Odisha Leads India’s Mining Economy as East Drives Growth

25 Mar 2026 CW Team

The report observed that mining made a modest contribution to the gross state domestic product of industrially diversified states, with Maharashtra and Gujarat at three point four per cent and two point eight per cent. By contrast, eastern states showed deeper integration, with Odisha at 12.9 per cent and Chhattisgarh at eleven per cent, while Assam, Tripura and Jharkhand recorded eight point six per cent, eight point three per cent and seven point seven per cent respectively. The pattern reflected differing degrees of economic diversification and reform.

The decade to FY2025 saw uneven growth, with Madhya Pradesh recording the highest compound annual growth rate (CAGR) at 12.5 per cent, followed by Gujarat at 11.9 per cent, Telangana at 11.4 per cent and Odisha at 10.8 per cent, while Jharkhand lagged at four point five per cent. Mineral block auctions served as a marker of reform, with Madhya Pradesh auctioning 156 blocks and Odisha 97, ahead of Chhattisgarh at 95, Karnataka at 63 and Maharashtra at 62. Auction portfolios varied by state according to local resource endowments.

Production figures underscored Odisha’s dominance, with the state accounting for over 38 per cent of the value of mineral production in FY2026. Iron ore output reached 155 million (mn) tonnes (t) in FY2025, about 53 per cent of national output, while coal output was 237 mn t in FY2024, nearly 24 per cent of India’s 997 mn t. Odisha also produced 17.5 mn t of bauxite, about 73 per cent of national supply, and held 96 per cent of chromite reserves.

The Assocham?ICRA report, based on Ministry of Statistics and Programme Implementation data, identified Odisha as the largest contributor to India’s mining gross value added, at 14 per cent in FY2025. The study placed Gujarat at 12.9 per cent and Maharashtra at 12.1 per cent, while Rajasthan and Madhya Pradesh contributed 9.6 per cent and 8.6 per cent respectively. These five states jointly accounted for over 57 per cent of national mining GVA, highlighting regional concentration in the sector. The report observed that mining made a modest contribution to the gross state domestic product of industrially diversified states, with Maharashtra and Gujarat at three point four per cent and two point eight per cent. By contrast, eastern states showed deeper integration, with Odisha at 12.9 per cent and Chhattisgarh at eleven per cent, while Assam, Tripura and Jharkhand recorded eight point six per cent, eight point three per cent and seven point seven per cent respectively. The pattern reflected differing degrees of economic diversification and reform. The decade to FY2025 saw uneven growth, with Madhya Pradesh recording the highest compound annual growth rate (CAGR) at 12.5 per cent, followed by Gujarat at 11.9 per cent, Telangana at 11.4 per cent and Odisha at 10.8 per cent, while Jharkhand lagged at four point five per cent. Mineral block auctions served as a marker of reform, with Madhya Pradesh auctioning 156 blocks and Odisha 97, ahead of Chhattisgarh at 95, Karnataka at 63 and Maharashtra at 62. Auction portfolios varied by state according to local resource endowments. Production figures underscored Odisha’s dominance, with the state accounting for over 38 per cent of the value of mineral production in FY2026. Iron ore output reached 155 million (mn) tonnes (t) in FY2025, about 53 per cent of national output, while coal output was 237 mn t in FY2024, nearly 24 per cent of India’s 997 mn t. Odisha also produced 17.5 mn t of bauxite, about 73 per cent of national supply, and held 96 per cent of chromite reserves.

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