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Industrial Development & Economic Growth in Chhattisgarh

Last updated on Jun, 26 2020

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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 is estimated at Rs 3.62 trillion (US$ 51.83 billion) in 2020-21. GSDP (in Rs) of the state at current prices will increase at a CAGR of 9.75 per cent between 2015-16 and 2020-21.

It is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals, including diamonds. Chhattisgarh ranked fourth in terms of value of mineral production (excluding atomic, fuel and minor minerals) in India, with a 15.66 per cent share in 2019-20 (till December 2019).

Total mineral production in the state during 2019-20 (till December 2019) was Rs 7,554.53 crore (US$ 1.07 billion). Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state.

Chhattisgarh is the only state in India that produces tin concentrates. The state accounted for 35.4 per cent of tin ore reserves of India. During 2018-19, tin concentrate production in the state stood at 19,410 kgs. Chhattisgarh's combined export of aluminum and products, iron ore, and iron and steel products reached US$ 931.63 million in FY19 and US$ 727.48 million between Apr-Dec 2019.

Natural resources, policy incentives and infrastructure in the state support investment in iron and steel, cement, and power sectors. Korba district in Chhattisgarh is known as the power capital of India. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state.

As of March 2020, Chhattisgarh had a total installed power generation capacity of 12,835.40 MW, comprising 8,208.30 MW under private utilities, 2,211.05 MW under state utilities and 2,416.05 MW under central utilities. Energy requirement in the state was 27,303 million units in 2019-20.

Chhattisgarh is making significant investment in industrial infrastructure. Chhattisgarh State Industrial Development Corporation (CSIDC) has set up industrial growth centres, five industrial parks and three integrated infrastructure development centres (IIDC). The state has a notified special economic zone (SEZ) in Rajnandgaon District. As of February 2020, the state had two formally approved SEZs.

Total merchandise export from Chhattisgarh was US$ 1,243.43 million in FY19 and US$ 960.39 million between Apr–Dec 2019.

Below are some of the major initiatives taken by the Government to promote Chhattisgarh as a promising investment destination:

  • The state has allocated Rs 4,688 crore (US$ 670.77 million) for roads and bridges under State Budget 2020-21.
  • In December 2019, Airports Authority of India (AAI) recommended to privatise Raipur airport.
  • Under 2020-21 State Budget, the State Government has allocated Rs 5,144 crore (US$ 736.01 million) towards school education and Rs 779 crore (US$ 111.46 million) towards higher education.
  • During 2019, 61 IEMs were filed in Chhattisgarh with a proposed investment of Rs 5,132 crore (US$ 734.30 million).
  • In May 2019, Swami Vivekananda Airport of Raipur bagged fifth position in the country for Airport Service Quality (ASQ) survey.
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