Introduction
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 Tourism
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.
The Economy of Madhya Pradesh
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.
Agriculture in Madhya Pradesh
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.
Recent Development in Key Sectors
- PNC Infratech has secured a new hybrid annuity highway project from the Madhya Pradesh Road Development Corporation (MPRDC) with a bid project cost of Rs. 1,174 crore (US$ 140.73 million). The announcement was made on December 18, 2023, when PNC was declared the lowest bidder (L1) for the project.
- The Union Cabinet has approved the Rs. 18,036 crore (US$ 2.16 billion) Manmad-Indore railway line project, spanning 309 km, to enhance connectivity in Maharashtra and Madhya Pradesh, benefiting industrial zones, agricultural areas, and tribal regions, while facilitating access to religious sites and promoting economic integration over an estimated eight-year construction period.
- Madhya Pradesh is set to get two new airports in Guna and Shivpuri, with each airport receiving a funding allocation of Rs. 45 crore (US$ 5.40 million) from the government, which is expected to enhance regional connectivity and boost tourism, trade, and economic activities in the region.
- In 2024, Union Minister for Road Transport, Highways and MSMEs laid the foundation stones for developing 15 highway projects worth Rs. 8,038 crore (US$ 963 million) in Madhya Pradesh.
- In August 2022, Mr. Nitin Gadkari, Minister of Road Transport & Highways inaugurated and laid foundation stone of 6 National Highway projects of 119 kms worth Rs. 2,300 crore (US$ 279.18 million) in Indore, Madhya Pradesh.
- As of September 2024, Madhya Pradesh had a total installed power generation capacity of 27,263.85 MW, comprising 7,211.62 MW under state utilities, 7,387.57 MW under central utilities and 12,664.66 MW under the private sector.
- As of September 2023, Madhya Pradesh had a total installed power generation capacity of 26,171.55 MW, comprising 7,211.62 MW under state utilities, 7,278.03 MW under central utilities and 11,681.9 MW under the private sector. Of the total installed power generation capacity, 16,294.54 MW was contributed by thermal power, 3,223.66 MW (hydropower), 382.49 (nuclear power), and 6,270.84 MW (renewable power).
- In FY23, formulations and biological product exports from Madhya Pradesh stood at 16% (worth US$ 1.33 billion).
- Indore and Bhopal airports are the busiest in the state. During April-September 2023-24, passenger traffic at Indore airport reached 1,657,457 with an overall movement of 15,737 aircraft. In the same period, passenger traffic at Bhopal airport stood at 655,970 with a movement of 6,598 aircraft.
- In 2021-22 (as per the MP Economic Survey 2022-23), the total production of horticulture crops in the state was expected to be 36,675 thousand tonnes and the area under production was 2,472 thousand hectares.
- In 2021, foreign tourist arrivals and domestic tourist visits in the state stood at 0.41 million and 255.54 million, respectively.
- Agriculture is the main source of livelihood for the people of Madhya Pradesh. Primary sector’s contribution to the state’s GVA increased from 33.85% in 2011-12 to 47% in 2020-21.
- Textiles industry is one of the key sectors of Madhya Pradesh. The state is one of the major cotton producing states in India. In 2018-19, cotton and silk production in the state reached 24 metric tonnes^ and 100 million metric tonnes, respectively. In FY22 (until December 2021), cotton yarn exports contributed 7.5% to the state’s total exports (US$ 61.36 million).
Note: ^in lakhs bales of 170 kgs each, MMT - Million Metric Tonne
FACTFILE
Capital
BhopalGeographical Area (sq km)
308,000State Language
Hindi, English and MarathiLiteracy Rate
70.6 per centKey Industries:
Auto and auto components
Textiles
Cement
Agro-based industries
Forest-based industries
Pharmaceuticals
Mineral-based industries
Manufacturing
Tourism
IT and ITeS
Logistics and warehousing
Biotechnology
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