MADHYA PRADESH...Madhya Pradesh boasts of rich ancient cultural & religious heritage. Duehick to a t forest cover, the state has immense potential for wild life, adventure & eco-tourism

For updated information, please visit www.ibef.org September 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

The Gross State Domestic Product (GSDP) of Madhya Pradesh increased at a CAGR of 13.78% from 2015to 2020.

Exports of drug formulations and biologicals grew by 37% to US$1,159 million in FY20 against US$ 845million in FY19.

In FY20, exports of cotton yarn stood at US$308 million against US$ 267 million in FY19, a 15% YoY growth.In FY21, the export contributed 5% to the state’s total export (US$ 87.25 million).

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.

In 2019, total tourist arrival in the state stood at ~89 million against ~84 million in 2018.

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.

Madhya Pradesh is growing as a solar power hub with Rewa solar power project (new 750 MW solar powerplant), which represents the country’s commitment to achieve the installed renewable energy capacity targetof 175 GW by 2022.

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

Strong economy

Growth in cotton yarn export

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% 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

In Madhya Pradesh, the government has allocated Rs. 12.8 billion ( US$ 173.58 million) for implementing the Jal Jeevan Mission (JJM) by 2020-21 to provide sufficient drinking water to all rural households in the state.

In 2020, the Union Minister for Road Transport, Highways and MSMEs laid the foundation stones for developing 45 highway projects worth Rs. 1.25 trillion (US$ 16.95 billion) in Madhya Pradesh.

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) 82.89

Male population (million) 37.6

Female population (million) 34.98

Sex ratio (females per 1,000 males) 931

Literacy rate (%) 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 (%) 13.78 11.46

Per capita GSDP (US$) 1,551.60 1,382.99

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


Installed power capacity (MW) (as of August 2020) 24,952.90 372,693.36

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

75.23 1,157.75

Internet subscribers (million)^ (as of September 2020)

48.72 743.19

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 inflows October 2019-June 2020 (US$ million)

172.89 30,443.59

Investments (as of June 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. 9.07 trillion (US$129.73 billion).

Between 2015-16 and 2019-20, the GSDP of the state increasedat a CAGR of 13.78%.

GSDP of Madhya Pradesh at current prices

82.6

6 96.8

6 112.

45

112.

21 129

.73

5.41

6.50 7

.25 8

.10 9

.07

0

1

2

3

4

5

6

7

8

9

10

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.) 13.78%

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.) 6.79%

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%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%.

NSDP of Madhya Pradesh at current prices


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.


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%between 2015-16 and 2019-20.

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


ECONOMIC SNAPSHOT - PERCENTAGE DISTRIBUTION OF GSVA

In 2019-20, primary sector contributed 56.70% to the state’s GSVAat current prices, followed by tertiary sector (47.14%) and secondarysector (22.55%).

At a CAGR of 17.50%, primary sector witnessed the fastest growthamong the three sectors between FY12 and FY20.

Tertiary sector expanded at a CAGR of 12.78% between FY12 andFY20. Growth was driven by trade, hotels, real estate, finance,insurance, transport, communications & other services.

Secondary sector expanded at a CAGR of 8.70% between FY12 andFY20, driven by manufacturing, electricity, gas and water supply, andconstruction 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 the Department for Promotion of Industry and InternalTrade (DPIIT), FDI inflow in Madhya Pradesh stood at US$ 172.89million between October 2019 and June 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-June 2020 (US$ million)

123220

118101

80 76 28 32

82

173

654

0

500

1000

1500

2000

FY01

-FY1

1

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

Oct

19-J

un20

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$ 5.32 billion in FY20 and US$ 1.76 billion in FY21*.

Drug Formulations and Biologicals is the largest export item from the state, accounting for 27% of the total export in FY21*, followed by Aluminum& Products of Aluminum (9%) and Oil Meals (7%).

