While Maharashtra leads, Odisha bags 3rd rank as best state in attracting investments

Bhubaneswar, October 13: Maharashtra bagged top position in total live investments attracted by different public and private sources across India as of FY17 stated the ASSOCHAM report. While Gujarat is in the second position followed by Odisha on the third slot; Gujarat at 8.5% and Odisha at 7%, Maharashtra led the pack to top as the best state to attract the investments, says a study by Associated Chambers of Commerce of India (ASSOCHAM). 

The Assocham study titled 'Odisha - Economic Growth & Investment performance analysis: FY 12-17' stated that Odisha had attracted over 900 projects with live investments worth over Rs 13 lakh crore as of FY17. The study was released by Assocham President Sandeep Jajodia along with T K Chand, Chairman, National Council on mines & minerals and Secretary General D S Rawat.

Sector-wise, manufacturing sector accounted for the highest share of 42.5% in the total live investments attracted by the state as of FY17 followed by electricity (about 31 %), non-financial services (about 14 %) and mining (nine %) that constituted the major share. There are 413 projects worth over Rs 6 lakh crore that is under different stages of implementation. With 16.5 % year-on-year growth in terms of live investments, Odisha had surpassed the all-India rate of 4.6 % by the huge margin.

Lauding the efforts of the state government for its proactive approach towards consequential implementation of investment intentions, the study said," The rate of under-implementation of live projects has drastically declined from peak level of about 62 % in FY13 to about 47 % in FY17."

The state has also performed better compared to all-India under implementation rate of investment projects which stood at over 56 % and over 54 % in FY13 and FY17, respectively. "Some sectors have recorded significant rise in its investment share in the state and some sectors have recorded significant declines during the same period", said Jajodia while releasing the study.

The services sector's live investment share has increased from 8.9 % in 2011-12 to 13.9 % in 2016-17. Similarly, mining sector's share is up from 7.8 % in 2011-12 to 9 % in 2016-17. Irrigation and construction and real estate investment share have recorded a modest growth.

Odisha should continue taking up implementation of projects on a war footing as that would further serve as the incentive for industry, attract domestic and global investors in larger numbers, generate jobs and lead to the holistic development of the state, he added. As per the study, Odisha is ranked 13th in terms of its economic size and contribution to India's economy (2.6 % share).

The state's economic growth has increased from 4.6 % in FY13 to about eight % in FY17 compared to the all-India growth rate which was 5.5 % in FY13 and had reached just over seven % mark in FY17. The industry chamber has suggested the state government to focus on the development of food processing sector, marine industry and tourism sector.

Effective post-harvest management infrastructure, adopting a cluster-based development approach, promoting job-creating industries like MSMEs (micro, small and medium enterprises) and improving coordination among government departments are certain key suggestions given by Assocham to the state government to enable Odisha to emerge as a front-runner state across India, the study added.