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Chhattisgarh Presentation and Economy Growth Report | IBEF

Last updated on May, 17 2021

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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$ 51.39 billion) in 2020-21. GSDP (in Rs.) of the state at current prices will grow at a CAGR of 9.97% 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% share in 2018-19.

Total mineral production in the state during 2018-19 was Rs. 9,575 crore (US$ 1.37 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% of tin ore reserves of India. In 2018-19, tin concentrate production in the state stood at 21,211 kgs. Chhattisgarh's combined export of aluminium 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. Non-basmati rice and iron & steel and aluminium products are the main exports, contributing ~26.5%, ~19.4% and ~18.1%, respectively, to the state’s merchandise exports in FY 21 (until January 2021)

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, making it the ideal location for low-cost production of end products such as cement and aluminium.

As of February 2021, Chhattisgarh had a total installed power-generation capacity of 13,101.27 MW, comprising 8,229.83 MW under private utilities, 1,971.05 MW (state utilities) and 2,900.39 MW (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, seven 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 exports from Chhattisgarh is estimated at US$ 1,278.9 million in FY20 and US$ 1,789.42 million in FY21 (untill January 2021).

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

  • 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
  • The state has allocated Rs. 4,688 crore (US$ 670.77 million) for roads and bridges under State Budget 2020-21.
  • 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.
  • The state has allocated Rs. 396 crore (US$ 54.89 million) for the development of three smart cities—Raipur, Naya Raipur and Bilaspur—under the State Budget 2020-21.
  • 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.
  • In December 2019, Airports Authority of India (AAI) recommended to privatise Raipur airport.
Chhattisgarh State Presentation

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