In a bid to showcase Odisha’s vision and preparedness in Artificial Intelligence (AI), the state government of Odisha unveiled an implementation-driven plan at the Odisha Pavilion of recently concluded Global AI Impact summit that was held at Bharat Mandapam in New Delhi. Addressing the media at the Odisha pavilion, additional chief secretary, Electronics and IT, Vishal Dev said the state is focusing on execution rather than announcements. “We are institutionalising AI through clear governance, dedicated budgets and execution frameworks. Odisha is moving from being a technology adopter to a technology creator, ready to partner with industry, startups and global players to scale responsibly,” he said.
The message was loud and clear: Odisha’s startup story is undergoing a transformative shift — the economic ecosystem will no longer be dominated by ore and output, but also in code and cloud. The state’s startup ecosystem, despite witnessing a temporary dip in national rankings, is simultaneously making inroads into the IT arena by announcing its intentions loud and clear: tiding towards becoming a global hub for Artificial Intelligence and Deep Tech.
Presently, according to Startup Odisha, out of more than 2,000 startups recognised in the state, nearly a third (300-400) is operating in IT, SaaS, artificial intelligence, data services and other technology-driven domains, making digital economy one of the fastest-growing components of Odisha’s entrepreneurial landscape.
Interestingly, while over three-fourths of IT startups concentrated in Bhubaneswar, smaller clusters are emerging in Rourkela, Cuttack and Sambalpur, signaling a positive trend of spatial growth.
With the state aiming to become a $500 billion economy by 2036 and $1.5 trillion by 2047, IT and startups are likely to serve as the primary growth engine, predict market analysts.
Most importantly, the presence of more than 800 innovative and IT-linked startups, R&D centres and incubators is an indicator that the growth is no longer confined to large IT services firms; it is becoming entrepreneurial in nature.
The Big Q: Why are IT startups making a beeline in Odisha
Cost- friendly
While traditional industries require heavy capital, land and logistics, IT startups are powered by ideas, skills and connectivity, making it cost effective. One of the emerging strengths of Odisha is its large pool of engineering graduates. It has not only improved its digital infrastructure but has also lowered operational costs.
Talent pot
Another important factor that has worked in Odisha’s favour is that the burgeoning growth of institutions such as IIT Bhubaneswar, NIT Rourkela and KIIT University have ensured that they are no longer confined to just talent suppliers for IT hubs like Bengaluru and Hyderabad. Through research parks, entrepreneurship cells and technology business incubators, they are becoming incubation grounds for local innovation.
Policy push
The Odisha IT Policy 2025-2030, effective from September 2025, has also played a positive role. The policy that aims to establish the state as a premier global IT hub by creating 10 lakh jobs by encouraging a digital-first economy, has come as a blessing for budding entrepreneurs. By introducing initiatives such as 30% capital subsidies, extensive infrastructure development (IT towers, data centres, cable landing stations), and targeted support for AI, cloud, and 5G, it has given directions to the first-time entrepreneurs, who are willing to invest in IT sector.
Top players significant for the economy
From CSM Technologies that focuses on GovTech and E-Governance to Mindfire dealing with offshore software development, and CureBay focused on healthtech (rural healthcare), among many others, these startups are steadily contributing to the state’s GDP. The services sector, heavily driven by IT and startups, now accounts for approximately 39.1% of Odisha’s Gross State Value Added (GSVA).
It is noteworthy that in the 2025-26 fiscal, software and electronics exports from the state crossed ₹12,900 crore. Interestingly, the figure is on an upward surge as more startups are transforming from local services to global SaaS (Software as a Service) models.
But then, it’s important to keep the momentum going. The latest slip in Odisha’s ranking at the national level gives even more reasons to fix the structural gaps and promote and brand Odisha as the next generation IT hubs on the global stage.
If the execution is done with intent, Odisha will soon be known not only for its ports and steel plants, but for its servers, startups and software exports.
Also Read: Odisha’s Startup Story: From Minerals to Innovation
