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MADHYA PRADESH
SANCHI STUPA IN SANCHI, MADHYA PRADESH
March 2021
For updated information, please visit www.ibef.org
Table of Contents
Executive Summary 3
Introduction 4
Economic Snapshot 9
Physical Infrastructure 15
Social Infrastructure 22
Industrial Infrastructure 25
Key Sectors 27
Key Procedures & Policies 35
Appendix 42
2
Executive summary
Strong economy
1 The Gross State Domestic Product (GSDP) of Madhya Pradesh increased at a CAGR of 11.14% from 2015 to
2021.
Growth in cotton yarn export
2 In FY20, exports of cotton yarn stood at US$308 million against US$ 267 million in FY19, a 15% YoY growth. In
FY21, the export contributed 5% to the state’s total export (US$ 87.25 million).
Potential for tourism
3 Madhya Pradesh boasts of rich ancient cultural & religious heritage.
Due to a thick forest cover, the state has immense potential for wild life, adventure & eco-tourism.
Infrastructure support
Madhya Pradesh is growing as a solar power hub with Rewa solar power project (new 750 MW solar power
4 plant) and an upcoming 600 MW floating solar energy project at Omkareshwar Dam on Narmada river, which
represents the country’s commitment to achieve the installed renewable energy capacity target of 175 GW by
2022.
Source: Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas, MNRE
3
INTRODUCTION 4
Advantage: Madhya Pradesh
Attractive investment avenues Rich resource pool
Madhya Pradesh Industrial Development Corporation
Madhya Pradesh adds around 270,000 graduates to the
(MPIDC) has emerged as the leading investment promotion
workforce each year, of which around 90,000 have
agency worldwide. In the field of investment promotion, the
technical skills. At labour costs of US$ 3.7 per day, the
state scored 97%. In parameters comprising inviting
state has a significant cost advantage over metros.
investors, taking investment to Madhya Pradesh, providing
investors with facilities after setting up companies, building The state houses some of the country’s most reputed
infrastructure and website, the state scored 100%. institutes including Indian Institute of Management, Indian
Institute of Foreign Management & Indian Institute of
The cluster-based advancement methodology promotes
Technology.
investments in automotive, textiles & biotechnology.
Policy and infrastructure
Strategically located
support
business hub
In 2020, the Union Minister for Road
• The state is centrally
Transport, Highways and MSMEs laid
located in India. Major
consumer goods the foundation stones for developing 45
multinationals are situated highway projects worth Rs. 1.25 trillion
in Madhya Pradesh in order (US$ 16.95 billion) in Madhya Pradesh.
to access major consumer
markets & metro urban State introduced the ‘Madhya Pradesh
communities like New Delhi Health Sector Investment Promotion
(740 km), Mumbai (780 km), Scheme 2020’ to encourage private
Kolkata (1,350 km) &
investment in healthcare infrastructure
Chennai (1,435 km)
by incentivising the establishment of
standalone healthcare centres.
Note: 1 From Bhopal
5
Madhya Pradesh vision
1 SKILL DEVELOPMENT 8 TRANSPORT
Skill development by expanding Develop the transportation network to
training infrastructure & capacity to enhance rural connectivity
aid 1 million youth in attaining wages Reform the institutional machinery for
& self employment creating public transport facilities
1 8
2 HOUSING 7 INVESTMENT
Improve civic infrastructure, including PROMOTION
2 7
public & household sanitation Enhance the ease of doing business
facilities for the benefit of investors
Expand availability of affordable Attract higher investments in
housing manufacturing, services & labour
intensive sectors
3 ENVIRONMENT 6 TOURISM
Promote social & agro forestry
Revitalise ground water resources 3 6 Make the state a world class tourist
destination
Private sector participation in Promote religious, adventure &
maintaining waste disposal & water heritage tourism & attract private
conservation investment
4 INFRASTRUCTURE 4 5 5 AGRICULTURE
Connect all villages through world class Expand the outreach of agriculture
highways technology & irrigation to remote
To be a leader in renewable energy & green farms.
technology Promote farm level diversification and
Keep the state power surplus by addition to value addition.
the power generation capacity
6
Madhya Pradesh fact file
Bhopal
Capital 236 persons per sq km 82.89 million
Population density total population
308,000 sq.km.
geographical area 34.98 million 37.6 million
female population male population
931:1000
Source: Government of Madhya Pradesh Sex ratio
70.6% administrative districts: 51 (females per 1,000 males)
Key Insights literacy rate
• There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops.
• Madhya Pradesh is located in central India. The state is surrounded by Uttar Pradesh in North, Chhattisgarh in East, Maharashtra in South,
Gujarat and Rajasthan in west.
• The most commonly spoken language of the state is Hindi. English and Marathi are the other languages used.
• Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key cities of the state.
Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh
7
Madhya Pradesh in figures
Madhya Pradesh’s Contribution to Indian Economy (2020-21) Physical Infrastructure in Madhya Pradesh
GSDP GSDP as a percentage of all states’ GSDP* Installed power capacity (MW) as of February
India: 100.0 | Madhya Pradesh: 4.25 2021
India: 379,130.41 | Madhya Pradesh: 25,489.32
GSDP growth rate (%)
India*: 11.46 | Madhya Pradesh: -2.12 Wireless subscribers (million) as of January 2021
India: 1,163.40 | Madhya Pradesh: 76.04
Per capita GSDP (US$)
India*: 1,382.99| Madhya Pradesh: 1,504.07
Internet subscribers (million) as of September 2020
India: 776.45 | Madhya Pradesh: 51.32
Social Indicators
National highway length (km) (as of September 2019)
Literacy rate (%) India: 132,499 | Madhya Pradesh: 8,772.3
India: 77.7 | Madhya Pradesh: 73.7
Airports (No.)
Birth rate (per 1,000 population) (2018) India: 153 | Madhya Pradesh: 8
India: 20 | Madhya Pradesh: 24.6
Industrial Infrastructure Investments (as of December 2020 )
Operational PPP projects (No.) Cumulative FDI inflow from
(as of December 06,2019) October 2019 to December 2020 (US$ million)
India: 1,824 | Madhya Pradesh: 187
India: 75,351.56 | Madhya Pradesh: 263.58
Operational SEZs (No.) (October 2020)
India: 262 | Madhya Pradesh: 5
Note: *- 2018-19, PPP - Public Private Partnership, SEZ - Special Economic Zone, Refer annexure for sources
8
ECONOMIC SNAPSHOT 9
Economic snapshot – GSDP
GSDP of Madhya Pradesh at current prices Per capita GSDP of Madhya Pradesh at current prices
CAGR (in Rs.) 11.14% CAGR (in Rs.) 9.83%
140 10 1,800 120,000
9
132.98
1,600
113,079.35
9.37
9.18
109,180.76
120
126.40
1604.19
100,000
8
1504.07
1,400
99,542.53
116.44
8.14
112.70
1424.27
100
1372.41
7
88,452.00
1,200 80,000
7.26
96.86
81,140.00
1209.42
6
6.50
80 1,000
82.66
1043.69
68,320.00
5 60,000
5.41
60 800
4
600 40,000
40 3
400
2
20,000
20 200
1
0 0 0 0
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
US$ billion Rs. trillion US$ Rs.
At current prices, the Gross State Domestic Product (GSDP) of The state’s per capita GSDP was ~Rs. 109,180.76 (~US$
Madhya Pradesh stood at Rs. 9.18 trillion (US$ 126.40 billion) in 1,504.07) in 2020-21.
2020-21.
Per capita NSDP in the state increased at a CAGR of 9.83%
Between 2015-16 and 2020-21, the GSDP of the state increased between 2015-16 and 2020-21.
at a CAGR of 11.14%.
Source: Ministry of Statistics and Programme Implementation
10Economic snapshot – NSDP
NSDP of Madhya Pradesh at current prices Per capita NSDP of Madhya Pradesh at current prices
CAGR (in Rs.) 11.22% 1,600 120,000
9 CAGR (in Rs.) 9.97%
120 1,400
8.56
1,465.29
8
121.47
100,000
8.27
103,288.17
1,355.81
113.94
98,418.19
1,294.70
100 7 1,200
7.40
105.85
1,239.83
90,486.58
99.11
80,000
6.61
6
1,092.09
1,000
79,907.00
80
86.03
5.91
73,268.00
934.98
5
800 60,000
72.59
4.86
61,204.00
60 4
600
40,000
3
40
400
2
20,000
20 200
1
0 0 0 0
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
US$ billion Rs. trillion US$ Rs.
Net State Domestic Product (NSDP) of Madhya Pradesh was The state’s per capita NSDP in 2020-21 was Rs. 98,418.19 (US$
about Rs. 8.27 trillion (US$ 113.94 billion) in 2020-21. 1,355.81).
Between 2015-16 and 2020-21, the state’s NSDP increased at Per capita NSDP of the state increased at a CAGR of 9.97%
a CAGR of about 11.22%. between 2015-16 and 2020-21.
Source: Ministry of Statistics and Programme Implementation
11Economic snapshot – Percentage distribution of GSVA
In 2020-21, the primary sector contributed 46.98% to the state’s Visakhapatnam
GVA composition
port trafficby
(million
sectortonnes)
GSVA at current prices, followed by the tertiary sector (33.55%) and
secondary sector (19.47%).
At a CAGR of 16.49%, the primary sector witnessed the fastest 39.06% CAGR* 33.55%
growth among the three sectors between FY12 and FY21.
The tertiary sector expanded at a CAGR of 10.44% between FY12
10.44%
and FY21. Growth was driven by trade, hotels, real estate, finance,
insurance, transport, communications and other services.
