India is the world’s fourth largest economy and will move up the ladder before the end of the decade with GDP estimated to cross $7 trillion. However, growth alone will not lead to prosperity unless it is broad-based and inclusive; and, for that to happen, entrepreneurship is important. Moreover, a shift from being job seekers to job creators will also boost innovation and add momentum to the nation’s growth trajectory.
Entrepreneurship is not just about livelihoods, it is also a powerful driver of innovation. Ideas with a compelling value proposition which disrupt entrenched interests are the starting point of the innovation cycle and eventually scale up to market dominance which others then look to emulate. Were it not for this virtuous cycle, much of what we take for granted today would be absent.
Demography is key to our growth ambition but skilling and gainfully utilising the young population is a challenge. In this context, while the share of self-employed workers rose from 52.2 per cent in 2017-18 to 58.4 per cent in 2023-24, economic growth will be more inclusive and sustainable when there is an increase in the number of hiring enterprises. Moreover, while the MSME footprint is increasing thereby indicating that the formalisation of the economy is underway, an increase in scale and productivity is needed for greater impact.
Odisha stands at an inflection point in this regard, transitioning from a resource-extraction economy to one with a diversified manufacturing base. Innovation driven growth – anchored by startups, MSMEs, and government-backed schemes – is the need of the hour to catalyse tangible economic transformation along with greater inclusivity.
The state has demonstrated remarkable capacity to attract and ground large-scale investment with Utkarsh Odisha - Make in Odisha Conclave 2025 seeing proposals worth Rs 16.73 lakh crore across 20 sectors. It is imperative to parlay this into greater entrepreneurial opportunities at the middle of the pyramid which will have a multiplier effect.
As on January 2025, Odisha hosted 18.7 lakh MSMEs; moreover, the development of 30 multi-product MSME Parks will particularly benefit semi-urban and rural entrepreneurs. Its startup sector has also achieved substantial formal recognition and financial backing with 4,551 operational startups and 40 incubators as of mid-2023.
A strategic pivot towards innovation-intensive sectors has been a top priority of Chief Minister Mohan Charan Majhi’s government with support from the Centre, and the recent announcement of a `400 crore Centre of Excellence in Semiconductor Materials and Devices at IIIT Bhubaneswar signals alignment with the India Semiconductor Mission. It represents tangible investment in high-tech manufacturing and R&D and will no doubt lead to knowledge transfer from academic institutions to entrepreneurial ventures.
Access to risk capital is the lifeblood of entrepreneurship. The Union government provides support through the Startup India initiative and dedicated funding and credit schemes like the `10,000 crore Fund of Funds for Startups managed by SIDBI and Startup India Seed Fund Scheme. The announcement of a `1 lakh crore Research, Development & Innovation (RDI) Fund to boost private sector R&D and innovation is an ambitious attempt to provide patient, long term capital rather than short term grants. Odisha too has a Startup Policy with an initial corpus of `100 crore to support 5,000 startups over five years; however, tailored seed and pre-seed funds, especially for women entrepreneurs, are needed and will help unlock latent talent.
Finally, many first-generation entrepreneurs require mentoring as they often have little or no experience relating to regulatory compliances, financial discipline, and marketing. A structured approach through incubators, angel investors, experienced professionals, and industry partnerships can be the secret sauce which leads to successful outcomes.
Odisha’s entrepreneurship outlook is positive but contingent upon execution of large capital projects and expanded credit access for MSMEs. The convergence of mega infrastructure projects, startup ecosystem development, and gender-inclusive financing mechanisms has created necessary conditions for economic transformation. Budding entrepreneurs must now step forward to make their mark.
(The writer is Managing Director of Indian Metals & Ferro Alloys Ltd and a former president of FICCI)