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Madhya Pradesh, the heart of India is fast emerging as a major economic growth engine for the nation. MP as a state already enjoys several advantages as an industrial hub. We look at five reasons behind the immense scope of industrial and investment capacity in the state:
1. STRATEGIC LOCATION: MP is located right at the center and shares border with 5 states of India. This provides a unique access to 50 percent of country’s population. MP also has access to major ports on both east and west coasts within a range of 1000 km; for example, Indore to JNPT, Jabalpur to Paradip, Indore to Kandla, Rewa to Haldia, and Jabalpur to Vishakhapatnam.
In the post-GST regime, where raw material and finished goods can seamlessly move between all the major cities of India, Madhya Pradesh serves as the perfect location for manufacturing activities. The state has a massive road network spanning 2,30,000 km, seven inland container depots, an international air cargo facility at Indore, five commercial airports with over 100 flights, and more than 550 trains daily.
2. STRONG INDUSTRIAL ECOSYSTEM: Since 2004-05, Madhya Pradesh has consistently been a revenue surplus state. The state saw 17.8% growth in tax revenue from 2017-18 to 2018-19. Under the present state government, there has been an increase in capital expenditure by 21% in 2019-20. The state’s economic health can be indicated by the decrease in its debt servicing burden, from 22.4% in 2003-04 to 13% of the revenue receipts in 2019-20 (estimate).
Madhya Pradesh has a prosperous industry ecosystem and is home to over 300 large industries from different sectors. Some of the major sectors include textile and apparel –Trident, Vardhman, Grasim, Pratibha Syntex, Nahar; food processing – ITC, Parle, Hershey’s Coca Cola, Mondelez; automobiles and manufacturing – John Deere, Volvo, Eicher, M&M, Force, Tafe, and pharmaceuticals – Cipla, Lupin, Glenmark, Novartis, Mylan.
3. EASE OF DOING BUSINESS & STATE OF ART INFRASTRUCTURE: Madhya Pradesh is not only rich in natural minerals, coal, and diamond—it also offers
excellent infrastructural support for industries to thrive. For instance, the state is power surplus with an installed capacity of 23,000+ MWs. The state government also provides
guaranteed 24*7 power and water supply for units in MPIDC industrial parks.
In addition, MP has 26 lakh tons of warehousing capacity with 7 ICDs across the state for
export logistics. State-of-the-art industrial parks further strengthen the industrial
infrastructure in the state. The present state government’s constant efforts to bring all
compliances online and reduce procedural complexities has further increased the ease of
doing business in MP. The state’s INVEST portal covers the entire lifecycle of an
investment proposal; from including pre-establishment and pre-operation approvals to
incentive processing, a range of 32 services are already available online. All these
policies and more have led to MP being ranked 7th in the Business Reform Action Plan
(BRAP) in 2018.
4. INDUSTRIAL LAND AND SKILLED MANPOWER: There are five major industrial regions in Madhya Pradesh, which offer several advantages across sectors. Bhopal region has a developed area of 2704 hectares with Mandideep, Govindpura, Pillukhedi, Mohasa-Babai and Piparia as its growth centres. Indore region has a developed area of 5425 hectares and growth centres like Pithampur, Kheda, Megh Nagar, Ujjain, Dewas, Maksi and Jaggakhedi. Gwalior region has 1905 hectares of developed area and its growth centres are Malanpur, Chirongi, Banmore and Chainpura.
Rewa region has 257.3 hectares of developed area with Waidhanm Maihar and Nandan
Tola as its key growth centres. Jabalpur region with its developed area of 2056.6 hectares
has Bargaon, Maneri, Lamtara and Katni as major growth centres.
MP further has an advantage in skilled manpower, provided by some of the premier
institutes in the state, including IIM, IIT, AIIMS, NLIU, NID, and MANIT. Over 2 lakh
technical professionals graduate every year from various institutes in Madhya Pradesh.
Global skill parks contribute in a major way towards providing skilled workers to the fifth
most populous state of India.
5. FAVOURABLE POLICIES FOR BUSINESS AND QUALITY OF LIFE: The new policy initiatives from the government of Madhya Pradesh ensure that the state
provides competitive land and power tariffs rates. The government has implemented
focused sector-specific policies to meet the requirements of each sector. Initiatives are
designed around providing incentives and assistance, such as capital investment support.
To attract investment in the state, the government has introduced discounted tariffs,
exemption on duties, and customized incentive package for mega projects. The state’s
‘Tax delinked’ investment assistance policy focuses on employment generation, priority
block development, and expert training.
Additionally, MP government is also consistently working towards lowering
pollution levels to ensure better livability across its cities. The state also strives towards
cleanliness; Indore was recently rated as India’s cleanest city, with Ujjain, Dewas,
Khargone, Bhopal, and Nagda counted among the top 20 in Swachh Survekshan 2019.
References:
https://indiainvestmentgrid.gov.in/states/madhya-pradesh