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For updated information, please visit www.ibef.org December 2019

MADHYA PRADESH

THE LAND OF DIAMONDS

SANCHI STUPA IN SANCHI, MADHYA PRADESH

Table of Content

Executive Summary……………….…..…...…..3

Introduction…….…………………...…...……...4

Economic Snapshot…………………….….…..9

Physical Infrastructure….…...........................15

Social Infrastructure…………….….........……22

Industrial Infrastructure..................................25

Key Sectors…………………………….......…27

Key Procedures And Policies........................35

Annexure……………………......................…43

For updated information, please visit www.ibef.orgMADHYA PRADESH3

EXECUTIVE SUMMARY

GSDP of Madhya Pradesh grew at a Compound Annual Growth Rate (CAGR) of 17.00 per cent* between

FY12 and FY19.

The state is rich in natural resources: fuels, minerals, agriculture & biodiversity.

Madhya Pradesh has ample reserves of coal and coal-bed methane (8.77 per cent^ of India’s total coal reserves

and 218.04 BCM of methane).

The state has the largest reserves of diamond and copper in India.

Madhya Pradesh has significant reserves of limestone, manganese and dolomite.

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.

Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG companies have

moved their warehouses here to save on logistics expenses.

Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at multiple locations aim

to promote sectoral growth.

MP is emerging as a solar power hub with an installed solar power capacity of 1,882.32 MW as of October

2019.

Source: Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas, MNRE

Source: *in Rs terms

Strong economy

Rich in natural resources

Potential for tourism

Infrastructure support

MADHYA PRADESH

INTRODUCTION


ADVANTAGE MADHYA PRADESH

Strategically located business hub

The state is centrally located in India. Major consumer goods

multinationals are situated in Madhya Pradesh in order to access major

consumer markets & metro urban communities like New Delhi (740 km1),

Mumbai (780 km1), Kolkata (1,350 km1) & Chennai (1,435 km1)

Geographical proximity with the automotive hub of NCR has favorably

impacted Madhya Pradesh’s auto ancillary industry. The state’s well

developed automotive cluster is now home to around 30 auto component

and ancillary units.

Attractive investment avenues

With around 25.11 per cent of the state’s area under forest cover, Madhya

Pradesh has an enormous potential for drug, wood & agro-based

commercial enterprises. Ideal soil & climatic conditions have made it a

primary producer of coarse cereals, oilseeds & soybean in India.

The cluster-based advancement methodology promotes investments in

automotive, textiles & biotechnology.

Plentiful limestone & coal reserves give development avenues for the

cement industry.

Policy and infrastructure support

Madhya Pradesh offers distinctive monetary & strategy/policy incentives for

organisations under the Industrial Promotion Policy-2014 & Action Plan,

other than strategies/ policies for IT, biotechnology, tourism & 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 & consents.

The state government has made some well-planned infrastructure

investments for roads & railroad systems. Government offers various

subsidies under ‘Industrial Investment Promotion Assistance (IIPA) under

2014 Schemes’ for investment in development of road, electrification,

water, industrial parks, etc.

Rich resource pool

Madhya Pradesh adds around 270,000 graduates to the workforce each

year, of which around 90,000 have technical skills. At labour costs of US$

3.7 per day, the state has a significant cost advantage over metros.

The state houses some of the country’s most reputed institutes including

Indian Institute of Management, Indian Institute of Foreign Management &

Indian Institute of Technology.

Advantage

Madhya

Pradesh

1 From Bhopal


MADHYA PRADESH VISION

Housing

Improve civic infrastructure,

including public & household

sanitation facilities

Expand availability of affordable

housing

Agriculture

Expand the outreach of agriculture

technology & irrigation to remote

farms.

Promote farm level diversification

and value addition.

Transport

Develop the transportation

network to enhance rural

connectivity

Reform the institutional

machinery for creating public

transport facilities

Infrastructure

Skill

development

Investment

promotion

Skill development by expanding

training infrastructure & capacity to

aid 1 million youth in attaining

wages & self employment

Make the state a world class

tourist destination

Promote religious, adventure &

heritage tourism & attract private

investment

Connect all villages through

world class highways

To be a leader in renewable

energy & green technology

Keep the state power surplus by

addition to the power generation

capacity

VisionEnvironment Promote social & agro forestry

Revitalise ground water

resources

Private sector participation in

maintaining waste disposal &

water conservation

Tourism

Enhance the ease of doing

business for the benefit of

investors

Attract higher investments in

manufacturing, services &

labour intensive sectors

Source: Government of Madhya Pradesh


MADHYA PRADESH FACT FILE

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.

There are 11 agro-climatic conditions and a variety of soils available

in the state to support cultivation of a wide range of crops.

