Irrigation and agricultural sector performance in Orissa and their influences on economic development of the state are studied. In Orissa, annual investment in irrigation sector is remained consistently high with an average annual outlay about Rs. 600 crores during the past years since 2000-01. Agricultural growth rate of the state is hovering around one percent. Inspite of increase in irrigation potential over the years, food grain production in Orissa has showed slower growth; it is yet to reach the production level of 1989-90 (7.97 million tonnes) with 7.54 and 7.36 million tonnes of food grain production during 2001-02 and 2005-06, respectively. Although the expected growth rate of irrigated agriculture has not reflected; however, assured irrigation supply has increased rice area during dry season by 60%. An increase in rice area during dry season that is 100% irrigated has resulted in higher production and productivity in last couple of years

Keyword: Growth in irrigation and