Known for its pioneer role in sea fare in the country, lush forests, rich mineral reserves and skilled workforce, Odisha (previously Utkala and Kalinga) has lately emerged as a dynamic industrial hub. Odisha’s accelerated industrial might is underpinned by a focused vision and well-defined policies, often marked by its uniformity and consistency with the national plan. However, occasional deviations do not necessarily undermine its commitment to the spirit of cooperative federalism, a cornerstone of the Centre-state relationship.
Odisha remains a leader in mining and metal sectors, boasting abundant reserves of iron ore, coal, bauxite, and chromite. Key industrial hubs like Jharsuguda, Keonjhar, Angul-Dhenkanal, and Rourkela have become epicentres of activity, supported by major ports such as Paradip, Dhamra, and Gopalpur. The state’s infrastructure, including five airports, an extensive road and railway network, and coastal shipping opportunities, has further bolstered its economic development.
In recent decades, Odisha has been on a remarkable transformation journey. Its economy has witnessed exponential growth, positioning it as one of India’s fastest-growing states, despite natural disasters disrupting its progress and derailing its growth trajectory. The state’s disaster management framework has been crucial in protecting lives and property during such events and that has earned immense appreciation globally.
With a GDP of around $110 billion and an impressive growth rate of 8.5 per cent, Odisha is outpacing the national average. Its labour force participation rate of 61.3 per cent, higher than the national figure, reflects a highly engaged workforce. The state’s economy is driven by three sectors—industry (43 per cent), services (36 per cent), and agriculture (21 per cent).
The ‘Make in Odisha’ Push
It all began with a vision, crafted by the state’s leaders to transform Odisha into an industrial powerhouse. This vision for industrial growth was recently showcased at a roadshow in Mumbai, led by Chief Minister Mohan Charan Majhi. Following a successful event in Delhi, Mumbai attracted over 500 attendees, including industry champions, to discuss investment opportunities and their expansion plans in key sectors like IT, textiles, chemicals, and renewable energy.
The roadshow focused on sectors including skill-driven industries, food processing parks, garment manufacturing clusters, and logistics hubs. The state’s business-friendly environment, strategic location on India’s eastern coast, and investor-friendly policies were recognised in true spirit. Besides, the chief minister held one-on-one meetings with top industrialists, further solidifying Odisha’s position as a preferred investment destination. The roadshow in the country’s financial hub gives an altogether new meaning to a culturally rooted yet development-hungry government of a province that has immense potential for sustainable business expansion.
As an invitee, it was my pleasure to meet the Chief Minister, Industry Minister, Chief Secretary, Additional Chief Secretary, Industry Secretary, Managing Director of the Industrial Promotion and Investment Corporation of Odisha (IPICOL), the nodal agency, and other senior members of the delegation. It was a thrilling experience to participate in this grand event, hosted in collaboration with the state government, the Confederation of Indian Industry (CII), represented by its secretariats in Mumbai and Bhubaneswar, and the Odia diaspora in Mumbai, where ambitious plans for industrial growth and investment took centre stage. The blueprint to transform Odisha into an industrial powerhouse was presented with a fair level of clarity and pragmatism.
Sneak Peek of the Investment Policy and Ease of Doing Business
Enhancing the ease of doing business, simplifying processes, and inviting investors with open arms have been the hallmarks of the state’s industrial policy. Its business environment is highly conducive to investment, consistently ranked as a top performer in Ease of Doing Business (EoDB) rankings.
The policy initiatives such as GO-SWIFT and BRAP are a testament to the foregoing assertion in vindicating the state’s mission to realise its economic potential. The launch of the GO-SWIFT (Government of Odisha – Single Window Investor Facilitation and Tracking) portal became the first beacon of change, allowing businesses to obtain necessary approvals quickly and hassle-free. The state’s Single Window Clearance System was also another game-changer, cutting through red tape and bureaucracy, that once held industries back. Similarly, the complete digitisation of land records has been well appreciated by stakeholders and is in sync with the ‘Digital India’ effort.
