Odisha Approves New IT, Electronics Policies to Attract Investment

The Odisha government has approved two new policies to attract investment: the Electronics Component Manufacturing Policy and the IT Policy. The policies aim to generate high-skilled employment opportunities and reduce India's reliance on imported electronic components. The Electronics Component Manufacturing policy offers incentives such as capital subsidies, land allocation, and power tariff reimbursements. The IT Policy-2025 aims to create one million employment opportunities in the IT/ITES sector over the policy period, offering capital and interest subsidies, land and rental support, and state GST reimbursement.

The Odisha government has recently approved two significant policies aimed at attracting investment and generating high-skilled employment opportunities: the Electronics Component Manufacturing Policy and the IT Policy 2025. These policies are designed to reduce India's reliance on imported electronic components and position Odisha as a leading hub for digital transformation and innovation.

The Electronics Component Manufacturing Policy, approved by the Odisha Cabinet on July 2, 2025, offers substantial incentives to investors. Key benefits include a 50% capital subsidy on the first ten large-scale projects, land allocation, rental assistance, a 10-year exemption from electricity duty, and power tariff reimbursements [1]. Special provisions and tailored concessions are also extended to mega projects involving investments above Rs 500 crore or those generating over 1,000 jobs. The policy aligns with the national Make in India vision, aiming to foster a self-reliant electronics ecosystem while stimulating Odisha's economic growth [1].

The IT Policy 2025, also approved by the Odisha Cabinet, is a comprehensive initiative aimed at positioning the state as a leading hub for innovation and IT-enabled services. The policy focuses on integrating cutting-edge technologies such as Artificial Intelligence (AI), cloud computing, data analytics, and IoT into governance and public service delivery. It seeks to build a digitally inclusive society while supporting entrepreneurship and sustainable development [2]. The policy aims to generate 1 million direct and indirect jobs in the IT/ITES sector and offers a wide range of incentives, including capital and interest subsidies, land and rental assistance, SGST reimbursement, and utility charge exemptions [2]. The implementation will be overseen by a Policy Advocacy & Vision Group (PAVG) comprising industry, academic, and research experts, with the Odisha Computer Applications Centre (OCAC) acting as the nodal agency [2].

Both policies are expected to attract global businesses to Odisha, boost economic growth, create jobs, foster technological innovation, and establish the state as a premier hub for global business operations in IT, finance, R&D, and more.

References:

[1] https://odishabytes.com/odisha-cabinet-approves-electronics-component-manufacturing-policy-2025-to-boost-investment/
[2] https://ommcomnews.com/odisha-news/odisha-unveils-it-policy-2025-to-boost-digital-growth-and-innovation/