Bhubaneswar: Odisha first BJP government’s tryst with history begins Tuesday (Januray 28).
The double engine govt will be hosting its first ever investment summit, which will be made open by none other than Prime Minister Narendra Modi.
This will be State’s first investment Summit which will be inaugurated by PM Narendra Modi. The first MIO summit was launched open by the then Finance Minister Arun Jaitley.
The MIO 2025 has generated a lot of hype and expectations around it as for the first time the State is witnessing an investment conclave when one party is sitting on the power seats of both State and Centre.
Even as the MIO 2025 has set up a modest target of private investments – domestic and foreign – to the tune of Rs 5 lakh Crore, the curiosity around the summit has been that will it bring the FDI hallo back to the State.
The State BJP government has planned big on FDI inflows to State. A plan to this effect has been on the roll. The making of Singapore, Malaysia and Australia this Summit’s focus country tells the BIG story.
ODISHA’S TRYST WITH FDI
On the FDI map, Odisha instantly shone like a pole star in year 2009, dimmimg the greats like Maharashtra and Gujarat. The State had then the newly acquired FDI hallo amidst the mega POSCO deal signed as the deal had envisaged largest ever FDI inflow to the country.
But the hallo dimmed away and faded out since 2010.
The then UPA government’s Forest Right Act and many other green initiatives took away the charm of Odisha’s metallurgical magnet.
With State bewildering, thereafter, with land acquisition imbroglios, and non-grooming of non metallurgical sector for years, saw the State FDI footprints shrinking to fringe status on the country’s FDI Map.
In 2024, Odisha’s share in total FDI inflows to the country had been a meager 0.07%. The State sits at 21st position with a FDI inflow of around Rs 1308.25 cr ($172.32 mn) during the period of October 2019 to September 2024.
JHARKHAND SITS ON HIGH 10 TABLE
What has been looking intriguing for the State is, Jharkhand, despite having the same industrial profile as that of Odisha, has emerged as the country’s EIGHTH FDI recipient.
The State during the period Oct 2019 to September 2024 had received a massive Rs 19,382 cr or $2667mn FDI.
TOP FDI STATES IN COUNTRY (RBI DATA)
View the list of top 15 states in FDI inflow below.
THE FDI MAGNETS
As per NCAER (National Council for Applied Economic Research), following factors have been deciphered as 15 FDI magnets of a State. They are:
- Availability of quality infrastructure (good roads, adequate ports, telecommunications, power supply, etc.)
- Skilled labor force at lower wage rates
- Proportion of subsidies provided by the government
- Tax holidays or tax incentives
- Geographical location
- Level of urbanization
- Political stability
- Macroeconomic stability.
- Above all the size of Gross State Domestic Product (GSDP).
- Innovation index
- Resilient Health sector
- Top class Education sector
- High Financial inclusion
- High level of digitization
- Good Human Development Index
HOW MANY MAGNETS ODISHA HAS?
A glance at the above FDI magnets hints at what Odisha is lacking and where the strength of Odisha lies.
STRENGTHS
- As per India Skill Report 2025, Odisha is among the top -10 states with employable resources.
- The wage rate in Odisha has also been low
- Odisha has, thus, the Magnet number 2.
- The proportion of subsidy to GSDP in Odisha has been around 0.84% only
- The State has the Magnet number 3
- Odisha has the magnets number 4, 5 and 7
- As per recently released Fiscal Health Index report, Odisha topped the country, which indicates the State has the magnet number 8
- The size of GSDP in Odisha has been a whopping Rs 9.26 lakh cr, State has the magnet number 9
WEAKNESSES
- A glance at the India Skill Report 2025 shows Odisha not in the top top-10 states with skilled work force.
- View the image below, all the top -10 states in availability of skilled work force, happens to be the top FDI inflow states, except Jharkhand.
- The teledensity in Odisha is at around 78% , and the internet users per 100 has been estimated at around 49 vis-à-vis 79/100 in Maharashtra, 73/100 in Tamil Nadu, 75/100 in Karnataka, and Gujarat 72/100.
- As per Modi govt’s Social progress index - that assesses basic human needs, well being and good opportunity to inclusiveness, advanced education:
- Odisha has been categorized in the tier Low Social Progress, and figured at 5th among the bottom -10 states.
- Odisha rank in India Innovation index slipped to 16 from 12th over the years.
WHY FOCUS SINGAPORE?
The Utkarsh Odisha Conclave will be focusing on the following sectors to bring high domestic and foreign investments.
- Technical textiles
- Downstream petrochemicals
- Specialty metals
- Film and media
- Renewable energy
- Green fuels
- Waste recycling
Even as Odisha industry Minister Sampad Swain has highlighted the focus on the above sector to net large private investments, Singapore becoming focus country, along with Malaysia and Australia tells the FDI story of Make in Odisha 2025
- Singapore is India’s largest source of FDI
- Cumulative FDI from Singapore to India at Rs 11.54 lakh cr or $ 167.47bn.
- Major sectoral investments of Singapore given below
- Services (Finance, Banking, Insurance, Non Fin/business, Outsourcing, R&d, Courier, Tech. Testing And Analysis, Other)
- Computer software & hardware
- Trading
- Telecommunications
- Pharma
MALAYSIA: has been India’s 31 st biggest source of FDI. The focus country for Odisha will bring FDI in the following sectors.
- Infrastructure
- Oil and Gas
- Power plants
- Tourism
AUSTRALIA: 26th biggest FDI source to India. The Utkal Odisha plan is to tap the FDI for its mining and mineral based industries.
