Industrial Development & Economic Growth in Madhya Pradesh

Madhya Pradesh is an agrarian state. The primary sector accounts for 42.89 per cent of the state’s GVA, as of 2017-18. It is among the fastest growing states in India.

The state is rich in natural resources, fuels, minerals, agriculture and biodiversity. Upcoming theme based 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.

Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 17.00 per cent (in rupee terms) to US$ 112.17 billion, whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 17.37 per cent to US$ 102.30 billion.

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

Investment intentions worth Rs 23,572 crore (US$ 3.27 billion) were filed in the state during 2018 (up to November).

The following are some of the major initiatives taken by the government to promote Madhya Pradesh as an investment destination:

• Government of India has undertaken redevelopment of Habibganj Railways station in Bhopal. The station is being redeveloped at an estimated cost of Rs 100 crore (US$ 15.52 million) and the total value of development (including commercial development) has been estimated at Rs 450 crore (US$ 698.21 million).
• In state budget 2018-19, the government proposed an allocation of US$ 32.44 million under skill development scheme (Asian Development Bank projects).
• Work on development of infrastructure in 22 industrial units is underway with an investment of Rs 1,820 crore (US$ 281.12 million). The works is expected to be completed by December 2018.
• To attract investment into the textile sector, the government has provided an interest subsidy for five years at the rate of 5 per cent for textile projects and 7 per cent for composite textile projects. Furthermore, the government provided 100 per cent assistance in plant and machinery for eight years under Industrial Investment Promotion Assistance Scheme.

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