Parameters Madhya Pradesh

Capital Bhopal

Geographical area (sq km) 308,000

Administrative districts (No) 51

Population density (persons per sq km) 236

Total population (million) 72.6

Male population (million) 37.6

Female population (million) 34.98

Sex ratio (females per 1,000 males) 931

Literacy rate (per cent) 70.6

Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh

Source: Government of Madhya Pradesh


MADHYA PRADESH IN FIGURES

ParameterMadhya

PradeshIndia

GSDP as a percentage of all

states’ GSDP4.25 100.00

GSDP growth rate (%) 9.71 11.46

Per capita GSDP (US$) 1,800.43 1,382.99

Madhya Pradesh’s Contribution to Indian Economy (2018-19)

Parameter Madhya Pradesh India

Installed power capacity

(MW) (as of Nov 2019)23,997.67 364,960.14

Wireless subscribers (Mn

No) (up to September

2019)75.42 1173.75

Internet subscribers (Mn)

(as of June 2019)43.26 665.31

National highway length

(km) (March 2019)8,772 132,499

Airports (No) (July 2018) 8 129

Physical Infrastructure in Madhya Pradesh

ParameterMadhya

PradeshIndia

Literacy rate (%) 70.6 73.0

Birth rate (per 1,000

population)25.1 20.4

Social Indicators

ParameterMadhya

PradeshIndia

Operational PPP projects (No)

(as of December 06,2019)187 1824

Operational SEZs (No)

(November 2019)5 238

Industrial Infrastructure

ParameterMadhya

PradeshIndia

Cumulative FDI equity inflows

since April 2000 (US$ billion)1.433 436.47

Investments (as of June 2019)

Note: PPP – Public Private Partnership, SEZ – Special Economic Zone, GSDP, per capita GSDP figures are taken at current prices, exchange rate used is average of 2017-18 i.e. 64.45

MADHYA PRADESH

ECONOMIC SNAPSHOT


ECONOMIC SNAPSHOT – GSDP

At current prices, the Gross State Domestic Product (GSDP) of

Madhya Pradesh for 2019-20 stood at Rs 8.26 trillion (US$

118.20 billion).

Between FY12 and FY20, GSDP of the state grew at a CAGR of

12.78 per cent.

GSDP of Madhya Pradesh at current prices

65

.81

69

.96

72

.64

78

.52

81

.03 9

5.2

8

10

9.7

0

11

2.1

7

11

8.2

0

3.1

6 3.8

1 4.3

9

4.8

0 5.3

0

6.3

9 7.0

7

8.0

9

8.2

60

1

2

3

4

5

6

7

8

9

0

20

40

60

80

100

120

140

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9

201

9-2

0

US$ billion Rs trillion

CAGR (in Rs) 12.78 per cent

Source: Ministry of Statistics and Programme Implementation

Per capita GSDP of Madhya Pradesh at current prices

89

8.4

8

94

1.2

9

96

3.2

7

10

26

.10

10

43

.69

12

09

.42

13

72

.41

13

82

.99

43

08

2.0

0

51

25

3.0

0

58

27

8.0

0

62

74

6.0

0

68

32

0.0

0

81

14

0.0

0

88

45

2.0

0

99

78

2.6

0

0

20,000

40,000

60,000

80,000

100,000

120,000

0

200

400

600

800

1,000

1,200

1,400

1,600

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9

US$ Rs


The state’s per capita GSDP in 2018-19 was Rs 99,782.60 (US$

1,382.99) in comparison with Rs 43,082 (US$ 898.48) in 2011-

12.

Per capita NSDP in the state increased at a CAGR of 15.03 per

cent between FY12 and FY18.


ECONOMIC SNAPSHOT – NSDP

The Net State Domestic Product (NSDP) of Madhya Pradesh

was about Rs 7.38 trillion (US$ 102.30 billion) in 2018-19.

Between FY12 and FY18, state’s NSDP grew at a CAGR of

about 17.37 per cent.

NSDP of Madhya Pradesh at current prices

58

.89

61

.33

64

.98

70

.19

72

.59

86

.03 9

9.1

1

10

2.3

0

2.8

2 3.3

4 3.9

3

4.2

9 4.7

5

5.7

7 6.3

9

7.3

80

1

2

3

4

5

6

7

8

0

20

40

60

80

100

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9

US$ billion Rs trillion



Per capita NSDP of Madhya Pradesh at current prices

80

3.9

8

82

5.1

8

86

1.6

4

91

7.3

0

93

4.9

8

10

92

.09

12

39

.83

12

61

.23

38

55

1.0

0

44

93

1.0

0

52

12

9.0

0

56

09

3.0

0

61

20

4.0

0

73

26

8.0

0

79

90

7.0

0

90

99

8.0

1

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

0

200

400

600

800

1,000

1,200

1,400

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9

US$ Rs


The state’s per capita NSDP in 2018-19 was Rs 90,998 (US$

1,261.23) comparison with Rs 38,551.00 (US$ 803.98) in 2011-12.

