MADHYA PRADESH · Pradesh has an enormous potential for drug, wood & agro-based commercial...

For updated information, please visit www.ibef.org June 2020

MADHYA PRADESHTHE LAND OF DIAMONDS

SANCHI STUPA IN SANCHI, MADHYA PRADESH

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 And Policies........................35

Annexure……………………......................…42

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

EXECUTIVE SUMMARY

GSDP of Madhya Pradesh grew at a Compound Annual Growth Rate (CAGR) of 11.71 per cent* betweenFY16 and FY20.

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 reservesand 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 havemoved their warehouses here to save on logistics expenses.

Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at multiple locations aimto promote sectoral growth.

MP is emerging as a solar power hub with an installed solar power capacity of 1,882.32 MW as of October2019.

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

AdvantageMadhya 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 surroundedby Uttar Pradesh in North, Chhattisgarh in East, Maharashtra inSouth, Gujarat and Rajasthan in west.

The most commonly spoken language of the state is Hindi. Englishand Marathi are the other languages used.

Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the keycities of the state.

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

Parameter Madhya Pradesh India

GSDP as a percentage of all states’ GSDP 4.25 100.00

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)


Installed power capacity (MW) (as of March 2020) 24,821.05 370,106.46

Wireless subscribers (million)^ (as of January 2020)

74.60 1,156.43

Internet subscribers (million)^ (as of September 2019)

44.44 687.62

National highway length (km) (March 2019) 8,772 132,499

Airports (No) (July 2018) 8 129

Physical Infrastructure in Madhya Pradesh


Literacy rate (%) 70.6 73.0

Birth rate (per 1,000 population) 25.1 20.4

Social Indicators


Operational PPP projects (No) (as of December 06,2019) 187 1824

Operational SEZs (No)(November 2019)

5 238

Industrial Infrastructure


Cumulative FDI equity inflows since April 2000 (US$ billion) 1.53 469.99

Investments (as of March 2020)

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) ofMadhya Pradesh for 2019-20 stood at Rs 8.26 trillion (US$118.20 billion).

Between 2015-16 and 2019-20, GSDP of the state grew at aCAGR of 11.71 per cent.

GSDP of Madhya Pradesh at current prices

81.0

3 95.2

8 109.

70

112.

17

118.

20

5.30

6.39 7.

07

8.09 8.26

0

1

2

3

4

5

6

7

8

9

0

20

40

60

80

100

120

140

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

US$ billion Rs trillion

CAGR (in Rs) 11.71%

Source: Ministry of Statistics and Programme Implementation

Per capita GSDP of Madhya Pradesh at current prices

1043

.69

1209

.42

1372

.41

1416

.87

1551

.60

6832

0.00

8114

0.00

8845

2.00

9902

5.36

1093

71.9

7

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

1,800

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

US$ Rs

CAGR (in Rs) 12.48%

The state’s per capita GSDP was almost Rs 109,372 (~ US$1,552) in 2019-20.

Per capita NSDP in the state increased at a CAGR of 12.48 percent between 2015-16 and 2019-20.


ECONOMIC SNAPSHOT – NSDP

Net State Domestic Product (NSDP) of Madhya Pradesh wasabout Rs 8.27 trillion (US$ 117.32 billion) in 2019-20.

Between 2015-16 and 2019-20, state’s NSDP grew at a CAGRof about 14.21 per cent.

NSDP of Madhya Pradesh at current prices

72.5

9 86.0

3 99.1

1

105.

47 117.

32

4.86

5.91 6.

58

7.37

8.27

0

1

2

3

4

5

6

7

8

9

0

20

40

60

80

100

120

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

US$ billion Rs trillion

CAGR (in Rs) 14.21%

Source: Ministry of Statistics and Programme Implementation

Per capita NSDP of Madhya Pradesh at current prices

934.

98 1092

.09

1239

.83

1290

.10

1415

.28

6120

4.00

7326

8.00

7990

7.00

9016

5.33

9976

3.39

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

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

US$ Rs

CAGR (in Rs) 12.99%

The state’s per capita NSDP in 2019-20 was Rs 98,763 (US$1,415.26).

Per capita NSDP of the state increased at a CAGR of 12.99 percent between 2015-16 and 2019-20.


ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSVA

In 2019-20, primary sector contributed 56.70 per cent to the state’sGSVA at current prices, followed by tertiary sector (47.14 per cent)and secondary sector (22.55 per cent).

At a CAGR of 17.50 per cent, primary sector witnessed the fastestgrowth among the three sectors between FY12 and FY20.

Tertiary sector expanded at a CAGR of 12.78 per cent betweenFY12 and FY20. Growth was driven by trade, hotels, real estate,finance, insurance, transport, communications & other services.

Secondary sector expanded at a CAGR of 8.70 per cent betweenFY12 and FY20, driven by manufacturing, electricity, gas and watersupply, and construction sectors.

Visakhapatnam port traffic (million tonnes)GVA composition by sector

33.85%

56.70%

27.09% 24.35%

39.06% 47.14%

2011-12 2019-20

Primary Sector Secondary Sector Tertiary Sector

17.50%

12.78%

8.70%

CAGR*

Source: Ministry of Statistics and Programme ImplementationNote: CAGR* is in Rs terms


ECONOMIC SNAPSHOT – FDI INFLOW & INVESTMENTS

According to Department for Promotion of Industry and InternalTrade (DPIIT), FDI inflow in Madhya Pradesh stood at US$ 1,513million between April 2000 and March 2020,

The state will be holding the sixth edition of its Global InvestorsSummit in October 2019. At the previous edition, the state witnessedexpression of interest’s worth Rs 5,62,887 crore (US$ 83.75 billion).

152 investment intentions worth Rs 12,762 crore (US$ 2.47 billion)were filed in the state during 2019.

Visakhapatnam port traffic (million tonnes)FDI Inflow in Madhya Pradesh in April 2000-March 2020 (US$ million)

123220

118101

80 76 28 32

82

1,513

654

0

500

1000

1500

2000

FY01

-FY1

1

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY01

-FY2

0

Source: Department for Promotion of Industry and Internal Trade

Year Number Proposed Investments (US$ billion)

2017 76 1.10

2018 140 3.49

2019 178 2.47

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


ECONOMIC SNAPSHOT – EXPORT TRENDS

Merchandise export from Madhya Pradesh reached US$ 6.38 billion in FY19 and US$ 4.02 billion in FY20*.

Drug Formulations and Biologicals is the largest export item from the state, accounting for 15 per cent of total export in FY20*, followed by AC,Refrigeration Machinery, etc (9 per cent) and Oil Meals (6 per cent).

Source: DGCIS Analytics

Merchandise Export from Madhya Pradesh (US$ billion)

4.44

5.25

6.38

4.02

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

FY17

FY18

FY19

FY20

*

Principal Commodities Exported in FY20*

22%

5%

6%

7%6%6%5%

5%

39%

Drug Formulations,BiologicalsAC, RefrigerationMachinery, EtcOil Meals

Aluminium, Products ofAluminiumCotton Yarn

Cotton Fabrics, Madeups,EtcManmade Yarn, Fabrics,MadeupsBulk Drugs, DrugIntermediatesOthers

Note: *- till December 2019

MADHYA PRADESH

PHYSICAL INFRASTRUCTURE


PHYSICAL INFRASTRUCTURE – ROADS

Madhya Pradesh has national highways measuring 8,772* kms. Thestate also has 11,389 km of state highways, as of March 2019.

For the construction of roads through M.P. Road DevelopmentCorporation, allocation of US$ 42.92 million has been proposed bythe state Government in State Budget 2019-20.

As per State Budget 2019-20, provision of US$ 200 million underMukhyamantri Gram Sadak Yojana and that of US$ 28.62 million forState Rural Road Connectivity Scheme, have been made.

Under State Budget 2019-20, Government has allocated Rs 2,500crore (US$ 357.70 million) for Pradhan Mantri Gram Sadak Yojana.

Road type Road length (kms)

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


PHYSICAL INFRASTRUCTURE – RAILWAYS

Madhya Pradesh has around 4,954 kms of railway lines and thestate is connected to different states of the country through morethan 425 trains which travel on daily basis.

By end of 2019, Habibganj railway station in Madhya Pradesh willbecome Indian Railways’ first airport-like hub.

The railway network in Madhya Pradesh primarily falls under theWest-Central Railways, which was formed in 2002 and isheadquartered in Jabalpur. Part of the state is also covered byCentral and Western Railways.

