Indian Industry Plus A Pratisrutiplus Suppliment
A 3600 APPROACH
Odisha has become a destination for investors and entrepreneurs from across the globe to create value for all the stakeholders (business, community, working class) by leveraging several advantages that Odisha offers. The state has industry-friendly policies, enabling infrastructure, and ensures swift and agile administration to enriching experience for the industry players. The state has been able to make tremendous progress over the past two decades in terms of industrial growth and has been at the forefront of the country, attracting mega investments across various industrial sub-sectors. The industrial sector has helped the state in deriving benefits through the application of advanced technology, division of labour and scientific management, besides helping to broaden the base of the economy through it’s various forward and backward linkages. It has also helped in the modernization of agriculture leading to the lowering of the cost of production and value addition to the products, development of science and technology, proper utilization of natural resources etc. resulting in an improved standard of living for the people of the state.
Odisha’s economic performance is driven by a strong industrial base. Industry is the anchor sector which propel the performance of primary and tertiary sector. There is a strong backward and forward linkage between industry and other sectors. Since 2012-13, average annual growth of the industrial sector is 6.6 percent as against overall GSVA growth of 5.7 percent and 4.8 percent respectively. The average industrial growth is registered in the state is higher than India’s average growth of 4.8 percent during the same Period. Odisha’s successively higher industrial growth in comparison to India is made possible through setting up a progressive ecosystem governing the industry sector. The State Government has undertaken multiple initiatives to make Odisha a destination of choice for investors.
As per advance estimates of 2022-23, Industrial sector of Odisha performed much better than India by growing at six percent compared to All-India growth of around four percent. Odisha’s industrialization is gaining new pace in every passing year as different types of industries are joining the juggernaut.
The State’s 480 kms of long coastline opens up a lot more opportunities for development of maritime industries and it is also supported by three important seaports: Paradip, Gopalpur and Dhamara. These ports offer useful platform for overseas trading, which is crucial for the marketing of industrial goods. In addition, industrial diversification remains the cornerstone of the new industrial policy of the State Government. Odisha is drawing investments in a number of industries, including food processing, chemicals, textiles, IT etc. These industries produce higher value addition along with more employment per unit of capital investment.
It is corroborated by a report by the Asian Development Bank (ADB) that Odisha has one of the lowest costs of doing business in India in terms of Industrial electricity tariffs, industrial land cost, water tariffs, and competitive skilled labour wage rate. The ‘GO-SWIFT’, a first-of-its-kinds single window system that supports industries throughout their investment lifecycle, has been recognized as best practice by the Government of India.
Odisha has increased its standing in terms of logistics infrastructure and services and is a power-surplus state. These are anticipated to benefit the state in the long run by luring in more investments. The promotion of MSMEs has gained traction through different policies and facilitation measures, including initiatives under the Start-up policy and the construction of O-Hub, to ensure that the advantages of economic growth continue to trickle down to the local level. The financial sector could develop customized and innovative collateral-free lending products such as cash-flow based lending that asset-based lending. In this lending market, ‘Fintech’ has emerged as a viable alternative to conventional financial institutions. In order to enhance digital footprint of underserved population and MSMEs, Government of Odisha is running several G2P transfers schemes.
AGRICULTURE:
Agriculture and allied activities constitute the main source of livelihood for a major section of population in Odisha. This sector accounted for a share of 22.5 percent of GSVA in 2022-23 (AE). Within various sub-sectors within agriculture the crop sub-sector occupied a high share of 14.2 percent in GSVA followed by livestock (3 percent), fishing and aquaculture (2.7 percent) and forestry and logging (2.6 percent) in 2022-23.
Agriculture and allied sector in Odisha are expected to grow by 6 percent in 2022-23 against 2.4 percent growth rate in 2021-22. The agriculture sector in Odisha registered a much higher growth rate than that of India (3.5 percent) in 2022-23. All the sub-sectors of agriculture sector witnessed a strong growth rate in 2022-23 over the previous year. In 2021-22, net sown area in the state was 54.1 lakh hectares accounting for 35 percent of the total geographical area. It has increased by 1.5 percent over the previous year. Total food grains production in Odisha has reached a record of 130.39 lakh MT in 2020-21. In 2021-22, Odisha produced 113.8 lakh MT of food grains.
Government of Odisha has implemented various initiatives like National Food Security Mission, Integrated Farming System, Integrated Action Plan, Mission for integrated development of Horticulture, Odisha Millet Mission, Technology Mission on Sugarcane and crop-oriented programme for pulses and oilseeds, to foster crop diversification in the state. The state experienced success in terms of crop diversification, irrigation, productivity, plant protection, farmer’s credit, post-harvest management and marketing of paddy and non-paddy procurement. The production, productivity and per capita availability of animal husbandry and fishery products and exports of marine products have increased in 2021-22 over the previous year. Further, forestry sector also performed well with the rise in actual forest area during 2021-22.
Overall, the adoption of sub-sector specific development measures backed by adequate institutional set up has positively helped the state in sustaining and promoting agricultural growth despite its high susceptibility to natural calamities.
INFRASTRUCTURE:
Infrastructure is a major sector that propels the overall growth and development of an economy. To facilitate production and investment in an economy, the need for world class infrastructure in terms of both quality and quantity cannot be overemphasised. Further, infrastructure ensures citizen’s access to basic services such as clean water, electricity, transport and communication, a market for finished products, etc. consequently creating jobs and boosting the business environment. Investment in infrastructure has a high multiplier effect and is essential for long term sustainable growth of the state. The state’s focus is on improving the crucial components of infrastructure namely electricity, transport (road, railway and water and air) water supply and sanitation, ports, airports, warehousing facilities etc. for holistic development of infrastructure in the state.
Odisha is a power surplus state having an installed capacity of 8107 MW in 2021-22, registering a tremendous growth of 45 percent in the last six years (from 2015-16 to 2021-22). The state has managed to achieve the mission of “Electricity to All” through constant and dedicated efforts of state government and achieved 100 percent electrification of villages by March 2020. The government is taking steps for energy diversification by emphasising on other sources like biomass and solar power to ease the pressure on ecology and counter climate change. Electricity along with Gas, Water supply and Utility services contribute 2.8 percent to GSVA as per 2021-22 (RE) is estimated to contribute 2.9 percent in 2022-23 (AE).
