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Introduction 1.1 Odisha is located strategically contiguous to states of southern, central and eastern parts of India. It has a rich heritage, a vibrant present and a huge potential for Micro, Small and Medium Enterprises. State is also a treasure trove of natural resources. Access to global markets, presence of qualified human resource, robust infrastructure, stable polity and a positive business environment make the Odisha a favoured destination for investors. 1.2 Industrialisation is sine qua non of economic progress. Perceptible economic progress has been achieved because of average annual growth of 5.02% in manufacturing and service sectors to the Gross State Domestic Production (GSDP) between 2011-12 and 2015-16. Odisha’s GSDP has increased at a Compound Annual Growth Rate (CAGR) of 10.23% from Rs.281450 crore to Rs.330200 crore during this period. 1.3 Cumulative FDI inflows in Odisha during April 2010 to March 2016 stood at Rs.1027 crore. State Government has announced plans to facilitate growth in the manufacturing sector with year-on-year increase of 15% till 2020. 1.4 According to Ministry of Commerce and Industry, total exports from Odisha in 2015-16 were valued at Rs.19,746 crore. Value of exports from the state increased at a CAGR of 2.5% between 2006-07 and 2014-15. 1.5 Odisha is well connected by surface transport, air and water. The State has extensive rail and road network linking various growth centres. As a measure to encourage foreign airlines to start service from Odisha, the State Government has announced zero Value Added Tax on aviation turbine fuel. 1.6 Odisha is a power surplus State with an installed capacity of 5,531.58 MW with a positive supply~demand gap of 109 MW in 2014-15. 1.7 Odisha ranks high in the country in terms of total value of mineral output. During 2015-16, total production of minerals in the state was recorded at 239.45 million tonnes. Mineral resources of Odisha constitute formidable share in national deposits of Chromite-98%, Nickel-93%, Graphite-71%, Pyrophyllite-65%, Manganese-67%, Bauxite-59%, China Clay-31%, Fire Clay- 25%, Dolomite-18%. Odisha is the fourth largest producer of Coal and the fifth largest producer of Iron-ore in India. 1.8 Primarily, being an agrarian state, Odisha is endowed with huge allied resources like animal husbandry, fishery, forest produces, etc. The vast coast- line of 480 km provides ample scope for marine as well as coir produce. 2 1.9 Odisha is the home to some of the leading public sector enterprises like HAL, RSP, IRE, MCL, NALCO, NTPC, NINL, PPT, IOCL, Ordinance Factory and private companies like Tata Steel, Vedanta Aluminium, Aditya Birla, Jindal Steel, etc. Existence of these large industries offers a huge opportunity for establishment of Ancillary and Downstream MSMEs. 1.10 The State has notified Industrial Policy Resolution, 2015, which lays down policy framework and fiscal incentives for industries including MSMEs. However, MSME sector suffers from intrinsic disadvantages in availing priority in infrastructure, credit linkages, marketing and needs extra support especially in industrially backward districts. With a view to provide a conducive eco-system for promoting growth of MSMEs in a focussed manner, commensurate with the present scenario and anticipated future, the State is declaring “Odisha MSME Development Policy, 2016.” 1.11 Odisha MSME Development Policy, 2016 has been formulated through a consultative process involving stake-holders including Industry Associations, Financial Institutions, Experts and Government Departments concerned.