Madhya Pradesh is growing as a solar power hub with the Rewa solar power project (new 750 MW solar power plant) and an upcoming 600 MW floating solar energy project at Omkareshwar Dam on the Narmada river.
Madhya Pradesh is located in central India. The state is bound on the north by Uttar Pradesh, on the east by Chhattisgarh, on the south by Maharashtra, and on 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 was estimated at Rs. 13.87 trillion (US$ 166.31 billion) in 2023-24.
Net State Domestic Product (NSDP) of Madhya Pradesh was estimated to be about Rs. 12.42 trillion (US$ 148.92 billion) in 2023-24.
Between 2015-16 and 2023-24, the state’s NSDP increased at a CAGR of about 12.44%. Madhya Pradesh is rich in natural resources - fuel, minerals, agriculture, and biodiversity. It is also the only diamond producing state in the country. Diamond production in the state stood at 38,437 carats in 2018-19.
Madhya Pradesh offers distinctive monetary and strategy/policy incentives for organizations under the Industrial Promotion Policy-2014 other than strategies/policies for information technology (IT), biotechnology, tourism, and special economic zone (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.
Exports from the state stood at US$ 7.88 billion in FY24. In FY24, exports of cotton yarn stood at US$ 982.5 million.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at US$ 557.48 million between October 2019- June 2024.
Madhya Pradesh has emerged as a premier tourist destination in India, witnessing a record-breaking 11.21 crore (112.1 million) tourist arrivals in 2023, surpassing the pre-COVID level. This remarkable growth is driven by significant investments in infrastructure and the promotion of religious tourism. The state boasts a diverse array of attractions, from the majestic Khajuraho Temples, renowned for their exquisite erotic sculptures, to the serene Marble Rocks of Bhedaghat and the picturesque Pachmarhi, a hill station in the Satpura Range. Madhya Pradesh's rich cultural heritage is showcased in the historic cities of Ujjain, Gwalior, and Indore, each with their own unique architectural marvels and vibrant markets. The state's wildlife sanctuaries, such as Kanha and Bandhavgarh National Parks, are home to a thriving population of tigers, providing an unforgettable experience for nature enthusiasts.
At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh was estimated at Rs. 13.87 trillion (US$ 166.31 billion) in 2023-24, showcasing the state's remarkable economic growth. The GSDP increased at a CAGR (in Rs.) of 12.49% from 2015-16 to 2023-24, highlighting the state's strong economic performance. Madhya Pradesh's exports have also been on an upward trajectory, with cotton yarn exports reaching US$ 982.5 million in FY24, demonstrating the state's manufacturing prowess. The state's strategic location and well-developed infrastructure have made it an attractive destination for domestic and international investors, further driving its economic development.
The agriculture sector remains a cornerstone of Madhya Pradesh's economy, accounting for the largest share of the state's Gross State Domestic Product (GSDP) at 47%, followed by the services sector at 34% and the manufacturing sector at 19%. The state's focus on agriculture-led growth has paid dividends, with agricultural exports reaching US$ 285.34 million in FY24. Madhya Pradesh is a leading producer of various crops, including wheat, soybean, and pulses, and has a strong presence in the production of cash crops such as cotton and oilseeds. The state's extensive network of irrigation facilities, coupled with its fertile land and favorable climatic conditions, have contributed to the growth and resilience of the agricultural sector, making Madhya Pradesh a key player in India's food security.
Note: ^in lakhs bales of 170 kgs each, MMT - Million Metric Tonne