Source: DGCIS Analytics

Merchandise Export from Madhya Pradesh (US$ billion)

4.44

5.25

6.38

5.32

1.76

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

FY17

FY18

FY19

FY20

FY21

*

Principal Commodities Exported in FY21*

27%

2%

7%

9%5%5%3%

5%

38%

Drug Formulations,BiologicalsAC, RefrigerationMachinery, EtcOil Meals

Aluminium, Products ofAluminiumCotton Yarn

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

Note: *- till July 2020

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.

In August 2020, the Union Minister for Road Transport, Highwaysand MSMEs Mr. Nitin Gadkari laid the foundation stones for 45highway projects in Madhya Pradesh. Rs. 1.25 trillion (US$ 16.95billion) worth of development work is underway in Madhya Pradesh.~60-70% work has been completed on road works approx. worth Rs.300 billion (US$ 4.07 billion). These roads are aiming to improveconnectivity to the tourist spots and backward areas of the state. TheMinister announced that development work worth Rs. 500 billion(US$ 6.78 billion) is likely to be completed by 2023.

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 August 2020, Madhya Pradesh had a total installed power generation capacity of 24,952.90 MW, comprising 7,187.62 MW under stateutilities, 6,926.09 MW under central utilities and 10839.19 MW under private sector.

Of the total installed power generation capacity, 16387.09 MW was contributed by thermal power, 3223.66 MW by hydropower, 273 MW bynuclear power and 5069.15 MW by renewable power. Total budget allocation for the energy sector in the state was estimated at Rs. 9,888 crore(US$ 1.41 billion) during 2019-20.

In 2020, the largest solar power project in Asia, the Rewa solar power project (new 750 MW solar power plant) in Madhya Pradesh, wasinaugurated by Prime Minister Mr. Narendra Modi.

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

24,9

52.9

0

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 August 2020)

65.67%

12.92%

20.31%

1.09%

Thermal Power

Hydropower

Renewable Power

Nuclear Power

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


PHYSICAL INFRASTRUCTURE - TELECOM

According to the Telecom Regulatory Authority of India (TRAI), Madhya Pradesh (including Chhattisgarh) had ~75.23 million wireless subscribersand 0.66 million wireline subscribers as of March 2020.

Internet subscribers in the state reached 48.72 million, as of September 2020.

As of March 2020, teledensity (telephone connections per 100 persons) in Madhya Pradesh stood at 65.89%.

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

Telecom infrastructure

Wireless subscribers (as of March 2020) 75,233,885

Wireline subscribers (as of March 2020) 669,418

Internet subscribers (in million)(as of September 2020) 48.72

Teledensity (in %) 65.89

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 August 2020) 13,225

Performance status of Bharat Net project


PHYSICAL INFRASTRUCTURE

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 PradeshUrban

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 allocatedRs. 4,200 crore (US$ 600.94 million) for ‘Housing for All’ underUrban Development & Housing Department, Rs. 2,000 crore (US$286.16 million) towards AMRUT.

Rural

As of September 2020, 1.75 lakh houses were built under PradhanMantri Awaas Yojana - Gramin at Madhya Pradesh.

MADHYA PRADESH

SOCIAL INFRASTRUCTURE


SOCIAL INFRASTRUCTURE - EDUCATION

Madhya Pradesh had a literacy rate of 70.6%; the male literacy rateis 80.5% and the female literacy rate is 60.0%.

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 Rs.3,109 crore (US$ 444.8 million) for Sarva Shiksha Abhiyan and Rs.750 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 developmentscheme.

Category Literacy rate (%)

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

AICTE Approved Education Statistics (2019-20)

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

Under Graduate Post Graduate Diploma

Total Institutions 321 386 288

Girl's Enrolment 10313 15617 4128

Boy's Enrolment 40992 27993 24138


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 (US$ 4 391.33 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$ 281.12million). 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

Agriculture is the main source of livelihood for the people of the Madhya Pradesh.

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 2019-20, the total production of horticulture crops in the state was expected to be 31,243.51 thousand tonnes and area under production was2,106.23 thousand hectares. In 2019-20, total production of vegetables and fruits in the state was estimated at 19,832 million tonnes and 7,916million tonnes, respectively.

Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, MP Economic Survey 2017-18, State Budget 2019-20Note: *Estimate, #Third Advance Estimates of Production of Foodgrains for 2019-20,**Target^- Till July 2020; 1As per third advanced estimates

Agriculture Exports from Madhya Pradesh (US$ million)**10

8.81

91.5

3

93.0

3

141.

36

134.

60

123.

69

49.7

7

0

20

40

60

80

100

120

140

160

FY15 FY16 FY17 FY18 FY19 FY20 FY21^

Crop Production - 2019-201

(‘000 tonnes)Area- 2019-201(‘000 hectares)

Fruits 7916.39 385.69

Vegetables 19832.27 1007.86

Aromatics andMedicinal 101.97 40.46

Spices 3010.17 639.70

Honey 2.30


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 is estimated at US$ 87.25 million in FY21* and accounts for 5% of the state’s total exports.

To attract investments into the sector, the Government has provided an interest subsidy for five years at a rate of 5% for textile projects and7% for composite textile projects without capping. Furthermore, the Government provided 100% assistance in plant & machinery for eightyears 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)

377.

42

366.

37

214.

67 350.

87

266.

56 307.

87

87.2

5

0

50

100

150

200

250

300

350

400

FY15 FY16 FY17 FY18 FY19 FY20 FY21*

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% market share in worsted suiting in India. The total production capacity of the company isaround 38 million metres of wool and wool-blended products. One of the four plants of the company is located atChhindwara in Madhya Pradesh.Raymond Ltd

Key players in textiles industry


KEY SECTORS - TOURISM

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

Madhya Pradesh is blessed with scenic beauty, rich heritage ofpilgrim centres, temples and wildlife sanctuaries.

In 2019, foreign tourist arrivals and domestic tourist visits in thestate stood at 0.33 million and 88.71 million, respectively.

As per State Budget 2019-20, the state Government proposed anallocation of Rs. 229 crore (US$ 32.77 million) for the developmentof 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 thecountry.

• Bhedaghat: Scenic marble rocks rising up to 100 feet.

Total tourist arrivals in Madhya Pradesh (in millions)

83.97 83.97

88.71

0.38 0.38

0.33

81.00 82.00 83.00 84.00 85.00 86.00 87.00 88.00 89.00 90.00

2017 2018 2019

Domestic Foreign


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 will likely account for~27% of the state’s total exports in FY21*.

Source: Invest India

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

525.

78

909.

24

845.

22

1,15

8.55

468.

93

0

200

400

600

800

1000

1200

1400

FY17

FY18

FY19

FY20

FY21

*

Note: *- till July 2020


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 25,603 thousand tonnes in2019-20.

MOIL Ltd., a state-owned manganese ore mining company, isworking in Madhya Pradesh and Maharashtra on new projects worthRs. 5.18 billion (US$ 78.79 million), with the company aiming tocomplete these projects by August 2021. At the company's Ukwamine in Madhya Pradesh, a project worth Rs. 771.5 million (US$10.46 million) is underway to set up a sinking vertical shaft at a depthof 324 metres.

At Balaghat mine in Madhya Pradesh, work for sinking a largediameter high-speed vertical shaft of 750-metres depth isundergoing. At the Rs. 2.59 billion (US$ 35.12 million) project site,the shaft sinking and lining up to 480 metres depth is complete andthe overall project is scheduled to be completed by July 2021.

