Madhya Pradesh

At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh was estimated at Rs. 16.94 trillion (US$ 192.14 billion) in FY26.

The GSDP increased at a CAGR (in Rs.) of 12.09% from FY16 to FY26.

The state’s per capita GSDP was Rs. 1,56,381 (US$ 1,875.07) in FY24. Per capita GSDP in the state increased at a CAGR of 10.91% between FY16 and FY24.

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 Rs. 68,965 crore (US$ 7.82 billion) in FY25, Engineering goods formed major exports from Madhya Pradesh stood at 25.73%

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at Rs. 4,760 crore (US$ 625.59 million) between October 2019-June 2025.

Indore and Bhopal airports are the busiest in the state. During FY26 (until September), passenger traffic at Indore airport reached 24,641 with an overall movement of 198 aircraft. In the same period, passenger traffic at Bhopal airport stood at 590 with a movement of 16 aircraft.

According to the Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had 81.92 million wireless subscribers and 2.15 million wireline subscribers, as of June 2025.

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.

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

• Chief Minister of Madhya Pradesh Dr. Mohan Yadav secured Rs. 3,000 crore (US$ 340.17 million) in foreign direct investment from the UAE for solar power infrastructure during an official visit to Dubai. The agreement aims to expand renewable energy capacity, create jobs, and bolster the state’s green growth agenda. The visit also promoted collaborations with UAE-based industries in manufacturing, logistics, and technology.
• The Union Cabinet has approved four major railway multitracking projects worth Rs. 24,634 crore (US$ 2.79 billion), including two key corridors in Madhya Pradesh - the Vadodara-Ratlam (259 km) and Itarsi-Bhopal-Bina (237 km) lines. These expansions will enhance passenger and freight connectivity, increase freight capacity by 78 million tonnes annually, and spur industrial, employment, and tourism growth across 18 districts.
• Union Minister of Road Transport and Highways Mr. Nitin Gadkari announced over Rs. 60,000 crore (US$ 6.80 billion) worth of new road and highway projects in Madhya Pradesh, including a Rs. 15,000 crore (US$ 1.70 billion), 255 km Greenfield Highway between Bhopal and Jabalpur, a wildlife corridor linking major tiger reserves, several expressways, and the state’s longest flyover in Jabalpur, marking a major infrastructure boost.
• In July 2025, the state secured approval for six new national highways totaling over 670 km and costing Rs. 17,810 crore (US$ 2.02 billion), further enhancing trade and transit.​
• As of July 2025, a dedicated project was launched to improve sustainable urban services for 1.7 million people across 64 towns in Madhya Pradesh, marking a large-scale step toward urban inclusivity.
• On August 24, 2025, Union Minister of Road Transport and Highways Mr. Nitin Gadkari unveiled a transformative infrastructure plan for Madhya Pradesh, valued at over Rs. 3 lakh crore (US$ 34.02 billion). Noteworthy projects include the Rs. 15,000 crore (US$ 1.70 billion) Bhopal-Jabalpur greenfield expressway, a Rs. 5,500 crore (US$ 623.65 million) Tiger Corridor connecting four major tiger reserves, high-speed corridors from Indore to Bhopal, and multiple four-lane highways to enhance connectivity and economic growth across the state.
• On October 24, 2025, Madhya Pradesh and NITI Aayog joined hands to develop Indore and Bhopal into major economic growth hubs. The partnership aims to establish a roadmap for urban economic growth, attract investments, and foster sustainable urban development.​
• The Madhya Pradesh Cabinet approved the Rs. 21,630 crore (US$ 2.45 billion) Chief Minister Majra-Tola Road Scheme to provide all-weather connectivity to remote settlements, covering 30,900 km of road construction by 2034. The project focuses on settlements with at least 20 households and population over 100. Approval was also granted for four working women’s hostels in multiple districts, promoting infrastructure for social welfare.
• The Madhya Pradesh Cabinet has approved five new Government Ayurvedic Medical Colleges and Wellness Centres in Narmadapuram, Morena, Balaghat, Shahdol, and Sagar, with a Rs. 350 crore (US$ 39.69 million) investment under the National AYUSH Mission. The move, creating 1,570 posts, aims to expand Ayurveda-based healthcare and education. Additionally, a new Department of Endocrinology at GMC Bhopal was sanctioned to strengthen specialised medical services and research.
• On September 17, 2025, Prime Minister Mr. Narendra Modi inaugurated the PM MITRA textile park in Dhar, Madhya Pradesh, allocating 1300 acres for over 80 industrial units, expected to generate around three lakh jobs. The park is part of a nationwide scheme attracting Rs. 70,000 crore (US$ 7.94 billion) investments and creating nearly 20 lakh jobs.
• 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.
• The state is home to five operational SEZs, eight total notified SEZs, and 12 formally approved SEZs.
• 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$196.96 million)
• Under the State Budget FY25,
  • Government allocated Rs. 9,043 crore (US$ 1.06 billion) for development of roads and bridges.
  • The government allocated Rs. 13,561 crore (US$ 1.58 billion) for the energy sector.
  • Under the State Budget 2025-26, the government allocated Rs. 25,499 crore (US$ 2.89 billion) for government primary schools.
  • Under the State Budget 2025-26, a total of Rs. 14,949 crore (US$ 1.7 billion) has been allocated to enhance healthcare infrastructure, with Rs. 12,816 crore (US$ 1.45 billion) designated for urban health services – allopathy, and Rs. 2,133 crore (US$ 242 million) allocated for rural health services – allopathy.
  • As part of the state budget for FY25, the government proposed an expressway network including the Atal Pragati Path (299 km), Narmada Pragati Path (900 km), Vindhya Expressway (676 km), Malwa Nimad Vikas Path (450 km), Bundelkhand Vikas Path (330 km), and Madhya Bharat Vikas Path (746 km) will be built by FY30.
  • The Madhya Pradesh government has launched the Drone Promotion and Utilization Policy 2025 to enhance drone manufacturing and applications in sectors like agriculture, logistics, security, and governance. This policy includes incentives such as a 40% capital investment subsidy, up to Rs. 30 crore (US$ 3.4 million) for new investments, and a 25% subsidy on lease rents for three years.
  • Madhya Pradesh's electronic manufacturing sector is rapidly expanding, with two approved clusters and 85 companies, while the government trains 20,000 engineers under the Future Skills Programme.
• In 2024, the 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.

Madhya Pradesh continues to strengthen its position as a fast growing and opportunity rich state, supported by rising investments, expanding infrastructure and steady economic performance. Strong agriculture, growing manufacturing capabilities, improving connectivity through new expressways, airports and rail links, and rapid growth in tourism and electronics are helping diversify the state’s economic base. Focused budget allocations for roads, energy, healthcare, education and irrigation are improving livelihoods and creating a more competitive environment for businesses. With its strategic location, abundant resources and sustained policy support, Madhya Pradesh is well placed to attract new investment and maintain balanced long term growth across sectors.