Bhubaneswar: Odisha can unlock greater economic value by strengthening local manufacturing, developing domestic suppliers and integrating more districts into global value chains, according to a report released by Pahlé India Foundation (PIF) in Bhubaneswar.

The report was unveiled during a discussion on “Viksit Odisha: Progress, Prospects and the Road to 2047” hosted by PIF at Vivanta Bhubaneswar, DN Square, on Friday, October 23, 2026. Chief Secretary Anu Garg attended the event as the chief guest, alongside government officials, industry representatives and academics.

The discussion focused on Odisha’s economic growth, investment opportunities and the policy priorities required to achieve its long-term development goals.

Delivering the keynote address, PIF Chairman and former NITI Aayog Vice Chairman Dr Rajiv Kumar highlighted the need to move beyond mineral extraction towards high-value manufacturing and sustainable industrial development.

“Odisha produces 44% of India’s mineral value, but mining must be run as a high-value, high-capex industry,” he said, advocating greater investment in green steel, green aluminium, green hydrogen and rare-earth magnets, supported by the state’s mineral resources and port infrastructure.

Kumar said Odisha’s merchandise exports, currently valued at around $11 billion, should increase to $100 billion by 2036.

He pointed out that eight districts account for 83% of the state’s merchandise exports, while the bottom 15 districts contribute barely 2%. To address this imbalance, he proposed a four-part strategy for each lagging district: identifying its One District One Product item, securing a global anchor buyer, establishing a shared processing facility, and improving road or rail connectivity to a port.

He also stressed the importance of equipping young people with skills suited to emerging industries, noting that Odisha’s demographic dividend would remain favourable until 2036.

According to Kumar, Odisha’s economy has expanded tenfold over the past two decades. Sustaining nominal economic growth of 10% could help the state achieve developed-economy status by 2047, with per capita income reaching approximately $18,000, he said.

Odisha targets $1.5 trillion economy by 2047

Addressing the gathering, Chief Secretary Anu Garg outlined the state government’s ambition to build a $500 billion economy by 2036 and a $1.5 trillion economy by 2047, in alignment with the national vision of Viksit Bharat 2047.

She highlighted the EDGE framework—Economic Strength, Demography, Geography and Ecosystem—as a key pillar of the state’s development strategy.

Under the economic-strength component, Garg emphasised sustaining high growth by leveraging Odisha’s mineral resources, maintaining fiscal prudence and revenue strength, securing water resources, and attracting greater capital investment.

Report highlights manufacturing opportunities in Odisha’s Alcobev Sector

The event also marked the launch of PIF’s report, supported by Diageo India, titled Unshackling Odisha’s Alcobev Sector: Towards a Business-Driven Partnership Model.

The study examines the economic footprint of Diageo India, also known as United Spirits Limited (USL), in Odisha and the broader contribution of the alcoholic beverages industry to the state’s economy. It assesses fiscal contributions, employment linkages, procurement patterns, environmental performance and regulatory conditions affecting investment.

Using Diageo India’s vendor expenditure for the 2024-25 financial year, the report estimates associated gross value added (GVA) of Rs 647.9 crore across India, of which Rs 350.5 crore accrued within Odisha.

The expenditure-driven assessment also estimates Rs 245.1 crore in GVA outside Odisha in packaging-related manufacturing, including glass, plastic and paper. The report notes that these figures are based on vendor expenditure and are distinct from its separate input-output estimates.

The findings point to opportunities for Odisha to expand its manufacturing base by developing local suppliers of packaging materials and other industrial inputs. Strengthening these supply chains could help retain a greater share of economic activity within the state and create additional business opportunities for domestic enterprises.

Excise duty collections rise to Rs 11,429 crore

The report also highlights the alcoholic beverages industry's contribution to Odisha’s public finances.

According to the study, the state collected Rs 11,429 crore in excise duty and value-added tax (VAT) from the sector in FY2024-25, up from Rs 7,622 crore in FY2021-22.

Diageo India contributed Rs 1,434 crore in excise duty during FY2024-25, equivalent to 12.6% of Odisha’s combined excise duty and VAT collections from the sector. The company separately stated that its contribution represented 20.8% of the relevant state excise collections, excluding VAT.

The report argues that greater economic benefits could be generated through improvements in the regulatory and institutional environment. It identifies potential areas for reform, including wholesale distribution infrastructure, pricing and packaging regulations, and regular consultations between the government and industry.

Among its key recommendations are the establishment of an Odisha Alcobev Policy Council and an Anchor Firm Compact.

The proposed mechanisms would aim to improve policy predictability while securing measurable commitments from participating companies on investment, local employment, skills development and community initiatives.

Focus on environmental sustainability

The study also evaluates environmental performance at Diageo India’s manufacturing facilities, documenting improvements in water and energy efficiency per unit of production.

The findings underscore the importance of combining industrial expansion with greater productivity and resource efficiency.

Devashish Dasgupta, Director of Corporate Relations at Diageo India, said Odisha’s economic growth presented significant opportunities for the alcoholic beverages sector to contribute further to the state’s development.

He highlighted the company’s Rs 1,434 crore excise duty contribution in FY2024-25 and said its role extended beyond revenue generation to investment, employment, local value creation and community development.

Dasgupta said stronger cooperation between the government and industry could attract additional investment, improve the ease of doing business and support responsible, sustainable growth.

As Odisha pursues its Vision 2036 and 2047 targets, the report emphasises the need to strengthen links between existing industrial activity and local enterprises. Developing supplier capabilities, improving regulatory efficiency and maintaining fiscal, environmental and public-health safeguards could help the state retain more value from its expanding industrial economy.