Per capita GSDP of the state increased at a CAGR of 15.39 per

cent between FY12 and FY18.


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSVA

In 2018-19, the primary sector contributed 50.40 per cent to the

state’s GSVA at current prices, followed by tertiary sector with a

contribution of 40.93 per cent & secondary sector contributing 22.55

per cent.

At a CAGR of 18.23 per cent, the primary sector witnessed the

fastest growth among the three sectors, between FY12 and FY19.

The tertiary sector expanded at a CAGR of 12.44 per cent between

FY12 and FY19. Growth has been driven by trade, hotels, real

estate, finance, insurance, transport, communications & other

services.

The secondary sector expanded at a CAGR of 8.80 per cent

between FY12 and FY19 driven by manufacturing, electricity, gas &

water supply & construction sectors.

Visakhapatnam port traffic (million tonnes)GVA composition by sector

33.85%

50.40%

27.09%22.55%

39.06% 40.93%

2011-12 2018-19

Primary Sector Secondary Sector Tertiary Sector

18.23%

12.44%

8.80%

CAGR*


Note: CAGR* is in Rs terms


ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

According to the Department for Promotion of Industry and Internal

Trade (DPIIT), FDI inflows in Madhya Pradesh, from April 2000 to

June 2019, totaled to US$ 1,433 million.

The state will be holding the sixth edition of its Global Investors

Summit in October 2019. At the previous edition, the state witnessed

expression of interest’s worth Rs 5,62,887 crore (US$ 83.75 billion).

152 investment intentions worth Rs 12,604 crore (US$ 1.80 billion)

were filed in the state during 2019*.

Visakhapatnam port traffic (million tonnes)FDI Inflows in Madhya Pradesh in April 2000-June 2019 (US$

million)

123220

118101

80 76 2832

2

1,431

65

4

0

500

1000

1500

2000

FY

01-F

Y1

1

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

FY

18

FY

19

FY

20

FY

01-F

Y1

9

Source: Department for Promotion of Industry and Internal Trade

Year Number Proposed Investments (US$ billion)

2017 76 1.10

2018 140 3.49

2019* 152 1.80

Investment intentions in terms of IEMs filed, LOIs / DILs issued

Note: *- till October 2019


ECONOMIC SNAPSHOT – EXPORT TRENDS

Merchandise exports from Madhya Pradesh have increased from US$ 4.13 billion in 2014-15 to US$ 6.38 billion in FY18-19 and reached US$

2.65 billion in 2019-20*.

Drug Formulations and Biologicals is the largest export item from the state, accounting for 15 per cent of total exports in 2018-19*, followed by AC,

Refrigeration Machinery, etc (9 per cent) and Oil Meals (6 per cent).

As of September 2017, the state was home to seven functional Export Oriented Units (EOUs). EOUs receive various benefits including duty free

imports, benefits of MEIS scheme and reimbursement of Central Sales Tax (CST) on items not covered under Goods and Services Tax (GST).

Source: DGCIS Analytics

Merchandise Exports from Madhya Pradesh (US$ billion)

4.13 3.97

4.44

5.25

6.38

2.66

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9

201

9-2

0*

Principal Commodities Exported in 2019-20*

22%

5%

5%

7%

5%6%5%

5%

38%

Drug Formulations,Biologicals

AC, RefrigerationMachinery, Etc

Oil Meals

Aluminium, Products ofAluminium

Cotton Yarn

Cotton Fabrics, Madeups,Etc

Manmade Yarn, Fabrics,Madeups

Bulk Drugs, DrugIntermediates

Others

Note: *- till September 2019

MADHYA PRADESH

PHYSICAL

INFRASTRUCTURE


PHYSICAL INFRASTRUCTURE – ROADS

Madhya Pradesh has national highways measuring 8,772* km. The

state also has 11,389 km of state highways, as of March 2019.

Under Prime Minister Gram Sadak Yojana, 5,222.45 km of roads

were constructed in the state in 2017-18.

For the construction of roads through M.P. Road Development

Corporation, allocation of US$ 42.92 million has been proposed by

the state government in State Budget 2019-20.

As per State budget 2019-20, provision of US$ 200 million under

Mukhyamantri Gram Sadak Yojana and that of US$ 28.62 million for

State Rural Road Connectivity Scheme, have been made.

