Odisha and Assam have overtaken West Bengal in per capita income. Yes, you heard it right. According to a working paper by the Economic Advisory Council to the Prime Minister (EAC-PM), released sometime back, Odisha, which till recently was grouped with eastern India’s lagging economies, has steadily moved ahead of Eastern region’s largest economy (West Bengal) through economic expansion, particularly income growth, industrial expansion and post-pandemic momentum.
This shift, which marks a structural change, is apparent in per capita income. A comparative analysis based on 2011-12 data suggested that West Bengal was far ahead of both Odisha and Assam in terms of per capita net state domestic product (NSDP). However, over the years West Bengal has lost the advantage. In fact, figures from 2024-25 clearly show that Odisha’s per capita income had surged to Rs 96,224, overtaking West Bengal by a wide margin.
According to experts, Odisha’s growth has been driven by capital-intensive industries, mining, manufacturing, and export. These sectors, which generate income faster, have given the state the much-needed advantage in comparison to West Bengal, which is driven through services and consumption.
Official records indicate that between FY15 and FY24, Odisha benefitted from investments in metals, mining-linked industries, and downstream manufacturing, thanks to effective policy reforms.
In the last few years, policy-driven reforms, faster clearances, especially in land, mining leases, and environmental approvals, have played a significant role in turning investors’ interest towards mineral-rich Odisha, which has a large reservoir of natural resources such as iron ore, bauxite, aluminium, chromite, etc., whose global demand has increased manifold.
Most importantly, infrastructural push has done the magic. The development of port corridors (Dhamra, Gopalpur), better connectivity through railways for transportation of minerals, better roads and reduced freight costs have not only reduced logistics strains but has also changed the perception about the state, not to miss good governance.
The handling of disasters and natural calamities with minimal losses, fiscal discipline and most importantly administrative continuity has sent right signals to the investors who bet stability rather than mere announcements. Odisha’s high conversion rate of investment intentions into actual projects—often missing in West Bengal—has not gone unnoticed. Case in point is the withdrawal of Singur project by the Tatas from West Bengal following protests.
Investors making beeline
No wonder, in the last few years, investors both international and domestic have eyed Odisha and have shown interest. At major global investment meets like the Utkarsh Odisha – Make in Odisha Conclave 2025 and related outreach events many countries actively participated.
For instance, while Singapore-the official ‘country partner’ for the 2025 conclave was keen in strategic partnership in sectors like petrochemicals, urban planning, tourism, renewable energy and skill development, Japan invited as a potential partner country, showed interest in manufacturing and technology collaborations. At least 34 countries were invited to participate in the two-day event.
It is noteworthy that Singapore is one of the largest sources of FDI for India.
Several states of India such as Gujarat, Maharashtra, Uttar Pradesh, among others, have also shown strong interest. While major groups like Adani Group (headquartered in Ahmedabad) have committed large capital across energy, ports, industrial parks, and aluminium sectors, other business giants like JSW Group, Vedanta Limited, and Tata Group have signed big investment MoUs for steel, aluminium and manufacturing projects.
The New Year begins on a positive note
Buoyed by the success, Odisha managed to ink investment worth Rs one lakh crore through its investors meet and roadshow at Kolkata recently. According to an official statement, the state signed 27 Memorandum of Understanding (MoUs) and received 19 investment intents from various industries for setting up their plants in the state during the two-day investors meet and roadshow at the eastern metropolis.
While the 27 MoUs envisaged investment of Rs 81,864 crore, generating over 63,161 jobs, the 19 investment intent proposals worth Rs 18,453 crore were received with the potential to create over 27,591 employment opportunities. Together, if grounded, these projects will generate employment for 80,000 people, an official said.
Having said that, it becomes imperative for the state government to invest proactively in skill development to gain efficiency and high-skilled manufacturing. Besides, local supply chains also need to be strengthened.
If implemented in right direction, Odisha will lead a structural transformation in the Eastern zone or as they say Purbodaya Odisha!
Also Read: Odisha’s New Tourism Policy: A Move to Explore the Unexplored
