Chhattisgarh Presentation and Economy Growth Report | IBEF

Capital: Raipur

Geographical Area (sq km): 137,898

State Language: Chhattisgarhi, Hindi and English

Literacy Rate: 70.3%

Key Industries: Mining, iron and steel, cement, power, IT and ITeS and biotechnology

Last updated: Jan, 2024

Chhattisgarh Industry Report

Nov, 2023

Chhattisgarh is in the central part of India. The state shares its border with Madhya Pradesh and Maharashtra in the west, Uttar Pradesh in the north, Odisha and Jharkhand in the east, and Andhra Pradesh in the south.

At current prices, the total GSDP of Chhattisgarh is estimated to reach Rs. 4.57 trillion (US$ 55.34 billion) in 2022-23. The state’s GSDP (in Rs.) increased at a compound annual growth rate (CAGR) of 10.64% from 2015-16 to 2022-23.

It is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals, including diamonds. In April 2021, Chhattisgarh accounted for ~14.4% of the total mineral production in India.

Chhattisgarh earned record revenue of Rs. 12,941 crore (US$ 1.57 billion) from minerals for the year 2022-23. Total mineral production in the state during 2019-20 was Rs. 11,125 crore (US$ 1.53 billion). Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state. Chhattisgarh is the only state in India that produces tin concentrates. The state accounted for ~35.4% of tin ore reserves of India. In FY22, the tin concentrate production in the state stood at 26,383 kgs.

Chhattisgarh's combined exports of aluminium and products, iron and steel, iron ore and iron and steel products from Chhattisgarh reached US$ 1.62 billion in FY22. Non-basmati rice, aluminium products, iron ore are the main exports, contributing ~25.5%, ~22.6% and ~17.7%, respectively, to the state’s merchandise exports.

Natural resources, policy incentives and infrastructure in the state support investment in iron and steel, cement, and power sectors. Korba district in Chhattisgarh is known as the power capital of India. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state, making it the ideal location for low-cost production of end products such as cement and aluminium.

As of May 2023, Chhattisgarh had a total installed power generation capacity of 13,804.02 MW, comprising 8,957.62 MW under private utilities, 1,971.05 MW under state utilities, and 2,875.25 MW under central utilities.

Chhattisgarh is making significant investment in industrial infrastructure. Chhattisgarh State Industrial Development Corporation (CSIDC) has set up industrial growth centres, seven industrial parks and three integrated infrastructure development centres (IIDC). The state has a notified special economic zone (SEZ) in Rajnandgaon District. As of February 2020, the state had two formally approved SEZs.

Total merchandise exports from Chhattisgarh stood at US$ 1.27 billion in FY20, US$ 2.32 billion in FY21, US$ 3.38 million in FY22, and US$ 2.60 billion in FY23.

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

In the last four years, the state received investment proposals of more than Rs. 90,000 crore (US$ 10.94 billion) and a capital investment of Rs. 4,126 crore (US$ 501.8 million) for establishing new units.
Under the State Budget 2023-24, Rs. 4,845 crore (US$ 589.2 million) was allocated for roads and bridges.
Under State Budget 2023-24, Rs. 4,344 crore (US$ 528.3 million) has been allocated for urban development, out of which 1,596 crore (US$ 194.1 million) has been allocated towards capital outlay for urban development.
Chhattisgarh Health and Family Welfare Minister announced that all tests, treatment, and medicines will be free at government-run health facilities in Chhattisgarh for the state's residents from June 1, 2023.
In December 2022, upgradation work to a two-lane with paved shoulder configuration on NH-130D in Kondagaon and Narayanpur districts in Chattisgarh, under EPC mode was approved at a cost of Rs. 322.40 crore (US$ 39.2 million).
In April 2022, Minister of Road Transport and Highways, Mr. Nitin Gadkari, laid the foundation stone for 33 National Highway projects in Raipur, Chhattisgarh worth Rs. 9,240 crore (US$ 1.12 billion).
In February 2021, the Chhattisgarh government signed a memorandum of understanding (MoU) with ICICI Bank for digitalisation data and information up to village panchayat level across the state. The bank will collect, digitise and provide information about village panchayats, rural families and their income, impact of government schemes in improving their lives.
In May 2021, the state government announced an input subsidy of Rs. 10,000 (US$ 137.88) per acre, under Rajiv Gandhi Kisan Nyay Yojana, to farmers for the cultivation of crops other than paddy, from Kharif year, FY22.
In February 2021, the Indian government, the Chhattisgarh state government and the World Bank signed a US$ 100 million project to develop sustainable production systems that allow tribal households in remote areas of Chhattisgarh to practice production of diversified and nutritious food throughout the year. Chhattisgarh Inclusive Rural and Accelerated Agriculture Growth project (CHIRAAG) will be implemented in the southern tribal-majority region where a large population is undernourished and poor. The project will benefit >180,000 households from ~1,000 villages in eight districts of Chhattisgarh.
Following completion of the 30-kms Korichhapar-Dharamjaigarh section by IRCON International in January 2021, the complete section of 74 kms between Kharsia and Dharamjaigarh is functional
- Commencement of this section has made way in evacuating coal from the North Chhattisgarh area
- Goods train can reach up to Durgapur, and the Baroud and Chhaal mines of Southeastern Coalfields
Under the State Budget 2022-23, Rs. 2,570 crore (US$ 336.18 million) has been allocated for urban development, out of which Rs. 1,052 crore (US$ 137.61 million) were allocated to provide financial assistance to urban local bodies.
Under the State Budget 2022-23, the state government has allocated Rs. 19,574 crore (US$ 2.56 billion) towards education, sports, arts, and culture.
Under the State Budget 2021-22, Rs. 5,902 crore (US$ 793.69 million) has been allocated by towards health and family welfare.
In July 2021, the Chhattisgarh government announced its plan to accelerate production process of ethanol plants.
In June 2021, Minister of Food Processing Industries, Mr. Narendra Singh Tomar, inaugurated the Indus Best Mega Food Park in Raipur, Chhattisgarh, to boost the state’s food processing sector. The food park is expected to employ ~5,000 individuals and benefit ~25,000 farmers.
In 2021, 98 IEMs have been filed in Chhattisgarh with a proposed investment of Rs. 31,564 crore (US$ 12 billion).
In February 2022, 13 IEMs were filed in the state with a proposed investment of Rs. 2,196 crore (US$ 287.26 million).
In May 2019, Swami Vivekananda Airport of Raipur bagged fifth position in the country for Airport Service Quality (ASQ) survey.
In December 2019, Airports Authority of India (AAI) recommended to privatise Raipur airport.