Under State Budget 2019-20, government has allocated Rs 2,500

crore (US$ 357.70 million) for Pradhan Mantri Gram Sadak Yojana.Road type Road length (km)

National highways 8,772

State highways 11,389

Major district roads 22,129

Village roads 23,395

Road length 64,719

Source: NHAI, Ministry of Road Transport & Highways, State Budget 2019-20

Road Construction under PMGSY (in km)

78

93

.72

10

39

8.0

1

91

63

.26

29

26

.66

27

54

.18

30

06

.27

51

80

.92

44

53

.23

50

81

.97

52

22

.45

0

2,000

4,000

6,000

8,000

10,000

12,000

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8


PHYSICAL INFRASTRUCTURE – RAILWAYS

Madhya Pradesh has around 4,954 km 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

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).

Source: Maps of India


PHYSICAL INFRASTRUCTURE – AIRPORTS

Madhya Pradesh has five operating airports at Jabalpur, Bhopal,

Indore, Gwalior and Khajuraho.

Indore and Bhopal airports are the busiest airports in the state.

During 2019-20, passenger traffic at Indore airport reached

1,633,959 passengers with overall aircraft movement of 12,736

aircrafts. For the same period, passenger traffic at Bhopal airport

was 813,423 passengers with overall aircraft movement of 8,971

aircrafts.

Both Indore and Bhopal airports have strong cargo handling

capacity. During April-October 2019, Indore airport handled 6,543

tonnes of cargo, whereas Bhopal airport handled 765 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.

Airport 2017-18 2018-19 2019-20*

Indore 2,269,971 3,158,938 1,633,959

Bhopal 722,243 810,307 813,423

Passenger traffic

Airport 2017-18 2018-19 2019-20*

Indore 18,692 26,442 12,736

Bhopal 7,205 8,860 8,971

Aircraft movements

Airport 2017-18 2018-19 2019-20*

Indore 10,851 11,729 6,543

Bhopal 1,153 1,746 765

Freight traffic (in tonnes)

Source: Airports Authority of India

Note: *- till October 2019


As of November 2019, Madhya Pradesh had total installed power generation capacity of 23,997.67 MW, comprising 7,187.62 MW under state

utilities, 6,022.38 MW under central utilities and 10,787.67 MW under private sector.

Of the total installed power generation capacity, 15,648.38 MW was contributed by thermal power, 3,223.66 MW was contributed by hydropower,

273 MW was contributed by nuclear power and renewable power contributed 4,852.63 MW. The total budget allocation for the energy sector in the

state is estimated to be Rs 9,888 crore (US$ 1.41 billion) during 2019-20.

From April 2019, Rewa Ultra Mega Solar Limited (RUMSL) in Madhya Pradesh started providing 27 megawatt of solar power to Delhi Metro Rail

Corporation (DMRC).

In December 2019, the government announced setting up a 2,000 MW Solar Power Park in the Bundelkhand and Chambal regions.

PHYSICAL INFRASTRUCTURE – POWER

Installed power capacity (MW)

13

,84

6.6

0

15

,87

6.8

0

18

,81

3.6

5

19

,61

8.2

8

20

,32

1.8

7

23

,33

4.4

0

23

,99

7.6

7

0

5,000

10,000

15,000

20,000

25,000

30,000

FY14 FY15 FY16 FY17 FY18 FY19 FY20*

Break-up of installed capacity by source of power generation

(November 2019)

65.21%

13.43%

20.22%

1.14%

Thermal Power

Hydropower

Renewable Power

Nuclear Power

Source: Central Electricity Authority, news sources


PHYSICAL INFRASTRUCTURE – TELECOM

According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh (including Chhattisgarh) had nearly 75.42 million wireless

subscribers and 0.93 million wireline subscribers, as of September 2019.

Internet subscribers in the state reached 43.26 million, as of June 2019.

As of September 2019, tele-density (telephone connections per 100 persons) in Madhya Pradesh stood at 70.28 per cent.

As of end of September 2019, 30.21 million people have submitted requests for mobile number portability in the state.

The first phase of the Bharat Net project has been completed. The second phase is being undertaken by BSNL in the state.

Telecom infrastructure (as of September 2019)

Wireless subscribers 75,422,359

Wire-line subscribers 935,184

Internet subscribers(in million)

(as of June 2019)43.26

Teledensity (in per cent) 70.28

Mobile Number Portability requests (in million) 30.21

Source: Telecom Regulatory Authority of India, Department of Telecommunications, *including Chhattisgarh

Total GPs 22,946

Cable laid (kms.) 40,376

GPs for which cable laid (As of

December 23, 2018)12,691

GPs connected (As of January 2,

2019)12,687

Service ready GPs (as of

November 2019)12,699

Performance status of Bharat Net project (as of December 2, 2018)


PHYSICAL INFRASTRUCTURE – URBAN

Source: Bhopal Municipal Corporation, Ministry of Urban Development, Census 2011, State Budget 2019-20

Cities Population Literacy rate

Bhopal 2,371,061 80.37%

Indore 3,276,697 80.87%

Gwalior 2,032,036 76.65%

Ujjain 1,986,864 72.34%

Jabalpur 2,463,289 81.07%

Sagar 2,378,458 76.46%

Satna 2,228,935 72.26%

Smart cities in Madhya Pradesh In State Budget 2019-20, an allocation of Rs 300 crore (US$ 42.94

million) was made for the Smart Cities Mission.

