A PR HY AD D E S A H M Core Committee Dr. Bhalchandra L. Mungekar Chairman Member, Planning Commission Principal Adviser/Adviser (State Plan-Central) Member Principal Secretary (Planning), Government of Member Madhya Pradesh Representative, Partner Institution Sanket Information and Research Agency, Bhopal mik/;{k ;kstuk vk;ksx Hkkjr DEPUTY CHAIRMAN PLANNING COMMISSION INDIA ,e. ,l. vkgyqokfy;k MONTEK SINGH AHLUWALIA FOREWORD One of the important Tenth Plan initiatives of the Planning Commission was to sponsor preparation of the State Development Reports, assigning the exercise to reputed institutes, the independent exercise of Union and State Government has been undertaken in recognition of the fact that economic circumstances and performance of individual states have varied considerably. It was felt to examine the development challenges of each state in light of the state-specific opportunities, constraints and resources. The basic idea has been to produce a quality reference document on development profiles of individual states and devising appropriate strategy for accelerated development. The Madhya Pradesh State Development Report reviews Madhya Pradesh’s development experience and highlights critical inputs for the state’s development in the years ahead. I hope this publication will stimulate debate on growth strategies appropriated for Madhya Pradesh. I am also sure the roadmap indicated in the Report will stimulate a broader awareness of the critical policy issues facing the state, and would enable the state to move to a higher growth path, securing welfare for all its citizens. (Montek Singh Ahluwalia) Yojana Bhawan, Parliament Street, New Delhi : 110001 Phones: 23096677, 20396688, 20396699 Fax : 23096699 E-mail : [email protected] Shivraj Singh Chouhan Government of Madhya Pradesh Chief Minister BHOPAL - 462 004 Dated: 15 October 2009 MESSAGE Madhya Pradesh, the second largest state of India, is the 9th biggest state economy in the country. Blessed with vast natural resources and comparatively peaceful environment, the state still faces formidable challenge of removing historical constraints of development. We have taken great strides in improving the infrastructure including roads, power and irrigation in the last few years. However, great deal of efforts are still required to bring the state at par with the other developed states. The recent initiatives to empower women and girl child have been appreciated across the country. Ladli Laxmi Yojana and Deendayal Antyodaya Upchar Yojana have been hailed at the national level. The state has done very well in terms of implementation of Centrally Sponsored Schemes including flagship programmes and Bharat Nirman Schemes. Meticulous fiscal management has given a thrust to the state economy. I am happy to learn that the Planning Commission of India is bringing out the “State Development Report” for Madhya Pradesh. We have embarked upon an ambitious goal of placing Madhya Pradesh in the category of leading states in terms of development. I am sure that the State Development Report will not only capture the trends of various sectors of development, but also will help us in designing and strategising the future initiatives for faster development. (Shivraj Singh Chouhan) A PR HY AD D E S A H M Contents Core Committee. 5 Foreword by Deputy Chairman, Planning Commission. 7 Message from Chief Minister, Madhya Pradesh. 9 List of Tables, Figures and Annexures.. 17 Acknowledgements. 23 Executive Summary. 25 1. Comparative Development Profile of Madhya Pradesh. 29 Introduction Economic Profile: Interstate Comparisons Growth in Economy of Madhya Pradesh Size of Five Year Plans Budgetary Performance Comparative Profile of Poverty Human Development Growth of Population and Population Stabilisation Implications for the State 2. Employment and Livelihoods. 45 Introduction Employment Situation and Trends Proliferation of Marginal and Small Farmers Forest-based Livelihoods Employment—Enterprises and Establishments Changes in Sectoral Distribution of Workers and Rural Non-Farm Employment Trends at One-Digit Level Unemployment Underemployment Quality of Employment Labour Productivity Strategic Options Employment Strategies: Five Options Key Findings Constraints and Policy Recommendations Policy Suggestions and Recommendations Selected Growth Engines Conclusion 12 MADHYA PRADESH DEVELOPMENT REPORT 3. Agriculture in Madhya Pradesh.. 69 Introduction Agro-Climatic Zones of MP Land Use Classification Operational Holdings in Madhya Pradesh Agriculture Growth Rate in Madhya Pradesh Growth of Agriculture Production in Madhya Pradesh Cropping Pattern State’s Share in National Agriculture Production and Their Status Horticulture in Madhya Pradesh Medicinal Plants Incidence of Natural Calamity Organic Farming High Yielding Varieties Fertilisers Activities Allied with Agriculture Institutions and Services Supporting Agriculture Policy Initiatives by the State Government Irrigation Water Budgeting for Agriculture The Road Ahead 4. Finance. 