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MADHYA PRADESH THE LAND OF DIAMONDS MARCH 2017 (As of 24 March 2017) For updated information, please visit www.ibef.org 1 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 MARCH 2017 For updated information, please visit www.ibef.org 2 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 during 2005-06 to 2015-16. • The state is rich in natural resources: fuels, minerals, agriculture & biodiversity. Rich in natural • Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total coal reserves & 218.04 BCM of methane). resources • The state has the largest reserves of diamond & copper in India. • Madhya Pradesh has significant reserves of limestone, manganese & dolomite. • Madhya Pradesh boasts of rich ancient 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 companies have moved their warehouses here to save on logistics expenses. • Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at Infrastructure support multiple locations aim to promote sectoral growth. • MP is emerging as a solar power hub & is targeting generation of 2,650 MW of solar power by 2017. Source: TechSci Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas MARCH 2017 For updated information, please visit www.ibef.org 3 MADHYA PRADESH THE LAND OF DIAMONDS ADVANTAGE MADHYA PRADESH Strategically located business hub Attractive investment avenues • With around 33% of the region under forests, Madhya Pradesh • The state is centrally located in India. Major consumer goods 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. 1 1 • The cluster-based advancement methodology promotes km ) & Chennai (1,435 km ) investments in automotive, textiles & biotechnology. • Geographical proximity with the automotive hub of NCR has • Plentiful limestone & coal reserves give development avenues favourably impacted 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 Pradesh Policy and infrastructure support • 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 significant cost advantage over metros. approvals of different clearances & consents. • 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. MARCH 2017 1 From Bhopal For updated information, please visit www.ibef.org 4 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 labour intensive sectors promotion Vision 2018 • Make the state a world class 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 & world class 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 MARCH 2017 For updated information, please visit www.ibef.org 5 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 of crops. Madhya Parameters Pradesh Capital Bhopal Geographical area (sq km) 308,000 Administrative districts (No) 51 Population density (persons per sq km) 236 Source: Maps of India Total population (million) 72.6 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 Maharashtra in South, Gujarat and Rajasthan in west. Sex ratio (females per 1,000 males) 931 The most commonly spoken language of the state is Hindi. Literacy rate (%) 70.6 English and Marathi are the other languages used. Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of Source: Government of Madhya Pradesh website, National Informatics the key cities of the state. Centre Madhya Pradesh MARCH 2017 For updated information, please visit www.ibef.org 6 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$) 1,188.98 1,546 provided by Directorate of Economics and Statistics of Madhya Pradesh Physical Infrastructure Installed power capacity (MW) 18,917.16 305,554.25 Central Electricity Authority, as of August 2016 Telecom Regulatory Authority of India, as of Wireless subscribers (no) 64,379,812 1,078,422,215 October 2016 Telecom Regulatory Authority of India, as of Internet subscribers (no) 21,270,000 367,480,000 September 2016 National Highway length (km) 5,193.57 100,087.08 NHAI & Roads and Building Department Airports (no) 5 125 Airports Authority of India MARCH 2017 For updated information, please visit www.ibef.org 7 MADHYA PRADESH THE LAND OF DIAMONDS MADHYA PRADESH IN FIGURES … (2/2) Madhya Parameter All states Source Pradesh Social Indicators Literacy rate (%) 70.6 73.0 Census 2011 Birth rate (per 1,000 population) 26.3 21.6 SRS Bulletin Investment Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 1.291 288.63 From April 2000 to March 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 MARCH 2017 For updated information, please visit www.ibef.org 8 MADHYA PRADESH THE LAND OF DIAMONDS ECONOMIC SNAPSHOT – GSDP At current prices, the gross state domestic GSDP of Madhya Pradesh at current prices (in US$ billion) product (GSDP*) of Madhya Pradesh for 2015- 16 stood at US$ 86.32 billion. Between 2005-06 and 2015-16, GSDP of the state grew at a CAGR of 11.86%. 84.27 86.32 74.8 66.49 68.52 57.7 48.08 40.1 42.75 28.15 32.03 2008-09 2005-06 2006-07 2007-08 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Source: GSDP* - “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh MARCH 2017 For updated information, please visit www.ibef.org 9 MADHYA PRADESH THE LAND OF DIAMONDS ECONOMIC SNAPSHOT – NSDP NSDP of Madhya Pradesh at current prices