19.47%
The secondary sector expanded at a CAGR of 8.28% between FY12
27.09%
and FY21, driven by the manufacturing, electricity, gas & water
supply and construction sectors. 8.28%
46.98%
33.85%
16.49%
2011-12 2020-21
Primary Sector Secondary Sector Tertiary Sector
Note: CAGR* is in Rs. terms
Source: Ministry of Statistics and Programme Implementation
12Economic snapshot – FDI inflow & investments
According to the Department for Promotion of Industry and Internal FDI Inflow in Madhya Pradesh in April 2000-December 2020
Visakhapatnam port traffic (million tonnes)
Trade (DPIIT), cumulative FDI inflow in Madhya Pradesh was valued (US$ million)
at US$ 263.58 million between October 2019 and December 2020. 2000
The state will be holding the sixth edition of its Global Investors
Summit in October 2019. At the previous edition, the state witnessed 1500 76 28 32
80
expression of interest’s worth Rs. 5,62,887 crore (US$ 83.75 billion). 101
118 82
152 investment intentions worth Rs. 12,762 crore (US$ 2.47 billion) 1000 220
123
were filed in the state during 2019.
654
500 264
0
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY01-FY11
Oct19-Dec20
Investment intentions in terms of IEMs filed, LOIs / DILs issued
Year Number Proposed Investments (US$ billion)
2017 76 1.10
2018 140 3.49
2019 178 2.47
Source: Department for Promotion of Industry and Internal Trade
13Economic snapshot – Export trends
Merchandise Export from Madhya Pradesh (US$ billion) Principal Commodities Exported in FY21*
7.00 Drug Formulations,
Biologicals
6.00 6.38
Oil Meals
5.80 19%
5.00 5.25 5.32
Aluminium, Products of
4.00 4.44 Aluminium
8%
Cotton Yarn
3.00
56%
6%
2.00 Cotton Fabrics, Madeups,
4% Etc
4%
1.00 3% Bulk Drugs, Drug
Intermediates
-
FY17
FY18
FY19
FY20
FY21*
Others
Exports from the state stood at US$ 5.80 billion in FY21*.
In FY21*, the total drug formulations and biological product exports from Madhya Pradesh accounted for US$ 1,099.97 million, which was 19% of
the total exports.
Note: * - until February 2021
Source: DGCIS Analytics
14PHYSICAL INFRASTRUCTURE 15
Physical infrastructure – Roads
Madhya Pradesh has national highways measuring 8,772.3 kms.
The state also has 11,389 km of state highways, as of September Road type Road length (kms)
2019.
National highways 8,772.3
Under the State Budget 2021-22, the government has allocated Rs.
6,957 crore (US$ 948.60 million) for development of roads and State highways 11,389
bridges.
Major district roads 22,129
Rs. 850 crore (US$ 115.89 million) has been allocated for the
Village roads 23,395
repair and upgrade of roads and Rs. 620 crore (US$ 84.55
million) has been allocated for the construction of roads in rural Road length 64,719
areas.
Under the State Budget 2021-22, the government has allocated Rs.
2,925 crore (US$ 398.83 million) for the Pradhan Mantri Gram Sadak
Yojana.
In August 2020, the Union Minister for Road Transport, Highways
and MSMEs Mr. Nitin Gadkari laid the foundation stones for 45
highway projects in Madhya Pradesh. Rs. 1.25 trillion (US$ 16.95
billion) worth of development work is underway in Madhya Pradesh.
~60-70% work has been completed on road works approx. worth Rs.
300 billion (US$ 4.07 billion). These roads are aiming to improve
connectivity to the tourist spots and backward areas of the state. The
Minister announced that development work worth Rs. 500 billion
(US$ 6.78 billion) is likely to be completed by 2023.
Source: NHAI, Ministry of Road Transport & Highways, State Budget 2020-21
16Physical infrastructure – Railways
Madhya Pradesh has around 4,954 kms of railway lines and the
state is connected to different states of the country through more
than 425 trains which travel on daily basis.
By end of 2019, Habibganj railway station in Madhya Pradesh will
become Indian Railways’ first airport-like hub.
The railway network in Madhya Pradesh primarily falls under the
West-Central Railways, which was formed in 2002 and is
headquartered in Jabalpur. Part of the state is also covered by
Central and Western Railways.
Being centrally located, the railway network in the state assumes Source: Maps of India
great significance. Madhya Pradesh’s capital, Bhopal is one of the
foremost railway junctions in the country, as 220 trains travel
through the capital alone.
Government of India has undertaken redevelopment of Habibganj
Railways station in Bhopal. The station is being redeveloped at an
estimated cost of Rs. 100 crore (US$ 15.52 million) and the total
value of development (including commercial development) has been
estimated at Rs. 450 crore (US$ 698.21 million).
Under the State Budget 2021-22, the government has allocated Rs.
262 crore (US$ 35.73 million) for metro projects in Bhopal and
Indore.
Source: News Article, State Budget 2020-21
17Physical infrastructure – Airports
Airport indicators
Aircraft movements Passengers Freight
(in no) (in no.) (in MT)
Airport
2019-20 2020-21* 2019-20 2020-21* 2019-20 2020-21*
Bhopal 10,047 4,774 924,833 393,477 894 1,191
Indore 14,769 8,419 1,895,686 760,209 7,377 6,643
Madhya Pradesh has five operating airports at Jabalpur, Bhopal, Indore, Gwalior and Khajuraho.
