Development in M.P

Industrial Development & Economic Growth in Madhya Pradesh

Latest update: March, 2019



Madhya Pradesh is an agrarian state. The primary sector accounts for 42.89 per cent of the state’s GVA, as of 2017-18. It is among the fastest growing states in India.

The state is rich in natural resources, fuels, minerals, agriculture and biodiversity. Upcoming theme based SEZs near Jabalpur, industry parks in Indore and food parks at multiple locations aim to promote sectoral growth. The state is rich in minerals and has the highest stone, diamond and copper reserves in India, notwithstanding noteworthy reserves of coal, coal-bed methane, manganese and dolomite. Further, the state is home to over 280 pharmaceutical units operating in the industrial areas of Dewas, Indore, Pithampur, Mandideep and Malanpur.

Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 17.00 per cent (in rupee terms) to US$ 112.17 billion, whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 17.37 per cent to US$ 102.30 billion.

Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is thew nodal agency for industrial growth in the state. It is the central point to coordinate, activate and ensure implementation of mega infrastructure projects.

Investment intentions worth Rs 23,572 crore (US$ 3.27 billion) were filed in the state during 2018 (up to November).

The following are some of the major initiatives taken by the government to promote Madhya Pradesh as an investment destination:

  • 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).
  • In state budget 2018-19, the government proposed an allocation of US$ 32.44 million under skill development scheme (Asian Development Bank projects).
  • 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.
  • To attract investment into the textile sector, the government has provided an interest subsidy for five years at the rate of 5 per cent for textile projects and 7 per cent for composite textile projects. Furthermore, the government provided 100 per cent assistance in plant and machinery for eight years under Industrial Investment Promotion Assistance Scheme.


Economy of main districts


Main article: Bhopal

Bhopal is the capital and the second largest city in the state and largest city in terms of area. Initially the economic growth stalled because of the Bhopal Gas Tragedy but now has started growing again.[8] Its economy is mainly based on Industries. It is an important Industrial center of the state. Electrical goods, cotton, chemicals and flour milling are the main source of economy. Zardaori and embroidery of Bhopal’s old city is also famous. The district is highly urbanised with nearly 80% of the population marked as urban. Now being a metropolitan city, many Software/IT sectors companies are setting up offices in the city. Bhopal is also an important tourist place with the following destinations near the city:[9]

  • Islamnagar (11 km away): Palace built by the Bhopal’s Afghan rulers
  • Bhimbetka rock shelters (45 km away): Archeological site of the Paleolithic era. A UNESCO World Heritage Site
  • Sanchi Stupa (46 km away): A Buddhist Stupa commissioned by the emperor Ashoka the Great in the 3rd century BC

GDP ($US) : 20 Billion


Gwalior enjoys being at a very strategic position as being a main junction on New Delhi – Chennai railroad and being on NH-3 and NH-75. Gwalior is surrounded by 3 Industrial areas – Sitholi, Banmore and Malanpur. All these three sectors are on NH 75, National Highway 3 and NH 92 respectively. Malanpur is the biggest. The city earlier had big manufacturing industries such as Gwalior Grasim and J.C. MILLS of Birlanagar but now this sector is left with only one industry – J.B.Mangharam Ltd. But the other three sectors have many industries. The important ones are dairy, chemical, manufacturing, and textiles. Handicraft and small industries are also found such as Gwalior potteries. Gwalior is also an important historical and tourism sector of the country therefore tourism sector also puts an effect into the city’s economy. Gwalior trade fair is an annual trade fair showcasing economy of Gwalior.

GDP ($US) : 15 billion


Main article: Economy of Indore

Treasure Island, a shopping mall in Indore.

