Last updated: Dec, 2023
Introduction
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 was 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.
Chhattisgarh is presently one of the few states that have surplus power. Korba district in Chhattisgarh is known as the power capital of India. It is also among the few profitable states in terms of utility-based electricity. As of September 2023, Chhattisgarh had a total installed power generation capacity of 13,869.09 MW, comprising 8,978.9 MW under private utilities, 1,971.05 MW under state utilities, and 2,919.14 MW under central utilities.
Mineral resources are Chhattisgarh's biggest strength. It is a leading producer of minerals such as coal, iron ore and dolomite. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state. The state accounts for 35.4% of tin ore reserves of India. Chhattisgarh is the only state in India that produces tin concentrates.
Chhattisgarh has emerged as one of the most preferred investment destinations in India. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow to the state totalled US$ 4.08 million from October 2019-June 2023.
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.
In 2022, 35 IEMs were filed in Chhattisgarh with a proposed investment of Rs. 7,443 crore (US$ 899.44 million). In 2021, 98 IEMs were filed in Chhattisgarh with a proposed investment of Rs. 31,564 crore (US$ 4.12 billion). In July 2022, 25 IEMs were filed in the state with a proposed investment of Rs. 5,317 crore (US$ 645.46 million).
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. In FY24 (until July 2023), the merchandise exports stood at US$ 796.49 million.
A wide range of fiscal and policy incentives for businesses were announced under its Industrial Policy, 2014-19. Additionally, the state has well-drafted policies for the IT/ITeS, solar energy, agro and food processing, minerals and biotechnology sectors. Chhattisgarh stands fourth among Indian states in rankings based on ease of doing business and reform implementation, according to a study by the World Bank and KPMG.
- Following the completion of the 30-km Korichhapar-Dharamjaigarh section by IRCON International in January 2021, the complete section of 74 km between Kharsia and Dharamjaigarh was functional
- Commencement of this section 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
Key Sectors
- Metals and Mining: Chhattisgarh is the only state in India to produce tin concentrates and accounts for 36% of the country’s tin ore reserves. Dante Wada is the sole district producing tin from 6 mines. 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$ 1.32 billion in FY23. Non-basmati rice, iron & steel, and aluminium products, were the main exports, contributing ~42.7%, ~23.4%, and ~20.5%, respectively, to the state’s merchandise exports. In November 2022, Chhattisgarh accounted for ~14.8% of the total mineral production in India. The value of minerals produced (excluding atomic, fuel and minor minerals) in the state was Rs. 10,921 crore (US$ 1.33 billion) during April-November 2022.
- Cement: Chhattisgarh has abundant limestone reserves that support a strong cement sector. Chhattisgarh accounts for around 10.66% of the total limestone reserves in India, as of FY22. Limestone production in the state reached 41.88 million tonnes in 2021-22.
- Agriculture: Around 80% of employment in the state is dependent on agriculture. The state’s position as the ‘Rice Bowl of Central India’ and its reliance on agriculture has led to brisk growth in the food processing industry as a special-thrust industry. Non-Basmati rice is the most exported commodity from the state. Its exports reached US$ 257.67 million in FY20, US$ 474.82 million in FY21, US$ 863.59 million in FY22, and US$ 1,143.66 million in FY23. Total horticulture production in the state reached 9671.25 thousand metric tonnes in 2021-22 with 774.75 thousand hectares of area under cultivation.
- Apparel: Chhattisgarh is one of the leading producers of tussar and kosa silks in the country and has the potential to be a strong player in the Indian apparel industry. Raw silk production in the state reached 349 metric tonnes in 2018-19, 480 metric tonnes in 2019-20, 224 metric tonnes in FY22, and 223 metric tonnes in FY23.
