Odisha's industry sector began a phase of high growth in 2002-03. It contributed just 24% to the gross state domestic product in 1980-81, but 38% in 2007-08, before declining to 33% in 2012-13. This paper points out that organised manufacturing, especially in basic metal and alloys, has been the driver of growth in the last decade. The average productivity of labour in organised manufacturing increased during 1981-90, peaked in 1989-90, declined in 1991-2002, and has been rising again from 2002-03. Labour productivity has grown the most in basic metal and alloys, and capital accumulation in paper and paper products. Capital productivity shows a negative trend overall. Total factor productivity fell in manufacturing as a whole and three major sub-sectors, barring basic metal and alloys, and chemical and chemical products.
