A New Odisha Emerges: Industrial Growth, Job Creation, and Urban Expansion

A New Odisha Emerges: Industrial Growth, Job Creation, and Urban Expansion

Odisha is undergoing a significant transformation under the leadership of Chief Minister Mohan Charan Majhi and with strong support from Prime Minister Narendra Modi. With the state emerging as a key player in industrialization, the focus is on attracting investments, creating jobs, and enhancing infrastructure. The recent ‘Utkarsh Odisha- Make in Odisha Conclave 2025’ highlighted the government’s commitment to making Odisha a powerhouse in sectors such as food processing, petrochemicals, IT, tourism, and green energy.  

The state government has already approved investment proposals worth Rs 2.5 lakh crore, promising employment opportunities for over 1.1 lakh people. Simultaneously, welfare initiatives such as the integration of the Mamata scheme with Pradhan Mantri Matru Vandana Yojana aim to improve social security for women and children. With an emphasis on urban expansion, the government is also planning a new city near Bhubaneswar and developing a greater economic region encompassing Bhubaneswar, Cuttack, Puri, and Paradip.

Let’s have an overview on this in detail.

Odisha Budget 2025-26: An Analytical Overview

Odisha Chief Minister Mohan Charan Majhi presented the State’s annual Budget for 2025-26 on February 17, 2025, with a total outlay of **₹2,90,000 crore**. This marks his first full budget after the BJP came to power in Odisha in June 2024. The budget prioritizes **capital expenditure, infrastructure development, and social sector spending**, while maintaining fiscal prudence.

The Budget Breakdown

The total budget outlay stands at ₹2,90,000 crore, with capital expenditure amounting to ₹65,012 crore (6.1% of GSDP, among the highest in India). The programme budget is ₹1,70,000 crore, accounting for 59% of the total budget. The state expects revenue receipts of ₹2,32,000 crore, with borrowing and other receipts at ₹58,000 crore**. The fiscal surplus is estimated at 3% of GSDP, while the fiscal deficit remains at 3.2% of GSDP, ensuring compliance with the Fiscal Responsibility and Budget Management (FRBM) Act.

Infrastructure Development: The government has announced the formation of the Highways Authority of Odisha to develop 75,000 km of roads by 2029-30. Key projects include the Atal Expressway, connecting Motu (Malkangiri) to Tiring (Mayurbhanj), along with critical road corridors such as Jharsuguda to Balasore, Nuapada to Astarang, Brundabahal to Gopalpur, Brahmapur to Jeypore, Jeypore to Rourkela, and Rourkela to Jaleswar. A ₹13,000 crore allocation has been made for Bhubaneswar’s city road decongestion plan, while ₹6,502 crore is set aside for the Berhampur to Jeypore Six Lane Expressway. Additionally, the government is expanding the Metropolitan Development Region, covering Bhubaneswar, Cuttack, Jatni, Khurda, Paradip, and Puri, along with regional urban development planning for other major cities.

Social Sector Initiatives: The budget introduces the Subhadra Plus Scheme, an umbrella initiative for women’s empowerment. Key allocations include ₹10,145 crore for Subhadra and ₹153 crore for Subhadra Surakhya (women’s safety). The scheme comprises multiple sub-programs, including Kishori Subhadra, Subhadra Sanchay, Subhadra Sakhi, Subhadra Yatri, Subhadra Scholars, and Kuha Subhadra (Call Centre). The Mukhya Mantri Kanya Bibaha Yojana aims to support government-sponsored mass marriages.

Agriculture and Rural Development: The agriculture and rural development sector sees an increased allocation of ₹37,838 crore, marking a 12% rise from the previous year. The MSP on paddy has been raised to ₹3,100 per quintal, with an additional ₹800 input subsidy. The Samrudha Krushak Yojana receives ₹6,000 crore (up from ₹5,000 crore in 2024-25), while ₹2,020 crore is allocated for the CM Kisan Yojana to provide financial aid to farmers. ₹695 crore has been earmarked for the Crop Diversification Programme, promoting non-paddy crops like millets, pulses, and oilseeds. The Shree Anna Abhiyan gets ₹600 crore to support millet production, with ragi procurement at ₹4,500 per quintal. Additionally, the Rabi Potato Cultivation Programme aims to cover 1.80 lakh farmers, with 1.60 lakh quintals of certified seed potatoes supplied.

Health and Education: In the health sector, the budget allocation stands at ₹20,837 crore for 2024-25, with a significant increase expected. ₹5,374 crore has been assigned to the Gopabandhu Jana Arogya Yojana. The education budget is ₹34,323 crore, with efforts to align it with the 6% GSDP target. A major focus remains on rural healthcare, strengthening infrastructure and service delivery.
Economic Growth and Industrial Development: Odisha’s economic growth and industrial investments are projected to reach 8% to 8.5% in 2025-26, surpassing the national average by 1.5-2%. The public expenditure strategy prioritizes essential services like health, education, water, housing, roads, and power. The MSME & startup ecosystem will benefit from incentives and easy credit access through the Startup India initiative. In the renewable energy sector, Odisha plans to develop policies to boost wind and solar energy investments.

