Odisha is accelerating into a new phase of industrial transformation in 2026, with strong economic indicators and a fresh wave of high-value project approvals signaling a decisive shift in its development model. Once largely identified with mining and metal production, the state is now positioning itself as a diversified hub for advanced manufacturing, renewable energy, and next-generation technologies.
According to the Odisha Economic Survey 2025–26, the state is projected to grow at 7.9 percent in the current fiscal year—outpacing the national growth estimate of 7.4 percent. This performance reflects a steady broadening of the industrial base and the success of policy measures aimed at attracting both domestic and global investment.
Industry at the Core of Growth
Industry now accounts for 41.3 percent of Odisha’s Gross Value Added, with manufacturing expanding at a robust 8.3 percent. This marks a significant transition from the state’s earlier dependence on raw mineral extraction toward value-added production and technology-driven sectors.
Under the Vision 2036 roadmap articulated by Chief Minister Mohan Charan Majhi, Odisha is pursuing long-term structural transformation. The strategy is being implemented by “Team Odisha,” led by Hemant Sharma, Additional Chief Secretary for Home, Industries, and Information & Public Relations. The focus is not merely on expanding industrial output, but on reshaping the economic identity of the state.
₹44,241 Crore Investment Milestone
In a major boost to this transformation agenda, the state government recently cleared 10 industrial proposals worth ₹44,241 crore. Spread across eight districts—including Khurda, Koraput, and Dhenkanal—these projects reflect a conscious move toward economic diversification.
Unlike earlier investment cycles dominated by steel and mining, the new approvals emphasize:
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Semiconductor manufacturing
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Rare earth material processing
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Aerospace component production
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Advanced materials and high-tech engineering
This evolution demonstrates Odisha’s ambition to climb the value chain and integrate into global technology supply networks.
Green Energy as the Growth Engine
A defining feature of Odisha’s industrial push is its commitment to renewable and green energy. More than ₹30,000 crore of recent approvals are dedicated to pumped storage hydropower projects, laying the foundation for long-term energy stability.
Major players such as Adani Hydro Energy, Greenko, and Jindal Green are leading initiatives in districts like Nayagarh and Kalahandi. These projects aim to support Odisha’s target of achieving 10 GW of renewable energy capacity by 2030.
Pumped storage systems will play a critical role in balancing renewable power generation, ensuring reliable supply for energy-intensive industries.
Hydrogen Valley and Industrial Decarbonization
Odisha’s clean energy ambitions extend beyond power generation. The Hydrogen Valley Innovation Cluster, anchored by IIT Bhubaneswar, is entering a crucial implementation phase.
The initiative seeks to integrate green hydrogen into hard-to-decarbonize sectors such as steel and cement manufacturing. Companies including Dalmia Cement and Jindal Steel and Power have expressed commitment to incorporating green hydrogen solutions into their operations to meet long-term net-zero goals.
If successfully scaled, this initiative could position Odisha as a national leader in green industrial transition.
Infrastructure: Enabling the Industrial Surge
Industrial growth is being reinforced by large-scale infrastructure investments. The state plans to increase the handling capacity of its non-major ports from 200 million metric tonnes per annum to 500 million metric tonnes, strengthening its role in export logistics.
Strategic port cities such as Dhamra Port and Bahuda are being developed as multimodal hubs, integrating maritime, rail, and road connectivity.
Additionally, ₹4,182 crore has been earmarked under the Building and Management of Aviation Assets and Network (B-MAAN) initiative to enhance regional air connectivity and improve logistics efficiency.
These infrastructure upgrades are critical to attracting high-technology industries that require seamless global integration.
Economic Gains and Employment Impact
The industrial expansion is already producing measurable socio-economic benefits. Odisha’s per capita income has risen to ₹1,86,761, marking a 9.2 percent increase.
The 10 newly approved projects are expected to generate nearly 9,000 direct jobs. Over the past year, 244 approved projects collectively aim to create more than 3.3 lakh employment opportunities. Importantly, the state is encouraging ancillary and downstream industries to ensure that large anchor projects stimulate local MSMEs and service providers.
This ecosystem-based approach is designed to spread industrial benefits across all 30 districts rather than concentrating growth in a few urban centers.
Toward a ₹5 Lakh Crore Commissioning Target
Looking ahead, Odisha aims to commission projects worth ₹5 lakh crore by 2029. The long-term objective is to establish the state as a global hub for green fuels, electronics manufacturing, and advanced materials.
Regulatory streamlining, proactive investor facilitation, and administrative integration are central to achieving this goal. The leadership’s multi-departmental coordination model seeks to combine speed with transparency, ensuring that industrial growth aligns with environmental sustainability and social inclusion.
A Defining Decade for Odisha
Odisha’s current trajectory reflects more than incremental growth—it signals a strategic repositioning of the state within India’s industrial landscape. By blending renewable energy expansion, high-technology manufacturing, infrastructure modernization, and employment generation, the state is moving beyond its mineral-centric legacy.
If sustained, this transformation could redefine Odisha’s economic narrative—turning it into a cornerstone of India’s green and technology-driven industrial future.