Madhya Pradesh

Recent Developments in Key Sectors:

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.
• Under the State Budget 2025-26, a total of Rs. 14,949 crore (US$ 1.7 billion) has been allocated to enhance healthcare infrastructure, with Rs. 12,816 crore (US$ 1.45 billion) designated for urban health services – allopathy, and Rs. 2,133 crore (US$ 242 million) allocated for rural health services – allopathy.
• Under the State Budget 2025-26, the government allocated Rs. 25,499 crore (US$ 2.89 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.
• 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.
• 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
• Madhya Pradesh is set to get two new airports in Guna and Shivpuri, with each airport receiving a funding allocation of Rs. 45 crore (US$ 5.40 million) from the government, which is expected to enhance regional connectivity and boost tourism, trade, and economic activities in the region.
• In 2024, 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
• In August 2022, Mr. Nitin Gadkari, Minister of Road Transport & Highways inaugurated and laid foundation stone of 6 National Highway projects of 119 kms worth Rs. 2,300 crore (US$ 279.18 million) in Indore, Madhya Pradesh.

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.

Note: ^in lakhs bales of 170 kgs each, MMT - Million Metric Tonne