Being centrally located, the railway network in the state assumesgreat significance. Madhya Pradesh’s capital, Bhopal is one of theforemost railway junctions in the country, as 220 trains travelthrough the capital alone.

Government of India has undertaken redevelopment of HabibganjRailways station in Bhopal. The station is being redeveloped at anestimated cost of Rs 100 crore (US$ 15.52 million) and the totalvalue of development (including commercial development) has beenestimated 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 reached2,918,971 passengers with overall movement of 22,935 aircrafts.For the same period, passenger traffic at Bhopal airport stood at1,331,322 passengers with movement of 14,374 aircrafts.

Both Indore and Bhopal airports have strong cargo handlingcapacity. During 2019-20, Indore airport handled 10,770 tonnes ofcargo, whereas, Bhopal airport handled 1,526 tonnes of cargo.

Government of India has granted ‘site clearance’ approval toMadhya Pradesh Road Development Corporation Limited for settingup Singrauli domestic greenfield airport in Waidhan, Singrauli.

Airport 2017-18 2018-19 2019-20

Indore 2,269,971 3,158,938 2,918,971

Bhopal 722,243 810,307 1,331,322

Passenger traffic

Airport 2017-18 2018-19 2019-20

Indore 18,692 26,442 22,935

Bhopal 7,205 8,860 14,374

Aircraft movements

Airport 2017-18 2018-19 2019-20

Indore 10,851 11,729 10,770

Bhopal 1,153 1,746 1,526

Freight traffic (in tonnes)

Source: Airports Authority of India


As of March 2020, Madhya Pradesh had total installed power generation capacity of 24,821.05 MW, comprising 7,187.62 MW under state utilities,6,868.38 MW under central utilities, and 10,765.05 MW under private sector.

Of the total installed power generation capacity, 16,313.38 MW was contributed by thermal power, 3,239.66 MW was contributed by hydropower,273 MW was contributed by nuclear power, and 4,995.01 MW was contributed by renewable power. Total budget allocation for the energy sectorin the state was estimated at 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 MW of solar power to Delhi Metro RailCorporation (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)18

,813

.65

19,6

18.2

8

20,3

21.8

7

23,3

34.4

0

24,8

21.0

5

0

5,000

10,000

15,000

20,000

25,000

30,000

FY16 FY17 FY18 FY19 FY20

Break-up of installed capacity by source of power generation (as of March 2020)

65.26%

13.23%

20.40%

1.11%

Thermal Power

Hydropower

Renewable Power

Nuclear Power

Source: Central Electricity Authority, news sourcesNote: MW- Megawatt


PHYSICAL INFRASTRUCTURE – TELECOM

According to Telecom Regulatory Authority of India (TRAI), Madhya Pradesh (including Chhattisgarh) had nearly 74.60 million wirelesssubscribers and 0.78 million wireline subscribers as of January 2020.

Internet subscribers in the state reached 44.44 million, as of September 2019.

As of January 2020, tele density (telephone connections per 100 persons) in Madhya Pradesh stood at 67.10 per cent.

As of January 2020, 31.51 million people had submitted request for mobile number portability in the state.

Telecom infrastructure (as of January 2020)

Wireless subscribers 74,609,880

Wire-line subscribers 783,303

Internet subscribers (in million)(as of September 2019) 44.44

Teledensity (in per cent) 67.10

Mobile Number Portability requests (in million) 31.51

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


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$ 42.94million) was made for the Smart Cities Mission.

Seven cities of the state have been selected for Government ofIndia’s Smart Cities Mission.

Also, the state is home to 34 cities which have been chosen forAMRUT Mission.

Under the State Budget 2019-20, Government has been allocated Rs4,200 crore (US$ 600.94 million) for ‘Housing for All’ under UrbanDevelopment & Housing Department, Rs 2,000 crore (US$ 286.16million) towards AMRUT.

MADHYA PRADESH

SOCIAL INFRASTRUCTURE


SOCIAL INFRASTRUCTURE – EDUCATION

Madhya Pradesh had a literacy rate of 70.6 per cent; the maleliteracy rate is 80.5 per cent and the female literacy rate is 60.0 percent.

As per the State Budget 2019-20, the Government proposed anallocation 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 Rs3,109 crore (US$ 444.8 million) for Sarva Shiksha Abhiyan and Rs750 crore (US$ 107.31 million) for Rastriya Madhyamik ShikshaAbhiyan.

