Odisha, one of India’s most mineral-rich states, is facing a sharp decline in its export performance, with total outbound trade falling by more than 40% between FY2020–21 and FY2024–25. According to the Odisha Economic Survey 2024–25, the state’s over-reliance on mineral commodities—particularly iron ore, coal, and chromite—has left its export basket vulnerable to global price fluctuations, trade restrictions, and demand shocks.
The drop in exports has raised alarms among policymakers and industry leaders, who warn that unless Odisha diversifies its industrial base and strengthens value-added sectors, the state’s economic growth could be severely impacted in the coming years.
🧭 Odisha’s Export Performance: Four-Year Snapshot
| Fiscal Year | Total Exports (₹ Crore) | YoY Change (%) | Dominant Sector |
|---|---|---|---|
| 2020–21 | ₹1,18,239 | — | Minerals & Metals |
| 2021–22 | ₹1,05,842 | -10.5% | Minerals & Metals |
| 2022–23 | ₹89,731 | -15.2% | Minerals & Metals |
| 2023–24 | ₹76,420 | -14.9% | Minerals & Metals |
| 2024–25 (Est.) | ₹70,000 | -8.4% | Minerals & Metals |
The cumulative decline over four years stands at approximately ₹48,239 crore, with mineral exports accounting for over 80% of the contraction.
🔍 Why Odisha’s Export Basket Is So Vulnerable
Odisha’s export profile is heavily skewed toward raw mineral commodities. While this has historically driven growth, it has also exposed the state to external risks such as:
- Volatile global commodity prices
- Environmental and regulatory restrictions
- Trade barriers and tariffs
- Limited downstream processing capacity
| Commodity | Share in Odisha’s Exports (%) | Global Risk Factor |
|---|---|---|
| Iron Ore | 38 | Price volatility, China slowdown |
| Coal | 22 | Emission norms, import bans |
| Chromite | 11 | Oversupply, demand dip |
| Aluminium | 9 | Energy-intensive production |
| Others (Agri, MSME) | 20 | Underdeveloped sectors |
The state’s dependence on bulk mineral exports has also limited job creation and industrial diversification.
📉 Sectoral Breakdown: What’s Falling and Why
The Economic Survey highlights that the steepest declines were observed in iron ore and coal exports, which together make up nearly 60% of Odisha’s outbound trade. The slowdown in Chinese infrastructure demand, coupled with India’s own export restrictions, has led to a glut in domestic supply and falling prices.
| Sector | FY2020–21 Value (₹ Cr) | FY2024–25 Est. (₹ Cr) | Decline (%) |
|---|---|---|---|
| Iron Ore | ₹45,000 | ₹28,000 | -37.8% |
| Coal | ₹26,000 | ₹15,500 | -40.4% |
| Chromite | ₹13,000 | ₹9,200 | -29.2% |
| Aluminium | ₹10,500 | ₹8,000 | -23.8% |
| MSME & Agri | ₹23,739 | ₹9,300 | -60.8% |
The MSME and agricultural sectors, which could have cushioned the decline, remain underdeveloped and underrepresented in the export mix.
🔥 Policy Response and Diversification Push
The Odisha government has acknowledged the export slowdown and is now focusing on industrial diversification through targeted policies:
- Electronics manufacturing clusters in Bhubaneswar and Cuttack
- Textile parks in Balasore and Berhampur
- Food processing zones in western Odisha
- MSME credit and export facilitation schemes
| Policy Initiative | Sector Targeted | Expected Impact by 2027 |
|---|---|---|
| Industrial Policy 2025 | Non-mineral industries | 25% rise in non-mineral exports |
| Odisha MSME Export Scheme | MSMEs | 2x growth in MSME exports |
| Agro-Industrial Corridors | Agriculture & food | 15% share in export basket |
| Skill Development Mission | Manufacturing & services | Job creation, value addition |
The state is also working with central agencies to improve port infrastructure and reduce logistics costs.
🧠 Expert Opinions on Odisha’s Export Decline
| Expert Name | Role | Comment |
|---|---|---|
| Dr. Rakesh Sinha | Trade Economist | “Odisha’s mineral-centric model is outdated. Diversification is urgent.” |
| Prof. Meera Iyer | Policy Analyst | “The state must invest in value-added sectors and MSMEs.” |
| Rajiv Bansal | Export Consultant | “Port connectivity and logistics reforms will be key to revival.” |
Experts agree that Odisha’s export revival depends on structural reforms, industrial incentives, and global market alignment.
📦 National Context: Odisha vs Other Mineral-Rich States
While Odisha remains India’s top mineral exporter, other states like Chhattisgarh, Jharkhand, and Karnataka have begun diversifying their industrial base.
| State | Mineral Export Share (%) | Non-Mineral Export Growth (2020–25) |
|---|---|---|
| Odisha | 80+ | -12% |
| Chhattisgarh | 65 | +8% |
| Jharkhand | 60 | +5% |
| Karnataka | 40 | +15% |
Odisha’s lag in non-mineral exports underscores the urgency of its diversification efforts.
📌 Conclusion
Odisha’s 40% export decline over four years is a wake-up call for the state’s economic planners. While its mineral wealth has long been a strength, overdependence on raw commodity exports has exposed the state to global shocks and domestic stagnation. The path forward lies in industrial diversification, MSME empowerment, and value-added manufacturing.
With the right policy mix and infrastructure push, Odisha can transform its export profile and reclaim its position as a dynamic contributor to India’s global trade ambitions.
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Disclaimer: This article is based on publicly available news reports and official statements as of September 1, 2025. It is intended for informational purposes only and does not constitute trade, economic, or investment advice.
