BHUBANESWAR: Reflecting its improving investment ecosystem, Odisha has secured the fifth position among 36 states and Union Territories in NITI Aayog’s Investment Friendliness Index 2026, with an overall score of 52.4. Among the 17 large states, it ranked fourth, with the report attributing the state’s performance to its strong resource base, government policy and financial health.
The report said Odisha emerged as one of the country’s top five investment-friendly states, driven by its leading position in metallic mineral and coal production and prudent fiscal management. It, however, identified regulatory ease and the institutional environment as key areas requiring improvement to further strengthen the state’s investment climate.
Odisha ranked first in the country in metallic mineral production, accounting for 50 per cent of India’s output, and in coal production, contributing 23 per cent of the national total in FY24. The state also secured the third position under the financial health pillar, supported by total outstanding liabilities of 16 per cent of GSDP and interest payments of 1.38 per cent of GSDP, both the lowest among states.
The report also highlighted infrastructure and investment-related gaps. It said Odisha’s warehousing capacity stood at 98,000 MT, well below the all-state average of 4.7 lakh MT, while the capacities of container freight stations and inland container depots require strengthening. It further noted that foreign direct investment equity inflows declined to USD 9 million in 2024, about 81 per cent lower than the state’s average over the previous three years.
Based on investor feedback, the report said the process of starting a business in Odisha is streamlined and registration with the Registrar of Companies is efficient. Investors also described the state’s law and order situation as comparatively favourable, contributing to a supportive business environment.
At the same time, investors called for improvements in the single-window clearance mechanism, quicker environmental clearances and easier business exit procedures. They also recommended expanding industrial parks with more competitive land pricing, improving mobile connectivity in rural areas, strengthening rail connectivity in north Odisha, developing a commercial airport in Bhadrak, easing access to Dhamra Port for general commercial cargo, and expediting IDCO land allotment, grants and SIDBI support to facilitate industrial expansion.
