According to a report by India Ratings, Odisha emerged as one of the major states driving India’s economic revival between FY20 and FY25. The state recorded a compound annual Growth Rate (CAGR) of over 6% in Gross State Domestic Product (GSDP), surpassing the national average.
A key contributor to this growth was the expansion of Odisha’s manufacturing sector, whose share in real Gross State Value Added (GSVA) rose from 22.8% in FY20 to 26.7% in FY24. Traditionally known for its base in basic metals and petroleum products, Odisha benefited from a commodity price upcycle that accelerated production. However, the report notes that the gradual diversification of its manufacturing base has been a more sustainable growth driver.
Other states that posted strong GSDP growth with a CAGR between 5% and 6% include Gujarat, Rajasthan, Andhra Pradesh, Uttar Pradesh, Jharkhand, and Chhattisgarh. In contrast, Maharashtra, Telangana, Punjab, Madhya Pradesh, and Bihar recorded growth rates at or below 5%.
“Despite early setbacks in FY20 due to an economic slowdown, India’s economy has shown a robust recovery, growing at a CAGR of 5.3% between FY20 and FY25,” said Paras Jasrai, an economist at India Ratings.
While the national share of agriculture in Gross Value Added (GVA) declined during this period, states such as Uttar Pradesh and Bihar witnessed notable agricultural growth. In the manufacturing sector, Odisha, Assam, Jharkhand, Punjab, and Andhra Pradesh saw significant gains, with growth stemming from sectors like apparel, machinery, chemicals, and food processing.
Conversely, states such as Uttarakhand, Maharashtra, Uttar Pradesh, and Madhya Pradesh saw a sharper decline (over 1 percentage point) in the manufacturing sector’s share of economic activity during FY20–FY24.
The services sector emerged as the main growth driver for states like Uttarakhand, Himachal Pradesh, Chhattisgarh, Karnataka, and Telangana.
Assam also recorded a strong performance, with manufacturing’s share in its real GSVA increasing from 15.8% in FY20 to 18.4% in FY24. This growth was led by a sharp rebound in the output of fabricated metal products, chemicals, petroleum products, beverages, and more during FY20–FY23.
