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. 1,387,117 crore (US$ 169.36 billion) in 2023-24, registering an annual growth of 10% over FY21. Between 2015-16 and 2023-24, The GSDP increased at a CAGR (in Rs.) of 12.49% . 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 April 2021, Madhya Pradesh had a total installed power generation capacity of 25,489.32 MW, comprising 7,187.62 MW under state utilities, 7,326.09 MW under central utilities and 10,975.61 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$ 6.47 billion in FY21, the total drug formulations, biologicals products exports from Madhya Pradesh accounted for US$ 1,099.97 million, which was 17% of the total exports.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at US$ 282.29 million between October 2019 and March 2021.
93 investment intentions worth US$ 4.42 billion were filed in the state during 2020.
Below are some of the major initiatives taken by the Government to promote Madhya Pradesh as an investment destination:
- 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, 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 2019, foreign tourist arrivals and domestic tourist visits in the state stood at 0.33 million and 88.71 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.