Impact of the Union Budget: The Union Budget’s impact on Odisha is evident through increased allocations for railway infrastructure, national highway expansion, and fisheries development. The focus remains on modernizing Odisha’s fishing industry and enhancing connectivity between urban centers and port cities.

Utkarsh Odisha 2025: A Landmark Investment Conclave

The Utkarsh Odisha-Make in Odisha Conclave 2025, the state’s premier investment summit, has attracted investments worth a staggering ₹16.73 lakh crore. Held on January 28-29, the event saw the participation of around 5,000 industry representatives from India and abroad, resulting in the signing of MoUs spanning multiple sectors, including chemicals and petrochemicals, textiles, mining, renewable energy, IT, tourism, and food processing.

A Global Investment Platform: The conclave garnered attention from 16 countries, with Singapore, Malaysia, and Australia participating as partner nations. This global engagement underscores Odisha’s growing reputation as a preferred investment destination. Chief Minister Mohan Charan Majhi announced that, apart from the signed MoUs, the state received 448 investment intention forms, amounting to ₹3.84 lakh crore, with the potential to generate 3.92 lakh jobs.

Diverse Sectoral Commitments: The event featured key sessions focusing on sectors such as renewable energy, textiles, industrial infrastructure, tourism, healthcare, biotechnology, and food processing. With Odisha gradually shifting from its traditional focus on metal and mineral-based industries, new investors from niche sectors are stepping forward to establish their presence.

Notably, more than 50% of the ₹12.89 lakh crore investment commitments originated from non-metal and mineral sectors. Even within the steel sector, the 12 signed MoUs focused on ductile iron pipe manufacturing and casting or forging units rather than sponge iron production.

Rise of Non-Metal Sectors

A significant portion of the investments is directed towards emerging industries such as renewable energy, biotechnology, semiconductor manufacturing, aerospace, and green energy equipment. The breakdown of non-metal investments includes:

• Renewable & Green Energy: ₹4.25 lakh crore
• Chemicals, Petrochemicals & Plastics: ₹78,803 crore
• Logistics & Infrastructure: ₹62,645 crore
• Green Energy Equipment: ₹25,589 crore
• Textiles & Apparel: ₹7,002 crore
• General Manufacturing: ₹5,531 crore
• Biotechnology & Pharma: ₹4,750 crore
• Engineering Goods: ₹3,500 crore
• Aerospace & Defence: ₹2,349 crore
• Agro-Based & Food Processing: ₹1,742 crore

New Players in the Odisha Market

The investment summit welcomed new entrants to Odisha’s industrial landscape. Companies such as Texmaco Rail and Engineering Ltd, Jupiter Wagons, and Premium Transmission have proposed investments in wagon equipment, rail wheel, and gears manufacturing, respectively. Additionally, Epigral Limited, Indorama Ventures, and MCPI Ltd have shown interest in the chemicals and petrochemicals sector.

Singapore, already an active investor, signed eight MoUs, while Malaysia expressed interest in developing a dedicated industrial park for electronics manufacturing. A Malaysian business delegation is expected to finalize an MoU within the next two months.

Adding more to this, financial analyst and columnist Jankish Badapanda said, "Prime Minister Narendra Modi’s frequent visits to Odisha reflect his commitment to transforming eastern India into the country’s growth engine. With the Mohan Charan Majhi-led BJP government in power, Odisha is witnessing a renewed push for industrialization. The state is rapidly emerging as a leader in key sectors like food processing, petrochemicals, IT, tourism, and green energy. The Prime Minister’s emphasis on strengthening India’s supply chain and reducing import dependence aligns well with Odisha’s development trajectory.  

The state government is actively working to attract investments, streamline regulations, and create employment opportunities. With investment proposals worth Rs 2.5 lakh crore already approved and over 1.1 lakh jobs in the pipeline, Odisha is on its way to becoming a major industrial hub. Welfare measures, such as integrating the Mamata scheme with Pradhan Mantri Matru Vandana Yojana, are ensuring better social security for women and children.”  

“The upcoming state budget will focus on rural development, employment generation, and industrial growth, with plans to recruit 40,000 people in the next financial year. Urban expansion is also a key priority, with Bhubaneswar set to grow into a greater economic region alongside Cuttack, Puri, and Paradip. The government’s vision for a new city near Bhubaneswar and the progress of the Bhubaneswar metro rail project reflect a long-term commitment to infrastructure and economic growth. Odisha is on the path to unprecedented progress, and this is just the beginning,” concluded the expert.