Madhya Pradesh: India’s Emerging Economic Hub
India has entered a new global trajectory as the most sought-after investment destination today. A host of government initiatives, a highly skilled workforce and India's affordability-driven technological solutions across sectors have created an enabling environment for the most productive, profitable, and secure investment opportunities.
With several emerging growth drivers and favourable policies, Madhya Pradesh has emerged as one of the epicentres encouraging these investments. Categorised as an ‘Achiever’ among Indian states in the Ease of Doing Business Rankings conducted by the World Bank and the Department for Promotion of Industry and Internal Trade (DPIIT), Madhya Pradesh hosts over 100 industrial areas, 7 smart cities, and a robust multimodal transportation system. It is among the fastest growing states in the country, with the Gross State Domestic Product (GSDP) registering an annual growth of 10 per cent over FY21.
Under the influence area of Delhi Mumbai Industrial Corridor (DMIC), Madhya Pradesh has easy access to large markets and the major metro cities of New Delhi, Mumbai, Ahmedabad, Hyderabad and Kolkata. With the development of industrial and investment regions like Pithampur-Dhar- Mhow, Ratlam-Nagda, Shajapur-Dewas and Neemach-Nayagaon along the corridor, MP is getting ready to ride the next wave of sectoral reforms to accelerate its growth. The geographic heart of the country boasts of a robust road network and enhanced air connectivity as critical drivers for its economy.
The key to the state’s fast and diligent development is its multi-sectoral growth-oriented policies as well as constant infrastructural development. The state government has made an investment of more than $ 15.4 billion to support infrastructure in the last five years. It also offers tax-delinked investment assistance ranging from 10 per cent-40 per cent of investment in plant and machinery ranging from $ 1.3 million (INR 10 crores) to $ 20.1 million (INR 150 crores) respectively.
With provisions for concessions and subsidies for major sectors such as defence, industries and agribusiness, Madhya Pradesh is committed to investment assistance. The capital subsidy offered for the expansion and upgradation of diagnostic and treatment facilities envisages to support the pharmaceutical sector’s development. The state is set to develop into a renewable energy hub with a focus on the creation of an RE equipment manufacturing ecosystem. Looking towards cross-sectoral convergence in terms of energy and fuel sources, the state has crafted a future-looking Electric Vehicle Policy to promote cleaner and greener transportation. Government efforts have helped de-risk and scale up the solar and wind sector massively over the last decade in the state. The state government has taken comprehensive measures to support and develop the logistics and warehousing industry, which has become increasingly relevant in the backdrop of the recent developments in the global supply chain ecosystem. The Madhya Pradesh Warehousing & Logistics Policy aims to enhance warehousing capacity through private investment to promote both agriculture and industry.
As the way forward, Madhya Pradesh is aiming to drive growth by innovation in sectors such as technology, defence, health, manufacturing, and energy. Aligning with the India government’s tenets of Atma Nirbharta, Madhya Pradesh is committed to fostering a conducive, innovative and technological entrepreneurial ecosystem through its ‘MP Start-up Policy and Implementation Scheme 2022.’ It aims to place Madhya Pradesh among the top five states on the “India Innovation Index” by 2030.
Catalysing innovation, the Invest Madhya Pradesh Global Investors Summit 2023 seeks to expand its investment footprint in the state’s overall ecosystem. Madhya Pradesh is embracing its immense digital potential and as the nation embarks on the journey of scaling its digital infrastructure, there is a remarkable rise in the provision of citizen-centric services in increasingly diverse areas in the state, from health to manufacturing activities. The conceived State-Wide Area Network (MPSWAN) gives an impetus to e-Government initiatives in the state.
With the successful implementation of its proactive measures, Madhya Pradesh offers a stellar hope of delivering on its growth objectives. The upcoming Global Investors Summit 2023 will provide the perfect platform for the State to showcase its potential and seek investments and collaboration opportunities with various stakeholders.