By Sanjeev Kumar Patro
Bhubaneswar: In a maiden outreach to the investors – global and national, Odisha chief Minister Mohan Majhi Thursday met a galaxy of foreign diplomats to who's who of industrial bodies in national capital, seen as a prelude to the upcoming Make in Odisha – Utkarsh Odisha – conclave to be held next year (Jan 25-28).Terming the business talks successful, the CM said, “I had a fruitful discussion with the representatives of different countries. We expect a good investment in the semi-conductor, petrochemicals, IT, green energy, electronics and food processing sectors.”
The state government has set a target to attract Rs 5 lakh crore investments in Odisha during next five years.
With the CM outlining the priority industries for investment in Odisha, here is a reality check on Odisha investment and employment scenario.
INVESTMENT MAGNETS
As the CM has outlined focused investment areas for the State, nationally following sectors are drawing heavy investments. The increased investment flow to the sectors highlights their investment potential. The investment picks are:
- Chemicals (other than fertilizer)
- Electrical equipment
- Food processing
In addition, transportation industry also has been a magnet for investments, nationally. Metalurgical industry has lost its magnetism after 2021.
Nationally, the metallurgical sector – mainstay of Odisha’s industrial investments – has lost its steam during the last 2 years. After attracting investments to the tune of nearly Rs 1.3 lakh cr in year 2021, the flow of investments to the sector whittled down to Rs 43,055 cr in 2022 and Rs12,103 cr in 2023.
On the contrary, Investment flow to Chemicals (other than fertilizer) increased from Rs 60.9 K cr in 2021 to Rs 70.2K cr in 2023.
Food Processing industry has been the most vibrant in the country now, as the investment flow into the sector has been on the upswing. The sector recorded investment flow of Rs 7.3k cr in 2021 and in 2023, it touched 30.2k cr.
Electrical equipment industries sector had a bad year in 2023, when investment flow to the sector was down to Rs 28.7 K cr from Rs 68.68K cr in 2022.
CM’S FOCUS PLAY
A look at the focused industries CM has highlighted reveals that of the 3 top industrial sectoral magnets in the country, Food Processing finds mention. The rest of the following focused industries mentioned indicates eyeing of FDI.
- Green Energy (FDI potential High)
- Semi conductor (……….do………….)
- Electronics (…………… do ……………..)
The sector of Petrochemicals mentioned to avail the advantage and infra Odisha had with Paradip oil refinery, whereas food processing sector is a buoyant sector attracting large-scale domestic investments, nationally.
However, the focus on electrical equipment sector, another investment magnet nationally, seems missing from the investment menu, though the sector in India will clock at 11%CAGR to $53bn And the sector seeing a robust investment inflow catapulting it to top 3 investment sectors in the country.
ODISHA INVESTMENT REPORT MAY 2024
Data available reveals the following.
- Odisha is the only State where the investment inflow is too high compared to employment created.
- SAMPLE THIS.
- In May 2024, the actual domestic investment inflow to the State was Rs 10,744cr, highest in India.
- But in terms of actual employment, a mere 1142 could get employment.
- On contrary, Uttar Pradesh received investments to the tune of mere Rs 1256 cr, but employment create stood at 3354.
- The State has received Rs 1.37 lakh cr domestic investments in 2021, Rs 72,345cr in 2022 and Rs 2.1 Lakh cr in 2023.
- The State in the last 3-year period has witnessed investment inflow amounting to over Rs 4.1 lakh cr.
- In the period of Jan – May 2024, Investment inflow was Rs 49.38K cr
- And jobs created for 37.38k.
- The Investment inflow and employment created shows with every Rs 1k cr investment, not even 1k jobs were created in Odisha.
INVESTMENT – EMPLOYMENT ENGINE
Here is list of industrial sectors that generate jobs 3-times that of the investment.
- Textiles
- Food processing industry
- Transportation
- Mechanical and Engineering industries
- Paper and Pulp
Odisha’s mainstay industries that is poor at job creation.
- Metallurgical industries (Every 1K cr gives jobs to 227 persons)