95 Introduction Receipts Capital Receipts Debt/GSDP Ratio A Citizen’s View of Public Debt Expenditure Fiscal Priority Per Capita Expenditure The FRBM Act, 2005—Targets and Achievements on Fiscal Indicators for MP Quality of Expenditure Principle of Accurate Budgeting Implications of Sixth Central Pay Commission Decentralisation State Finance Commission Measures taken by Finance Department to keep Financial Discipline Way Forward 5. Governance. 119 Introduction Ranking of India on Governance Indicators Interstate Comparisons based on Quality of Life About Good Governance Governance Issues in MP Democratic Institutions Decentralisation CSOs and NGOs Urbanisation Migration Social Inequality Government Initiatives for Improving Governance CONTENTS 13 6. Education in Madhya Pradesh–A Story of Success and Future Challenges. 139 Introduction Status of Elementary Education Growth in Literacy Rate Enrolment in Primary Schools Education Incentives High and Higher Secondary School Basic Infrastructure School Facilities Higher Education Technical Education Quality of Education Provisioning of Teachers Curriculum Learner’s Evaluation Decentralisation of Academic Support Budget New Opportunities 7. Forests in Madhya Pradesh. 157 Background State of Forests in Madhya Pradesh Forest Types and Resources Growing Stock and Productivity Long-term Bio-conservation—Regulatory Status of Protection Categories Role and Importance of the Forestry Sector in State’s Economy Forest Produce in the State Production of Non-Timber Forest Produce (NTFP) or Minor Forest Produce (MFP) Forest Policy, 1988 Joint Forest Management (JFM) Forest Development Authority Greening of Non-forest Lands: Lok Vaniki Forest Department Initiatives under State Plan Development Funds Road Ahead 8. Status of Women and Children in Madhya Pradesh. 183 Introduction Key Survival Indicators Child Mortality Maternal Mortality and the Status of Nutrition among Women in MP Overall Gender Ratio Child Sex Ratio Age at Marriage Educational Profile Economic Profile of Women in MP Child Labour Political Voice—As Elected Representatives Crime against Women and Children in Madhya Pradesh Gender Budgeting Women Empowerment State Women’s Policy State Government’s Efforts Through Schemes/Programmes 14 MADHYA PRADESH DEVELOPMENT REPORT 9. Tourism in Madhya Pradesh—A Thriving Sector. 197 Introduction Why Tourism Tourism in Madhya Pradesh Hospitality Tourist Arrival in Madhya Pradesh Tourism Policies in Madhya Pradesh Institutional Mechanism Eleventh Five Year Plan Achievements in the Tourism Sector A Tourism Strategy for Madhya Pradesh Road Ahead 10. Infrastructure in Madhya Pradesh. 213 Introduction Roads Aviation Sector in MP Railways Telecom Power Water Supply and Sanitation 11. Handlooms in Madhya Pradesh.. 241 Introduction Handlooms in Madhya Pradesh Promoting Handloom Sector Market Profile in Madhya Pradesh Related and Supporting Industries Some of the Key Initiatives by the State Government in 2007-08 Handloom Development Scheme Strategy for Madhya Pradesh Road Ahead 12. Health in Madhya Pradesh—A Major Development Challenge. 253 Introduction Indicators on State of Health Death Rate Maternal Health Infant and Child Mortality Immunisation The Disease Burden Factors Affecting Basic Health Household Food Expenditure Availability of Food Food Intake among Vulnerable Groups Health Infrastructure in Madhya Pradesh Accessibility to Health System Health Expenditure Rogi Kalyan Samiti The Institutional Response Log Frame for Medium-Term Health Sector Strategy (2006 to 2011) Road Ahead CONTENTS 15 13. Industry in Madhya Pradesh. 271 Introduction Industry in State’s Economy Key Industries in MP Industrialisation of Madhya Pradesh Comparative Performance of MP in Factory Sector Structural Ratios Industrial Clusters Industrial Promotion Policy 2004: New Ray of Hope Special Economic Zone in MP: Salient Features Advantage Madhya Pradesh Investment Opportunities for Promoting Industrialisation Multi-prong Strategies for Promoting Industry Sector in MP TRIFAC—An Empowered Single Window Road Ahead References. 303 A PR HY AD D E S A H M List of Tables, Boxes Figures and Annexures Tables 1.18 State-wise Head Count Ratio in the Rural Sector . 38 1.1 Index of Per Capita State Domestic Product (SDP) 1.19 State-wise Head Count Ratio in the Urban Sector . 38 at Constant Prices (Three-Year Averages) . 29 1.20 Head Count Ratio in the Rural and Urban Areas 1.2 Ranking of States on the Basis of Per Capita of Madhya Pradesh Compared to All-India and SDP at Constant