Indore and Bhopal airports are the busiest in the state. In 2020-21*, passenger traffic at Indore airport reached 760,209, with overall movement of
8,419 aircraft. In the same period, passenger traffic at Bhopal airport stood at 393,477, with movement of 4,774 aircraft.
Both Indore and Bhopal airports have strong cargo handling capacity. In 2020-21*, Indore airport handled 6,643 million tonnes of cargo, whereas
Bhopal airport handled 1,191 million tonnes of cargo.
Government of India has granted ‘site clearance’ approval to Madhya Pradesh Road Development Corporation Limited for setting up Singrauli
domestic greenfield airport in Waidhan, Singrauli.
Note: * - until February 2021
Source: Airports Authority of India
18Physical infrastructure – Power
Breakdown of installed capacity by source of power generation
Installed power capacity (MW)
(as of February 2021)
1.07%
30,000
25,000 Thermal Power
25,489.32
25,066.25
20.42%
23,334.40
20,000
20,321.87 Hydropower
19,618.28
18,813.65
15,000
10,000 12.65% Renewable Power
5,000 65.86%
Nuclear Power
0
2016 2017 2018 2019 2020 2021*
As of February 2021, Madhya Pradesh had a total installed power generation capacity of 25,489.32 MW, comprising 7,187.62 MW under state
utilities, 7,326.09 MW under central utilities and 10,975.61 MW under the private sector.
Of the total installed power generation capacity, 16,787.03 MW was contributed by thermal power, 3,223.66 MW (hydropower), 273.00 MW
(nuclear power) and 5,205.57 MW (renewable power).
Under the State Budget 2021-22, the government has allocated Rs. 16,745 crore (US$ 2.28 billion) for the energy sector.
In January 2021, Madhya Pradesh State Minster of New and Renewable Energy, Hardeep Singh Dang, announced that the state government is
constructing the world's largest floating solar energy project with a capacity of 600 MW at Omkareshwar Dam on Narmada river in the Khandwa
district of Madhya Pradesh. The estimated investment in this project stands at Rs. 3,000 crore (US$ 409.18 million) with commencement of power
generation by 2022-23.
Note: MW- Megawatt * - as of February 2021
Source: Central Electricity Authority, news sources, State Budget 2021-22
19Physical infrastructure – Telecom
Performance status of Bharat Net project Telecom infrastructure* (January 2021)
Wireless subscribers 76,046,519
Wireline subscribers 704,609
Service-ready GPs Internet subscribers (in million) as of
13,899 51.32
(November 2020) September 2020
Teledensity (in %) 67.40
Mobile number portability requests (in million) 38.63
According to the Telecom Regulatory Authority of India (TRAI), Madhya Pradesh* had ~76.04 million wireless and 0.70 million wireline
subscribers, as of January 2021.
Internet subscribers in the state* reached 51.32 million, as of September 2020.
As of January 2021, teledensity (telephone connections per 100 persons) in Madhya Pradesh* stood at 67.40%.
As of January 2021, 38.63 million people had submitted requests for mobile number portability in the state*.
Source: * - including Chhattisgarh
Source: Telecom Regulatory Authority of India, Department of Telecommunications
20Physical infrastructure – Urban Development
In State Budget 2021-22, an allocation of Rs. 900 crore (US$ 122.75 Smart cities in Madhya Pradesh
million) was made for the Smart Cities Mission.
Cities Population Literacy rate
Seven cities of the state have been selected for Government of
India’s Smart Cities Mission. Bhopal 2,371,061 80.37%
Indore 3,276,697 80.87%
Also, the state is home to 34 cities which have been chosen for
AMRUT Mission. Gwalior 2,032,036 76.65%
Ujjain 1,986,864 72.34%
Under the State Budget 2021-22, the government has been allocated
Rs. 1,500 crore (US$ 204.61 million) for ‘Housing for All’ under Jabalpur 2,463,289 81.07%
Urban Development & Housing Department and Rs. 1,000 crore
Sagar 2,378,458 76.46%
(US$ 136.41 million) towards Atal Mission for Rejuvenation and
Urban Transformation. Satna 2,228,935 72.26%
As of December 23, 2020, Madhya Pradesh and Andhra Pradesh
have taken the lead to undertake the urban local bodies (ULB) Rural
reforms. Madhya Pradesh has been permitted to mobilise additional
Rs. 2,373 crore (US$ 323.52 million) for better public health and In the State Budget 2021-22, Rs. 2,500 crore (US$ 340.99 million)
sanitation services. has been allocated to the Pradhan Mantri Awas Yojana (Grameen).
In October 2020, a US$ 270 million loan was signed by the Asian As of September 2020, 1.75 lakh houses were built under Pradhan
Development Bank (ADB) and the Government of India to establish Mantri Awaas Yojana - Gramin at Madhya Pradesh.
water supply and integrated storm water and sewage management
infrastructure; and boost capacity of urban local bodies (ULBs) in
Madhya Pradesh to improve service delivery.
Source: Bhopal Municipal Corporation, Ministry of Urban Development, Census 2011, State Budget 2021-22
21SOCIAL INFRASTRUCTURE 22
Social infrastructure – Education
Madhya Pradesh had a literacy rate of 70.6%; the male literacy rate
Category Literacy rate (%)
is 80.5% and the female literacy rate is 60.0%.
