Introduction
Chhattisgarh is in the central part of India. The state shares its border with Madhya Pradesh and Maharashtra in the west, Uttar Pradesh in the north, Odisha and Jharkhand in the east, and Andhra Pradesh in the south.
At current prices, Gross State Domestic Product (GSDP) of Chhattisgarh stood at Rs. 4.38 trillion (US$ 57.34 billion) in 2022-23. GSDP (in Rs.) of the state at current prices increased at a CAGR of 9.98% between 2015-16 and 2022-23.
Chhattisgarh is presently one of the few states that have surplus power. Korba district in Chhattisgarh is known as the power capital of India. It is also among the few profitable states in terms of utility-based electricity. As of August 2022, Chhattisgarh had a total installed power generation capacity of 13,439.52 MW, comprising 8,805.79 MW under private utilities, 1,971.05 MW under state utilities and 2,662.68 MW under central utilities.
Mineral resources are Chhattisgarh's biggest strength. It is a leading producer of minerals such as coal, iron ore and dolomite. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state. The state accounts for 35.4% of tin ore reserves of India. Chhattisgarh is the only state in India that produced tin concentrates.
Chhattisgarh has emerged as one of the most preferred investment destinations in India. The state (including Madhya Pradesh) attracted cumulative Foreign Direct Investment (FDI) worth US$ 1.43 billion between April 2000-March 2020. From October 2019-December 2021, FDI inflow in Chhattisgarh stood at US$ 1.01 million. In 2021, 98 IEMs have been filed in Chhattisgarh with a proposed investment of Rs. 31,564 crore (US$ 4.12 billion). In July 2022, 25 IEMs were filed in the state with a proposed investment of Rs. 5,317 crore (US$ 645.46 million).
Total merchandise exports from Chhattisgarh is estimated at US$ 1,278.69 million in FY20, US$ 2,320.29 million in FY21, US$ 3,388.69 million in FY22 and US$ 1,311.06 million in FY23 (until August 2022).
A wide range of fiscal and policy incentives for businesses were announced under its Industrial Policy, 2014-19. Additionally, the state has well-drafted policies for the IT/ITeS, solar energy, agro and food processing, minerals and biotechnology sectors. Chhattisgarh stands fourth among Indian states in rankings based on ease of doing business and reforms implementation, according to a study by the World Bank and KPMG.
- Following completion of the 30-kms Korichhapar-Dharamjaigarh section by IRCON International in January 2021, the complete section of 74 kms between Kharsia and Dharamjaigarh is functional
- Commencement of this section has made way in evacuating coal from the North Chhattisgarh area
- Goods train can reach up to Durgapur, and the Baroud and Chhaal mines of Southeastern Coalfields
Key Sectors
- Metals and Mining: Chhattisgarh is the only state in India to produce tin concentrates and accounts for 36% of the country’s tin ore reserves. Dante Wada is the sole district producing tin from 6 mines. From April 2021-March 2022, tin concentrate production in the state is estimated to be at 12,177 kgs. Chhattisgarh's combined exports of aluminium and products, iron and steel, iron ore and iron and steel products from Chhattisgarh reached US$ 1,629.76 million in FY22. Non-basmati rice, aluminium products, iron ore are the main exports, contributing ~25.5%, ~22.6% and ~17.7%, respectively, to the state’s merchandise exports. In April 2021, Chhattisgarh accounted for ~14.4% of the total mineral production in India.
- Cement: Chhattisgarh has abundant limestone reserves that support a strong cement sector. Chhattisgarh accounts for around 5.4% of the total limestone reserves in India. Limestone production in the state reached 38.05 million tonnes in 2021-22 (Until February 2022).
- Agriculture: Around 80% employment in the state is dependent on agriculture. The state’s position as the ‘Rice Bowl of Central India’ and its reliance on agriculture has led to brisk growth in the food processing industry as a special-thrust industry. Non-Basmati rice is the most exported commodity from the state. Its exports reached US$ 257.67 million in FY20 and US$ 474.82 million in FY21. Total horticulture production in the state reached 9671.25 thousand metric tonnes in 2021-22 with 774.75 thousand hectares of area under cultivation. Between 2011-2012 and 2019-20, the Gross Value Added (GVA) from the primary sector in the state increased at a CAGR (in Rs.) of 9.28 %.
- Apparel: Chhattisgarh is one of the leading producers of tussar and kosa silks in the country and has the potential to be a strong player in the Indian apparel industry. Raw silk production in the state reached 349 metric tonnes in 2018-19, 480 metric tonnes in 2019-20, and 224 metric tonnes in FY22.
FACTFILE
Capital
RaipurGeographical Area (sq km)
137,898State Language
Hindi and EnglishLiteracy Rate
70.3 per centKey Industries:
Mining
Iron and Steel
cement
power
IT and ITeS
Biotechnology
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