As a service industry, transport does not exist for its own sake, rather it serves to achieve all round development of an economy. It enables trade, powers business, connects workers to their jobs and brings prosperity to the region. Among the four modes of transportation (road, railway, water & air) in Odisha, the contribution of road transport is estimated to be around 56 percent of transport GSVA followed by railways with 25 percent as per 2022-23 (AE). After the relaxation on movement restrictions of Covid-19, the growth rate of road transport has bounced back to 7 percent and 6.5 percent in 2021-22 (RE) and 2022-23 (AE) respectively from a declined growth of 29.3 percent in 2020-21. New initiatives were undertaken to set up Sri Jagannath International Airport in Puri and the new air strip at Malkanagiri along with development of a Biju Pattnaik International Aero Space in Odisha. For effective Governance digital platforms have been developed by the Government to meet public expectations and promote citizen participation through adoption of appropriate IT applications.
MINING AND QUARRYING:
Minerals are essential raw materials for infrastructure, capital goods, and also the basic ingredients for core industries. Odisha is a mineral rich state occupying a special position in the mineral map of India and is endowed with large varieties of metallic and non-metallic minerals, which include Chromite, Bauxite, Graphite, Iron ore to the state GSVA. This mining sub-sector contributes multi-dimensionally to the economy of the state. Therefore, the extraction and management of minerals must be integrated into the overall strategy of the state’s economic development. Further, value addition in mineral activities is also essential to ensure better economic dividends to the state economy and provide additional employment to the labour force of the state.
The mining and quarrying sub-sector is a major driver in the state economy after manufacturing with a share of 12 percent to GSVA in 2011-12 which reached a level of 10.8 percent in 2021-22 exhibiting a slight declining trend over the period. The sub-sector is expected to contribute 10.2 percent to the state GSVA as per the advance estimates released by the state Government for the year 2022-23 at current prices. As per the periodic labour force survey report 2020-21, 0.5 percent of the workforce of Odisha is engaged in this sub-sector. This sub-sector generates about 0.5 lakh direct employment in mineral based industries.
Odisha also contributes a remarkable share of mineral production (excluding fuel oil and atomic minerals) to national output. In the supply of major minerals for meeting national needs, Odisha was a leading state during 2021-22.
RESOURCES IN ODISHA:
Odisha occupies a prominent place in the country as a minera-rich state. Abundant reserves of high-grade iron ore, Bauxite, Chromite and Manganese ore along with other minerals like Coal, Limestone, Dolomite, Platinum group metals (PGM), Nickel, Vanadium, Graphite, Gemstone, Diamond, Dimension stone and Decorative stones are extensively available in the state. It is worth mentioning that reserves of gold and silver are also found in the Adash block of Deogarh district as per the survey made by GSI, Government of India. It is illuminating to note that as per the recent survey by Oil India, reserves of natural gas and petroleum were found in Khshapur and Chitra Gram Panchayats of Gop block of Puri district and it is learnt that the exploration plan will be executed during 2022-23. The state accounts for India’s 100 percent chromite production, 73 percent bauxite, 24 percent coal, 53 percent iron ore and 20 percent of manganese as per the latest report of the Indian Bureau of Mines. The mineral resources of the state are mainly concentrated in the southern and western districts of the state. Iron ore is concentrated in districts like Keonjhar, Sundargarh, Mayurbhanj and Jajpur whereas coal which is another chief mineral of the state is concentrated in districts like Jharsuguda, Angul, Dhenkal, Gajapati and Sundargarh districts. The chromite mines belong to Keonjhar, Jajpur, Dhenkanal and Balasore districts and bauxite mines are concentrated in Kalahandi, Koraput and Bolangir districts.
MAJOR MINERALS:
Out of the total mineral production in Odisha during 2021-22, coal itself constitutes more than 50 percent of the total mineral production and about 52 percent of this coal production is shared by the Angul district itself followed by Sundargarh (24 pecent), Jharsuguda (21 percent) and Sambalpur (3 percent). The entire manganese ore production is mostly shared by the Jajpur district (83 percent). Iron ore extracted during 2021-22 constitutes roughly 4.5 percent of the state’s mineral production of which 60 percent is shared by the Koraput district and another 40 percent by the Rayagada district. Though Odisha has a variety of mineral reserves, it is the chief producer of minerals like iron ore, chromite, coal, bauxite, limestone and manganese ore etc.
MINOR MINERAL:
Minor mineral include building stones, gravel, ordinary clay, ordinary sand other than sands used for prescribed purposes and any other mineral notified in the official Gazette by the Government of India. The state Government has now promulgated the Odisha Minor Mineral Concession Rules 2016 which came into force on 15.12.2016. Accordingly in Odisha, the following minerals haven notified as minor mineral, namely:1.Quartzite 2. Pyrophillite 3. China Clay 4. Dolomite 5. Soapstone 6. Fire clay 7. Silica sand 8. Sandstone.
The total value of mineral production in 2021-22 is estimated to be INR 87,086.00 crore of which the contribution of mineral sand and dolomite is noteworthy at INR 742.6 crore and INR 107.9 crore respectively.
IRON AND STEEL:
Odisha has one-third of the country’s total iron ore reserves, making it one of the most popular investment destinations for domestic and international iron and steel investors. It is also the largest producer of steel and stainless steel in the country. For promoting investment in the iron and steel sector, the state Government has signed MoUs with 45 steel plants with an approved production capacity of 134 MTPA. Out of these 35 plants and 1 pellet plant are in partial/full production. At present, the installed capacity of these MoU signed steel plants is 25.3 MTPA registering an increase of about 20 percent over the year 2016-17. Besides, 49 steel plants with an approved capacity of 51 MTPA are coming up through the non-MoU route of which 16 plants with and installed capacity of 7.9 MTPA are already in production. Taken together, there are 51 steel plants in Odisha now (MoU 35 and non-MoU 16) with a total installed capacity of around 33.2 MTPA in operation which constitutes almost one-fourth of the country’s total installed capacity. In addition, a large number of sponge iron units and pellet plants have also been established by utilizing the vast iron resources in the state for the value addition of products, which is contributing to the domestic steel production in the country to a great extent.
The Government of Odisha has implemented the policy of long-term linkage (LTL) for the supply of iron ore, chrome ore, bauxite ore and other minerals to the units located in Odisha through Odisha Mining Corporation Limited to make the minerals available to the end user units. The Government has also implemented the pre-emption policy, mandating to the holders of standalone Iron ore leases to sell at least 50 percent of their production to the state-based units. The aforesaid projects have been facilitated as part of the mineral development policy of the State Government to pursue value addition, mass employment generation and welfare-oriented revenue collection. Special initiatives are put in place by the Government of Odisha in the area of metal manufacturing to develop downstream and ancillary enterprises and accordingly industrial promotion resolution has been suitably modified to attract more such units to the state. Kalinga Nagar is stated to be a manufacturing hub in the state. The national steel policy 2017 envisages an increase in per capita steel consumption from the present level of 72 kg to 158 kg by 2023. In line with the central policy, the state is aiming to contribute 100 million tons to the national target. Capacity enhancement is under process by scaling up different front-liner steel plants.