As per the State Budget 2021-22, Rs. 9,793 crore (US$ 1.33 billion) Total 70.6
has been allocated for the establishment of primary schools, Rs.
5,329 crore (US$ 726.94 million) for secondary education and Rs. Male 80.5
4,027 crore (US$ 549.33 million) for higher secondary education.
Under the State Budget 2021-22, the government has allocated Rs. Female 60.0
3,993 crore (US$ 544.69 million) for Samgra Shiksha Abhiyan and
Rs. 1,100 crore (US$ 150.05 million) for CM Rise scheme.
AICTE Approved Education Statistics (2020-21)
In 2020-21, Madhya Pradesh had a total of 644 AICTE-approved
institutes.
Undergraduate Postgraduate Diploma
In December 2020, the state government partnered with IIM Indore
to create video-based training for teachers.
Total
300 429 258
Institutions
Reputed institutes of Madhya Pradesh
Indian Institute of Management (IIM), Indore
Total
83,286 73,161 43,606
Indian Institute of Forest Management, Bhopal Intake
Institute of Hotel Management, Bhopal
International Institute of Professional Studies, Indore Faculties 24,113 5,839 952
Indian Institute of Technology (IIT), Indore
Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh Education Portal,
National Health Portal, State Budget 2021-22
23Social infrastructure – Health
Health institutions (May 2020) Health indicators of Madhya Pradesh (2018)
1
Sub Centres 12,128 Birth rate 24.6
1
Death rate 6.7
Primary Health Centres 1,566
2
Infant mortality rate 48
Community Health Centres 424
Life expectancy at birth (years)
Sub District Hospitals 211
Male (2011-15) 64.5
District Hospitals 52 Female (2011-15) 65.3
As of May 2020, the public healthcare services network of Madhya Pradesh comprised 52 district hospitals, 424 community health centres, 1,566
primary health centres and 12,128 sub-health centres.
The state government proposed Rs. 11,619 crore (US$ 1.58 billion) for development of the Health and Family Welfare Department in the state in
2021-22.
In October 2020, with an investment of Rs. 150 crore (US$ 20.45 million), the 200-bedded super speciality block (SSS) was established under the
Government of India's Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). The SSB will be configured with six portable operation theatres, 200
super specialty beds, 30 ICU beds and eight fans. This facility will host 14 postgraduate students for training.
Source: 1Per thousand persons, 2Per thousand live births
Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, State Budget 2021-22
24INDUSTRIAL INFRASTRUCTURE 25
Industrial infrastructure
Madhya Pradesh State Industrial Development Corporation Limited Operational SEZs in Madhya Pradesh (As of October 2020)
(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. Name of SEZ Industry Location
MPSIDC has established seven growth centres at Bhopal, Gwalior,
Jabalpur, Indore, Rewa, Ujjain and Sagar. These growth centres are Crystal IT Park IT/ ITeS Indore
known as Madhya Pradesh Audyogik Kendra Vikas Nigam Limited
(AKVN).
Infosys Ltd. IT Indore
Work on development of infrastructure in 22 industrial units is
underway with an investment of Rs. 1,820 crore (US$ 281.12
Impetus Infotech Pvt.
million). The works is expected to be completed by December 2018.^ IT/ ITeS Indore
Ltd.
The state is home to five operational SEZs, six notified SEZs and 12
formally approved SEZs. Bhopal, Indore, Gwalior and Jabalpur are Tata Consultancy
IT/ITES/BPO/KPO Indore
Services Limited
the major locations where SEZs have been approved. These SEZs
have been proposed for IT/ITeS, mineral-based, agro-based and
multi-products. Indore SEZ Multi-product Dhar
Under the State Budget 2021-22, the government has allocated Rs.
1,237 crore (US$ 168.83 million) for Magnificent MP Investment
Attraction Scheme under the Department of Industrial Policy and
Investment Promotion and Rs. 480 crore (US$ 65.51 million) for
industrialisation infrastructure development.
Source: MP Trade & Investment Facilitation Corporation Ltd, Department for Promotion of Industry and Internal Trade, State Budget 2021-22
26KEY SECTORS 27
Key sectors – Agriculture and Food processing
Agriculture Exports from Madhya Pradesh (US$ million)** Production - 2019-201 Area- 2019-201
Crop
(‘000 tonnes) (‘000 hectares)
160
140 Fruits 7916.39 385.69
141.36
134.60
120
Vegetables 19832.27 1007.86
123.69
100
108.81
Aromatics and
94.94
93.03
91.53
80 101.97 40.46
Medicinal
60
40 Spices 3010.17 639.70
20
0
FY15 FY16 FY17 FY18 FY19 FY20 FY21^ Honey 2.30
Agriculture is the main source of livelihood for the people of the Madhya Pradesh.
Rs. 16,142 crore (US$ 2.2 billion) was allocated to agriculture and allied activities in the State Budget 2021-22.