Indore is commercial capital of Madhya Pradesh with a bulk of its trade coming from large, medium and small scale manufacturing and service industries. These industries range from Automobile to Pharmaceutical and from Software to Retail and from Textile trading to Real estate. Major industrial areas surrounding the city include the Pithampur Special Economic Zone and the Sanwer Industrial belt. While the Textile manufacturing and Trading is the oldest business to contribute to economy, the Real Estate has emerged very fast in past few years. National Real Estate Players DLF Limited,Omaxe,Sahara, Parsvnath, Ansal API, Emaar MGF have already launched their residential projects in Indore. These projects are generally on the Indore bypass.This road also houses the projects of many local and regional Real estate players like Silver spring, Kalindi, Milan Heights etc. Major software firms in Indore include Worldpay ,Impetus, IBM India[24] and Computer Sciences Corporation (CSC). Also many small and medium size software development firms are also established. In the software front a major event occurred in the first half of 2011 when India’s biggest software company Tata Consultancy Services decided to open a campus in Indore. Government of MP has also done the land allotment.[25] Infosys, country’s second largest information technology services company, plans to set up new development centre at Indore at an investment of Rs 100 crore in phase one.[26] Pithampur near Indore houses production plants of various Pharmaceutical companies like Ipca Laboratories, Cipla, Lupin, Glenmark, Unichem.

GDP ($US) : 25 billion


Main article: Jabalpur

The Narmada river bringing in fresh water from the Vindyachal Ranges has developed Jabalpur district into an agrarian economy. The land of the Narmada basin with its fertile alluvial soil gives good yields of sorghum, wheat, rice and millet in the villages around Jabalpur. Important among commercial crops are pulses, oilseeds, cotton, sugar cane and medicinal crops. The state is poised for a breakthrough in soybean cultivation. In Kharif crops occupy 60% and Rabi crops 40% area with 71.4% area under food grain production. Nearly 59% of landholders are marginal whereas small farmed share 18% of farmland. Low literacy rates (35.45%), undulating topography, high percentages of waste land (13.2%), underdeveloped irrigation potential (23%), low ground water utilization, large proportion of rain fed agriculture (75%), practice of Kharif fallows (3.6%), low cropping intensity (131%), low fertilizer consumption (50 kg/ha), high proportion of low value crops, and high numbers of unproductive livestock constrain production in the state. Jabalpur has a variety of industries largely based in mineral substances of economic value found in the district, although the ready-made garments industry is a substantial portion of production in Jabalpur. Defence establishments started in the early 20th century. Jabalpur has Vehicle Factory Jabalpur, Grey Iron Foundry, Gun Carriage Factory Jabalpur and Ordnance Factory Khamaria which belong to the Ordnance Factories Board manufacturing various products for the Indian Armed Forces. The Gun Carriage Factory was started in the year 1904 is well equipped and manufacture gun parts, mounting, shells and a variety of the other product for war purpose. Vehicle Factory Jabalpur (VFJ) was started as manufacturer of trucks and other defence vehicles. Other two are Grey Iron Foundry (GIF) and Ordnance Factory Khamaria (OFK). Armed forces make up a large portion of the city and economy in this city. The city has three regimental centres: Grenadiers, Jammu and Kashmir rifles and the Signals regiment. Jabalpur is also the army headquarters of Madhya Pradesh, Bihar, Chhattisgarh, and Orissa. Jabalpur is an important divisional headquarters, having eight districts: Jabalpur, Seoni, Mandla, Chhindwara, Narsimhapur, Katni, Dindori, Balaghat. The Jabalpur District has been reconstituted on May 25, 1998. It now has four tehsils Jabalpur, Sihora, Patan and Kundam. Jabalpur also has the headquarters of the Madhya Pradesh State Electricity Board, Homeguards and many other state and central government offices. There are seven blocks in the district with 1449 inhabited villages, 60 uninhabited, 1209 revenue villages and 4 forest villages. The presence of several industries in Jabalpur bolstered the industrial scenario of the city. However the industrial growth of the area owes much to the defense establishments and the four ordnance factories. The presence of the military base and the ordnance factories have improved the infrastructure of the city. This has boosted the industrial development of Jabalpur. The important industries in Jabalpur are:

  • Readymade garments units
  • Poultry/hatchery
  • Electrical goods industry
  • Sawmills
  • Wood cutting industry
  • Industries relating to lime stone products
  • Building materials
  • Glassware
  • Telephone parts
  • Furniture making industry
  • Shaw Wallace Gelatin Factory
  • Steel structures works
  • Cement industries
  • Commercial Engineers & Body Builders Co Limited [CEBBCO ]
  • Tobacco business
  • Retail busine
  • Food processing industry
  • Vendors for Coca-Cola India & Parle

