over five years to drive advanced chip designs, build 50+ companies, and create up to 6000 design jobs.
The Government has made provision of Rs10 crore for Rare Earth Corridor to enable the State move early with State-led enabling investments to secure a first mover advantage while Odisha AI Mission has been announced with provision of 23 crore.
In a move to support industrial parks, the State has also made a provision of Rs320 crore for Industrial Infrastructure Maintenance Fund (IIMF).
Among other initiatives, the Government has allocated Rs 200 crore for Odisha Maritime Board, Rs 207 crore for promotion of Industries, Rs 288 crore for Grants /Assistance for MSMEs, Rs 48 crore for Chief Minister’s Scheme for Reimbursement of Interest to MSMEs (CM-SRIM) and Rs 45 crore for PM Formalization of Micro Food Processing Enterprises PM-FME.
Odisha’s fiscal strategy places investment at the centre of long-term growth, employment generation and infrastructure expansion. Strategic investments across manufacturing, services, tourism, logistics and advanced industries are projected to generate over one crore additional jobs by 2047, raising total employment to 3.3 crore, improving labour force participation to 82%, and increasing women’s participation to nearly 70%.
Manufacturing alone is expected to attract about USD 287 billion in investments, supported by strong public spending in utilities and core infrastructure.
A key pillar of this strategy is the Bhubaneswar–Cuttack–Puri–Paradip Economic Region (BCPPER), envisioned as a USD 500 billion economic hub by 2047, contributing nearly one-third of the State’s GSDP.
The proposed corridor integrates ports, logistics, advanced manufacturing, innovation ecosystems, medical tourism and smart urban infrastructure.
Similar regional growth clusters are proposed in Bargarh–Jharsuguda–Sambalpur, Berhampur–Chhatrapur–Gopalpur, and Jeypore– Koraput–Sunabeda, promoting balanced regional development.
The State aims to create over one crore jobs by 2036, establish mega industrial parks (1,000–3,000 hectares), promote green industries such as semiconductors, EVs and clean materials, and support the creation of over 20 lakh MSMEs under the Ama Udyog initiative.
Sustainable growth is embedded through ambitious energy and mining targets. Odisha aims for 60% renewable capacity and 45% green power generation by 2036, along with 3 million tonnes of green hydrogen production annually.
Mining will remain a major growth driver, with iron ore production of 250 million tonnes and steel output of 130 million tonnes, supported by faster approvals, digitised clearances and development of downstream industries through mega metal parks and R&D centres.
“If we look at the current structure of Odisha’s economy (2025-26 AE), the share of agriculture and allied sector in GSDP is around 29%, while that of industry and service sectors contribute 32% and 39% respectively. In future, Odisha must diversify its economy to reduce reliance on agriculture, and promote growth in manufacturing, services, and industry sectors with focus on employment generation,” said an industrial export.
Investing in transportation, logistics, and digital connectivity is crucial to enhance market competitiveness. Furthermore, focusing on human capital development through investments in education, skill development, and healthcare will be essential to create a skilled workforce, he said.
ASSOCHAM Hails Odisha’s ‘Future-Ready’ Budget
“The Odisha Budget 2026–27 presented by Chief Minister Mohan Charan Majhi is a progressive and growth-driven roadmap for Odisha. The ₹3.10 lakh crore outlay, with strong emphasis on capital expenditure, agriculture, rural development, healthcare, education and infrastructure, reflects fiscal discipline alongside inclusive expansion”, said Mr. Pankaj Lochan Mohanty, Chairman, ASSOCHAM Odisha State Development Council
“We also welcome the continued thrust on sports infrastructure and youth development, which has positioned Odisha as a national sports hub,” he said.
Investment in sports not only builds talent but also drives tourism, global visibility and economic activity. The focus on irrigation, industrial infrastructure, skill development, healthcare expansion and women empowerment will strengthen both grassroots prosperity and investor confidence, Mr Mohanty said.
ASSOCHAM appreciates the balanced, future-ready approach and looks forward to partnering with the State Government to translate these allocations into accelerated investment, employment generation and sustainable growth.
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