The Union Budget 2026, which was presented by finance minister Nirmala Sitharaman on Sunday (a first in India’s Budget history), has some exciting announcements for Odisha, which could be a turning point for Odisha’s economic rise, feel experts. The major announcements are:
- Dedicated Rare Earth Corridor for Odisha: The Union Budget has proposed the establishment of dedicated rare earth corridors in Odisha, along with three other states such as Andhra Pradesh, Tamil Nadu and Kerala. Sitharaman said the Centre would “support mineral-rich states to promote mining, processing, research and manufacturing of rare earth elements and permanent magnets”, which are crucial for clean energy, electronics, defence and electric mobility. The finance minister said, “The Budget proposes raising the Electronics Components Manufacturing Scheme outlay from 22,999 crores to 40,000 crores, alongside new initiatives such as ISM 2.0, rare earth corridors, and dedicated chemical parks.”
- Fast tracking of National Waterway-5: The Budget also talks of functionalizing 20 new national waterways. In her Budget address, the FM said that India will operationalise 20 inland waterways, boost local container manufacturing, and support coastal cargo movement. The National Waterway-5 (NW-5) in Odisha will “connect mineral rich areas of Talcher and Angul with industrial centres like Kalinga Nagar to the Ports of Paradeep and Dhamra,” Sitharaman said. The move aims to cut logistics costs, boost exports, and make cargo transport more efficient and sustainable. For the unversed, NW-5, covering the Mahanadi-Brahmani delta, the Matai river, and the east coast canal, was notified in November 2008 with a total length of about 588 km. The route was later split into three stretches: Talcher to Mangalgadi (237 km), Dhamra to Paradip (95 km), and Dhamra to Geonkhali (256 km).
- Record Railway Outlay: In a major boost to the railway development, the finance minister proposed an allocation of Rs 10,928 crore for Odisha, Rs 329 crore more than last year. The budgetary provision for railways development in the state in 2025-26 was Rs 10,599 crore. It is expected to benefit Odisha as the state gets connected to the East-West freight corridor starting from Dankuni in West Bengal to Surat in Gujarat via Chhattisgarh, Madhya Pradesh and Maharashtra. It will lead to construction of new lines, modernization of railways including electrification, and doubling of tracks and stations. The use of AI-based thermal cameras and OFC (optical fibre cable) technology to prevent elephant deaths on railway tracks will set an example in wildlife protection. This will not only be an added advantage for freight movement but will also generate job opportunities by expanding labour mobility. More importantly, it will boost the tourism sector.
- Boost to tourism: In a bid to put Olive Ridley nesting sites on the tourism map, FM Nirmala Sitharaman proposed ‘turtle trails’ in the state, along with the development of tourist destinations across five Purvodaya states, including Odisha. It may be noted that Rushikulya beach in Ganjam district, Gahirmatha marine sanctuary in Kendrapara and the Devi river mouth in Puri district are known as mass nesting centres of the endangered Olive Ridley turtles. According to official records, the e Rushikulya rookery created a record in February last year. More than seven lakh turtles arrived to lay eggs. The nesting period lasted over a week. Creation of five tourism destinations across five Purvodaya states — Odisha, Bihar, Jharkhand, West Bengal and Andhra Pradesh— also bring cheers to the tourism sector of the state. Creation of new tourism destinations will enhance local incomes, protect biodiversity, and appeal more tourists to Odisha.
- MSMEs, Infrastructure allocations for tier 2 and 3 cities: The proposed MSME Growth Fund will continue to benefit Odisha, especially the tribal artisans and micro-entrepreneurs. The budget allocations for a mineral rich Odisha that has given an impetus to building new infrastructure, logistics, high-tech mining corridors, development of new tourist destinations, investments in transport and communications reflects the positioning of Odisha in the country’s map as a potential hub for creation of jobs, investment, exports and manufacturing goods.
Also Read: Money Matters: Budget Jargons that we should know
