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Odisha third best state in attracting investments: Assocham

Sector-wise, manufacturing sector accounted for the highest share of 42.5% in the total live investments attracted by the state as of FY17

Nirmalya Behera  |  Bhubaneswar 

Odisha Chief Minister Naveen Patnaik
Odisha Chief Minister Naveen Patnaik

Odisha has bagged the third slot after Gujarat and Maharashtra in live worth Rs 177 lakh crore drawn by states at the end of FY17 from public and private sources. With over 11 per cent share, Maharashtra led the pack and was followed by Gujarat at 8.5 per cent, says a study by Associated Chambers of Commerce of India (Assocham). The study titled 'Odisha - Economic Growth & Investment performance analysis: FY 12-17' stated that Odisha had attracted over 900 projects with live worth over Rs 13 lakh crore as of FY17. The study was released by president Sandeep Jajodia along with T K Chand, chairman, National Council on mines & minerals and secretary general D S Rawat. Sector-wise, accounted for the highest share of 42.5 per cent in the total live attracted by the state as of FY17 followed by electricity (about 31 per cent), non-financial services (about 14 per cent) and mining (nine per cent) that constituted the major share. There are 413 projects worth over Rs six lakh crore that are under different stages of implementation.

With 16.5 per cent year-on-year growth in terms of live investments, Odisha had surpassed the all-India rate of 4.6 per cent by 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 per cent in FY13 to about 47 per cent in FY17." The state has also performed better compared to all-India under implementation rate of investment projects which stood at over 56 per cent and over 54 per cent 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 per cent in 2011-12 to 13.9 per cent in 2016-17. Similarly, mining sector's share is up from 7.8 per cent in 2011-12 to 9 per cent 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 incentive for industry, attract domestic and global investors in larger numbers, generate jobs and lead to 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 per cent share). The state's economic growth has increased from 4.6 per cent in FY13 to about eight per cent in FY17 compared to the all-India growth rate which was 5.5 per cent in FY13 and had reached just over seven per cent 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 co-ordination among government departments are certain key suggestions given by to the state government to enable Odisha to emerge as a front-runner state across India, the study added.

First Published: Thu, October 12 2017. 17:59 IST