Of this, Rs. 4,592 crore (US$ 626.68 million) has been allocated to the Atal Krishi Jyoti Yojana and Rs. 3,200 crore (US$ 436.71 million) to the
Mukhya Mantri Kisan Kalyan Yojana.
Two mega food parks have been sanctioned by Government of India in Madhya Pradesh. One of the mega food parks - Indus Mega Food Park,
Khargone - is already operational and has a leasable area of 24 acres.
In 2019-20, the total production of horticulture crops in the state was expected to be 31,243.51 thousand tonnes and area under production was
2,106.23 thousand hectares. In 2019-20, total production of vegetables and fruits in the state was estimated at 19,832 million tonnes and 7,916
million tonnes, respectively.
Note: *Estimate, #Third Advance Estimates of Production of Foodgrains for 2019-20,**Target ^- Between April and September 2020; 1As per third advanced estimates
Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, MP Economic Survey 2017-18, State Budget 2021-22
28Key sectors – Textiles…(1/2)
Production of textile raw material in Madhya Pradesh (in MMT) Exports of Cotton Yarn from Madhya Pradesh (US$ million)
50 300 400
350
377.42
250
366.37
40
248.00
257.00 200 300
307.87
30
195.00
250
266.56
150
350.87
20 200
24.00
214.67
100
20.50
20.50
111.00
103.00
100.00
19.00
19.00
250.22
18.00
150
10 50
100
0 0
FY14 FY15 FY16 FY17 FY18 FY19 50
0
Cotton Production^ Silk Production FY15 FY16 FY17 FY18 FY19 FY20 FY21*
Madhya Pradesh is one of the major cotton producing states of India. In 2018-19, cotton production in the state reached 24 metric tonnes^.
Exports of cotton yarn is estimated at US$ 260.22 million in FY21* and accounts for 4% of the state’s total exports.
To attract investments into the sector, the Government has provided an interest subsidy for five years at a rate of 5% for textile projects and
7% for composite textile projects without capping. Furthermore, the Government provided 100% assistance in plant & machinery for eight
years under Industrial Investment Promotion Assistance Scheme.
During 2018-19, silk production in the state stood at 100 million metric tonnes.
Note: ^in lakhs bales of 170 kgs each, MMT - Million Metric Tonne, *- Between April 2020 and February 2021
Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory Board
29Key sectors – Textiles…(2/2)
Key players in textiles industry
Trident Limited, the flagship company of Trident Group, is one of the largest integrated home textiles
manufacturers over the world. The company has a bed linen manufacturing plant in Budni, Madhya Pradesh. The
facility has capacity of 43.2 million metres per annum and is home to 500 looms. Also, the world’s largest
Trident Limited standalone terry towel manufacturing facility resides at the plant.
Grasim Industries Ltd, a flagship company of the Aditya Birla Group, is one of the leading companies in India with
diverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and
Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure
merino wool along with polyester and other blends. The company has a wide retail network and also serves
Grasim Industries Ltd international apparel manufacturers.
The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarn
manufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni
(60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore, the
Bhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 million
Vardhman Textiles Ltd metres per annum.
Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in engineering
and aviation. The company is one of the largest integrated manufacturers of worsted fabric in the world and
commands over 60.0% market share in worsted suiting in India. The total production capacity of the company is
around 38 million metres of wool and wool-blended products. One of the four plants of the company is located at
Raymond Ltd Chhindwara in Madhya Pradesh.
30Key sectors – Tourism
Madhya Pradesh is blessed with scenic beauty, rich heritage of Total tourist arrivals in Madhya Pradesh (in millions)
pilgrim centres, temples and wildlife sanctuaries.
90.00
0.33
In 2019, foreign tourist arrivals and domestic tourist visits in the 89.00
state stood at 0.33 million and 88.71 million, respectively. 88.00 88.71
87.00
86.00
As per State Budget 2019-20, the state Government proposed an
85.00 0.38 0.38
allocation of Rs. 229 crore (US$ 32.77 million) for the development 84.00
of the state’s tourism department. 83.00 83.97 83.97
82.00
Major places of tourist interest in Madhya Pradesh are as follows: 81.00
2017 2018 2019
• Kanha: One of the largest wild-life sanctuaries in Asia.
Domestic Foreign
• Khajuraho: Some of the most famous sculptures in the world.
• Bhimbetka: The oldest cave paintings in the world.
• Sanchi: The oldest Buddhist Stupa in the world.
• Bandhavgarh: The highest density of tiger population in the
country.
• Bhedaghat: Scenic marble rocks rising up to 100 feet.
Source: MP economic survey 2017-18, Ministry of Tourism, State Budget 2019-20
31Key sectors – Pharmaceuticals
Madhya Pradesh is home to over 280 pharmaceutical units operating Exports of drug formulations and biologicals from Madhya
in the industrial areas of Dewas, Indore, Pithampur, Mandideep and Pradesh (US$ million)
Malanpur.
1400
Indore is one of the largest producers of pharmaceuticals like tablets,
capsules, formulations in India. 1200
1,158.55
Pithampur SEZ located in Indore is a production hub for
1,099.97
1000
pharmaceutical majors such as Cipla, Lupin, Mylan, etc.
