Madhya Pradesh is an agrarian state. The primary sector’s contribution to the state’s Gross Value Added (GVA) increased from 33.85% in 2011-12 to 45.54% in 2023-24.

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.

The GSDP increased at a CAGR (in Rs.) of 12.49% from 2015-16 to 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 reached 25,603 thousand tonnes in 2019-20.

The state is rich in natural resources, fuels, minerals, agriculture, and biodiversity. Upcoming theme-based special economic zones (SEZs near Jabalpur, industry parks in Indore and food parks at multiple locations aim to promote sectoral growth. The state is rich in minerals and has the highest stone, diamond and copper reserves in India, notwithstanding noteworthy reserves of coal, coal-bed methane, manganese, and dolomite. Further, the state is home to over 280 pharmaceutical units operating in the industrial areas of Dewas, Indore, Pithampur, Mandideep and Malanpur.

Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state. It is the central point to coordinate, activate and ensure implementation of mega infrastructure projects.

Exports from the state stood at US$ 7.88 billion in FY24.

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. 

As of March 2023, 19 investments (industrial entrepreneurs memorandum) worth US$ 76 million were filed in the state.

According to the data received from the Directorate of Urban Administration and Development in January 2023, the project amount for urban development has been approved for implementation of a project worth Rs. 6686.97 crore (US$ 801 million), out of which the Government of India has provided Rs.2497.05 crore (US$ 299 million) in the first, second and third instalments for the development and construction of drinking water, sewerage, rainwater drainage, transportation and green areas, and works worth Rs.4152 crore (US$ 497 million)  have been completed on 176 projects, with an amount of Rs.5338 crore (US$ 640 million) spent on the implementation of the projects.

The Directorate General of Civil Aviation (DGCA) has granted operating approval to Rewa Airport, making it the sixth airport in Madhya Pradesh and providing crucial infrastructure support to the Vindhya region, which is expected to boost connectivity and economic development.

The installed capacity of power utilities in Madhya Pradesh stood at 27,176.78 MW by May 2024. As of May 2024, Madhya Pradesh had a total installed power generation capacity of 27,176.78 MW, comprising 7,211.62 MW under state utilities, 7,387 MW under central utilities and 12,577 MW under the private sector.

Of the total installed power generation capacity, 16,294.59 MW was contributed by thermal power, 3,223.66 MW (hydropower), 491 MW (nuclear power), and 7,166 MW (renewable power).

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

• 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.
• 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.
• Madhya Pradesh received investments worth Rs. 15,42,550 crores (US$ 184 billion) during the Global Investors Summit 2023, which saw over 2,600 meetings and participation from more than 5,000 business entities, investors, and entrepreneurs across sectors like agriculture, textile, automobile, plastic, and others, including 23 foreign investors signing 36 MoUs with MPIDC, and delegates from 84 countries, including G20 countries and 10 partner countries, as well as consulates general/ambassadors of 35 countries.
• Madhya Pradesh Urban Development Company (MPUDC) would facilitate sustainable development of urban areas. Coordinate with various state-level agencies for carrying on urban development activities.
• In August 2022, Mr. Nitin Gadkari, Minister of Road Transport & Highways inaugurated and laid the foundation stone of 6 National Highway projects of 119 km worth Rs. 2,300 crore (US$ 279.18 million) in Indore, Madhya Pradesh.
• 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.
• 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.
• The state is home to five operational SEZs, eight total notified SEZs, and 12 formally approved SEZs.
• In 2021, foreign tourist arrivals and domestic tourist visits in the state stood at 0.41 million and 255.54 million, respectively.
• In FY23, formulations and biological product exports from Madhya Pradesh stood at 16% (worth US$ 1.33 billion).
• Madhya Pradesh houses one of the leading auto clusters of India at Pithampur near Indore and at Mandideep near Bhopal. Pithampur auto cluster has been an emerging auto hub of central India. The auto cluster has an investment of Rs.97,500 crore (US$ 12.75 billion) and exports goods worth Rs.1,500 crore (US$196.96 million).

• Under the State Budget 2023-24,
  • The government allocated Rs. 8,603 crore (US$ 1.03 billion) for development of roads and bridges.
  • MBBS seats in the state will be increased from the existing 2,350 to 3,250 seats. Further, 22 new medical colleges will be functional in the state.
  • The government has announced that it will install a total of 217 EV charging stations across Bhopal, Gwalior, Jabalpur and Indore.
• 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.
• The government approved the construction of a medical device park in Ujjain, industrial parks in Bagrod and Berasia in Bhopal and solar plants in Sagar, Shajapur and Ujjain.
• 11 new industrial areas will be developed in the state which are expected to generate 11,000 jobs.
• Under the State Budget 2021-22, the government allocated Rs. 262 crore (US$ 35.73 million) for metro projects in Bhopal and Indore.
• In January 2021, Madhya Pradesh State Minster of New and Renewable Energy, Hardeep Singh Dang, announced that the state government is constructing the world's largest floating solar energy project with a capacity of 600 MW at Omkareshwar Dam on the Narmada River in the Khandwa district of Madhya Pradesh. The estimated investment in this project stands at Rs. 3,000 crore (US$ 409.18 million) with the commencement of power generation by 2022-23.
• In October 2020, with an investment of Rs. 150 crore (US$ 20.45 million), the 200-bedded super speciality block (SSS) was established under the Government of India's Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). The SSB will be configured with six portable operation theatres, 200 super speciality beds, 30 ICU beds and eight fans. This facility will host 14 postgraduate students for training.