At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh was estimated at Rs. 16,94,477 crore (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. Madhya Pradesh is the sole diamond-producing state in the country. Diamond production in the state reached 4846.32 carats in FY26(till November 2025).
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. 50865.607 crore (US$ 5821.7 Million) in FY26. The top export commodities of Madhya Pradesh in FY 2025-26 were Drugs and Pharmaceuticals valued at Rs. 9,606.30 crore (US$ 1,099.68 million).
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at Rs. 5,361.28 crore (US$ 692.98 million) between October 2019 to March 2026.
Indore and Bhopal airports are the busiest in the state. In FY26, aircraft movements at Indore airport reached 33,856, while passenger traffic stood at 4.24 million. During the same period, Bhopal airport recorded 14,567 aircraft movements and handled 1.58 million passengers.
According to the Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had 85.08 million wireless subscribers and 2.18 million wireline subscribers, as of December 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:
- The Indore-Pithampur Economic Corridor is being developed at an estimated cost of Rs. 2,360 crore (US$ 26.22 million) to improve industrial connectivity, logistics efficiency and manufacturing competitiveness in central India.
- Under the Dwarka Scheme, the state government plans to spend Rs. 5,000 crore (US$ 55.56 million) over the next three years for urban infrastructure development across cities in Madhya Pradesh.
- The Madhya Pradesh Budget FY 2026-27 proposed Rs. 5,957 crore (US$ 66.19 million) towards investment and industrialisation initiatives, including MSME promotion, employment generation and industrial infrastructure development.
- MPIDC received investment proposals worth about Rs. 2,800 crore (US$ 31.11 million) from 11 companies across sectors such as manufacturing, renewable energy and healthcare, reflecting rising investor interest in Madhya Pradesh’s industrial ecosystem.
- 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.
- 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. State allocated 1100 acres for over 32 industrial units, expected to generate around 46000 jobs and expected to bring Rs 20000+ Cr investment.
- 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. ₹30.77 lakh crore with the potential to generate 21.36 lakh job opportunities during the Global Investors Summit 2025, which saw over 600 B2G meetings, 5,000+ B2B meetings and participation from more than 300+ leading industrialist, investors, and entrepreneurs across sectors like agriculture, textile, automobile, plastic, and 25000 attendees in total, and delegates from 60+ 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$196.96 million)
- Under the State Budget FY27,
- Under the Madhya Pradesh State Budget FY 2026-27, the state allocated 13.7% of its total expenditure towards education, 6.2% towards health, 6.1% towards rural development and 6.1% towards agriculture. Allocation towards energy stood at 8.2%, while water supply and sanitation accounted for 1.7% of the total expenditure.
- The FY 2026-27 Budget also emphasised industrial and infrastructure development. Industrial parks are proposed across the state, while a telecom manufacturing zone is being established in Gwalior. The Indore-Pithampur Economic Corridor is being developed at an estimated cost of Rs. 2,360 crore (US$ 262.22 million).
- To strengthen urban infrastructure, the state launched the Dwarka Scheme with a planned expenditure of Rs. 5,000 crore (US$ 555.56 million) over the next three years.
- The government also announced the state’s first Social Impact Bond, proposed to be listed on the National Stock Exchange, to encourage private investment in the social sector.
- In the technology sector, Madhya Pradesh plans to implement the Madhya Pradesh Space Tech Policy 2026 to strengthen the state’s presence in the space and advanced technology ecosystem.
- 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.
- 38 new industrial areas will be developed in the state.
- 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.
