THEBUSINESSBYTES BUREAU

BHUBANESWAR, MARCH 22, 2026

Think Change Forum (TCF) has released a comprehensive report titled “Odisha 2.0: Building a New Growth Model by Learning from India’s Best-Performing States,” highlighting the urgent need for stronger policy enforcement and faster execution to unlock the state’s next phase of economic growth. Based on extensive research and consultations with economists, policy experts and senior practitioners with long-standing experience in Odisha, the report positions the state at a critical inflection point in its development journey.

According to the report, Odisha is increasingly being viewed as a key growth engine for eastern India under the Purvodaya Vision, while also contributing significantly to the national ambition of Viksit Bharat @2047. However, the study emphasises that policy intent must now translate into measurable outcomes through consistent implementation and removal of long-standing execution bottlenecks.

Summarising the report’s core message, Ranganath T., Secretary General, Think Change Forum, said Odisha has the opportunity to emerge as a globally competitive and regionally balanced growth model driven by effective implementation. He stressed that learning from past experiences and replicating best practices from high-performing states would be essential to ensure that large anchor investments generate value chains, employment opportunities and local prosperity across districts.

A key insight from the report is that high-performing states distinguish themselves not merely through policy announcements but through their ability to fast-track project execution. It emphasises the importance of ensuring that major approved projects move quickly from intent to implementation so that anchor investments can catalyse industrial ecosystems and generate widespread economic benefits.

Highlighting challenges in the mining sector, R. K. Sinha, former Controller General of the Indian Bureau of Mines and a noted mining policy specialist, observed that while India has a robust mineral policy framework, economic and social gains depend largely on effective execution. He pointed out that despite Odisha possessing nearly 51 percent of India’s bauxite reserves — with the south-western belt accounting for nearly 85 percent of these resources — less than one-fourth of the deposits are currently under active production. This, the report notes, reflects significant underutilisation of the state’s mineral potential.

The study cites the alumina refinery at Lanjigarh in western Odisha as a case study of a major anchor investment whose full multiplier effect remains constrained due to limited availability of locally sourced bauxite. The report identifies operationalisation of nearby mines as a “low-hanging opportunity” capable of delivering rapid economic gains. It notes that India imported around 3.6 million tonnes of bauxite in FY2023 and an estimated 4.5 million tonnes in FY2024–25, involving foreign exchange expenditure of approximately ₹4,000–5,000 crore. Additionally, imports of finished aluminium crossed ₹70,000 crore in FY2025–26, underscoring the potential to strengthen domestic value addition in mineral-rich regions such as Kalahandi and Rayagada.

Economist Prof. Nilanjan Banik, Program Director at Mahindra University, noted that while large capital-intensive investments boost output, employment generation depends on the depth of local industrial ecosystems. Supply-side constraints, particularly in raw material availability, can limit income generation and reduce the overall multiplier impact of industrial investments.

The report also stresses the need to strengthen community inclusion in mineral-bearing districts. It recommends more effective utilisation of the District Mineral Foundation (DMF) to ensure visible development outcomes and greater participation of local communities. In the Lanjigarh case study, the report notes that 5 percent of annual profits from refining locally sourced bauxite is earmarked for community welfare. However, the absence of operational mining has restricted the flow of these funds, limiting potential socio-economic benefits for the region.

Deepak Mohanty, former Director of Mines, Odisha, suggested that allowing village communities greater control over portions of DMF resources could strengthen local ownership and ensure that development assets are better maintained and aligned with local needs.

The study further underscores the importance of balanced regional development between coastal and western Odisha. While coastal districts have gained a natural advantage due to ports and logistics infrastructure, mineral-rich interior regions require focused policy attention to develop manufacturing ecosystems and improve connectivity. Strengthening logistics, evacuation infrastructure and sustainability safeguards will be essential to ensure that industrial growth becomes broad-based and globally competitive.

Prof. Suresh Chandra Misra, former Professor at IIT Kharagpur, observed that although industrial clusters are emerging along the coast due to logistics advantages, minerals sourced from interior districts often move out without generating sufficient local value addition or manufacturing linkages.

The report estimates that operationalising just three bauxite mining clusters in western Odisha could add nearly ₹18,000 crore annually to the state’s Gross State Domestic Product (GSDP), create around 15,000 direct jobs and more than 50,000 indirect employment opportunities, while catalysing approximately USD 2.5 billion in downstream investments across mineral-bearing districts.

Concluding its analysis, the Think Change Forum report calls for a more implementation-led growth strategy anchored in stronger MSME development, balanced regional expansion, improved utilisation of mineral resources and deeper community participation through instruments such as the DMF. It emphasises that addressing long-pending execution challenges will be critical for Odisha to fully leverage its strategic advantages in minerals, geography and investment potential, and to emerge as a competitive growth hub in the coming decades.