The BRAP (Business Reform Action Plan) 2022 recognised Odisha as one of the leading states in ease of doing business, showcasing its commitment to reforming regulatory frameworks and providing businesses with the necessary support to thrive. The state’s industrial land banks, competitive energy tariffs, and fiscal incentives further contribute to a cost-effective operational environment for businesses.
The sponsors who made substantial investments, relying on the state’s offerings, are worth mentioning to assess the success of the Make in Odisha programme since its inception.
JSW Steel, one of the largest steelmakers in India, committed over Rs 55,000 crore to set up a world-class steel plant in Odisha’s Jagatsinghpur district. Tata Steel followed suit, expanding its Kalinganagar facility with a Rs 23,500 crore investment, turning Odisha into the steel hub of the country. Meanwhile, Vedanta poured billions into its aluminum smelter and refinery, making Jharsuguda a major aluminum production centre.
These massive investments didn’t just stop with metals and mining. Odisha’s coastline opened up new opportunities in petrochemicals, with Indian Oil Corporation (IOCL) establishing a Rs 35,000 crore refinery in Paradip, catalysing growth in the plastics and chemicals sectors. ITC (the author’s former employer) made significant investments in setting up a food processing facility in Khurda, with investments of Rs 800 crore ($100 million). Soon, other industries followed—textiles, food processing, renewable energy, and IT with the likes of Adani, NTPC, Wipro, TCS, Jindal and Welspun, among others.
The ports in Paradip and Dhamra are buzzing with activity, shipping goods to markets worldwide. The state’s multimodal logistics hubs, along with improved roads and railways, have connected previously isolated areas, turning Odisha into a key link in India’s supply chain. With its subsidised land, competitive power tariffs, and abundant natural resources, Odisha’s appeal as a business destination has soared.
As new factories were established and infrastructure projects flourished, the people of Odisha reaped the benefits. Thousands of jobs were created, particularly for the state’s youth, who now had access to training programmes and opportunities within the burgeoning industries. The Skilled in Odisha initiative honed the workforce, preparing them to meet the demands of a fast-changing economy. In keeping with this progress, the state’s spectacular performance in the WorldSkills Competition held in Lyon, France, in September 2024, was a notable achievement, with two participants winning awards and 15 representatives carrying significant evidentiary value that the state is enabling its people to acquire skills.
Furthermore, the state has made significant strides in developing top-notch sports infrastructure through a sustained policy approach to forging a new era of sports and athletic activities. These efforts demonstrate the state’s commitment to promoting sports, which, in turn, contributes to the development of human capital. Its patronage of hockey, including sponsoring the national team and hosting the Hockey World Cup in 2023, collectively illustrates its genuine willingness to encourage sports that contribute to the formation of a formidable human capital.
Industrial glide path from Potential to Prosperity
Odisha’s investment policy over the past decade has been characterised by innovation, infrastructure development, and a commitment to improving ease of doing business. With initiatives like the Make in Odisha Conclave 2025, the state is ready to further amplify its growth story, cementing its status as a top destination for industrial investments in India.
The recently held vibrant roadshow in Mumbai, subsequent to the curtain-raiser event in Delhi, set the stage for the 4th edition of Make in Odisha Conclave 2025 (Utkarsh Odisha), scheduled for January 28-29, 2025, which aims to attract global businesses and secure major investments, reinforcing Odisha as a hub for industrial growth, that represents a perfect alignment between national ambition and regional aspirations.
There are several opportunities for Odisha to expand its growth. Bhubaneswar could be developed into a regional aviation hub, enhancing connectivity and trade quite akin to Dubai, Frankfurt and Amsterdam. Expanding tourism to include medical and educational tourism, in addition to its traditional focus on religious and nature tourism, would attract a diverse range of visitors. Additionally, creating a modern storage ecosystem could accelerate domestic demand fulfillment and unlock the state’s export potential. Through these initiatives, Odisha can continue its journey from potential to prosperity, solidifying its place as a key industrial and economic force in India that augers well with the latter’s 2047 developed nation goal.
Sabyasachee Dash is Author and Policy Observer. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.
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