Last updated: Jan, 2024
Introduction
Madhya Pradesh is located in central India. The state is bound on the north by Uttar Pradesh, on the east by Chhattisgarh, on the south by Maharashtra, and on the west by Gujarat and Rajasthan. It is among the fastest growing states in the country.
At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh was estimated at Rs. 13.22 trillion (US$ 160.9 billion) in 2022-23. The GSDP increased at a CAGR (in Rs.) of 13.61% from 2015-16 to 2022-23. Net State Domestic Product (NSDP) of Madhya Pradesh was estimated to be about Rs. 12.11 trillion (US$ 147.39 billion) in 2022-23. Between 2015-16 and 2022-23, the state’s NSDP increased at a CAGR of about 13.93%.
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 stood at 38,437 carats in 2018-19.
Madhya Pradesh offers distinctive monetary and strategy/policy incentives for organizations under the Industrial Promotion Policy-2014 other than strategies/policies for information technology (IT), biotechnology, tourism, and special economic zone (SEZs). To pull in investors and promote entrepreneurs, the State Government has selected TRIFAC, an agency that encourages a single window system, for speedy approvals of different clearances and consents.
Exports from the state stood at US$ 8.21 billion in FY23.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued at US$ 536.11 million between October 2019-June 2023.
Recent Developments in Key Sectors
- 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.
- As of September 2023, Madhya Pradesh had a total installed power generation capacity of 26,171.55 MW, comprising 7,211.62 MW under state utilities, 7,278.03 MW under central utilities and 11,681.9 MW under the private sector. Of the total installed power generation capacity, 16,294.54 MW was contributed by thermal power, 3,223.66 MW (hydropower), 382.49 (nuclear power), and 6,270.84 MW (renewable power).
- In FY23, formulations and biological product exports from Madhya Pradesh stood at 16% (worth US$ 1.33 billion).
- 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.
- 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.
- In 2021, foreign tourist arrivals and domestic tourist visits in the state stood at 0.41 million and 255.54 million, respectively.
- Agriculture is the main source of livelihood for the people of Madhya Pradesh. Primary sector’s contribution to the state’s GVA increased from 33.85% in 2011-12 to 47% in 2020-21.
- Textiles industry is one of the key sectors of Madhya Pradesh. The state is one of the major cotton producing states in India. In 2018-19, cotton and silk production in the state reached 24 metric tonnes^ and 100 million metric tonnes, respectively. In FY22 (until December 2021), cotton yarn exports contributed 7.5% to the state’s total exports (US$ 61.36 million).
Note: ^in lakhs bales of 170 kgs each, MMT - Million Metric Tonne