ALUMINIUM:
Owing to its lightweight, infinitely recyclable properties, high durability and eco-friendly advantages including lower carbon footprint and power requirement in recycling, Aluminium is gaining wider acceptability and demand for Aluminium in India as well as in the world is increasing manifold. Further, when the global transport industry is focusing on Aluminium for manufacturing lightweight vehicles with lesser fuel consumption and lower carbon emissions, demand for the material will certainly pick up momentum in the future. The construction sector has also started betting big on the metal. In view of this, the state of Odisha endowed with big treasures of Bauxite can harness the opportunity to bring redical economic changers to the state. The southwest part of Odisha is rich in bauxite accounting for 65 percent of the country’s total bauxite deposits and 95 percent of it is located in four western and southern districts, namely Koraput, Kalahandi, Rayagada and Bolangir which are part of the eastern ghats. Growth of the Aluminium industry in the state will provide ample scope for new allied and ancillary sectors, creating employment and adding dividends to the state’s GDP. Enabling infrastructure, power and the railway network along with the friendly industrial policy of the state Government, has made Odisha a preferred destination for many key Aluminium players. A good number of private players are in Odisha and the state has already become the Aluminium capital of the country.
The total Aluminium production in the state was at a level of 36.9 lakh MT in 2019. It is illuminating to note that the dreadful Covid-19 pandemic could not make a big dent in Alumunium production and it remained almost at the level of 36 lakh MTs during both the Covid-19 hit years 2020 and 2021. Soon after the ease of pandemic restrictions, Aluminium production picked up momentum and reached a record level of 40.1 lakh MTs in 2022 registering a growth of about 12 percent over 2021. All four Aluminium plants of Odisha have exhibited equal levels of resistance of the impact of Covid-19 but after recovery, the highest level of growth of 22.3 percent was demonstrated by Vedanta Aluminium Limited followed by 10 percent by NALCO, 5.4 percent by Hindalco and 2.1 percent by BALCO in 2022 over the previous year 2021.
ALUMINIUM PARKS:
To provide jobs to the unemployed and expanding the scope for downstream and ancillary industries and making the state a preferred destination of Aluminium players, Aluminium parks have been planned with the initiation of the state Government. An Aluminium park, the first of its kind in the subcontinent, is already established at Angul over an area of 223.00 acres with an investment of INR 180 crore for the infrastructure of the project in joint collaboration of IDCO and NALCO, Angul with the objective of creation of 15,000 job opportunities. NALCO will provide 50,000 MTs of hot Aluminium to its park at Angul. The process for the second one is already in motion at Jharsuguda over and area of 257.2 acres of land in collaboration with IDCO and Vedanta Pvt. Ltd. Which plans to invest INR 2500 crore with the objective of creating 1 lakh job opportunities. Vedanta is committed to provide 3 lakh metric tons of hot Aluminium to the downstream industries of the park. The park will have an industrial state-of-the-art entity, fully equipped with logistics, infrastructure facility, exclusive training centers, park administration, display and trade services facility etc. By developing world class infrastructure the state plans to provide an ideal business ecosystem for the ancillary sector to flourish.
ANCILLARY AND DOWNSTREAM INDUSTRIES:
The upstream ecosystem for downstream and ancillary industries is well developed in Odisha with abundant availability of mineral resources and mother plants in proximity to the mineral-rich regions. Moreover, Odisha is the largest producer of Aluminium in the country with 54 percent of the total Aluminium smelting capacity. Odisha is also the largest stainless steel producing state in the country having 20 percent of the total steel-making capacity of the country with the growth of the economy, the requirement for value-added products will multiply thus offering a good potential for downstream development both in the Aluminium and steel sector. The state is now working towards value addition in major industrial regions such as Angul and Jharsuguda for Aluminium downstream and Kalinga Nagar for Steel downstream. Further Paradip and Dhamara are being developed as hubs for the chemicals and petrochemicals industries.
MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) :
Micro, Small and Medium sized enterprises (MSMEs) are the key drivers of exports and are a crucial link in the supply chain of Odisha. MSMEs are generally labour intensive in nature and therefore are key to generate more employment. However, going by the number of MSMEs in Odisha registered under Udyam compared to other States of India, there is ample scope for further broad basing of MSME units in the state. The state government has also created adequate space for MSME development in IPR-2022 and also in the MSME development policy 2022, Odisha Food Processing Policy 2022 and several other sector-specific policy framework.
During the year 2021-22, around 44,288 MSME units went into production with an investment of INR 1966.6 crore, leading to employment generation for 1.2 lakh persons. By the end of March 2022, a cumulative total number of 5,35,913l MSMEs had been established in Odisha with and investment of INR25,655.9 crore along with creation of job opportunities for 19,34,893 persons.
Distribution of MSME units by their type of business indicates the fact that repairing services alone account for a majority share in MSMEs with almost 63 percent share of all MSMEs set up in the state. MSMEs in repairing services alone and which also generates 51 percent of the total employment opportunities created through MSME units. Possible reasons for the high concentration of MSMEs in the repairing services could be the challenges related to literacy, skills, opportunities, marketing credit facilities etc. The relative ease of entry may also be a factor.
The advances to MSMEs have grown from INR 13,795 crore in 2011-12 to INR 49,971 crore in 2021-22. The advances have grown at a CAGR of 17 percent over the previous year period. As per the 168th State Level Bankers Committee (SLBC) Odisha meeting held on 27th September 2022, the annual target for 2022-23 for lending to MSMEs has been set at INR 59,499.5 crore and the achievement as on 30th June 2022 is INR 14815.4 crore which was 25 percent of the targeted amount.
HANDICRAFT SECTOR:
Odisha is renowned for its beautiful handicrafts across the world. With the highest number of artisans honored with national accolades, such as “Padma” awards, the state is credited with the best craftsmanship in the country. The handicraft sector being less capital intensive requires application of simple technology and has ample scope for marketing with value addition. It has been recognized as a potential sector for providing self-employment both in rural and urban areas. As on date more that 1.3 lakh craftsmen across the state are practicing as many as 50 different crafts of varied nature and skill.
