The present study was conducted to assess groundwater quality for drinking and industrial water purposes, evaluate the driving mechanisms of groundwater chemistry, and suggest appropriate management measures to protect groundwater resources for sustainable urban development in a part of Odisha, India. Overall Water Quality Index (OWQI) and Industrial Water Quality Index (IWQI), geochemical ratios and chemometric analyses were used to identify the causes of ionic sources of natural and anthropogenic inputs. Groundwater samples were collected and analysed for chemical parameters. The OWQI indicated that 95.93% of the study region is unfit for drinking water purposes due to high concentrations of Mg2+, Na+, , , , and ions supported by the ANOVA test. The IWQI found corrosion and incrustation activities in 80.05% and 94.33% of the study region, respectively, which hinders urban development. The trilinear diagram illustrated that the freshwater type changes completely to mixed water type, and then to reverse ion exchange water and saline water types due to the influence of anthropogenic sources. Gibbs diagrams explaining the mechanisms responsible for groundwater chemistry that groundwater quality moves from the rock domain to the evaporation domain due to human-induced activities. Saturation indices showed that fluoride, gypsum, and halite are in a dissolved state, and calcite is in a precipitated state. Different ionic ratios clearly illustrated that groundwater quality is mainly modified by anthropogenic sources from lithological origin. Principal component analysis (PCA) classified the chemical parameters into salinity, alkalinity, and soil-controlled factors of groundwater chemistry based on their high-positive loadings. High positive scores of PCA, and Clusters 1 and 2 of the hierarchical cluster analysis clearly differentiated polluted and unpolluted affected groundwater samples. Therefore, it is suggested to take appropriate preventive measures to improve the groundwater resources. Otherwise, there will be adverse conditions for urban activities.