NITI Innovation Index: Odisha Tumbles Down To 0 From 93 In Ease Of Doing Business

Bhubaneswar: The India Innovation Index 2020 report has seemingly belied the high-sounding claims of Chief Minister Naveen Patnaik that Odisha is emerging as a lead investment destination and knowledge-driven economy in the country, which would see raining of job opportunities in the State.

But the report has apparently dropped a bombshell that exploded many a myth about Odisha emerging as an investment hub in the country.

It showed how the State is languishing at the bottom on the vital parameters of – doing business in Odisha is not easy and the poor higher education system that churns out only unemployed graduates in the State.

The howler for Odisha is the State was knocked two notches down in the 2020 Index for the simple reason of scoring a neat zero in the indicator of ease of doing the business implementation. In 2019- Index, the score was a high of 93.

This has bared the fact that the business-friendly environment in the State has deteriorated in the last few years.  

The pathetic state of innovation in Odisha could be summarised from the fact that of a total of 36 parameters that boost innovation in an economy, Odisha was found over-performing in just 2 and on the expected range in another one parameter.

The State scored well in schools with ICT (Information & Communication Technology powered labs) and National Achievement Score (NAS), and average in IT/Intellectual Property related Acts.

THE DAMPENERS

While Odisha languished at the bottom in the yardstick of ‘investing’ to bring ‘innovation’, the State’s poor performance in knowledge-intensive employment (means how the knowledge acquired in the State’s higher educational institutes proved helpful in providing gainful employment) bares the reasons behind high unemployment rate in the State.

Another shocker for Odisha is the State finished 2^nd from bottom, after Bihar, in the business environment that enables innovation to flourish in the State.

BLACK SPOTS DETAILS

♦ In knowledge-intensive employment, the score of Odisha is mere 1.53.

♦ Even Chhattisgarh fared better than Odisha with a score of 4.3.

♦The topper is Himachal Pradesh with a score of 37.29.

♦With an overall poor score rate of 3.24, Odisha languishes in the bottom-5.

♦ Odisha scored mere 8.45 in a Business environment enabling innovation – where the parameters are: score in ease of doing business, having incubation centres and common facilities.

♦ In the absence of a business nurturing ecosystem, start-ups cannot emerge and become a fledgeling business, explained the Niti report

♦ And Odisha scored poorly in the Start-up indicators in the country.

♦ Delhi, Goa, Tamil Nadu, and Kerala have a very mature business eco-system for start-ups, the report observed.

WHY HIMACHAL PEAKS OVER ODISHA?

As per the Niti Aayog report, Himachal scored high because the State has a high density of R&D units funded by the State government.

“In Himachal Pradesh, the State Government had made R and D facilities a thrust industry way back in 2009. While rolling out the 2009 Industrial policy, many incentives were doled out to the R&D sector. For which, HP has now emerged as R&D hub in India,” explained Dr Niraj Kumar, professor at XIM, Bhubaneswar.♦

THE HP R&D PILLS

♦Reimbursement of Rs.10 lakhs or 75% of the expenditure incurred/charges paid to patent attorney, patent service centre and patent filling agency for obtaining a patent, whichever is lower.

♦All enterprise(s) shall be reimbursed 50% of expenses incurred for the setting up of in-house testing facilities/equipment/plant and machinery required for obtaining certification of Bureau of Indian Standards / World Health Organization– GMP /ISO / Organic Certification / any International Certification excluding Plant and Machinery/equipment used directly in the manufacturing process or the rendering of services, as the case may be subject to a maximum of Rs. 5 lakh per enterprise.

THE SIDE-EFFECTS

For the lack of thrust in R and D industries in Odisha, the State fared poorly in knowledge output indicator – means – density of new businesses, start-ups and grass-root innovations.

The irony is this lack of thrust on R & D industries in the State has been witnessed when Odisha is aiming to claim the tag of ‘Human Capital’ hub in the country by virtue of having higher technical educational institutes,

♦Significant here is, among 17 major states, Odisha figured in the top-10 in ‘Human Capital’ in the country.