The Odisha Handicrafts Policy, 2019 aspires to boost the growth of the handicrafts sector by leveraging the selling proposition of skilled artisans and help to enhance Odisha’s share of exports of handicraft goods. The policy looks to empower handicraft artisans and make them lead partners of development through easy availability of raw materials, capacity building, extension of financial assistance for availing bank credit, survey and data base management of artisans, coverage under various social security and welface schemes, in collaboration with againcies like NIFT, NID to infuse innovation in product design, quality and productivity etc.
The Odisha Artisans Grade Stone Policy 2021 has been formulated by the Government to facilitate availability of quality raw materials to stone carving artisans of the state.
During 2021-22, a total number of 5876 handicrafts units were set up in the state with an investment of INR 45.7 crore generating employment for 9529 persons. By the end of 2021-22, the cumulative (from 2012-23) number of handicraft units set up in Odisha was 32456. The handicraft production and sales of the state during 2021-22 were INR 132.6 crore and INR 145.4 crore respectively.
HANDLOOM SECTOR:
Apart from agriculture, the handloom industry is one of the leading sectors that generate significant employment, notably for the rural non-agricultural households and side by side preserving the rich cultural heritage of the state. Odisha’s handloom products have won national and international recognition for their highly aesthetic design, craftsmanship and durability. The sector has moved ahead in its mission and has successfully implemented the schemes within its mandate.
As per the 4the All-India Handloom Census, 2019-20, the handloom sector is growing faster in Odisha than the rest of India in terms of both looms and workers. The latest official figure indicate that there are 66653 households (weavers and ancillary) working in Odisha’s handloom sector with 56,761 looms and 1,24,646 weavers and ancillary workers taken together by end of 2021-22. Similarly there were 582 working primary weavers co-operative societies (PWCS) WITH 72,009 members. The employment created in this industry alone increased from 53,610 persons in 2020-21 to 80,345 in 2021-22.
GOVERNMENT INITIATIVES:
Assistance in the form of several initiatives such as Technological Intervention, Capacity Building of Weavers through Skill Up-gradation Training, Exposure visits, Construction of work shed-cum-housing, establishment of Common Facility Centers/office-cum-Go down/sales center/drum shed, support for market, financial support in for of a rebate on sale of handloom cloth, market development assistance, marketing initiatives, design inputs and publicity have been provided to make the sector more vibrant. E-Commerce activities of state level organizations like Boyanika, Sambalpuri Bastralaya and Serified have been strengthened to establish sustainable market linkage with the buyers both inside the country and abroad. Retail brands like FABINDIA, Odisha Artisans and weavers Ltd., a Community Owned Company (COC) online platforms like Amazon, GoCoop and Flipkart are engaged in marketing activities in the state with the objective to boost the sale of Odisha hand-woven items to increase the productivity and income of the weavers. In view of the aforesaid measure, the productivity per Loom per Anuam (P/L/A) has increased from 413.2 Sqr. Mt. in 2020-21 to 560.5 Sqr. Mt. in 2021-22.
Web-based online services are being made go-live to extend benefits under different beneficiary oriented schemes (i). Baristha Bunakar Sahayata Yojana (BBSY), (ii). Work shed-cum-Housing, (iii). Supply of loom and accessories (iv). Concretization of Loom Pit (v). Skill up-gradation training under capacity building (vi). Mukhyamantri Bayan Jyoti Yojana and (vii). Bunakar Assistance for Livelihood and income augmentation to weavers of Odisha.
SERICULTURE SECTOR:
Sericulture, the art cultivation of silk through the rearing of silkworm, is a traditional agro-based industry and a mojor source of livelihood for the rural poor, mostly the tribal population in Odisha. With its rich heritage of Tasar culture and vast forest resources, Odisha is one of the best suited state to lead the country in sericulture and Tasar silk production. A large part of the Tasar farming in Odisha is done by tribal communities in natural forest or in schematic block plantations raised under MGNREGS which benefits a large section of tribal Tasar growers in the state. Sericulture, being a highly labour-intensive activity that goes round the year and provides remunerative income to the farmers, mostly women. In Odisha, about 15000 traditional families involving one lakh people actively practice sericulture for their livelihood with an equal number of employments for the reelers, spinners and weavers.
At present, with government support, the Tribals and non-tribals under the BPL category are practicing sericulture and producing silk cocoons. Incentives on the up gradation of seed infrastructure for the production of Tasar Basic Seed, Technology demonstration, Exposure visits and Training are being provided to the farmers for their skill-up gradation and higher earnings from farming. It is because of the various promotional measures being taken by the Government, the raw silk production in Tasar and Eri has shown an upward trend over the years. An estimated 6621 kg. of Eri cocoons were produced during 2021-22. Mulberry Sericulture, which is highly climate sensitive and non-traditional to the state, is being cultivated in limited pockets in districts like Gajapati, Koraput, Rayagada and Phulbani. During 2021-22 an estimated 6530 kg. of Mulbery cocoons were produced with involvement of 537 farmers.
TEXTILES SECTOR:
Odisha has a long and rich history of Textiles and has gained world wide acclaim and reputation for their design and quality. Various designs have existed here, such as Sambalpuri, Bomkei and Berhmpuri etc. Odisha is also famous for its ikat type of weaving. With this rich history and locally available competences in this area, Odisha is uniquely positioned to attract investments in the textiles and apparel sectors. Apparel and textiles including technical textiles is also one of the focus sectors of the state. Being one of India’s leading handloom producing states, Odisha now aims to harness the state’s potential to develop a strong Textile Sector including Apparel and Technical Textiles. The “Odisha Apparel and Technical Textiles Policy 2022” focuses on boosting employment and enhancement of economic growth in the state by encouraging investors through incentives like Capital Investment Subsidy, Employment cost subsidy and Market development initiatives. This policy is a natural outcome of the pro-poor and pro-industry outlook of the Government. The focus of this policy is to encourage Garment, apparel, Made Ups and technical textiles such as Agrotech, Clothtech, Hometech etc.
Support Activities like Ginning, Spinning, Weaving, Dyeing and processing of Textiles and Wearable’s and accessories linked to Apparel and Technical Textiles.
Odisha’s Textiles Sector has been transformed into an engine of inclusive growth and employment generation with an infusion of professionalism into traditional skilled expertise through techno-commercial network. As a result of the pioneering steps of the state for promotion of employment generation through establishment of garment manufacturing units by enactment of the “Odisha Apparel Policy”, M/s Sahi Exports Pvt. Ltd. And M/s Aditya Birla Fashion & Retails Ltd, M/s Wild Lotus Ltd and Jockey India Pvt. Ltd. have established their units in the state. One Incubation Center to boost the start ups in Apparel Sector is going to be functional very soon. The ATDC at Bhubaneswar and five more satellite centers are also functioning at different parts of the state and conducting courses with nearly 100 percent placement. To provide fashion education and platform for research, training in fashion technology and to create employment opportunities for youths/artisans, a center of the National Institute of Fashion Technology (NIFT) has been set up at Bhubaneswar.
