Madhya Pradesh is an agrarian state. Primary sector’s contribution to the state’s Gross Value Added (GVA) increased from 33.85% in 2011-12 to 46.98% in 2020-21.

At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh is estimated at Rs. 1,151,049 crore (US$ 150.74 billion) in 2022-23, registering an annual growth of 10% over FY22. Between 2015-16 and 2022-23, the GSDP increased at a CAGR (in Rs.) of 11.39% from 2015-16 to 2022-23.

Net State Domestic Product (NSDP) of Madhya Pradesh was about Rs. 8.27 trillion (US$ 113.94 billion) in 2020-21. Between 2015-16 and 2020-21, state’s NSDP grew at a CAGR of around 11.22%.

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 zone (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.

As of March 2022, Madhya Pradesh had a total installed power generation capacity of 25,385.02 MW, comprising 7,187.62 MW under state utilities, 6,958.48 MW under central utilities and 11,238.92 MW under the private sector. The state is home to five operational SEZs, seven notified SEZs, and 12 formally approved SEZs.

Exports from the state stood at US$ 6,477.32 million in FY21 and US$ 7,091.93 million in FY22 (until February 2022.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at US$ 321.27 million between October 2019-December 2021.

As of February 2021, 10 investments (industrial entrepreneurs memorandum) worth US$ 184.20 million were filed in the state.

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

• 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 2022-23, the government has allocated Rs. 6,303 crore (US$ 825.43 million) for development of roads and bridges.
• In the State Budget 2022-23, 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.
• In the State Budget 2022-23, 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.
• In the State Budget of 2022-23, the government has announced that it will install a total of 217 EV charging stations across Bhopal, Gwalior, Jabalpur and Indore.
• 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 has allocated Rs. 262 crore (US$ 35.73 million) for metro projects in Bhopal and Indore.
• In March 2021, the state government sanctioned Rs. 316 crore (US$ 43.3 million) for construction work related to the expansion of specific medical facilities in the state.
• In June 2021, Madhya Pradesh Tourism Board collaborated with Travelxp, a travel channel, to showcase the beauty and uniqueness of its tourism destinations to travellers worldwide.
• In January 2021, Madhya Pradesh State Minster of New and Renewable Energy, Mr. 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 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 commencement of power generation by 2022-23.
• Under the State Budget 2021-22, the government has allocated Rs. 1,237 crore (US$ 168.83 million) for Magnificent MP Investment Attraction Scheme under the Department of Industrial Policy and Investment Promotion and Rs. 480 crore (US$ 65.51 million) for industrialisation infrastructure development.
• In 2020, foreign tourist arrivals and domestic tourist visits in the state stood at 0.10 million and 23.51 million, respectively.
• In 2020, the largest solar power project in Asia, the Rewa solar power project (new 750 MW solar power plant) in Madhya Pradesh, was inaugurated by Prime Minister Mr. Narendra Modi.
• As of December 23, 2020, Madhya Pradesh and Andhra Pradesh have taken the lead to undertake the urban local bodies (ULB) reforms. Madhya Pradesh has been permitted to mobilise additional Rs. 2,373 crore (US$ 323.52 million) for better public health and sanitation services.
• In December 2020, the state government partnered with IIM Indore to create video-based training for teachers.
• 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 specialty beds, 30 ICU beds and eight fans. This facility will host 14 postgraduate students for training.