The Government of India in its latest report released recently, announced that India’s economy is projected to expand at a better-than-expected 7.4% in FY26, compared with a 6.5% rise in FY25. According to the first advanced estimates of Gross Domestic Product (GDP) released by the National Statistics Office (NSO), the growth will not only be higher than the 6.5% growth in the previous financial year, but the nominal GDP is also expected to rise by 8.0% in FY 2025-26.
The report further stated that while tertiary sectors such as Financial, Real Estate and Professional Services along with Public Administration, Defence and Other Services are projected to post robust growth of 9.9 per cent at constant prices in FY 2025-26, the real contributor will be the service sector, thanks to its robust expansion. It is expected to grow at 7.3% in FY 2025-26.
Besides, output in Trade, Hotels, Transport, Communication and Broadcasting-related services is estimated to increase by 7.5 per cent at constant prices during FY 2025-26. Manufacturing and construction activities in the secondary sector are forecast to grow by 7.0 per cent at constant prices in FY 2025-26.
The agriculture and allied sector are expected to record moderate GVA growth of 3.1 per cent, while electricity, gas, water supply and other utility services are projected to grow by 2.1 per cent at constant prices in FY 2025-26.
Similarly, real private final consumption expenditure is estimated to rise by 7.0 per cent during FY 2025-26. Gross fixed capital formation is projected to grow by 7.8 percent at constant prices in FY 2025-26, improving from a 7.1 percent expansion in the previous financial year.
The World Bank has also shown confidence in India’s economy, which has surpassed Japan to become the fourth-largest economy in the world. In its latest Global Economic Prospects report, while projecting the country to remain among the world’s fastest-growing major economies, with growth estimated at 7.2 per cent in FY2025-26, it has lauded India’s resilience, which has helped lift overall growth in South Asia in 2025, offsetting the impact of heightened policy uncertainty and global trade frictions.
The positive sentiment shown by the international organization not only sends a strong message that India is on a strong footing and continues to be the fastest growing economy but also is a major boost for the investors- both domestic and international.
Driven by public investment, infrastructure expansion, and a revived manufacturing push, the positive outlook of economy presents Odisha an opportunity to expand its economy with renewed interest.
So, how can Odisha contribute to expanding the economy of the state and the country? As one of the largest producers of natural resources including Iron ore, Bauxite, Aluminium, among others, Odisha’s industrial journey has largely been extractive. As the GDP rate continues to accelerate for the country, it’s time Odisha changed its economic strategy to expand its revenue generation potential.
Here’s how Odisha can capitalize on the double engine government and transform the state into a developed economy…
Move from extraction of resources to value based creation
Odisha holds a prominent position in the country’s mineral reserves as it is one of the largest producers of iron ore, aluminum, bauxite, chromite, etc. It has been exporting these minerals domestically and globally. However, it’s time Odisha paid attention to PM Narendra Modi’s call for Make in India campaign and take advantage of its natural resources by manufacturing products out of these resources. Odisha should focus on producing aluminium based products, along with pipes, engineering goods, auto components, defence-grade steel, among others. These minerals, if processed within the state will not only generate revenue but will create jobs locally.
Focus on port-led industrialisation
Despite having the strategic advantage of its coastline with ports like Paradip, Dhamra and Gopalpur ports closely located to mineral deposits, these places have unfortunately been underutilized. Odisha can turn as a trade hub of the Eastern zone by utilizing these ports to the optimum for trade purposes. Port-linked manufacturing zones—focused on steel products, chemicals, engineering goods, and agro-processing—can significantly reduce logistics costs and boost exports.
Create job opportunities
Migration of labourers both skilled and non-skilled workers, have been major concern and a stumbling block for the state’s economy. According to official records of 2023, more than 40,088 labourers from Odisha migrated to other states for employment through licensed contractors. Ironically, these labourers, according to a survey conducted by IIT Hyderabad and International Institute of Migration and Development with Aide et Action, Bhubaneswar, are mostly from coastal districts like Ganjam, Cuttack, Balasore and Bhadrak. It is noteworthy that these cities and towns are close to the ports.
Apart from boosting trading opportunities in port areas, which in turn can generate job opportunities for local youth, Government should push Micro, Small and Medium Enterprises (MSME) on a priority basis and encourage skill-based education. Apprenticeship-linked education, co-owned by industry, can ensure local youth benefit directly from industrial expansion.
Also Read: Is Odisha emerging as the new Silicon Valley of East India?