Two textiles and Apparel Parks, one near Dhamara Port over an area of 1000 acres with an investment potential of INR 6500 crore and another in the proximity of Bhubaneswar at Malipada over an area of 800 acres with investment potential of INR 6000 crore are being developed for promotion of textiles industry in the state. Concerned parks target to provide employment opportunities for 20,000 and 18,000 persons respectively. In addition, a Technical Textile Park is being developed in Bhadrak over an area of 100 acre. This dedicated park is being anchored by a 300 KTPA IOCL Polyester and Fibre plant.
SCIENCE AND TECHNOLOGY:
The Government of Odisha has incorporated IT in its own administration as well as encouraging the growth of the IT sector in general. Electronics and Information Technology Department of the state has the mandate for development, co-ordination and supervision of IT activities including computers, communication, software and electronics in the state. OCAS, OSEDC, IIT, STPI and IDCO are the institutions that help in promotion of IT and E-governance projects in different agencies of the Government.
In today’s world, ICT forms the foundation for effective governance. The outbreak of the Covid-19 pandemic has hastened the transition to a borderless workspace and digitisation of services and automation of processes. There is a rise in the expectation levels of citizens to avail public services at their doorstep. Even many business re-engineered their processes to provide goods and services using digital platforms giving a boost to the economy. Keeping up with these trends and to meet public expectations, the State Government shifted the provision of several public services to a digital platform through the adoption of appropriate IT applications for Government to Business (G2B) and Government to Citizen (G2C) and Government and Business (G2B). Odisha provides stable governance and a conductive environment for investors with a Single Window Portal called Government of Odisha-Single Window for Investor Facilitation and Tracking (GO SWIFT). It has been introduced covering the complete lifecycle of industrial projects for time-bound and hassle-free investment in the state. Digitised E-governance processes have improved and strengthened transparency.
The vision of the state IT Policy 2022 is to transfer Odisha into a leading destination for information technology in the country and position it prominently on the global map as a preferred IT outsourcing destination. The policy hopes to encourage the IT sector to create a new quantum of productive employment opportunities thereby contributing significantly to growth and development of the state. The Government of Odisha also intends to use IT to usher in efficiency and transparency in governance and give a fillip to the spread of digital literacy in the state by realizing the goal of “Internet for all”. This policy aspires to establish Odisha as a preferred IT hub with innovation and new age/emerging technologies.
SERVICE SECTOR:
India’s service sector covers a wide range of activities, such as trade and repair, hotels and restaurants, communication, banking and insurance services, transport, storage, real estate, ownership of dwelling, business services, legal services, public administration and other services.
The services sector is comparatively more organized, providing employment to the educated and skilled youth as well as un-skilled youth, thereby contributing significantly to the GSDP & GSVA. The services sector accounts for about 40 percent of the state’s GDP. The services sector in the state is the second highest contributor to Odisha’s GSVA after industry. The share of services sector in GSVA stood at 36.2% in 2022-23 (AE).
The services sector expanded by 8.8 percent in 2022-23 (AE) in Odisha against 9.6 percent in 2021-22. In 2022-23, as per the advances estimates, services sector in Odisha is expected to grow at 8.8 percent. All the key sub-sectors within services sector depicted a buoyant growth rate in 2021-22 (RE) and 2022-23 (AE) in Odisha. The sub-sector “Trade, Repair, Hotels and Restaurants” GVA grew at 13.7 percent in 2021-22 and 16.2 percent in 2022-23. The “transport, communication and services relating to broadcasting” registered a growth rate of 6.8 percent and “real estate and professional services” grew at 7.0 percent per 2022-23 (AE).
The services sector plays a vital role for the growth of the state and providing employment opportunities for the youth. The growth and functioning of the banking network was impressive for Odisha during the year 2021-22. Total deposits in all banks in Odisha grew by 12.9 percent and total advances sanctioned and utilised grew by a higher rate of 26.9 percent. The priority sector lending rate at 59 percent in the state has been well above the RBI’s benchmark of 40 percent. The credit deposit ratio is above 72, relative to the benchmark of 60 during 2021-22.
TOURISM:
The state has huge potential for development of tourism given its rich cultural heritage. Tourism enhances livelihoods and generates financial resources for the state. The state has undertaken several steps for the promotion of tourism at the national and international arena, including Odisha’s Tourism Policy, 2016 which would positively impact many other services sub-sectors. The state’s telecom infrastructure is relatively less developed with lower tele-density and internet penetration than at the national average.
Odisha is known for its places of natural beauty and historical significance and the state offers fascinating tourist attractions including historical monuments, beach resorts, eco-tourism, adventure tourism, flora and fauna, national parks, sanctuaries and now sports events. The tourism industry contributes significantly to the overall state’s DVA and employment. Tourism is highly labour intensive and has the potential to generate high employment through a mix of activities of hotels, transport, shopping, food entertainment etc. It is linked to the hospitality sector which binds together a lot of other employment generating sectors through backward and forward linkage. It’s not only creates direct employment but also creates spill-over effects for indirect employment and strengthens the local economy through inflow of money including foreign exchange earnings into the state.
Tourism has exponential possibilities to boost Odisha’s service sector in the next one decade. To attract significant revenue, improved customer experience is the key factor that will ensure its high future growth. In this context, Government initiative such as e-VISAs, better infrastructure facility, safety and security and stronger connectivity etc. are the main enablers.
HEALTH TOURISM:
The Health and Wellness tourism segment has grown rapidly in the last decade, where travellers travel to a particular destination specifically for healing purposes. On similar lines, Bhubaneswar, the State Capital of Odisha is equipped with numerous multi-facility/super speciality hospitals which attract patient’s from across the state and also from neighbouring states such as Jharkhand, Chhatisgarh, West Bangal, Andhra Pradesh etc. To promote health tourism, the Department of Tourism shall be promoting integrated developments (comprising of hotels and hospitals) in the urban areas of the state. For the purpose of health tourism, the hospital shall be attached to a hotel which must be 3-star and above category.
Such accommodation units shall have on mandatory basis, dormitory facility for at least 30 patients attendants, either within the same structure or as a separate structure with all facilities like washrooms, restaurants etc. The DoT will only incentivise the hotel component of the project. The hospital development must follow the extant rules or guidelines of National Medical Commission and Department of Health and Family Welfare, Government of Odisha. Where hospital is attached to a hotel, the incentive shall be considered under New Odisha Tourism Policy 2022 only after due recommendation by Department of Health and Family Welfare, Government of Odisha.