909.24
800
845.22
Exports of drug formulations and biologicals will likely account for
~24% of the state’s total exports in FY21*. 600
525.78
400
200
0
FY17
FY18
FY19
FY20
FY21*
Note: *- until February 2021
Source: Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry
32Key sectors – Mineral-based industry
Madhya Pradesh is one of the key mineral-producing states in India, Mineral production in Madhya Pradesh (‘000 MT)
providing tremendous potential for industrial growth.
The state has rich deposits of coal, limestone and manganese.
Mineral 2016-17 2017-18 2018-19 2019-20
Bauxite, dolomite, fire clay, granite and marble stones are other
mineral resources available.
Coal 108,548 112,239 118,661 113,804
Major mineral-based industries in the state are cement, thermal
power generation, ceramic-products, tiles and refractory.
Bauxite 658.38 581.39 722.54 637.83
Madhya Pradesh is the sole diamond producing state in the country.
Diamond production in the state reached 25,603 thousand tonnes in Copper ore 2,415.33 2,339.04 2,542.15 2,406.35
2019-20.
MOIL Ltd., a state-owned manganese ore mining company, is Copper conc. 68.19 75.48 82.94 60.95
working in Madhya Pradesh and Maharashtra on new projects worth
Rs. 5.18 billion (US$ 78.79 million), with the company aiming to Iron ore 1,730 2,679 2,792 3,124
complete these projects by August 2021. At the company's Ukwa
mine in Madhya Pradesh, a project worth Rs. 771.5 million (US$ Manganese ore 648.13 831.35 944 906
10.46 million) is underway to set up a sinking vertical shaft at a depth
of 324 metres.
Phosphorite 68.80 113.30 98.60 99.30
At Balaghat mine in Madhya Pradesh, work for sinking a large
diameter high-speed vertical shaft of 750-metres depth is Diamond (in
36,516 39,699 38,437 25,603
carat)
undergoing. At the Rs. 2.59 billion (US$ 35.12 million) project site,
the shaft sinking and lining up to 480 metres depth is complete and
Limestone 35,843 42,744 49,762 43,686
the overall project is scheduled to be completed by July 2021.
Note: MT - Metric Tonnes
Source: Indian Bureau of Mines
33Key industries – Mineral-based industry
Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982, the company
established its Malanjkhand copper project, which has the single-largest copper deposit in the country. The
Malanjkhand mine has a copper deposit of 221 million tonnes with 1.3% copper concentration. The company
possesses an open-pit mine with a capacity of 2 million tonnes per annum, concentrator plant, tailing disposal
system and other auxiliary facilities. The plant contributes around 80.0% of the copper production of the company.
HCL’s mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh and Maharashtra.
Hindustan Copper Ltd
NMDC is a public sector unit involved in mining of a wide range of minerals such as iron, copper, limestone,
dolomite, gypsum, tin, graphite and diamond. The company is the single largest iron ore producer in the country.
NMDC is the only organised producer of diamonds in India and produces diamond from its Majhgawan mine at
Panna in Madhya Pradesh. The production capacity of the mine is around 84,000 carat per annum. The mine
employs around 199 persons.
NMDC Ltd
34KEY PROCEDURES AND POLICIES 35
Key approvals required
List of approvals and clearances required Departments to be consulted
DIC for SSI/ SIA for large and medium
Prior to setting up the unit Registration
industries
Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC
District authorities/ State DI/ Dept. of Town
Permission for land use and Country Planning (in case industry is
located outside an industrial area)
No-Objection Certificate (NOC) under the Water and Air Madhya Pradesh Pollution Control Board
Act
Town and Country Planning/ Municipal and
Approval for construction activity and building plan local authorities/ Chief Inspector of Factories/
Pollution Control Board, Electricity Board
NOC Fire Department
Provisional Trade Tax registrations / Registration under Central and State Excise Departments, Sales
Central Sales Tax (CST) Act Tax Department
Before commencement of production
NOC under the Water and Air Act Madhya Pradesh Pollution Control Board
NOC Fire Department
Permanent trade tax registration under Central Sales Tax Central and State Excise Departments, Sales
Act 1956 / Registration under Central Sales Tax Act 1956 Tax Department
After commencement of production/activity
Department of Commerce, Industry &
Registration Employment
Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA- Secretariat of Industrial Assistance, DIC- District Industrial Center,
Source: MP Trade & Investment Facilitation Corp. Ltd., SSIDC- Small Scale Industrial Development Corporation
36Key investment promotion offices
Agency Description
The department is responsible for industrialisation in the state through development of small, medium and
large scale industries and new investments. The department is also responsible for creation of basic
Department of Commerce, Industry
infrastructure and development of industrial parks. The department has several support institutions such
& Employment
as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas
Nigam (AKVN) in six cities.
District Trade and Industries Centres are district-level offices of the Department of Commerce, Industry
District Trade and Industries Centre and Employment of the state Government. These centres are empowered to provide clearance for setting
up industrial units.
Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a support institution of
Madhya Pradesh State Industrial Department of Commerce, Industry and Employment of the state Government. The organisation had the
Development Corporation mandate to promote the state as an industrial destination and help companies set up and expand
industries in Madhya Pradesh.
