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About Madhya Pradesh: Information on Tourism Industry, Agriculture, Economy & Geography

April, 2018

Madhya Pradesh is located in Central India. The state is bound on the north by Uttar Pradesh, the east by Chhattisgarh, the south by Maharashtra and the west by Gujarat and Rajasthan. It is among the fastest growing states in the country. At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh for 2016-17 was US$ 99.41 billion. Between 2011-12 and 2016-17, the CAGR for GSDP was 15.21 per cent.

Madhya Pradesh is rich in natural resources - fuels, minerals, agriculture and biodiversity. The state is the third largest producer of cement in the country and provides up to 13 per cent of national demand. The state represents 8.3 per cent of the country's coal reserves and has 218.04 billion cubic metres (BCM) of estimated coal-bed methane reserves. During 2017-18 (till September 2017), value of all minerals produced in Madhya Pradesh was recorded to be US$ 1.17 billion.

There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops. With around 25.2 per cent of the region under forests, Madhya Pradesh has an enormous potential for drug, wood and agro based commercial enterprises. Ideal soil and climatic conditions have made it a primary producer of coarse cereals, oilseeds and soybean in India.

Madhya Pradesh offers distinctive monetary and strategy/policy incentives for organisations under the Industrial Promotion Policy-2010 and Action Plan, other than strategies/ policies for IT, biotechnology, tourism and SEZs. To pull in investors and promote entrepreneurs, the state government has selected TRIFAC, an agency that encourages a single window system, for speedy approvals of different clearances and consents. Madhya Pradesh stands 5th among Indian states in rankings based on ease of doing business and reforms implementation, according to a study by the World Bank and KPMG.

According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows, from April 2000 to December 2017, totalled to US$ 1.39 billion.

Key Sectors:

  • Work on construction of IT parks in 4 major regions of the state, including Indore, Gwalior, Bhopal and Jabalpur, was initiated during 2016-17. Moreover, electronic manufacturing clusters are also being established in Jabalpur and Bhopal. For these new establishments, Government of Madhya Pradesh allocated an amount of US$ 9 million as per the Budget 2017-18.
  • During 2016-17, the state recorded 97 MT of total raw silk production.
  • For industrial modernisation, the state has undertaken measures such as introduction of Progressive Industrial Policy, infrastructure improvements and frequent investor meets to facilitate the industry with modern infrastructure, the state has initiated expansion of existing IT parks, stone parks, apparel parks and SEZs.
  • To promote growth in the FMCG sector, the state government has established Gwalior as an FMCG cluster. 
  • In August 2017, the state government launched ‘Bhavantar Bhugtan Yojana’ or ‘Price Deficit Financing Scheme’ will hedge price risks in agriculture. Under the scheme, farmers will be compensated if they have to sell the notified crops at distressed prices which are below the Minimum Support Price (MSP) set by the union government.
  • The state was the fourth largest milk producer in India in 2016-17. Milk production in the state increased from 12.12 million tonnes in 2015-16 to 13.44 million tonnes in 2016-17.