To streamline the efforts of developing wellness tourism in the state, the DoT shall incentivise the interested investors willing to develop wellness resorts.
∙ Wellness properties with at least 15 accommodations or overnight.
. The wellness property is accredited through National Accreditation Board for hospitals and healthcare providers (NABH) for standardization of therapies offered and must follow the necessary acts or rules or guidelines of the competent authority.
SPORTS TOURISM:
Odisha has developed sports infrastructure, hosted international and national events in the past and ran successful talent identification programs. Additionally, meritorious sportspersons were recognised for their excellence with jobs in Government Departments and Government PSUs. Many were felicitated with cash award.
Odisha’s sports budget went up to over INR 1300 crore from nearly INR 400 crore in 2021-22. A significant amount is being dedicated to developing and upgrading sport infrastructure and running coaching programs.
Currently over INR 2000 crore projects are underway. Some of the mega sports projects nearing completion and are part of the Kalinga Stadium plan and include India’s first indoor athletic stadium, indoor aquatic centre, tennis court, hockey high performance centre, staff accommodation and sports science centre.
Similarly, INR 700 crore is being invested in developing 90 indoor multipurpose halls in the urban areas that will play a significant role in the development of sports. Government of Odisha is the first state in India to sponsor the National Hockey teams and also stepped up to sponsor both men’s and women’s teams for a period of five years. India’s success in Tokyo Olympics in Hockey 2021 holds a special significance for Odisha, which has been at the forefront of supporting the sport. For making the event successful, the state earned accolade from different quarters. Recently, the state announced its sponsorship for both the teams for another 10 years.
The government is planning to develop infrastructure in different parts of the state. The State Government has announced the construction of multipurpose indoor stadiums in various districts. These stadiums will also serve as hospitals in the event of a medical emergency and as shelters in the event of a natural disaster.
ECO TOURISM:
Launched in December 2019, Odisha Tourism’s Eco Retreat, is one such initiative that will make the tourists skip the traditional travel for a swanky glamping experience instead. Glamorous Camping for ‘Glamping’ involves residing in a luxurious tent set up in the middle of a picturesque destination surrounded by imposing mountains, blue beaches or lush forest. As envisioned by the Odisha Government, Eco Retreat has made strides with opening of new livelihood opportunities in the respective local communities. Conservation of forests and nature is turning into a sustaibale treasure for the community. Government has taken all possible steps to ensure that each Swiss tented cottage is properly functioning and all facilities including the air conditioning, toilets etc. are available. Moreover amenities and facilities including multi-cuisine restaurant and dining area, bar, beach shacks, water sports and other adventure sports activities etc. are available to provide a resort like experience to tourists in a sustainable way.
Apart from the “Eco-Retreat Odisha”, a flagship glamping product of Odisha Tourism, Odisha has undertaken commendable strides in development of Eco-tourism in the state. The department of Forests with the support of department of Tourism has developed state-of-art Eco-tours (nature camps) at 48 sites of nature and wildlife repute. This step has created new avenues for tourists for tourists visiting the state, apart from the existing famous tourism circuit, Golden Triangle-Bhubaneswar-Puri-Konark.
These Eco-tours properties are being run by involving local communities and hence providing them with alternate livelihoods. Apart from Operations, local people also get employment as Nature Guides, Cooks, Taxi Operators, Drivers etc.
Apart from the existing 48 Eco-Tour sites, 13 new approvals for development of Eco-Tour sites have been accorded, which would increase the total number of Eco-Tour sites to 6.1 The recently proposed eco-tour destinations include:-Deomali hilltop in Koraput, Jakam of Kalahandi, Nawana of Similipal north in Mayurbhanj, Silviculture Garden of Phulbani, Muhan at Astaranga in Puri, Kotia in Koraput, Khadakhai dam in Rairangpur, Mehendragiri from Ganjam side in Berhampur, Kanjipani ghat and Hadagarh in Keonjhar forest divisions. These spots are getting popular with increasing foothills and revenue generation. Online booking facility has also been rolled out.
Further, new nature camps for day tourists would be developed at Rani Duduma of Koraput Dhaltangarh of Cuttack and Bhandarpahar near Jhadeswari Temple of Nayagarh forest divisions. These places have the potential to attract tourists.
SKILL DEVELOPMENT:
Over the past few years Odisha has emerged as the skill capital of India with the presence of globally recognized institutes of Higher Learnig and Research including CIPET, IIT, IIM, NIT, AIIMS, KIIT, XIMB, ICT, Biju Patnaik National Steel Institute and so on. Odisha is the first state to have a dedicated Skill Development Authority, which develops customized training programs for workers based on industry requirements. As the state economy diversifies to other sectors, the demand for new kinds of skills is likely to increase manifold which will be critical to cater to the expanding industrial base. The government of Odisha is currently taking several measures on that front.
In a 3 year period, OSDA wants Corporate India to make a beeline to Odisha, not just to hire but to “look-in” talent ahead of its manpower requirement. Young OSDA graduates should command a premium in the wage market.
In a 5 year period, OSDA plans to skill around 15 lakh youth and ensure that Odisha’s young men and women across sectors become global preference. Nations of the world shall come to Odisha to hire, and Odisha would become a global destination for skilled employers.
The Odisha model must be worth emulating in other parts of the world.
QUALITY OF LIFE:
Ensuring quality of life is imperative to enable human development and progress. Quality of life is a multi-dimensional concept encompassing several key components such as access to health care, basic amenities, quality education and inclusive human development. Over the years, Odisha has accorded due priority towards enhancing quality of life with consistent social sector spending of over 40 percent in its overall revenue expenditure. The state has put forth an elaborate policy framework in place to enable universal access to healthcare and quality education and upliftment of disadvantaged and vulnerable communities. To ensure universal access to affordable and quality healthcare services, a wide range of schemes for strengthening public health infrastructure, improving delivery of healthcare services, enhancing food and nutrition security and addressing local health issues and needs of vulnerable communities have been implemented. This has led to significant progress on key health indicators such as life expectancy at birth, IMR, MMR, NNMR and the rate of institutional deliveries over the years. A plethora of schemes were implement to enable universal access to quality education, early childhood development and universal pre-primary education. As a result, Gross and Net Enrolment Ratios in the state at the primary and upper primary levels have been on a rise accompanied by a declining rate of dropouts. The access to quality education among the disadvantaged SC/ST communities has also significantly improved. Further, up-liftment and empowerment of the vulnerable and disadvantaged communities including women, children, SC/STs, Disabled, Elderly and Transgender among others has been taken up through various targeted interventions.
