Odisha is the standout gainer in Union Budget 2026

At a time when geopolitical tensions, trade disruptions, slowing world economy and volatile financial markets form the context, this year’s Union Budget has strategically dodged attention-grabbing welfare freebies or tax rate cuts. Finance minister Nirmala Sitharaman has instead opted for a measured fiscally-prudent approach at consolidation and staggered hikes in capital expenditure to boost infrastructure creation and economic growth.It seems the Modi 3.0 is not game for one-off budgetary announcements and instead believes in targeted interventions spread across the year. This Budget, therefore, is clear on its policy priority on spurring inclusive growth, ie, ensuring stability rather than hyping spectacle. The new political economics of India’s public finance is clearly evident in the Budget’s emphasis on building self-reliance in manufacturing across an array of pharmaceuticals, semiconductors, MSMEs, rare-earths, critical minerals, nuclear energy, chemicals, AI, textiles and sports goods. The capital markets did not cheer it as it was expecting some big relief for investors on tax fronts, though time will tell us how 3.0 is astutely steering the economy for the long haul.Odisha is one of the four states slated to receive this Dedicated Rare Earth Corridor, focusing on mining, processing, and manufacturing critical minerals and rare-earth elements for clean energy, electric vehicles and defense industries. This would reduce the country’s import dependence on China. Moreover, customs duty exemptions on capital goods for processing critical minerals will directly benefit Odisha’s extensive mining sector.

Boosting industrial connectivity has been a policy priority as a new Dedicated Freight Corridor from Dankuni (West Bengal) to Surat (Gujarat) will connect OdishaBesides all these standout allocations, Odisha is expected to receive substantial funding for ongoing railways projects. High priority remains on the Khurda Road-Balangir new line (301 km), with 226 km already operational, and the Talcher-Bimlagarh line to improve coal evacuation. About 59 railways stations, including Bhubaneswar, Cuttack and Puri are undergoing modernisation under the Amrit Bharat Station Scheme with a total state-wide investment of Rs 2,379 crore.

Big spending on waterways, rail corridors and port connectivity envision the state as the logistics backbone for eastern India’s development. Overall, these Budget allocations are expected to address Odisha’s specific development challenges and may have a direct impact on the state’s infrastructure, social welfare, and economic 

Among the states, Odisha has got some significant specific gains in this Budget as the key allocation announcements across sectors like logistics, minerals, and tourism, will help promote Odisha’s economic growth and development. The state has been exposited as a growth engine in the eastern India and a key logistics and industrial hub.