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Odisha strives to sustain growth and remain investment friendly: CM

 

Monday June 09, 2014

Odisha, Investment, Natural Resource Utilisation, Development  
 

While speaking at a seminar on the theme of ‘Invest Odisha’ organised by the Times of India in Bhubaneswar, Chief Minister of Odisha, Naveen Patnaik, said that his government has taken several bold steps in the last twelve year to improve the State’s economy and accelerate the process of development across all regions and among all classes. As a result of which, the financial condition of the State has considerably improved and there is no revenue deficit since 2005-06.

 
Speech by Naveen Patnaik (Full Text)  
   

I am glad that Times of India has organized this seminar on the theme “Invest Odisha” at Bhubaneswar.  The theme and timing of the seminar are both opportune as the State Government has been fine tuning its development strategies for the 12th Plan. We recognize that though public sector investments are needed to expedite development and welfare of the local people and all regions, the role of, and the need for, private investments are not less important for the growth of the economy. Private investments are necessary for both economic growth and development.

In the year 2000, my Government inherited a stagnant economy with slow growth of the order of 4 percent and very high incidence of poverty of the order of 59 percent.  The State also witnessed serious fiscal crisis.

 

We have in the last twelve years taken several bold steps to improve the State’s economy and accelerate the process of development across all regions and among all classes.  The financial condition of the State has considerably improved.  There is no revenue deficit since 2005-06, fiscal deficit never exceeded two percent of Gross State Domestic Product (GSDP) since 2004-05 and Debt-GSDP ratio has been brought down from 42.1 percent in 1999-2000 to 17.1 percent in 2011-12, well below the 13th Finance Commission norm of 30.6 percent for fiscal sustainability.  The Odisha’s economy has grown in real terms at a rate of about 9 percent during the period 2001-2010.  Even during the 11th Plan, the State economy grew at an annual rate of 8.23 percent despite adverse impact of the global economic slow down.  The State has reported highest reduction in poverty by 20.2 percentage points from 57.2 percent in 2004-05 to 37 percent in 2009-10 across all regions and among different social groups indicating inclusive growth.  There has been significant improvement in several human development indicators.  Odisha strives to sustain high growth momentum and faster poverty reduction with targeted growth rate of 9 percent and agricultural growth target of 4.5 percent during the 12th Plan.

The State has focused on development of critical infrastructure including electricity, road connectivity, assured irrigation and adequate water supply.  There is also emphasis on improving human development indicators with focused attention on enhancing employable skills and to create more employment and livelihood opportunities for the local people.  One of the core development strategies of the State is to take enabling policy and institutional measures to foster entrepreneurship and promote private sector investments.  In this regard, my Government has already undertaken several public sector reforms which include Odisha Industries Facilitation Act 2004 and Single Window Clearance Mechanism; Resettlement and Rehabilitation Policy, 2006; Industrial Policy Resolution 2007; Odisha Public Private Sector Partnership Policy, 2007; Odisha MSME Development Policy 2009 and several other sector development policies and institutional arrangements.

Odisha offers several comparative advantages for private investors.  The State has a rich natural resource endowment including chromite reserves of 95 percent of total national reserves, nickel 92 percent, bauxite reserves 55 percent, iron ore 33 percent, coal 24.5 percent and water 11 percent.  There are attractive investment policies, favourable business environment, good industry-labour relations, favourable power situation and considerable emphasis on development of critical infrastructure.  Odisha has already emerged as a hub for mining, metals and manufacturing.  The State has also developed industrial parks, special economic zones and MSME clusters to facilitate promotion of the industry sector and service sector.  Investment opportunities have emerged in agro and food processing, tourism, IT/ITES, clean energy, education, downstream and ancillary units, auto and auto components and other areas.

The industrial sector and service sector of the local economy have been growing at a fast pace.  Odisha has attracted Foreign Direct Investment worth more than 258 million US dollars by December 2010.  The State has approved more than 200 proposals of value higher than Rs.8850 billion in aluminium, alumina, auto components, cement, ferroalloys, food processing, paper, power, steel, textile complexes and other sectors.  Private investments in the State have risen by about 30 percent per year in recent years.

Several studies have ranked Odisha very favourable to do business in India.  For example, India Today considered Odisha “1st in terms of total envisaged investment in India in 2007”. A CMIE study in 2008 ranked Odisha “2nd in terms of per capita investment under implementation”.  A 2009 World Bank Study has adjudged Odisha as “the 3rd best place to do business and to trade across borders in India”.  Assocham Investment Meter, a 2009 study, has rated Odisha as “the 2nd highest domestic destination in 2009”.  A recent study by IBN-7 has adjudged Odisha as one of the three Best Emerging Big States in 2012. Our efforts will continue to make Odisha a more favourable place to invest and to do business in the country.

I wish this Seminar a grand success and hope this Seminar would help us attract more and more private investments.

[Naveen Patnaik is the Chief Minister of Odisha since 2000 and is the first in the state to continue as Chief Minister for three consecutive terms.]

 
 

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