Odisha is one of the most mineral-rich states in India. Key minerals found in the state are iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite, graphite, decorative stones, beach sand, China clay, and tin ore. Odisha has emerged as the key state with regard to the mineral and metal-based industries. In 2019-20^, Odisha contributed to the largest share (43.0%) of mineral production (by value) in India. Value of minerals produced in the state reached Rs. 87,086 crore (US$ 10.78 billion) in 2021-22.

Odisha accounts for over 55% of India’s bauxite reserves, making it an ideal location for setting up aluminium and aluminium-based companies. The state ranks first in the country in terms of both production capacity and actual output of aluminium.

Odisha is one of the favoured investment destinations for domestic and international iron and steel players as well as among the largest producers of iron and steel in India. In 2022-23, total exports of iron ore from Odisha stood at US$ 1,033.34 million (~9.21%).

At current prices, the state’s gross state domestic product (GSDP) was estimated to be Rs. 8.65 trillion (US$ 103.84 billion) in 2023-24. Odisha’s GSDP is expected to increase at a CAGR of 11.92% between 2016-17 and 2023-24. 

According to the DPIIT, cumulative FDI inflows in the state stood at US$ 168.55 million between October 2019- March 2024.

Odisha has emerged as a key state with regard to the mineral and metal-based industries.

As of March 2024, Odisha had a total installed power generation capacity of 8,124.91 MW, of which 1,964.21 MW was under the central utilities, 3,840.52 MW (under state utilities) and 2,320.18 MW (under private sector). Of the total installed power generation capacity, 5,291.21 MW was contributed by thermal, 2,163.22 MW by hydro, and 670.48 MW by renewable energy.

Total merchandise exports from Odisha stood at US$ 11.93 billion in FY24. Iron ore, iron & steel and aluminium & aluminium products accounted for a majority share in the overall exports from the state.

Odisha is among the top ten states accounting for the highest number of MSME enterprises. The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Policy Resolution, 2015. Additionally, the state has sector-specific policies for IT and micro, small and medium enterprises. The state government has constituted "Team Odisha" to help with investment promotion.

Odisha has vast potential for the development of tourism. It is one of the critical sectors of the state’s economy, in terms of foreign exchange earnings as well as employment generation opportunities.

Below are some of the major initiatives taken by the Government to promote Odisha as an investment destination:

• In the State Budget 2023-24, Odisha had allocated 13.2% of its expenditure towards education, 7.6% of its total expenditure towards health, 6.2% of its expenditure towards water supply and sanitation, 7.1% of its budget towards rural development, 2.1% of its total expenditure towards police, and 7.9% of its total expenditure towards roads and bridges.
• Under the State Budget 2023-24, Rs. 4,906 crore (US$ 588.9 million) was allotted to the Urban development out of which Rs. 996 crore (US$ 119.57 million) has been allocated towards the AMRUT scheme and Rs. 300 crore (US$ 36.01 million) has been allocated towards new city development.
• In State Budget 2023-24, Odisha allocated 7.6% of its total expenditure on health, (higher than the average allocation for health by other states 6.3%), 7.1% on rural development (higher than the average allocation for rural development by other states 5.7%) and 7.7% on roads and bridges (higher than the average allocation by states 4.5%).
• The Odisha state cabinet approved a new port policy in November 2022. The new policy aims to facilitate private sector investments in the maritime sector and the development of ports and port-related industries.
• In a bid to conquer the top spot among major ports of the country, Paradip Port is aiming at 150 MMT of cargo handling in FY24 and implementing a strategy to raise its capacity to 500 mt by 2047.
• On July 10, 2023, the Odisha State Cabinet approved the Energy Department’s proposal of Rs. 1,284.49 crore (US$ 155.4 million) for strengthening the power distribution system across Odisha under the Chief Minister’s Power Development Programme (CMPDP).
• In the State Budget 2022-23, Odisha has allocated 7.8% of its total expenditure on roads and bridges, which is significantly higher than the average allocation by states (4.7%).
• In 2021-22, 3,898,770 domestic tourists and 3,153 foreign tourists visited Odisha.
• By 2022, Odisha was planning to reach a generation of 2,200 MW of solar power, 200 MW of wind power, 180 MW of bio-mass power, 150 MW of small hydropower and 20 MW of Waste-to-Energy (WTE) power.
• In Union Budget 2021, Odisha allocated 6.4% of its total expenditure on health, (higher than the average allocation for health by other states (5.5%)), 7.5% on rural development (higher than the average allocation for rural development by other states (6.1%)) and 7.8% on roads and bridges (higher than the average allocation by states (4.3%)).
• In the Maritime India Summit 2021, the government announced to establish Odisha as the hub of maritime trade.
• In October 2020, the state government launched 12 different industrial projects with a combined investment of Rs. 8,796.61 crore (US$ 1.20 billion). The projects included 8 MSMEs and 4 large projects in sectors such as health care, renewable energy, steel, IT, cement, and food processing. These 12 industrial units will generate employment opportunities for 7,090 people in the state.
• In December 2020, the Ministry of Port, Shipping, and Waterways agreed to the Odisha government’s proposal for the riverine port to be developed by the Paradip Port Trust at an investment of Rs. 4,000 crore (US$ 547.46 billion). The project was estimated to generate employment for 6,000 people.

*- Excluding fuel minerals, atomic minerals and minor minerals, ^- Until February month of that particular fiscal year