Source: Indian Bureau of Mines

Mineral 2016-17 2017-18 2018-19 2019-20

Coal 108,548 112,239 118,661 113,804

Bauxite 658.38 581.39 722.54 637.83

Copper ore 2,415.33 2,339.04 2,542.15 2,406.35

Copper conc. 68.19 75.48 82.94 60.95

Iron ore 1,730 2,679 2,792 3,124

Manganese ore 648.13 831.35 944 906

Phosphorite 68.80 113.30 98.60 99.30

Diamond (in carat) 36,516 39,699 38,437 25,603

Limestone 35,843 42,744 49,762 43,686

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% copper concentration. The companypossesses an open-pit mine with a capacity of 2 million tonnes per annum, concentrator plant, tailing disposalsystem and other auxiliary facilities. The plant contributes around 80.0% 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 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 provide adequate drinking water to all rural households in the state, the centre has allocated Rs. 12.8 billion(US$ 173.58 million) for implementing the Jal Jeevan Mission (JJM) in Madhya Pradesh in 2020-21

Jal Jeevan Mission (JJM)

Read more

PM SVANidhi scheme 2020

To help poor street vendors, impacted by COVID-19, resume livelihood activities.

Read more

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

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1651558https://www.pib.gov.in/PressReleasePage.aspx?PRID=1652269http://madhyapradeshtourism.gov.in/Downloads/TourismPolicy.pdfhttp://www.mpurban.gov.in/pdf/MPEVDPolicy2019.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 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://www.dit.mp.gov.in/documents/10192/1298301/IT%20Policy%202016.pdfhttp://www.aiggpa.mp.gov.in/images/files/KAIR/MP-STATE-POLICIES/INDUSTRY/Analog%20Semiconductor%20Fabrication%20Investment%20Policy,%202015.pdfhttp://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=A60U-U4S9-H6MM-R9MH-FKWX-O55L-Y0UC-V4X6http://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%20Incubation%20&%20Startup%20Policy%202016.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 (million) 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 Rs. Rs. 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 Rs. 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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MADHYA PRADESHSlide Number 2EXECUTIVE SUMMARYINTRODUCTIONADVANTAGE MADHYA PRADESHMADHYA PRADESH VISION MADHYA PRADESH FACT FILEMADHYA PRADESH IN FIGURESECONOMIC SNAPSHOTECONOMIC SNAPSHOT - GSDPECONOMIC SNAPSHOT - NSDPECONOMIC SNAPSHOT - PERCENTAGE DISTRIBUTION OF GSVAECONOMIC SNAPSHOT - FDI INFLOW & INVESTMENTSECONOMIC SNAPSHOT - EXPORT TRENDSPHYSICAL INFRASTRUCTUREPHYSICAL INFRASTRUCTURE - ROADSPHYSICAL INFRASTRUCTURE - RAILWAYSPHYSICAL INFRASTRUCTURE - AIRPORTSPHYSICAL INFRASTRUCTURE - POWERPHYSICAL INFRASTRUCTURE - TELECOMPHYSICAL INFRASTRUCTURESOCIAL INFRASTRUCTURESOCIAL INFRASTRUCTURE - EDUCATIONSOCIAL INFRASTRUCTURE - HEALTHINDUSTRIAL INFRASTRUCTUREINDUSTRIAL INFRASTRUCTUREKEY SECTORSKEY SECTORS - AGRICULTURE AND FOOD PROCESSINGKEY SECTORS - TEXTILES … (1/2)KEY SECTORS - TEXTILES … (2/2)KEY SECTORS - TOURISMKEY SECTORS - PHARMACEUTICALSKEY SECTORS - MINERAL-BASED INDUSTRY … (1/2)KEY INDUSTRIES - MINERAL-BASED INDUSTRY … (2/2)KEY PROCEDURES AND POLICIESKEY APPROVALS REQUIREDKEY INVESTMENT PROMOTION OFFICESCONTACT LISTCOST OF DOING BUSINESS IN MADHYA PRADESHSTATE ACTS & POLICIES … (1/2)STATE ACTS & POLICIES … (2/2)ANNEXUREANNEXURE…(1/2) - SOURCESANNEXURE…(2/2) - EXCHANGE RATESDISCLAIMER

Documents

MADHYA PRADESH...Madhya Pradesh boasts of rich ancient cultural & religious heritage. Duehick to a t forest cover, the state has immense potential for wild life, adventure & eco-tourism