Odisha Emerges as Top Investment Destination in 2025 with ₹16.7 Lakh Crore Proposals
Policy reforms, mega steel projects and diversification into green energy, IT, textiles and pharma drive industrial momentum
Bhubaneswar: Odisha’s industrial sector witnessed a landmark year in 2025, marked by rising investor confidence, faster project execution and a clear shift towards diversification and value-added manufacturing. The state not only attracted large-scale investment proposals but also demonstrated its ability to convert approvals into on-ground progress, reinforcing its reputation as a preferred investment destination in India.
Unlike previous years, 2025 stood out for balanced growth across traditional and emerging sectors, supported by proactive policy reforms and streamlined clearances.
The year began on a strong note with the Utkarsh Odisha–Make in Odisha Conclave held in January. The event attracted massive interest from domestic and global investors, receiving 593 project proposals worth ₹16.73 lakh crore across 20 sectors. In addition, 145 investment-related MoUs were signed, covering a total proposed investment of ₹12.89 lakh crore.
The conclave laid the foundation for sustained industrial momentum throughout the year.
Large-Scale Project Approvals and Job Creation
During 2025, the state approved 244 new industrial projects with a cumulative proposed investment of ₹5.66 lakh crore. These projects have the potential to generate employment for more than 3.35 lakh people.
Key sectors attracting investments included chemicals, green hydrogen and green ammonia, tourism, food processing, textiles and apparel, IT and ITeS, electronics system design and manufacturing (ESDM), pharmaceuticals, and green energy equipment manufacturing.
From Approvals to Execution on the Ground
Odisha also made significant progress in project implementation. Ground-breaking ceremonies were held for 80 projects involving investments of over ₹1.75 lakh crore, expected to create nearly 1.4 lakh jobs.
Several large projects moved from approval to construction stages across districts such as Keonjhar, Jajpur, Jagatsinghpur, Kendrapara, Ganjam, Khurda, Jharsuguda and Sundargarh, highlighting improved execution capacity.
Manufacturing Remains the Growth Anchor
Manufacturing continued to be the backbone of Odisha’s industrial growth in 2025. Steel, aluminium and metal-based industries retained their central role, supported by strong mineral availability and infrastructure.
At the same time, the state focused on moving beyond raw material-based growth by promoting downstream industries and value addition.
Diversification into Value-Added and New-Age Sectors
A defining feature of 2025 was Odisha’s push towards industrial diversification. Downstream metal units, auto components, electrical equipment, textiles and processed food industries gained traction. This shift helped improve employment intensity and reduce dependence on primary resource extraction.
Emerging sectors such as green energy, IT services, electronics manufacturing and pharmaceuticals also saw rising investor interest.
POSCO–JSW Project Signals Policy Stability
One of the most significant developments of the year was the return of South Korean steel major POSCO to Odisha through a partnership with JSW. The proposed mega steel plant in Keonjhar district marked a major strategic success for the state government.
After the earlier POSCO project failed to take off nearly two decades ago, the renewed commitment reflects improved policy stability, smoother land acquisition processes and stronger investor trust in Odisha’s governance framework. The project is expected to anchor the next phase of steel-led industrialisation in the state.
Mega Investments by Vedanta and Adani
Steel and metals continued to dominate the industrial landscape. Vedanta Ltd announced investment plans exceeding ₹2 lakh crore in Rayagada and Dhenkanal, strengthening aluminium production and downstream manufacturing.
Adani Enterprises Limited also made headlines with its proposed coal-to-chemical project in Sundargarh district, involving an estimated investment of ₹84,000 crore.
Policy Reforms Support Future Growth
Policy reforms played a key role in sustaining investment momentum. Odisha introduced new IT and Global Capability Centre (GCC) policies to position Bhubaneswar and emerging cities as competitive technology and services hubs.
The state also launched the Odisha Pharmaceuticals and Medical Devices Policy 2025, alongside hosting its first textile summit and pharma conclave. Odisha TEX 2025 resulted in 33 MoUs worth ₹7,808 crore, while the Odisha Pharma Summit 2025 saw 69 MoUs worth ₹7,043 crore, including a ₹3,000 crore pharma park.
Odisha Emerges as a Future-Ready Industrial Hub
Overall, 2025 marked a turning point for Odisha’s industrial development. With strong investments, diversified sectors, policy clarity and visible execution, the state has positioned itself as a future-ready industrial hub, well-aligned with India’s broader economic and manufacturing ambitions.
