The Business Bytes
THEBUSINESSBYTES BUREAU
BHUBANESWAR, APRIL 14, 2025
In a world recalibrating its supply chains and redefining self-reliance, Odisha finds itself at a transformative crossroads. Rich in natural resources and armed with ambitious policy frameworks, the eastern Indian state is now aiming to move beyond its identity as a mineral-rich hinterland toward becoming a magnet for sustainable industrial investment.
This global shift, partly accelerated by moves such as former U.S. President Donald Trump’s aggressive import tariffs, has re-emphasized the importance of localized manufacturing ecosystems. For India, the resonance with the Atmanirbhar Bharat mission is unmistakable. And for states like Odisha, it’s a timely cue to rewrite their industrial growth story — not merely by extracting what lies beneath the earth, but by building thriving domestic value chains that uplift both economy and community.
“Odisha has certainly taken steps in the right direction,” says Dr. Nikhil Raj, Development Economist and Director of Sustainable Outcomes Pvt. Ltd. “It’s been recognized as a ‘Top Achiever’ in India’s Business Reforms Action Plan. That’s a positive signal. But when it comes to ensuring that these policies are implemented seamlessly on the ground, there’s still room for improvement.”
Indeed, investment proposals worth over ₹1.65 lakh crore in recent years signal growing confidence in the state’s industrial potential. From steel and aluminium to power and green hydrogen, emerging projects are poised to energize regions like Bhadrak, Ganjam, Keonjhar, and Rayagada. But behind the headlines lies a quieter narrative of industry apprehension.
“There is growing interest, no doubt,” notes Dr. Raj, “but when legacy investors start looking beyond Odisha, it raises questions. Operational bottlenecks, delays in land acquisition, inconsistent raw material availability, and sporadic local-level opposition are real hurdles. These aren’t always deal-breakers, but they erode investor confidence.”
Such caution is not about lack of resources. Odisha boasts nearly 30% of India’s iron ore reserves, 90 per cent of its chromite, more than half of the country’s bauxite, and over a quarter of its coal reserves. Add to that nearly 90% of India’s nickel ore reserves, and the state seems like a natural industrial powerhouse in waiting.
But, as Dr. Raj puts it, “The challenge is in translating that mineral strength into on-ground industrial output. Lack of raw material security for large industries, despite Odisha’s vast mineral base, is a paradox. We’re importing raw materials we have in abundance—spending foreign exchange that could instead boost our own economy. Look at Australia — over 90 per cent of its natural resources are utilized for domestic development. Odisha, with a similar geological profile, is yet to match that efficiency.”
The issue isn’t intent — it’s implementation. While Odisha has adopted investor-friendly measures such as single-window clearance systems and policy incentives, many investors still find themselves entangled in procedural red tape and unpredictability in execution. These friction points can mean the difference between enthusiasm and hesitation.
Yet there is optimism in the air.
Dr. Raj is hopeful. “Odisha’s institutions have matured. With the right focus, the state can emulate the agile governance models of places like Telangana or Tamil Nadu, where tech-enabled approvals and proactive support make a real difference. The gap to bridge now is between policy and delivery.”
The stakes are high — and so is the potential. Odisha has the resources, the ambition, and a growing understanding of what it takes to be investment-ready in today’s competitive landscape. With a government actively pitching for a “Viksit Odisha” by 2036, the time to act is now.
“Having resources under the ground is not enough,” Dr. Raj says in closing. “What matters is how smartly we bring them to life. That takes reform — not just on paper, but in practice.”
And perhaps that’s the real story waiting to be told — not of a state that has, but of a state that becomes.
