BHUBANESWAR: Even as the country has turned into a favoured destination for global investors, Odisha ranks low in terms of attracting foreign direct investment (FDI). The total FDI inflows into the state stood at only USD 165.54 million (Rs 1,377 crore) in the last five years. The country attracted over USD 400 billion during the period.
As per the data available from the national investment promotion and facilitation agency Invest India, the FDI inflow to Odisha was the lowest among the big states from October 2019 to September 2023. The state government has organised three Make-In-Odisha conclaves and a host of investment summits across the country and abroad since 2016.
The total FDI inflow includes equity inflow, equity capital of unincorporated bodies, reinvested earnings and other capital. The top five states receiving the highest FDI equity inflow are Maharashtra, Karnataka, Gujarat, Delhi, and Tamil Nadu. Maharashtra topped the chart with USD 61.92 billion, followed by Karnataka at USD 47.3 billion, Gujarat at USD 34.16 billion, Delhi at USD 28.3 billion and Tamil Nadu at USD 9.85 billion. Odisha’s neighbouring state Jharkhand has attracted USD 2.66 billion, Telangana USD 5.92 billion, West Bengal USD 1.51 billion and Andhra Pradesh USD 872.62 million.
The FDI inflows that went up by more than four times during the second year of Covid pandemic (2021-22) dropped to almost one-third, in the next fiscal in the state. The state received FDI of USD 13.05 million in 2019-20 (from October 2019), USD 19.76 million in 2020-21, USD 95.33 million in 2021-22, USD 31.63 million in 2022-23 and USD 5.78 million up to September 2023.
While the top five sectors receiving the highest FDI equity inflow are services (finance, banking, insurance, non fin/business, outsourcing, R&D, courier, tech testing and analysis), computer software and hardware, trading, telecommunications and automobile industry, the top five sectors attracting FDI equity inflow in Odisha are services sector, metallurgical industries, construction (infrastructure) activities, computer software and hardware and education.
An official of the Industries department said, FDI inflows into any state depend on a host of factors including availability of natural resources, market size, infrastructure, investment climate and macro-economic stability besides investment decision of foreign investors.
Worrying trend
Odisha got USD 165.54 million in last five years
USD 13.05 million in 2019-20 (from October 2019)
USD 19.76 million in 2020-21
USD 95.33 million in 2021-22
USD 31.63 million in 2022-23
USD 5.78 million up to September 2023