With Odisha preparing to host another grand investment summit in 2018 winter, the reality check for the State is that post the successful 2016 investor summit, its rank in investment potential index in the country remained static at 11th in 2017. Shockingly, Odisha languished at 14th among 21 States in the vital indicator of perception on business climate.

For which, the National Council of Applied Economic Research (NCAER) has labelled Odisha a tag of ‘middling’ State on all vital pillars of investment index except ‘economy’ where the State was further grouped in the poor category with a lowly rank of 15th among 21 States.

The NCAER’s 2nd Investment Potential Index (IPI)-2017 has brought to the fore how tough challenges are staring at the State in emerging as a preferred investment destination in the country. The premier economic think-thank of the country has analysed 21 States with respect to the six pillars of investment index, namely, land, labour, infrastructure, economic conditions, governance and political stability and an overall survey that as a whole determines the intrinsic attraction of a State to lure investments; and in this vital yardsticks, it assigned Odisha the 11th slot among 21 States in the IPI-2017. In the IPI-2016, Odisha was at 11th across the States.

The chips that deliver the strength to a State in attracting investments, as identified by NCAER IPI-2017, are: State finishing number one in land available for industry, competitive power tariff rates, cargo handled per port, least man-days lost due to strikes and seating capacity in ITIs. However, the NCAER has listed out frailties that make it vulnerable are: poor labour quality, labour force participation and educated population, higher numbers of contract workers, lower financial inclusion and higher insurgency incidence.

Odisha lags in the vital sub-pillars under the ‘land’ pillar like finishing 19th among 21 States in digitised land records, slogging at 16th in land related stalled projects and at 13th in industrial parks in the State. Similarly, in ‘labour’ pillar, Odisha was at 18th in average wages in manufacturing sector, at 17th in share of workforce in the manufacturing sector, at 16th in share of labour force with secondary education and above. In pillar “infrastructure’, Odisha was at 16th rail density.

The NCAER survey of investors reveals some important fault-lines that bog down the investors in Odisha. When around 45 per cent identify poor sewerage facility a big spoiler, 31 per cent investors indicate non-availability of net connectivity a hurdle to investments. Above all, nearly 44 per cent investors reveal that the State’s industry-related policies prove a major problem in investing in the State posing a big threat for Odisha when the State government is going whole hog in bringing a series of policy packages only to lure businesses. Nearly one-third of investors blamed the State’s tax policy proving a hurdle to investments.

Significantly, when the State is going gaga over single-window clearance, the

shocker is a whopping 48 per cent of investors cited time-consuming approvals in starting business ventures here, including environment clearance. Among the competing neighbouring States, only Andhra Pradesh is far ahead of Odisha to finish number-3 in IPI-2017.