Odisha is rapidly emerging as the powerhouse of India’s MSME sector, with small business credit growth in the state now outpacing the national average. According to the latest Small Business Spotlight report by CRIF High Mark and SIDBI, the state has witnessed a massive surge in credit appetite, signaling a new era of industrial and entrepreneurial expansion from Ganjam to Mayurbhanj.
The numbers tell a story of a state in transition. The total credit given to small businesses in Odisha has jumped from ₹67,000 crore in September 2023 to a staggering ₹96,000 crore by September 2025. This represents a 17.2% year-on-year growth, leaving the national average of 16.2% behind.
What is even more surprising is the performance of Odisha’s Aspirational Districts. While the state average is high, these traditionally underserved regions saw credit growth exceed 22%. Local entrepreneurs are not just taking more loans; they are paying them back more reliably than their counterparts in metropolitan cities. The report highlights that nearly 47% of borrowers in Odisha are now classified as “Very Low Risk,” up from 40% two years ago.
Public Sector Banks continue to be the primary backbone for Odisha’s entrepreneurs, holding over 40% of the market share, though private lenders are quickly expanding their reach into the state’s interior.
While Public Sector Banks (PSBs) remain the primary backbone for Odisha’s entrepreneurs with over 40% market share, a new trend is emerging in the state’s interior. Non-Banking Financial Companies (NBFCs) are aggressively driving “ticket-size” growth in rural belts, providing the necessary capital for micro-enterprises to scale rapidly
The Pan-India Landscape :
The momentum seen in Odisha reflects a broader, massive shift across the country. India’s total small business credit market has now crossed the ₹46 lakh crore milestone.
The engine of this growth isn’t just large corporations, but the “Sole Proprietor.” Individual business owners now make up 80% of the total credit value and 90% of the borrower base nationwide. While manufacturing remains a staple, the Services sector has stolen the spotlight with a remarkable 19.6% growth rate, a significant jump compared to manufacturing, fueled by the rapid digitization of local economies.
A Cleaner Balance Sheet : Nationally, the “repayment culture” is improving. The percentage of bad loans (delinquencies) has dropped from 1.7% to 1.4% over the last two years. This shift is being attributed to better data tracking and the formalization of small businesses that previously operated only in cash.
For Odisha, this report is a “Green Signal.” With the state’s small business credit growing faster than the rest of India and maintaining a cleaner track record of repayment, the region is positioned to attract even more aggressive lending and investment in the coming fiscal year. The “Small Business” in Odisha is no longer just a local player; it is now a national leader in financial discipline and growth.