Seven cities of the state have been selected for Government of

India’s Smart Cities Mission.

Also, the state is home to 34 cities which have been chosen for

AMRUT Mission.

Under the State Budget 2019-20, government has been allocated Rs

4,200 crore (US$ 600.94 million) for ‘Housing for All’ under Urban

Development & Housing Department, Rs 2,000 crore (US$ 286.16

million) towards AMRUT.

MADHYA PRADESH

SOCIAL

INFRASTRUCTURE


SOCIAL INFRASTRUCTURE – EDUCATION

Madhya Pradesh had a literacy rate of 70.6 per cent; the male

literacy rate is 80.5 per cent and the female literacy rate is 60.0 per

cent.

As per the State Budget 2019-20, the government proposed an

allocation of Rs 24,499 crore (US$ 3.51 billion) & Rs 2,342 crore

(US$ 335.10 million) for the development of school education &

higher education in the state.

Under the State Budget 2019-20, government has allocated Rs

3,109 crore (US$ 444.8 million) for Sarva Shiksha Abhiyan and Rs

750 crore (US$ 107.31 million) for Rastriya Madhyamik Shiksha

Abhiyan.

In the State Budget 2019-20, the government proposed an allocation

of Rs 360 crore (US$ 51.51 million) under skill development scheme.

Category Literacy rate (per cent)

Total 70.6

Male 80.5

Female 60.0

Reputed institutes of Madhya Pradesh

Indian Institute of Management (IIM), Indore

Indian Institute of Forest Management, Bhopal

Institute of Hotel Management, Bhopal

International Institute of Professional Studies, Indore

Indian Institute of Technology (IIT), Indore

Educational Institutions (as of September 2017)

Government Primary schools 83,890

Total high schools (including private) 7,882

Total higher secondary schools (including private) 9,074

Engineering & architecture colleges 180

MCA 49

MBA 164

B Pharma/D Pharma 100

Diploma (Engineering) 149

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 2019-20


SOCIAL INFRASTRUCTURE – HEALTH

As of December 17, 2019, 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.

As per the State Budget 2019-20, government has allocated Rs 2,735 crore (US4 391.33 million) to the National Health Mission.

The state government proposed an allocation of Rs 7,547 crore (US$ 1.08 billion) for the development of Public Health And Family Welfare

Department in the state, during 2019-20.

Under Public Health Engineering, an allocation of Rs 4,366 crore (US$ 624.70 million) was made by the state government, as per the State

Budget 2019-20.

Health institutions (December 17, 2019)

Sub Centres 12,128

Primary Health Centres 1,566

Community Health Centres 424

Sub District Hospitals 211

District Hospitals 52

Health indicators of Madhya Pradesh (2016)

Birth rate1

25.1

Death rate1

7.1

Infant mortality rate2

47

Life expectancy at birth (years)

Male (2011-15) 64.5

Female (2011-15) 65.3

Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, State Budget 2019-20

Source: 1Per thousand persons, 2Per thousand live births

MADHYA PRADESH

INDUSTRIAL

INFRASTRUCTURE


INDUSTRIAL INFRASTRUCTURE

Madhya Pradesh State Industrial Development Corporation Limited

(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.

MPSIDC has established seven growth centres at Bhopal, Gwalior,

Jabalpur, Indore, Rewa, Ujjain and Sagar. These growth centres are

known as Madhya Pradesh Audyogik Kendra Vikas Nigam Limited

(AKVN).

Work on development of infrastructure in 22 industrial units is

underway with an investment of Rs 1,820 crore (US$ 281.12 million).

The works is expected to be completed by December 2018.^

The state is home to five operational SEZs, six notified SEZs and 12

formally approved SEZs. Bhopal, Indore, Gwalior and Jabalpur are

the major locations where SEZs have been approved. These SEZs

have been proposed for IT/ITeS, mineral-based, agro-based and

multi-products.

Source: MP Trade & Investment Facilitation Corporation Ltd, Department of Industrial Policy and Promotion

Operational SEZs in Madhya Pradesh (As of November 2019)

Name of SEZ Industry Location

Crystal IT Park IT/ ITeS Indore

Infosys Ltd IT Indore

Impetus Infotech Pvt.