Odisha has undertaken a holistic approach by focusing on each and every stage of human development right from pre-infancy to old age to improve the quality of life of its citizens, leaving no one behind.
EDUCATION:
Odisha has made effective policy interventions to promote and ensure inclusive equitable and quality education. The state Government has introduced several initiatives in the School & Mass education sector to revolutionise the school education paradigm of Odisha. Under the 5T initiative of the state government, the Department of School & Mass education has taken up various steps to bring about equity in the education system, thereby increasing investment and improving efficiency. Mo School Abhiyan, a unique initiative of the state government was included under the purview of Odisha’s 5T initiative on 12 January 2021. To rebuild the pride of Government Schools, the state has launched a unique initiative called 5T-High School Transformation Progremme: “Transformation towards Aspiration” under Mo School Abhiyan. The State Government has taken extensive steps to mobilise CSR funds from different corporate houses to the tune of INR 796.5 crores against which matching grant is provided under Mo School Abhiyan. In the first phase, 781 schools have been selected 2272 schools in the second phase and 2065 schools in third phase. Apart from funds have also been mobilised from OMBADC and DMF for 1762 schools. Besides, the budget allocation of school education, higher education and ST, SC and technical education department has increased from INR 18404 crore in 2017-18 to INR 27324 crore in 2022-23, registering a growth of 48.5 percent over five years.
SCIENCE AND TECHNOLOGY:
The Government of Odisha has incorporated IT in its own administration as well as encouraging the growth of the IT sector in general. Electronics and Information Technology Department of the state has the mandate for development, co-ordination and supervision of IT activities including computers, communication, software and electronics in the state. OCAC, OSEDC, IIT, STPI and IDCO are the institutions that help in promotion of IT and E-governance projects in different agencies of the Government.
In today’s world, ICT forms the foundation for effective governance. The outbreak of the Covid-19 pandemic has hastened the transition to a borderless workspace and digitisation of services and automation of processes. There is a rise in the expectation levels of citizens to avail public services at their doorstep. Even many business re-engineered their processes to provide goods and services using digital platforms giving a boost to the economy. Keeping up with these trends and to meet public expectations, the State Government shifted the provision of several public services to a digital platform through the adoption of appropriate IT applications for Government to Business (G2B) and Government to Citizen (G2C) and Government and Business (G2B). Odisha provides stable governance and a conductive environment for investors with a Single Window Portal called Government of Odisha-Single Window for Investor Facilitation and Tracking (GO SWIFT). It has been introduced covering the complete lifecycle of industrial projects for time-bound and hassle-free investment in the state. Digitised E-governance processes have improved and strengthened transparency.
The vision of the state IT Policy 2022 is to transfer Odisha into a leading destination for information technology in the country and position it prominently on the global map as a preferred IT outsourcing destination. The policy hopes to encourage the IT sector to create a new quantum of productive employment opportunities thereby contributing significantly to growth and development of the state. The Government of Odisha also intends to use IT to usher in efficiency and transparency in governance and give a fillip to the spread of digital literacy in the state by realizing the goal of “Internet for all”. This policy aspires to establish Odisha as a preferred IT hub with innovation and new age/emerging technologies.
SUNRISE SECTORS:
The Union Government has taken steps to promote sunrise industries realizing the future need and growth of these industries. The government of Odisha has also set the vision and roadmap for the state to lead in areas of the new economy such as block-chain, ML, AI etc. and setting up a “Centre for New Economy” in the state. Manufacturing of Electric Vehicles, Green Energy Equipment, Electronic and Hardware manufacturing type of new age Industries are being promoted by the state government. These industries are expected to support the development of ancillary and downstream industries in the state and create a positive effect on employment, tax revenue and overall growth of the state. The new age sectors have been categorized under Thrust Sector Category and investments in such manufacturing units will be provided special incentives under IPR 2022.
Odisha’s Electric Vehicle Policy 2021 coupled with industrial policy resolutions is aimed at promoting the manufacturing and usage of EVs across vehicle segments in the state by facilitating an appropriate eco-system. The state is committed to promote the production of electric vehicles including batteries. The state has also taken steps to support the creation of jobs in driving, marketing, financing, servicing, manufacturing and charging electric vehicles.
To create a supportive ecosystem for the industry, a number of incentives are offered for EV production and purchase.
VOCATIONAL AND TECHNICAL EDUCATION:
Vocational and Technical Education play a significant role in contributing towards innovation and economic development in a knowledge-driven economy. Therefore, attention must be leveraged on improving the quality of human capital with a focus on skill development and generation, accumulation, diffusion and usage of knowledge and technology. Vocational and Technical Education that places an emphasis on skill development is crucial for rapid economic development in a state like Odisha in a world of frequently evolving technologies, job automation and growing globalisation. The state’s growing need for skilled labour in recent years necessitates the need for skill development of children as well. To improve employability, efforts are being made to ensure that the youth would be imparted with skills.
Two Centres of Excellence (CoE), one on Artificial Intelligence and Machine Learning was established in CET, Bhubaneswar in association with Tech Mahindra Ltd. And the other on Space Resear5ch and Innovation in VSSUT, Burla is in collaboration with ISRO.
NEW POLICY INITIATIVES:
Odisha IT policy, 2022
The goal of the Odisha IT policy, 2022 is to make Odisha a top investment destination for information technology in the country and to place it prominently on the world map as a preferred destination for IT outsourcing, propelling inclusive growth and employment opportunities. The policy aims to usher in balanced socio-economic growth of Odisha with the suitable deployment of technology for seamless electronic service delivery, ensure the acquisition of a higher degree of employability skills for its people, provide a strong foundation to Start-ups and investors and promote innovation and entrepreneurship in the state. Currently, several IT majors like Infosys, TCS, Wipro, Tech Mahindra and Mind tree Capgemini, Quest Global Semtech Corporation, Black Knight Inc., and more that 100 other IT companies and tech start-ups have made it a vibrant destination.
- Development of enabling infrastructure
To support the industries in their growth, the state has made major investments in the development and modernization of industrial parks, regions and clusters. Dedicated sectoral manufacturing zones like Aluminum Park, Mega Food Park, Sea Food Park, Electronics Manufacturing Cluster, PCPIR, Plastics Park, Textile Park etc. have been built with the necessary infrastructure and supply of water and electrical connections at the factory doorstep.
