At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh was Rs. 15.22 trillion (US$ 177.70 billion) in FY25.

The GSDP increased at a CAGR (in Rs.) of 12.00% from FY16 to FY25.

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 US$ 7.03 billion in FY25 (until February 2025), Engineering goods formed major exports from Madhya Pradesh stood at 25%

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at Rs. 4,563 crore (US$ 602.69 million) between October 2019- December 2024.

Indore and Bhopal airports are the busiest in the state. During FY25 (Until Feb), passenger traffic at Indore airport reached 34,09,366 with an overall movement of 29,923 aircraft. In the same period, passenger traffic at Bhopal airport stood at 14,53,596 with a movement of 13,785 aircraft.

According to the Telecom Regulatory Authority of India (TRAI), Madhya Pradesh had 79.25 million wireless subscribers and 2.08 million wireline subscribers, as of December 2024.

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 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.
• In August 2022, Mr. Nitin Gadkari, Minister of Road Transport & Highways inaugurated and laid the foundation stone of 6 National Highway projects of 119 km worth Rs. 2,300 crore (US$ 279.18 million) in Indore, Madhya Pradesh.
• In 2021-22 (as per the MP Economic Survey 2022-23), the total production of horticulture crops in the state was expected to be 36,675 thousand tonnes and the area under production was 2,472 thousand hectares.
• Indore and Bhopal airports are the busiest in the state. During April-September 2023-24, passenger traffic at Indore airport reached 1,657,457 with an overall movement of 15,737 aircraft. In the same period, passenger traffic at Bhopal airport stood at 655,970 with a movement of 6,598 aircraft.
• 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.
  • A total of Rs. 12,835 crore (US$ 1.5 billion) has been allocated to enhance healthcare infrastructure, with Rs. 8,335 crore (US$ 973 million) designated for hospitals and dispensaries, and Rs. 4,500 crore (US$ 525 million) allocated to the National Health Mission for both urban and rural initiatives.
  • Government allocated Rs. 23,040 crore (US$ 2.69 billion) for government primary schools.
  • 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.