The liberalisation process that started in India in the early 1990s has made Orissa potentially the most attractive destination for large capital-intensive projects by private-sector firms - typically mineral-based ones. These projects are facing opposition from the people, especially those likely to be displaced and those who will be indirectly affected. At the same time, the state's woes - poverty and unemployment - remain to be addressed. Against this backdrop, this article examines - both analytically and empirically - the path taken by the three important sectors of the state: agriculture, industry, and mining. Based on an inter-district and inter-state panel analysis, the paper highlights the serious decline in the Orissa's agricultural sector - still the only significant determinant of per capita income in the state - while the mining sector, be it in production or exports, has flourished.