In the State Budget 2019-20, the Government proposed an allocationof 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 May 2020, the public healthcare services network of Madhya Pradesh comprised 52 district hospitals, 424 community health centres, 1,566primary 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 WelfareDepartment 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 StateBudget 2019-20.

Health institutions (May 2020)

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 2019-20Source: 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 isthe central point to coordinate, activate and ensure implementation ofmega infrastructure projects.

MPSIDC has established seven growth centres at Bhopal, Gwalior,Jabalpur, Indore, Rewa, Ujjain and Sagar. These growth centres areknown as Madhya Pradesh Audyogik Kendra Vikas Nigam Limited(AKVN).

Work on development of infrastructure in 22 industrial units isunderway 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 12formally approved SEZs. Bhopal, Indore, Gwalior and Jabalpur arethe major locations where SEZs have been approved. These SEZshave been proposed for IT/ITeS, mineral-based, agro-based andmulti-products.

Source: MP Trade & Investment Facilitation Corporation Ltd, Department for Promotion of Industry and Internal Trade

Operational SEZs in Madhya Pradesh (As of February 2020)

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

Crop Annual 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 offoodgrains.

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 2019-20Note: *Estimate, #as per first advance estimates, @in 170 kg bales, **only APEDA products, MTPH – Metric Tonnes Per Hour, ^- Till December 2019

Agriculture Exports from Madhya Pradesh (US$ million)**93

.03

141.

36

134.

60

91.1

0

0

20

40

60

80

100

120

140

160

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$ 224.72 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 projectsand 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)

214.

67

350.

87

266.

56

224.

72

0

50

100

150

200

250

300

350

400

FY17 FY18 FY19 FY20*

Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory BoardNote: ^in lakhs bales of 170 kgs each, MMT – Million Metric Tonne, *-till December 2019

20.5

0

20.5

0

24.0

0

111.

00

103.

00

100.

00

949698100102104106108110112

0

10

20

30

40

50

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 textilesmanufacturers over the world. The company has a bed linen manufacturing plant in Budni, Madhya Pradesh. Thefacility has capacity of 43.2 million metres per annum and is home to 500 looms. Also, the world’s largeststandalone 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 withdiverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana andMalanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from puremerino wool along with polyester and other blends. The company has a wide retail network and also servesinternational apparel manufacturers.Grasim Industries Ltd

The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarnmanufacturing 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, theBhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 millionmetres per annum.Vardhman Textiles Ltd

Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in engineeringand aviation. The company is one of the largest integrated manufacturers of worsted fabric in the world andcommands over 60.0 per cent market share in worsted suiting in India. The total production capacity of thecompany is around 38 million metres of wool and wool-blended products. One of the four plants of the company islocated 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 and wildlife sanctuaries.

During 2018, foreign tourist arrivals and domestic tourist visits in the state stood at 0.38 million and 83.97 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 thestate’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.

32

0.42

0.36

0.36 0.38

0.000.050.100.150.200.250.300.350.400.45

2014

2015

2016

2017

2018

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

Domestic tourist visits (in millions)

63.6

1

77.9

8

150.

49

78.0

4

83.9

7

0.0020.0040.0060.0080.00

100.00120.00140.00160.00

2014

2015

2016

2017

2018


KEY SECTORS – PHARMACEUTICALS

Madhya Pradesh is home to over 280 pharmaceutical units operatingin the industrial areas of Dewas, Indore, Pithampur, Mandideep andMalanpur.

Indore is one of the largest producers of pharmaceuticals like tablets,capsules, formulations in India.

Pithampur SEZ located in Indore is a production hub forpharmaceutical majors such as Cipla, Lupin, Mylan, etc.

Exports of drug formulations and biologicals formed nearly 17.78 percent of the state’s total exports in 2018-19.

Source: Invest India

Exports of Drug Formulations and Biologicals from Madhya Pradesh (US$ million)

525.

78

909.

24

845.

22

892.

94

0

100

200

300

400

500

600

700

800

900

1000

FY17

FY18

FY19

FY20

*

Note: *- till December 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 othermineral resources available.

Major mineral-based industries in the state are cement, thermalpower generation, ceramic-products, tiles and refractory.

