After assuming office in 2024, the BJP government under the leadership of Mohan Charan Majhi allocated Rs 408 crore to develop Bhubaneswar, the capital of Odisha, into an IT hub. The intention was loud and clear: attract IT giants to the fast-developing two-tier city and transform it into a Silicon city of the East.
The government also announced a satellite city within Bhubaneswar. Taking inspiration from Hyderabad, this proposed plan, spanning around 322 hectares of land with an additional investment of Rs 1,110 crore, is expected to give a major boost to the capital’s infrastructure in different sectors with a special focus on the IT industry.
Bhubaneswar, which became Odisha’s (then Orissa) capital in 1948, replacing Cuttack that had served as the capital since the state’s formation in 1936, has come a long way. From being referred to as the city of temples, it has managed to be counted as one of the fastest growing cities of India with its special focus on IT industries.
According to official records, out of total 500 IT/ITES firms operating across the state, Bhubaneswar alone hosts over 300 IT companies. Major global IT and consulting companies including Infosys, TCS, Wipro, IBM, PWC, Deloitte, Accenture, Synopsys, EY, and others have established their operations in the state.
Encouraged by the interest shown by IT players both domestic and global, the Union government has promoted Odisha, especially Bhubaneswar as an IT destination. In a major announcement last year, the central government announced an investment of Rs 7,000 crore for Odisha to transform it into the next IT hub of India.
Addressing a sectoral session on IT/ITeS/ESDM at the Utkarsh Odisha: Make-in-Odisha Conclave 2025, Union IT minister Ashwin Vaishnaw said Odisha will play a pivotal role in India’s technological revolution.
As per the minister’s announcement, a three million sqft IT-hub with state-of-the-art facilities is being set up in Bhubaneswar. There are plans to create another 12 million sqft facility in the city to attract IT giants to Odisha. Lauding the potential of Odisha, the minister hoped that the move “will enable the state to emerge as a preferred destination for global IT firms.” With robust infrastructure, strategic investments and a focus on talent, Odisha is poised to lead India’s technological revolution, he added.
The Big Q: Why is Bhubaneswar emerging as a serious alternative to Bengaluru and Hyderabad? There are several reasons:
Infrastructure
At a time when Bengaluru is struggling to cope with its traffic congestion, choked lanes, waiting for hours to reach one place to another, Bhubaneswar has come as a big relief for the investors. Better roads, good connectivity – international airport, rail links and planned expansions, including smart city amenities has appealed major stakeholders. Two major airports at Bhubaneswar and Jharsuguda connect Odisha to major cities across India. Bhubaneswar is a major rail head on the Howrah-Chennai route while Rourkela and Jharsuguda are major rail heads on the Howrah-Mumbai route which passes through Odisha.
Cost of living
The living cost, housing rent, quality of life, better air quality is comparatively low in Bhubaneswar in comparison to other metros. This has attracted both companies and employees. Moreover, companies are drawn by spaces that are conducive to flexible office models, making it easier for companies to set up their offices at a lower cost
Government policy
With IT emerging as one of the shining sectors for India’s economy, most of the two-tier cities are focusing on making their cities IT friendly. Odisha is one of them. The Odisha IT Policy 2022, while reflecting the state’s keenness to promote Odisha and Bhubaneswar as an IT hub, also reinforces its intent to attract tech-based investments including startups.
Apart from offering capital subsidies for IT and BPO forms, it also proposes rebate on electricity and land use, while exempting stamp duty and registration.
Most importantly, through industry-academia collaboration, the government is building a startup conducive environment by easing regulatory processes through single-window clearances. In other words, the government is ensuring lesser bureaucracy hassles to enable the major players to set up their business with ease.
Education and Talent Pool
From IIT-Bhubaneswar, IIIT, NISER to numerous engineering colleges, both government and private, have provided not only an added advantage to the city, producing a steady flow of tech graduates annually but also introduction and promotion of skill development programmes including AI and vocational training centres have given a boost to the workforce.
Interestingly, it is noteworthy that Odisha is creating an identity of its own in the path of becoming an IT hub instead of copying the framework of Bengaluru and Hyderabad. Therefore, it won’t be naïve to say the coming years belong to Bhubaneswar as the new Silicon Valley of India!
Also Read: Odisha’s Iron edge: The path ahead for steel dominance