Ltd.IT/ ITeS Indore

Tata Consultancy

Services Limited IT/ITES/BPO/KPO Indore

Indore SEZ Multi-product Dhar

MADHYA PRADESH

KEY SECTORS

Agriculture and Food Processing

Textiles

Tourism

Pharmaceuticals

Mineral-based Industry


KEY SECTORS – AGRICULTURE AND FOOD

PROCESSING

CropAnnual production – 2018-19

(‘000 MT)

Rice* 7,305.00

Maize* 4,680.00

Wheat* 18,999.00

Food grains* 42,136.00

Pulses* 9,169.00

Oilseeds* 6,936.00

Sugarcane (in the form of jaggery)* 543.00

Cotton*@

2,859.00

Fruits 7464.97

Vegetables 17773.19

Agriculture is the main source of livelihood for the people of the Madhya Pradesh. In 2017-18, the state produced 42.14 million metric tonnes of

foodgrains.

An amount of Rs 46,559 crore (US$ 6.6 billion) was allocated to farmers welfare and agriculture development in State Budget 2019-20.

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 December 2019, the Avantee Mega Food Park was inaugurated, which is constructed in Dewas and spread over 51 acres.

Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, MP Economic Survey 2017-18, State Budget 2019-20

Note: *Estimate, #as per first advance estimates, @in 170 kg bales, **only APEDA products, MTPH – Metric Tonnes Per Hour, ^- Till September 2019

Agriculture Exports from Madhya Pradesh (US$ million)**1

08

.81

91

.53

93

.03

14

1.3

6

13

4.6

0

62

.66

0

20

40

60

80

100

120

140

160

FY15 FY16 FY17 FY18 FY19 FY20^


KEY SECTORS – TEXTILES … (1/2)

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 stood at US$ 143.06 million in 2019-20 and formed around seven per cent of the state’s total exports during the year.

To attract investments into the sector, the government has provided an interest subsidy for five years at a rate of 5 per cent for textile projects

and 7 per cent for composite textile projects without capping. Furthermore, the government provided 100 per cent 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.

Production of textile raw material in Madhya Pradesh (in MMT) Exports of Cotton Yarn from Madhya Pradesh (US$ million)

37

7.4

2

36

6.3

7

21

4.6

7

35

0.8

7

26

6.5

6

14

3.0

6

0

50

100

150

200

250

300

350

400

FY15 FY16 FY17 FY18 FY19 FY20*

Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory Board

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

19

.00

19

.00

18

.00

20

.50

20

.50

24

.00

0

19

5.0

0

24

8.0

0

25

7.0

0

11

1.0

0

10

3.0

0

10

0.0

0

0

50

100

150

200

250

300

0

10

20

30

40

50

FY14 FY15 FY16 FY17 FY18 FY19

Cotton Production^ Silk Production


KEY SECTORS – TEXTILES … (2/2)

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

standalone terry towel manufacturing facility resides at the plant.Trident Limited

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

international apparel manufacturers.Grasim Industries Ltd

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

metres per annum.Vardhman Textiles Ltd

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 per cent 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 Chhindwara in Madhya Pradesh.Raymond Ltd

Key players in textiles industry


KEY SECTORS – TOURISM

Madhya Pradesh is blessed with scenic beauty, rich heritage of pilgrim centres, temples & wildlife sanctuaries.

During 2017, foreign tourist arrivals and domestic tourist visits in the state stood at 0.36 million and 78.04 million, respectively.

As per State Budget 2019-20, the state government proposed an allocation of Rs 229 crore (US$ 32.77 million) for the development of the

state’s tourism department.

Major places of tourist interest in Madhya Pradesh are as follows:

• Kanha: One of the largest wild-life sanctuaries in Asia.

• 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.

Foreign tourist arrivals (in millions)

0.2

3

0.2

5

0.2

0 0.2

5

0.2

7

0.2

8

0.2

8

0.3

2

0.4

2

0.3

6

0.3

6

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Source: MP economic survey 2017-18, Ministry of Tourism, State Budget 2019-20

Domestic tourist visits (in millions)

63

.11

63

.61

77

.98

15

0.4

9

78

.04

83

.97

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

201

3

201

4

201

5

201

6

201

7

201

8


KEY SECTORS – PHARMACEUTICALS

Madhya Pradesh is home to over 280 pharmaceutical units operating

in the industrial areas of Dewas, Indore, Pithampur, Mandideep and

Malanpur.

Indore is one of the largest producers of pharmaceuticals like tablets,

capsules, formulations in India.

Pithampur SEZ located in Indore is a production hub for

pharmaceutical majors such as Cipla, Lupin, Mylan, etc.

Exports of drug formulations and biologicals formed nearly 17.78 per

cent of the state’s total exports in 2018-19.

