Odisha ranks among top 3 States for new investments with 42% share: RBI Report

Bhubaneswar: In the last fiscal year, Odisha has emerged as one of the top three states attracting new investments, according to a recent report by the Reserve Bank of India (RBI). The report highlights that during the year 2022-23, Odisha, along with Uttar Pradesh and Gujarat, accounted for a significant 42% of the total project cost of projects receiving bank assistance.

The RBI report indicates a remarkable growth of 87.7% in bank-assisted projects in the last fiscal year. A total of 547 projects were sanctioned with a combined project cost of Rs 2,66,547 crore, compared to 401 projects valued at Rs 1,41,976 crore in the previous year (2021-22).

Among the top states, Uttar Pradesh secured the highest share with 16.2% (Rs 43,180 crore) of the total investment, followed by Gujarat with 14% (Rs 37,317 crore), and Odisha with 11.8% (Rs 31,452 crore). Maharashtra and Karnataka also contributed 7.9% and 7.3% respectively to the total project cost during 2022-23.

Odisha’s improved performance is notable, given that it attracted significant investments with just 12 projects. The report highlights that Odisha’s share in total investment had been inconsistent over the past few years, ranging from a high of 15.9% in 2014-15 to lower percentages in subsequent years.

The analysis in the report attributes this growth in investments to multiple factors including increased bank credit, higher capacity utilization, positive business sentiment, and supportive government policies. Around 40% of the total capital investment in 2022-23 is expected to be spent in the following fiscal year (2023-24).

On the other hand, Kerala, Goa, and Assam find themselves at the lower end of the spectrum in terms of bank-assisted new projects. Haryana and West Bengal also lag behind, contributing only about 1% (Rs 2,665 crore) to the overall investment projects.