GDP ($US) : 9.7 billion


Main article: Ujjain

Ujjain is the largest city in Ujjain district of the Indian state of Madhya Pradesh. It is the fifth largest city in Madhya Pradesh by population and is the administrative centre of Ujjain district and Ujjain division.[10]

An ancient city situated on the eastern bank of the Kshipra River, Ujjain was the most prominent city on the Malwa plateau of central India for much of its history. It emerged as the political centre of central India around 600 BCE. It was the capital of the ancient Avanti kingdom, one of the sixteen mahajanapadas. It remained an important political, commercial and cultural centre of central India until the early 19th century, when the British administrators decided to develop Indore as an alternative to it. Ujjain continues to be an important place of pilgrimage for Shaivites, Vaishnavites and followers of Shakta.[11]

Ujjain has been selected as one of the hundred Indian cities to be developed as a smart city under PM Narendra Modi’s flagship Smart Cities Mission.[12] GDP ($US) : 2.9 billion


Main article: Dewas

In the recent years, modern industry has taken off in Dewas in a big way. The growth is industry sector has given jobs to local factories. At the same time, traditional crafts / Handicrafts as Mojri (Shoes), Synthetic Carpets, leather works (begs, belts, ladies purses, shoes, coats, briefcases etc.) remain important in the economy. Agriculture (specially Soybean, wheat, gram) is also the source of economy. Many high tech industries have been set up for oil extraction from Soyabean. To control the Indian economy, BANK NOTE PRESS, a Central Government Organization for printing of Indian Currency is also situated here. GDP ($US) : 5.4 billion


Main article: Ratlam

The city of Ratlam located in northwestern part of the state of Madhya Pradesh since long has been known for its economic and commercial activities . The region which was once famous for its opium and tobacco trade has grown in its size and proportion. With agricultural background this city this is one of the most productive region of the state. In last two decades many small and medium-sized Agro- based industries has made appearances on the canvas of Ratlam. These industries have acted as generator of employment transforming the lives of peoples in Ratlam. The city is also home to many chemical factories namely IPCA, JVL, Hightech, Shaba Chemicals, Bordiya Chemicals, Sujjan Chemicals etc. GDP ($US) : 4.1 billion


Main article: Rewa, Madhya Pradesh

Rewa district is particularly rich in mineral resources as a large variety of important minerals are found here. Limestone, Sandstone, industrial minerals like phosphate, asbestos, calcite, Talc (soap stone) are the major driving resources behind the industries based in the city. As for composition of industries is concerned, then large scale industries make up only 7 to 8 units amongst thousands of industries spread across the district. USD ($US) : 8.3 billion


Main article: Sagar, Madhya Pradesh

Agriculture forms the backbone of Sagar economy. Many districts completely rely on the income generated from the agriculture taken up in the city. The farmers use latest technologies pertaining to the sector of agriculture so that a healthy crop is obtained. A strong agriculture economy has led to the improvement in the living standards of people living in the city of Sagar. The chief crops grown here are chickpeas, wheat, oilseeds and soghum. Sagar is also into poultry farming, animal husbandry, dairy farming, fisheries, forestry and cattle fairs.With many proposed large and small scale industries, the economy of Sagar is bound to grow at a fast pace. It is also a major hub for useful minerals. Due to its scenic beauty and proximity to Khajuraho tourism also contributes in strengthening its economy. In Madhya Pradesh, Sagar is the sixteenth largest district in size.These small scale industries mainly manufacture steel utensils, detergent cake and powder, agricultural equipments, welding electrodes, plastic goods, alum, caustic soda, solvent plant, granitbillie stone, pipes, acrylic sheets, PVC cable, acrylic products, incense sticks, all purpose flour etc. Bidi (A traditional Tobacco used in India) making is one of the most traditional and eminent business in Sagar and is done almost all over Sagar….. GDP ($US) : 1.1 billion



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