Bhubaneswar: Odisha has emerged as one of the country’s top investment destinations, securing the fifth position among 36 states and Union territories in Niti Aayog’s maiden ‘Investment Friendliness Index’ released on Friday. Among large states, Odisha ranked fourth, behind Gujarat, Maharashtra and Tamil Nadu.According to the report, Gujarat, Maharashtra, Tamil Nadu, Goa and Odisha have been classified as the country’s top performers. Fifteen states were placed in the Frontrunners category, while eight states and UTs each were categorised as Emerging Performers and Aspiring States.Odisha scored 52.4 points, compared with 56.6 by top-ranked Gujarat. The report attributed Odisha’s performance largely to its strengths in natural resources, govt policy and financial health, while identifying the institutional environment and regulatory ease as key areas requiring improvement.Chief secretary Anu Garg said the ranking reaffirmed Odisha’s commitment to reforms, ease of doing business and investor-centric governance., describing it as another step towards the state’s Viksit Odisha vision contributing to Viksit Bharat 2047.Industries minister Sampad Chandra Swain termed the ranking “a major achievement for the state”.
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The report highlighted Odisha’s strong showing in the resources pillar, aided by its position as the country’s largest producer of metallic minerals and coal. Odisha accounted for nearly 50% of India’s metallic mineral production and 23% of coal output in fiscal year 2024.The state also performed strongly on financial health indicators. With outstanding liabilities at 16% of GSDP and interest payments at 1.38% of GSDP in 2024 — both lowest among the states — Odisha secured the third position in the financial health pillar nationally.However, the report flagged concerns over foreign direct investment (FDI) inflows, suggesting that Odisha’s industrial strengths have yet to translate into substantial global investments. The state attracted just $8.79 million in FDI during 2023-24.At the national level, FDI inflows remain concentrated in a handful of states. Maharashtra ($15.1 billion), Gujarat ($7.3 billion), Karnataka ($6.57 billion), Delhi ($6.52 billion) and Tamil Nadu ($2.44 billion) together accounted for nearly 85% of total FDI inflows into the country.