Source: Invest India

Exports of Drug Formulations and Biologicals from Madhya

Pradesh (US$ million)

49

2.8

9

65

3.5

7

52

5.7

8

90

9.2

4

84

5.2

2

59

7.2

4

0

100

200

300

400

500

600

700

800

900

1000

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

201

8-1

9

201

9-2

0*

Note: *- till September 2019


KEY SECTORS – MINERAL-BASED INDUSTRY … (1/2)

Madhya Pradesh is one of the key mineral-producing states in India,

providing tremendous potential for industrial growth.

The state has rich deposits of coal, limestone and manganese.

Bauxite, dolomite, fire clay, granite and marble stones are other

mineral resources available.

Major mineral-based industries in the state are cement, thermal

power generation, ceramic-products, tiles and refractory.

The state is also the sole diamond producing state in the country.

Diamond production in the state reached 32,718 thousand tonnes

during 2018-19*.

Source: Indian Bureau of Mines

Mineral 2016-17 2017-18 2018-19*

Coal 108,548 112,239 107,030

Bauxite 658.38 581.39 644.45

Copper ore 2,415.33 2,339.04 2,279.85

Copper conc. 68.19 75.48 76.55

Iron ore 1,730 2,679 2,523

Manganese ore 648.13 831.35 813.19

Phosphorite 68.80 113.30 98.60

Diamond (in carat) 36,516 39,699 32,718

Limestone 35,843 42,744 45,029

Mineral production in Madhya Pradesh (‘000 MT)

Note: MT – Metric Tonnes, * Up to Feb 2019


KEY INDUSTRIES – MINERAL-BASED INDUSTRY …

(2/2)

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 per cent 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 per cent 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

MADHYA PRADESH

KEY PROCEDURES

AND POLICIES


KEY APPROVALS REQUIRED

List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

Registration DIC for SSI/ SIA for large and medium industries

Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC

Permission for land useDistrict authorities/ State DI/ Dept. of Town and Country Planning (in case

industry is located outside an industrial area)

No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board

Approval for construction activity and building planTown and Country Planning/ Municipal and local authorities/ Chief Inspector of

Factories/ Pollution Control Board, Electricity Board

No objection certificate Fire Department

Provisional Trade Tax registrations Central and State Excise Departments, Sales Tax Department

Before commencement of production

No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board

No objection certificate Fire Department

Permanent trade tax registration under Central Sales Tax Act 1956 Central and State Excise Departments, Sales Tax Department

Registration under Central Sales Tax Act 1956

After commencement of production/activity

Registration Department of Commerce, Industry & Employment

Source: MP Trade & Investment Facilitation Corp. Ltd., TechSci Research Research SSIDC- Small Scale Industrial Development Corporation

Note: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA- Secretariat of Industrial Assistance, DIC- District Industrial Center,


KEY INVESTMENT PROMOTION OFFICES

Agency Description

Department of Commerce, Industry

& Employment

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

infrastructure and development of industrial parks. The department has several support institutions such

as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas

Nigam (AKVN) in six cities.

District Trade and Industries Centre

District Trade and Industries Centres are district-level offices of the Department of Commerce, Industry

and Employment of the state government. These centres are empowered to provide clearance for setting

up industrial units.

Madhya Pradesh State Industrial

Development Corporation

Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a support institution of

Department of Commerce, Industry and Employment of the state government. The organisation had the

mandate to promote the state as an industrial destination and help companies set up and expand

industries in Madhya Pradesh.


CONTACT LIST

Agency Contact information

Department of Commerce, Industry & Employment

Mantralaya, Vallabh Bhawan

Bhopal - 462 004

Madhya Pradesh, India

Phone: 91-755-2441061

Website: www.mpindustry.org

Directorate of Industries

Directorate of Industries

Vindhyachal Bhawan

Bhopal

Madhya Pradesh, India

Phone: 91-755-2677988, 2677966

Email: [email protected]

Website: www.mpindustry.org

Madhya Pradesh State Industrial Development Corporation

Limited

AVN Towers

192 Zone-1, M.P. Nagar

Bhopal-462 011, Madhya Pradesh

Phone: 91-755 - 427 0370

Fax: 91-755- 427 0280

E-mail: [email protected], [email protected]

Website: www.mpsidc.org


COST 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

(four-star, five-star hotel)US$ 76.6-95.7 Leading hotels in the state

Residential rent

(for a 2,000 sq ft house, per month)US$ 268-335 Industry sources

Commercial rent

(per sq ft per month)US$ 0.7-3.2 Industry sources

Power cost (per kWh) Industrial: 8-12.4 US centsMadhya Pradesh Electricity Regulatory

Commission

Labour cost (minimum wages per day) US$ 3.73Labour Department, Madhya Pradesh

Government

Source: Madhya Pradesh State Portal, PwC Research


STATE ACTS & POLICIES … (1/3)

Objectives

To promote balanced and sustainable tourism, which enables socio-economic development 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.

