The government of Orissa is claiming drought conditions in 8 of its 17 districts, and the Indian national government is investigating those claims this week. I'd wager on the central government coming back and confirming crops did fail in most, if not all of those districts.
The above image shows the four critical months of the Indian monsoon: June, July, August and September. The circled area shows the location of Orissa. Looking at this you will note that three of the four months were poor, and two of the three bad months were abysmal. Only one month, June, was marginal.
Looking just to the north of Orissa, you see a dry pattern for most of these months. Drought looks wide spread across the nearby Indian states of West Bengal and Jharkhand and all of Bangladesh. Before we get carried away with failed crops across eastern India and Bangladesh, let's take a quick look at ground data. Notice that at the top of most graphics on this site you frequently see "Estimated Rainfall". This refers to the fact that for the purpose of maps, I rely on satellite base precipitation estimates. So, before declaring drought, lets take a look at some ground based data.
Let's turn to the US Climate Prediction Center, who has a great data set for this kind of analysis. In their data set, Jharkhand is still united with Bihar, so we will have to look at those states together: