MP’s Economic Growth Potential
Madhya Pradesh has the potential to expand its economy by 18 times to reach $2.1 trillion (₹248.6 trillion) by 2047-48, according to a report by the Confederation of Indian Industry (CII). The report, “Envisioning Madhya Pradesh Economy@2047”, highlights that for this growth to happen, the state must prioritize manufacturing and industrial expansion.
Projected Growth Rate
Currently, Madhya Pradesh’s Gross State Domestic Product (GSDP) stands at $164.7 billion (₹13.6 trillion). The report predicts that with a Compound Annual Growth Rate (CAGR) of 8.6%, the state can significantly contribute to India’s overall GDP, increasing its share from 4.6% to 6% by 2047-48.
Government’s Role in Economic Expansion
CII Director General Chandrajit Banerjee emphasized that a proactive state government dedicated to investment and economic expansion is crucial for MP’s progress.
Key Sectors for Economic Growth
1. Industrial & Manufacturing Growth
- The manufacturing sector must expand from its current 7.2% contribution to 22.2% by 2047 to ensure sustained development.
- Madhya Pradesh needs sector-specific industrial parks, smart cities, and eco-friendly industrial zones powered by renewable energy.
2. Agriculture Sector Evolution
- Currently, 43% of MP’s economy relies on agriculture. The report suggests diversification into high-value crops and agro-processing to boost productivity.
3. Infrastructure & Connectivity
- Investment in transportation, logistics hubs, air cargo facilities, and multimodal transport is critical for economic acceleration.
- Expanding rail and road networks will enhance trade and commerce.
4. Workforce Development & Skill Training
- Establishing more skill parks and promoting industry partnerships in skill development will bridge employment gaps.
- Textiles and food processing industries require a skilled workforce to boost production and exports.
Enhancing Ease of Doing Business
- Strengthening the Single Window System (SWS) will enable faster approvals and clearances for businesses.
- Simplifying land acquisition, registration, and inspection processes will improve investor confidence.
Boosting MSME Growth
Madhya Pradesh’s Micro, Small, and Medium Enterprises (MSME) sector is a key contributor to the state’s economy. The report suggests:
- Easier access to credit through concessional loans.
- Participation in trade fairs and exhibitions to expand market reach.
- Support for export growth to increase MSME competitiveness.
- Encouraging digitization and technology adoption to modernize businesses.
Conclusion
CII’s report underlines that structural reforms and investment-friendly policies will be the driving force behind Madhya Pradesh’s transformation into a $2.1 trillion economy by 2047. By strengthening industrial, manufacturing, and service sectors, the state can unlock new opportunities and position itself as a key player in India’s economic future.