Tourism Policy 2016

(As amended in 2019)

Read more

Draft Madhya Pradesh

Electric Vehicle (EV)

Policy 2019

To put in place measures to support the creation of jobs in driving, selling, financing, 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 Read more

To improve investor facilitation and ensure rapid economic development and employment 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.

Industrial Promotion

Policy 2014

(Amended as of

December 2018)

Read more

MP Incubation and Start-

Up Policy 2016 To strengthen the start-up culture in the state by nurturing entrepreneurial skills

Read more

http://madhyapradeshtourism.gov.in/Downloads/TourismPolicy.pdfhttp://www.mpurban.gov.in/pdf/MPEVDPolicy2019.pdfhttp://bhabha-coe.mapit.gov.in/commerce/upload/files/333215535352.pdfhttps://www.startupindia.gov.in/content/dam/invest-india/Templates/public/state_startup_policies/Madhya_Pradesh Incubation & Startup Policy 2016.pdf



Objectives

Ensures quick and timely disposal of investors’ applications at various levels.

To strengthen & make the single-window system more effective.Read more

Madhya Pradesh

Investment Facilitation Act

2008

IT, ITeS and ESDM

Policy 2016

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.Read more

To increase the flow of investments in the field of electronics manufacturing in the state.

Maximising employment generation opportunities and promoting establishment of FAB units.

Analog Semiconductor

Fabrication Investment

Policy 2015

To boost the flow of investments in the BPO/BPM industry along with promoting establishment of IT/ITeS units in

the urban as well as rural areas in the state.

To generate and maximise employment opportunities for youth as well as development and infrastructure

opportunities in smaller cities in the state.

BPO Policy 2014

To encourage participation of private sectors to set up Solar Power based projects in the state

Read more

Madhya Pradesh Solar

Power 2012

Read more

Read more

http://www.mpindustry.gov.in/upload/files/332346543779.pdfhttp://www.dit.mp.gov.in/documents/10192/1298301/IT Policy 2016.pdfhttp://www.mpnred.com/Images/pdf/solar-power-policy-english.pdfhttp://www.aiggpa.mp.gov.in/images/files/KAIR/MP-STATE-POLICIES/INDUSTRY/Analog Semiconductor Fabrication Investment Policy, 2015.pdfhttp://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=A60U-U4S9-H6MM-R9MH-FKWX-O55L-Y0UC-V4X6http://mpsedc.com/Documents/Final BPO Policy 2014 - 07 10 14.pdf



Conservation of the state’s biodiversity & sustainable use of biotechnology resources.

Production of high-yielding, draught and pest-resistant seeds for agriculture & horticulture crops suited to different

agro-climatic zones.

Improvement of quality of livestock & poultry, especially the breeds indigenous to the state.

Afforestation as well as production of cost-effective drugs to treat common diseases of the

tropical & sub-tropical regions of the country.

Biotechnology Policy

2003

Objectives

Special Economic Zone

Policy 2000

To promote development of SEZs in the state.

To increase employment opportunities in the state.

Read more

Read more

http://www.mpbiotech.nic.in/policy.pdfhttp://sezindia.nic.in/upload/uploadfiles/files/11mp_policy.pdf

MADHYA PRADESH

ANNEXURE


ANNEXURE…(1/2) - 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, as of November 2019

Wireless subscribers (No) Telecom Regulatory Authority of India, as of September 2019

Internet subscribers (Mn) Telecom Regulatory Authority of India, as of June 2019

National highway length (km) NHAI, Roads and Building Department-Government of India

Airports (No) Airports Authority of India

Literacy rate (%) Census 2011

Birth rate (per 1,000 population) Census 2011

Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to June 2019

Operational PPP projects (No) DEA , Ministry of Finance, Government of India

Operational SEZs (No) Ministry of Commerce & Industry, Department of Commerce, November 2019


ANNEXURE…(2/2) - EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$

2004–05 44.95

2005–06 44.28

2006–07 45.29

2007–08 40.24

2008–09 45.91

2009–10 47.42

2010–11 45.58

2011–12 47.95

2012–13 54.45

2013–14 60.50

2014-15 61.15

2015-16 65.46

2016-17 67.09

2017-18 64.45

2018-19 69.89

Year INR Equivalent of one US$

2006 45.33

2007 41.29

2008 43.42

2009 48.35

2010 45.74

2011 46.67

2012 53.49

2013 58.63

2014 61.03

2015 64.15

2016 67.21

2017 65.12

2018 68.36

2019 69.89

Source: Reserve Bank of India, Average for the year


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