37Contact list
Agency Contact information
Mantralaya, Vallabh Bhawan
Bhopal - 462 004
Department of Commerce, Industry & Employment Madhya Pradesh, India
Phone: 91-755-2441061
Website: www.mpindustry.org
Directorate of Industries
Vindhyachal Bhawan
Bhopal
Directorate of Industries Madhya Pradesh, India
Phone: 91-755-2677988, 2677966
Email: indsbpl@mp.nic.in
Website: www.mpindustry.org
AVN Towers
192 Zone-1, M.P. Nagar
Bhopal-462 011, Madhya Pradesh
Madhya Pradesh State Industrial Development Corporation
Phone: 91-755 - 427 0370
Limited
Fax: 91-755- 427 0280
E-mail: admin@mpsidc.org, mpsidc@sancharnet.in
Website: www.mpsidc.org
38Cost of doing business in Madhya Pradesh
Cost parameter Cost estimate Source
Cost of industrial land (per sq. ft.) US$ 4.8-28.7 Industry sources
Hotel cost per room per night
US$ 76.6-95.7 Leading hotels in the state
(four-star, five-star hotel)
Residential rent
US$ 268-335 Industry sources
(for a 2,000 sq ft house, per month)
Commercial rent
US$ 0.7-3.2 Industry sources
(per sq ft per month)
Madhya Pradesh Electricity Regulatory
Power cost (per kWh) Industrial: 8-12.4 US cents
Commission
Labour Department, Madhya Pradesh
Labour cost (minimum wages per day) US$ 3.73
Government
Source: Madhya Pradesh State Portal, PwC Research
39State acts & policies…(1/2)
1
PM SVANidhi scheme 2020
To help poor street vendors, impacted by COVID-19, resume livelihood activities.
Policy for women employment
2 In December 2020, the state government announced to form a policy to increase the
number of job opportunities for women in industries.
Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme
3
In September 2020, Madhya Pradesh’s Chief Minister announced that Rs. 4,000 (US$ 54.53)
will be transferred to accounts of 1,75,000 farmers in the state every year in two instalments
under the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme.
Draft Madhya Pradesh Electric Vehicle (EV) Policy 2019
To put in place measures to support the creation of jobs in driving, selling, financing,
4 servicing, charging and manufacturing of EVs.
To enable faster adoption of electric vehicles in Madhya Pradesh by ensuring safe, reliable,
accessible and affordable Charging Infrastructure eco-system.
40State acts & policies…(2/2)
Tourism Policy 2016 (As amended in 2019)
To promote balanced and sustainable tourism, which enables socio-economic development
5 and establishes Madhya Pradesh as a destination that provides a complete tourism
experience. Aims at providing an effective regulatory mechanism for sustainable tourism
and developing the sector through PPP.
Industrial Promotion Policy 2014 (Amended as of December 2018)
To improve investor facilitation and ensure rapid economic development and employment
6 opportunities through sustainable use of available resources. Promotes SMEs and ensures
PPP initiatives for industrialisation. Envisages an industry-friendly administration and
attracting investments by developing quality infrastructure.
7
MP Incubation and Start-Up Policy 2016
To strengthen the start-up culture in the state by nurturing entrepreneurial skills
IT, ITeS and ESDM Policy 2016
8
To increase the flow of investments in the state in Information Technology industry, ITeS &
ESDM sectors.
To promote development of the IT, ITeS and ESDM sectors in a balanced manner in the State.
Madhya Pradesh Health Sector Investment Promotion Scheme, 2020
9 To encourage private investments in healthcare infrastructure in the state by incentivising
establishment of standalone healthcare centres.
41APPENDIX 42
Sources
Data Sources
GSDP (state) Ministry of Statistics and Programme Implementation
Per capita GSDP figures Ministry of Statistics and Programme Implementation
Per Capita GSDP (India) Ministry of Statistics and Programme Implementation
Installed power capacity (MW) Central Electricity Authority
Wireless subscribers (No) Telecom Regulatory Authority of India
Internet subscribers (million) Telecom Regulatory Authority of India
National highway length (km) NHAI, Roads and Building Department-Government of India
Major and Minor Ports (No) India Ports Association 2019
Airports (No) Airports Authority of India
Literacy rate (%) Census, 2011
Birth rate (per 1,000 population) SRS Bulletin, May 2020
Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry and Internal Trade
Operational PPP projects (No) DEA, Ministry of Finance, Government of India
Notified SEZs (No) Ministry of Commerce & Industry, Department of Commerce
43Exchange rates
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 72.59 2021* 73.69
Note: As of February 2021
Source: Reserve Bank of India, Average for the year
44Disclaimer India Brand Equity Foundation (IBEF) engaged Sutherland Global Services private Limited to prepare/update this presentation. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF, delivered during the course of engagement under the Professional Service Agreement signed by the Parties. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of Sutherland Global Services’ Private Limited and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Sutherland Global Services Private Limited and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability, damages or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Sutherland Global Services Private Limited nor IBEF shall be liable for any special, direct, indirect or consequential damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. 45
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