The state also has an extensive network of roads and railways that provide for the efficient movement of goods throughout the state and to the hinterlands of the country. The Biju Expressway, that connect North-Western Odisha to Southern Odisha could be leveraged for Expressway Economic Corridor.
Further, Odisha has the advantage of being strategically located with a 480 kms. long coastline. Currently the state has 3 operational large ports at Paradip, Dhamara and Gopalpur.
- Effective investor facilitation through GO-SWIFT 2.0
The state has developed online single window portal, GO SWIFT i.e., Government of Odisha-Single Window for investor facilitation and tracking, to transform the B2G interface through the entire investment cycle of project. The portal is a ‘One-Stop Solution for information on clearances required land banks available, application, payment, tracking and approval of G2B services, risk based synchronized inspection by regulatory agencies, incentive administration, post land allotment services, grievance redressal and dovetailing of CSR activities with the development goals of the state. GO SWIFT is also integrated with the National Single Window System (NSWS). The newly revamped GO-SWIFT 2.0 provides enhanced functionality and makes the entire process even more hassle-free, responsive and transparent.
- Establishment of Industry and DIPA Mechanism
The state of Odisha, to provide swift clearances and resolution of grievances faced by the industries, has introduced the “Industry Care” mechanism which ensures that all grievances/issues raised by industries about setting-up and /or operating in the State are resolved in a prompt manner. A team of senior Government officials under the chairmanship of Principal Advisor to Honorable Chief Minister of Odisha are entrusted with the task of regularly visiting district and meet with industry representatives to understand urgent issues which need to be resolved and provide after care service through fast-forward processing.
Moreover, to streamline investment facilitation at the district level, the state Government has decided to set up facilitation cells at the district level, called as ‘District Investment Promotion Agency (DIPA)’, which shall function under the guidance of the respective district collector. As of now, DIPA has been set up and operational in 15 industrial district i.e., Angul, Balasore, Balangir, Bhadrak, Cuttck, Ganjam, Jajpur, Keonjhar, Khordha, Jagatsinghpur, Jharsuguda, Koraput, Rayagada, Sambalpur and Sundergarh. The remaining 15 districts will be covered by DIPA by May 2023. One of the key roles of DIPA is to ensure the timely resolution of issues raised by industries and provide aftercare services.
- Ease of Doing Business (EoDB)
The state has undertaken several measure to develop and industry-friendly industrial ecosystem. GO SWIFT-the single window online facilitation portal of the state, has significantly improved the Ease of Doing Business in Odisha. Owing to its focused approach towards reforming the business centric services, Odisha has been classified as an ‘Achiever’ State in the Ease of Doing Business raking 2020 by Government of India.
E-GOVERNANCE:
Governance, in simple terms, can be defined as the principle of dealing with issues related to the development of a country and improving the future of the nation through implementation of laws. A government having good governance is a value-based government that makes the public administration open, transparent, accountable and abides by the rules. Good governance is an attempt to widen the scope of public administration by going beyond formal government practise. It should be noted that governance is for all the citizens. Therefore, citizen-centric administration and good governance are complementary to each other. International donor agencies such as the World Bank propagated the concept of good governance in 1990 one of the critical factors explaining the divergence in economic performances of countries. Many countries in the developing world are trying to pursue good governance in order to achieve the desired level of sustainable economic growth and development.
The pivot of good governance rests on a bipartite relationship between the government and the governed. When a government is accountable and transparent acts with integrity and upholds the rule of law, it can increase public trust and enhance effectiveness of delivery of services. This can in turn foster the conditions for a more participative democracy where citizens are actively engaged. Good governance is associated with efficient and effective administration in a democratic framework which is citizen friendly and caring with responsive administration. According to the United Nations, good governance is measured by eight factors: participation, rule of law, transparency, responsiveness, consensus oriented, equity and inclusiveness, effectiveness and efficiency and accountability. It precisely includes building competencies, aligning strategies with goals, being accountable, having a high level of ethics and integrity, defining roles and responsibilities. In general, good governance is perceived as normative principle of administrative law, which obliges the state to perform its functions in a manner that promotes the values of efficiency and eliminates corruption.
The Odisha government has been one of the pioneers in redefining responsive administration and people-centric governance. Building on the game-changing 5T paradigm, the state has rolled out a suite of governance reforms to deliver last-mile delight to its citizens. The 5T charter is underpinned by the philosophy of leveraging Technology, Teamwork, Transparency, Time and Transformation to deliver goods and services to the people in the State. ‘Mo Sarkar’ literally translating to ‘my government’, is a watershed and transformative reform under the aegis of 5T.
The state has adopted a strategy to strengthen overall governance. It has ushered transparency in the governance process, reduced delays in the provision of services through a single window system, reduced corruption and enhanced convenience and empowerment of citizens. E-governance also provides a mechanism of direct delivery of public services to the marginal segments of the society in the remotest corner, without having to deal with intermediaries. The use of internet not only delivers the services faster but also brings more transparency between the government and the citizens. Odisha has initiated several good governance practices and various e- governance projects including “Odisha One Portal” and “Odisha Right to Public Services Act” to provide services to people within the stipulated time frame.
FISCAL MANAGEMENT:
Fiscal discipline is an important determinant of the sustainability of the fiscal and macro-position of an economy. It improves the decision-making capacity of the governments by prioritising the developmental needs and helps to cut down operational expenses. State governments are accountable for multiple functional responsibilities that span across social and economic sectors. Thus, they are faces with the key question of prioritising the fiscal resources across the various developmental deeds. Lack of fiscal stability may endanger the choices in terms of policy objectives and resource availability.
The major concern about this success is that it has been achieved by containing public spending. The relatively low per-capita income of the state, historically high poverty ratio and high concentration of backward classes are some of the factors that have constrained the revenue generating capacity of the state. Thus, the state has resorted to expenditure tightening to achieve the targets of the FRBM Act. However, the developmental needs of the state continue to be large for the same reasons as mentioned above. Committing to the act may have limited the resources for the state’s developmental needs.
CONCLUSION
Odisha is backed by stable Govt., Pro-active leadership and host of team activities to make a conducive business climate. A plethora of reform process has been carried out by the State Government. Simultaneously the future of the state depends in its ability to innovate and come up with products relevant to the state, country and global market. Lack of ability to deliver the reform process as well as the inability to form good clusters and contract enforcement exposes our short comings. We have too many expectations but least commitment. Business means professionalism which can be generated from a conducive climate mixed with creativity and innovation. As the state is struggling with huge pool of educated unemployment yet there is lot of scope and aspiration for future development and growth. So this is the most opportune moment for us to implement a viable and eco-friendly industrial policy and management for the posterity.
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