Madhya Pradesh is the sole diamond producing state in the country.Diamond production in the state reached 38,437 thousand tonnesduring 2018-19.

Source: Indian Bureau of Mines

Mineral 2016-17 2017-18 2018-19

Coal 108,548 112,239 118,661

Bauxite 658.38 581.39 722.54

Copper ore 2,415.33 2,339.04 2,542.15

Copper conc. 68.19 75.48 82.94

Iron ore 1,730 2,679 2,792

Manganese ore 648.13 831.35 944

Phosphorite 68.80 113.30 98.60

Diamond (in carat) 36,516 39,699 38,437

Limestone 35,843 42,744 49,762

Mineral production in Madhya Pradesh (‘000 MT)

Note: MT – Metric Tonnes


KEY INDUSTRIES – MINERAL-BASED INDUSTRY … (2/2)

Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982, the companyestablished its Malanjkhand copper project, which has the single-largest copper deposit in the country. TheMalanjkhand mine has a copper deposit of 221 million tonnes with 1.3 per cent copper concentration. Thecompany possesses an open-pit mine with a capacity of 2 million tonnes per annum, concentrator plant, tailingdisposal system and other auxiliary facilities. The plant contributes around 80.0 per cent of the copper productionof the company. HCL’s mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh andMaharashtra.

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 atPanna in Madhya Pradesh. The production capacity of the mine is around 84,000 carat per annum. The mineemploys 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 use District 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 plan Town 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., SSIDC- Small Scale Industrial Development CorporationNote: 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 BhawanBhopal - 462 004Madhya Pradesh, IndiaPhone: 91-755-2441061Website: www.mpindustry.org

Directorate of Industries

Directorate of IndustriesVindhyachal BhawanBhopalMadhya Pradesh, IndiaPhone: 91-755-2677988, 2677966Email: [email protected]: www.mpindustry.org

Madhya Pradesh State Industrial Development Corporation Limited

AVN Towers 192 Zone-1, M.P. NagarBhopal-462 011, Madhya PradeshPhone: 91-755 - 427 0370 Fax: 91-755- 427 0280E-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 cents Madhya Pradesh Electricity Regulatory Commission

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

Source: Madhya Pradesh State Portal, PwC Research


STATE ACTS & POLICIES … (1/2)

Objectives

To promote balanced and sustainable tourism, which enables socio-economic development and establishesMadhya Pradesh as a destination that provides a complete tourism experience.

Aims at providing an effective regulatory mechanism for sustainable tourism and developing the sector throughPPP.

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 andmanufacturing of EVs.

To enable faster adoption of electric vehicles in Madhya Pradesh by ensuring safe, reliable, accessible andaffordable Charging Infrastructure eco-system Read more

To improve investor facilitation and ensure rapid economic development and employment opportunities throughsustainable 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 skillsRead more

http://madhyapradeshtourism.gov.in/Downloads/TourismPolicy.pdf

http://www.mpurban.gov.in/pdf/MPEVDPolicy2019.pdf

http://bhabha-coe.mapit.gov.in/commerce/upload/files/333215535352.pdf

https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/state_startup_policies/Madhya_Pradesh%20Incubation%20&%20Startup%20Policy%202016.pdf


STATE ACTS & POLICIES … (2/2)

Objectives

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 inthe urban as well as rural areas in the state.

To generate and maximise employment opportunities for youth as well as development and infrastructureopportunities in smaller cities in the state.

BPO Policy 2014

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

Madhya Pradesh Solar Power 2012

Read more

Read more

http://www.dit.mp.gov.in/documents/10192/1298301/IT%20Policy%202016.pdf

http://www.mpnred.com/Images/pdf/solar-power-policy-english.pdf

http://www.aiggpa.mp.gov.in/images/files/KAIR/MP-STATE-POLICIES/INDUSTRY/Analog%20Semiconductor%20Fabrication%20Investment%20Policy,%202015.pdf

http://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=A60U-U4S9-H6MM-R9MH-FKWX-O55L-Y0UC-V4X6

http://mpsedc.com/Documents/Final%20BPO%20Policy%202014%20-%2007%2010%2014.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

Wireless subscribers (No) Telecom Regulatory Authority of India

Internet subscribers (Mn) 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, September 2017

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


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

2019-20 70.49

Year INR Equivalent of one US$

2005 44.11

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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