APRIL 2017 APRIL 2017

77 Pages·2017·1.07 MB·English

by  Vipul Tiwari

MADHYA PRADESH
THE LAND OF DIAMONDS
AAPPRRIILL 22001177 (As of 20 April 2017) For updated information, please visit www.ibef.org 11
MADHYA PRADESH
THE LAND OF DIAMONDS
❖ Executive Summary …………….………. 3
❖ Advantage State ………………………… 4
❖ Vision 2018 ………………………….…… 5
❖ Madhya Pradesh –An Introduction …… 6
❖ Budget 2016-17…….………………..…. 17
❖ Business Opportunities …………..….... 41
❖ Doing Business in Madhya Pradesh .... 71
❖ State Acts & Policies …………..….…... 72
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MADHYA PRADESH
THE LAND OF DIAMONDS
EXECUTIVE SUMMARY
• GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.86%
Strong economic growth
during2005-06to2015-16.
• Thestateis richin naturalresources:fuels,minerals,agriculture&biodiversity.
• Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total
Rich in natural
coal reserves&218.04BCM ofmethane).
resources
• Thestatehasthelargestreservesofdiamond& copperin India.
• Madhya Pradeshhas significantreservesoflimestone,manganese&dolomite.
• Madhya Pradeshboastsof richancient cultural& religious heritage.
Potential for tourism • 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
companieshave movedtheirwarehouses heretosave onlogisticsexpenses.
• Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at
Infrastructure support
multiple locations aim topromotesectoralgrowth.
• MP is emerging as a solar power hub & is targeting generation of 2,650 MW of solar
power by2017.
Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics
and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas
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MADHYA PRADESH
THE LAND OF DIAMONDS
ADVANTAGE MADHYA PRADESH
Strategically located business hub Attractive investment avenues
• The state is centrally located in India. Major consumer goods • With around 33% of the region under forests, Madhya Pradesh
has an enormous potential for drug, wood & agro-based
multinationals are situated in Madhya Pradesh in order to
commercial enterprises. Ideal soil & climatic conditions have
access major consumer markets & metro urban communities made it a primary producer of coarse cereals, oilseeds &
like New Delhi (740 km1), Mumbai (780 km1), Kolkata (1,350 soybean in India.
• The cluster-based advancement methodology promotes
km1) & Chennai (1,435 km1)
investments in automotive, textiles & biotechnology.
• Geographical proximity with the automotive hub of NCR has • Plentiful limestone & coal reserves give development avenues
favourablyimpacted Madhya Pradesh’s auto ancillary for the cement industry.
• A rich cultural heritage, scenic beauty & wildlife sanctuaries
industry. The state’s well developed automotive cluster is
offer a promising tourism industry. Indore is all set to be the
now home to around 30 auto component & ancillary units. new IT capital with TCS & Infosys opening their offices.
Advantage
Madhya
Policy and infrastructure support
Pradesh
• Madhya Pradesh offers distinctive monetary & strategy/policy
Rich resource pool incentives for organisations under the Industrial Promotion Policy-
2010 & Action Plan, other than strategies/ policies for IT,
• Madhya Pradesh adds around 270,000 graduates to the biotechnology, tourism & SEZs. To pull in investors and promote
workforce each year, of which around 90,000 have technical entrepreneurs, the state government has selected TRIFAC, an
skills. At labour costs of US$ 3.7 per day, the state has a agency that encourages a single window system, for speedy
approvals of different clearances & consents.
significant cost advantage over metros.
• The state government has made some well-planned infrastructure
• The state houses some of the country’s most reputed institutes
investments for roads & railroad systems. Government offers
including Indian Institute of Management, Indian Institute of
various subsidies under ‘Industrial Investment Promotion
Foreign Management & Indian Institute of Technology. Assistance (IIPA) under 2014 Schemes’ for investment in
development of road, electrification, water, industrial parks, etc.
APRIL 2017 1 From Bhopal For updated information, please visit www.ibef.org 44
MADHYA PRADESH
THE LAND OF DIAMONDS
MADHYA PRADESH VISION 2018
• Develop the transportation • Skill development by expanding
network to enhance rural training infrastructure & capacity
connectivity to aid 1 million youth in attaining
• Reform the institutional wages & self employment
machinery for creating public
transport facilities
• Enhance the ease of doing Transport Skill • Improve civic infrastructure,
business for the benefit of including public & household
development
investors sanitation facilities
• Attract higher investments in • Expand availability of
manufacturing, services & Investment Housing affordable housing
labourintensive sectors promotion
Vision 2018
