Economy
The Gross State Domestic Product (GSDP) of Madhya Pradesh for 2020-21 at current price was Rs 9,76,281 crore. The primary sector accounts for 46.98% (at current price) of the State’s GSDP as of 2020-21 (Estimation), followed by Industry (19.47% GSDP) and Service sector (33.55% in GSDP).
Taking into account of the GDP at constant price, share of the GDP of Madhya Pradesh is approximately 3.86% to GDP of the Country.
Gross State Domestic Product (GSDP) at current prices & constant prices (2011-12)
Amount in crore
*2021-22- Estimation
Sector wise distribution % of GSDP at current prices & constant prices (2011-12) (Estimation)
Economy of Madhya Pradesh is primarily agrarian and it is a champion in the development of agriculture and allied sector for more than a decade. Owing to an impressive agriculture growth rate, MP has been the recipient of the Krishi Karman Award consecutively from the last many years. The State has taken several concrete steps to attract investment, simplified various procedures for starting a business in 30 days, and set up an online system for the same. Due to these efforts, Madhya Pradesh is ranked fourth in the ‘Ease of Doing Business’ list as per the State Business Reform Action Plan-2019 ranking. According to the Department of Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in MP were valued at US$ 225.70 million between October 2019 to September 2020.
Madhya Pradesh has immense potential to become the manufacturing hub of India due to availability of land, Narmada water, power surplus, almost negligible Labour-unrest incidents, presence of eminent skill institutes, and availability of the best infrastructure for setting up industries in the state. The state is suitable for the auto-sector, food processing, textile and apparel, defence sector logistics and warehousing development.
The state is home to around 280 pharmaceutical units operating in the industrial areas of Dewas, Indore, Pithampur, Mandideep and Malanpur. Due to the abundance of tigers and other wildlife in the national parks of the state, it has been recognized as the ‘Tiger State of India’. The state is focusing on infrastructure development in agriculture and allied sectors and by developing the infrastructure it is attracting the industries, thereby generating employment opportunities.