Odisha, located in the eastern part of India, is a state known for its seaside. This state has attracted businesses and investing in Odisha. Given its strategic positioning, rich in natural resources, and pro-business state policies, Odisha provides an environment that is favorable for growth and development.
Strategic Advantages of Investing in Odisha
Gateway to ASEAN Markets
Odisha’s eastern coast measuring 480 km and the presence of certain major ports notably Paradip, the biggest port in Eastern India, makes the state serve as a gateway to ASEAN countries. The favorable geographical position allows businesses to reap benefits from easy access to trade hubs in South East Asia, which in turn provides a ready market for goods that industries produce and export.
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Mineral Wealth
The state has large mineral deposits such as:
- 28% of indian iron ore,
- 24% of coal,,
- 59% of bauxite,
- 98% of chrome deposit.
This rich resource base has seen many mining and metal expanding companies come to the state making it a center for the mineral based industries.
Key Sectors for Investment
Manufacturing
Manufacturing sector in the state of Odisha accounts for 31% of the total state economy. Government has taken several steps even to increase the acceleration of manufacturing, some of them are:
- Policies in regard to some industries
- Establishment of Industrial Estates
- Human Resource Development
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Food Processing
The government of Odisha has recognized this potential in food processing and thus has included it in the list of six target sectors. Further, the state government rolled out a new Food Processing Policy in 2022 that promised better incentives to potential investors for investing in Odisha including full taxation holidays. Some of these companies including ITC, Coca Cola, Britannia and Parle have already come up with their bases in the state.
Information Technology
Odisha is making an effort to become one of the leading IT centers in the country. The state capital, Bhubaneswar is the operational headquarters for top IT firms like Infosys, TCS, IBM, and Tech Mahindra. Odisha IT Policy 2022 is also very aggressive in offering benefits and encourages and focuses on investing in Odisha for developing emergent technologies like AI and cloud computing.
Semiconductor Manufacturing
In a bid to implement a semiconductor policy within the state, the Semiconductor Manufacturing and Fabless Policy-2023 attracts state in attractive offers. The central government has taken initiatives to bring semiconductor manufacturers to India.
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Ease of Doing Business in Odisha
Odisha has made significant strides in improving its business environment. The state has implemented several reforms to enhance ease of doing business:
Single Window Clearance System
The state came up with a Single Window Clearance system in the Odisha Industries (Facilitation) Act 2004. This allows investors to contact and investing in Odisha with only one authority for all the clearances and permissions required to establish and run an industry.
Online Application Process
All the departments and authorities have devised a Combined Application Form (CAF) to be used for clearances and approvals. This form helps in quick application and reduction of the burden of bureaucracy.
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Three-Tier Clearance Mechanism
Odisha has put in place a three tier system of single window clearance.
- High Level Clearance Authority (HLCA) chaired by Chief Minister
- State Level Single Window Clearance Authority (SLSWCA) chaired by Chief Secretary
- District Level Single Window Clearance Authority (DLSWCA) present in all the districts.
GO SWIFT Portal
The Government of Odisha – Single Window for Investor Facilitation and Tracking (GO SWIFT) enables submission of applications and payments, prevents approving authority calendar dates from interference, and issues approved certificates for 32 industrial services across 14 departments.
Investment Incentives
The state of Odisha provides a number of incentives to investors for investing in Odisha:
- Land allotment in industrial areas at lesser rates compared to the general industrial rates
- No premium required to be paid during the registration of the Land
- Out of the Land Cost for New Industrial Units in Thrust Sectors Creating Over a Thousand Employment Opportunities for the Residents of the State in Odisha – 50% Reduction in the Land Cost
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Skilled Workforce
The Odisha government has set up the Odisha Skill Development Authority. OSDA is dedicated to ensuring that skill development is aligned with industry needs and driven by demand. It focuses on the industries and investments taking place within Odisha’s economy. A significant emphasis is placed on technical education by OSDA. Each year, the state produces 1,78,404 technical graduates.
Odisha is home to several globally recognized universities and technical institutions. The state generates a surplus of skilled manpower suitable for various industries. These skilled graduates are well-equipped to meet the diverse requirements of different sectors. OSDA works to align the skills of the workforce with the changing demands of industry. Odisha is committed to supporting industries by developing a strong, skilled, and adaptable workforce.
Recent Developments
The Department for Promotion of Industry and Internal Trade (DPIIT) has awarded Odisha the status of an ‘Achiever’ state during the Business Reforms Action Plan (BRAP) 2020 assessment report.. The rise in ranking shows that the state is working towards improving the business environment.
Startup Ecosystem
Odisha has nurtured a vibrant startup ecosystem with more than 1550 startups functioning and investing in Odisha in multiple sectors such as Agritech, IT, AI, Healthcare, Fintech and Bio-Technology. States provides host through:
- 21 venture based funded startups
- 140 seed based funded startups
- 75 E-Cells
- 93 Incubatees
Youtube Video: Top 77 Business Plans for Startup | Odisha | Orissa. Business Ideas for Starting Your Own Business.
Conclusion
Odisha makes a strong case for businesses and investors who are planning to extend their operations or set up new ones in India. The state has a strategic location, good availability of resources, pro-business attitude as well as a focus on critical growth verticals which make it ideal for enduring growth. The initiatives being undertaken in Odisha to ease the process of doing business and attract investment are bound to make the state emerge as an economic hub in eastern India.