• Make the state a worldclass Tourism Environment • Promote social & agro forestry
tourist destination • Revitalise ground water
• Promote religious, adventure resources
& heritage tourism & attract Agriculture Infrastructure • Private sector participation in
private investment maintaining waste disposal &
water conservation
• Expand the outreach of • Connect all villages through
agriculture technology & worldclass highways
irrigation to remote farms. • To be a leader in renewable
• Promote farm level energy & green technology
diversification and value • Keep the state power surplus by
addition. addition to the power generation
capacity
Source: Government of Madhya Pradesh
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MADHYA PRADESH
THE LAND OF DIAMONDS
MADHYA PRADESH FACT FILE
There are 11 agro-climatic conditions and a variety of soils
available in the state to support cultivation of a wide range
ofcrops.
Madhya
Parameters
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
Source:Maps of India
Male population (million) 37.6
Madhya Pradesh is located in central India. The state is
surrounded by Uttar Pradesh in North, Chhattisgarh in East, Female population (million) 35.0
MaharashtrainSouth,Gujaratand Rajasthanin west.
Sex ratio (females per 1,000 males) 931
The most commonly spoken language of the state is Hindi. Literacy rate (%) 70.6
English andMarathiare theotherlanguagesused.
Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of
Source:Government of Madhya Pradesh website, National Informatics
thekeycities ofthestate.
Centre Madhya Pradesh
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MADHYA PRADESH
THE LAND OF DIAMONDS
MADHYA PRADESH IN FIGURES … (1/2)
Madhya
Parameter All states Source
Pradesh
Economy 2015-16 2015-16
TechSci Estimates based on “Advanced Estimates”
GSDP as a percentage of all states’ GSDP 4.16 100.0 provided by Directorate of Economics and
Statistics of Madhya Pradesh
TechSci Estimates based on “Advanced Estimates”
GSDP growth rate (%) 16.6 8.71 provided by Directorate of Economics and
Statistics of Madhya Pradesh
TechSci Estimates based on “Advanced Estimates”
Per capita GSDP (US$) 1,188.98 1,546 provided by Directorate of Economics and
Statistics of Madhya Pradesh
Physical Infrastructure
Installed power capacity (MW) 18,917.16 305,554.25 Central Electricity Authority, as of August 2016
Telecom Regulatory Authority of India, as of
Wireless subscribers (no) 64,379,812 1,078,422,215
October 2016
Telecom Regulatory Authority of India, as of
Internet subscribers (no) 21,270,000 367,480,000
September 2016
National Highway length (km) 5,193.57 100,087.08 NHAI & Roads and Building Department
Airports (no) 5 125 Airports Authority of India
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MADHYA PRADESH
THE LAND OF DIAMONDS
MADHYA PRADESH IN FIGURES … (2/2)
Madhya
Parameter All states Source
Pradesh
Social Indicators
Literacy rate (%) 70.6 73.0 Census 2011
Birth rate (per 1,000 population) 26.3 21.6 SRS Bulletin
Investment
Department of Industrial Policy & Promotion,
FDI equity inflows (US$ billion) 1.321 324.37
From April 2000 to December 2016
Industrial Infrastructure
DEA, Ministry of Finance, Government of India,
PPP projects completed & operational (no) 110 1,246
July 2016
Ministry of Commerce & Industry, Department
Operational SEZs (No) 1 186
of Commerce, July 2016
1Including Chhattisgarh
PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
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MADHYA PRADESH
THE LAND OF DIAMONDS
ECONOMIC SNAPSHOT – GSDP
GSDP of Madhya Pradesh at current prices (in US$ billion)
At current prices, the gross state domestic
product (GSDP*) of Madhya Pradesh for 2015-
16stoodatUS$ 86.32billion.
Between 2005-06 and 2015-16, GSDP of the
stategrewataCAGR of11.86%.
84.2786.32
74.8
66.4968.52
57.7
48.08
40.1 42.75
28.1532.03
6 7 8 9 0 1 2 3 4 5 6
0 0 0 0 1 1 1 1 1 1 1
- - - - - - - - - - -
5 6 7 8 9 0 1 2 3 4 5
0 0 0 0 0 1 1 1 1 1 1
0 0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2 2
Source: GSDP* -“Advanced Estimates” provided by Directorate of
Economics and Statistics, Government of Madhya Pradesh
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MADHYA PRADESH
THE LAND OF DIAMONDS
ECONOMIC SNAPSHOT – NSDP
NSDP of Madhya Pradesh at current prices (in US$ billion)
The net state domestic product (NSDP#) of
Madhya Pradesh was about US$ 77.55 billion in
2015-16.
During 2005-06 and 2015-16, state’s NSDP
75.6 77.55
grewataCAGR ofabout12.06%. 59.0561.61 67.4
51.0
42.74
35.4938.03
24.8328.28
6 7 8 9 0 1 2 3 4 5 6
0 0 0 0 1 1 1 1 1 1 1
- - - - - - - - - - -
5 6 7 8 9 0 1 2 3 4 5
0 0 0 0 0 1 1 1 1 1 1
0 0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2 2
Source: NSDP#-“Advanced Estimates” provided by Directorate of Economics
and Statistics of Madhya Pradesh, Government of Madhya Pradesh
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