MADHYA PRADESH THE LAND OF DIAMONDS For updated information, please visit www.ibef.org July 2017 Table of Content 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 EXECUTIVE SUMMARY . GSDP of Madhya Pradesh grew at a compound annual growth rate (CAGR) of 11.72% during 2005-06 to Strong economy 2016-17. The state is rich in natural resources: fuels, minerals, agriculture & biodiversity. Madhya Pradesh has ample reserves of coal & coal-bed methane (8.38% of India’s total coal reserves & 218.04 Rich in natural resources BCM of methane). 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. Infrastructure support . Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at 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: Aranca Estimates based on “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas 3 MADHYA PRADESH For updated information, please visit www.ibef.org ADVANTAGE MADHYA PRADESH Strategically located business hub Attractive investment avenues . The state is centrally located in India. Major consumer goods multinationals . With around 33% of the region under forests, Madhya Pradesh has an are situated in Madhya Pradesh in order to access major consumer markets enormous potential for drug, wood & agro-based commercial enterprises. & metro urban communities like New Delhi (740 km1), Mumbai (780 km1), Ideal soil & climatic conditions have made it a primary producer of coarse Kolkata (1,350 km1) & Chennai (1,435 km1) cereals, oilseeds & soybean in India. The cluster-based advancement methodology promotes investments in . Geographical proximity with the automotive hub of NCR has favourably automotive, textiles & biotechnology. impacted Madhya Pradesh’s auto ancillary industry. The state’s well . Plentiful limestone & coal reserves give development avenues for the developed automotive cluster is now home to around 30 auto component & cement industry. ancillary units. A rich cultural heritage, scenic beauty & wildlife sanctuaries offer a promising tourism industry. Indore is all set to be the new IT capital with TCS & Infosys opening their offices. Advantage. Madhya Pradesh Rich resource pool Policy and infrastructure support . Madhya Pradesh adds around 270,000 graduates to the workforce each . Madhya Pradesh offers distinctive monetary & strategy/policy incentives for year, of which around 90,000 have technical skills. At labour costs of US$ organisations under the Industrial Promotion Policy-2010 & Action Plan, 3.7 per day, the state has a significant cost advantage over metros. other than strategies/ policies for IT, biotechnology, tourism & SEZs. To pull in investors and promote entrepreneurs, the state government has selected . The state houses some of the country’s most reputed institutes including TRIFAC, an agency that encourages a single window system, for speedy Indian Institute of Management, Indian Institute of Foreign Management & approvals of different clearances & consents. Indian Institute of Technology. The state government has made some well-planned infrastructure investments for roads & railroad systems. Government offers various subsidies under ‘Industrial Investment Promotion Assistance (IIPA) under 2014 Schemes’ for investment in development of road, electrification, water, industrial parks, etc. 1 From Bhopal 4 MADHYA PRADESH For updated information, please visit www.ibef.org MADHYA PRADESH VISION 2018 . Develop the transportation . Skill development by expanding network to enhance rural training infrastructure & capacity to connectivity aid 1 million youth in attaining wages & self employment . Reform the institutional machinery for creating public transport facilities . Enhance the ease of doing business for the benefit of Skill . Improve civic infrastructure, investors Transport development including public & household sanitation facilities . Attract higher investments in manufacturing, services & Investment . Expand availability of affordable labour intensive sectors promotion Housing housing Vision . Make the state a world class Tourism Environment . Promote social & agro forestry tourist destination . Revitalise ground water . Promote religious, adventure & resources heritage tourism & attract private Agriculture Infrastructure . Private sector participation in investment maintaining waste disposal & water conservation . Expand the outreach of agriculture . Connect all villages through technology & irrigation to remote world class highways farms. To be a leader in renewable . Promote farm level diversification energy & green technology and value addition. Keep the state power surplus by addition to the power generation capacity Source: Government of Madhya Pradesh 5 MADHYA PRADESH For updated information, please visit www.ibef.org 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. 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) 72.6 Male population (million) 37.6 Female population (million) 35.0 Sex ratio (females per 1,000 males) 931 . Madhya Pradesh is located in central India. The state is surrounded Literacy rate (%) 70.6 by Uttar Pradesh in North, Chhattisgarh in East, Maharashtra in South, Gujarat and Rajasthan in west. The most commonly spoken language of the state is Hindi. English and Marathi are the other languages used. Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the key cities of the state. Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh 6 MADHYA PRADESH For updated information, please visit www.ibef.org MADHYA PRADESH IN FIGURES … (1/2) Parameter Madhya Pradesh All states Source Economy 2016-17 2016-17 Aranca Estimates based on “Advanced Estimates” GSDP as a percentage of all states’ GSDP 4.20 100.0 provided by Directorate of Economics and Statistics of Madhya Pradesh Aranca Estimates based on “Advanced Estimates” GSDP growth rate (%) 17.74 11.52 provided by Directorate of Economics and Statistics of Madhya Pradesh Aranca Estimates based on “Advanced Estimates” Per capita GSDP (US$) NA NA provided by Directorate of Economics and Statistics of Madhya Pradesh Physical Infrastructure Installed power capacity (MW) 19,766.25 3,30,273.65 Central Electricity Authority, as of June 2017 Telecom Regulatory Authority of India, as of March Wireless subscribers (No) 69,550,000 1,170,180,000 2017 Telecom Regulatory Authority of India, as of March Internet subscribers (No) 24,770,000 422,200,000 2017 National Highway length (km) 5,193.57 100,087.08 NHAI & Roads and Building Department Airports (No) 5 125 Airports Authority of India 7 MADHYA PRADESH For updated information, please visit www.ibef.org MADHYA PRADESH IN FIGURES … (2/2) Parameter Madhya Pradesh All states Source Social Indicators Literacy rate (%) 70.6 73.0 Census 2011 Birth rate (per 1,000 population) 26.3 21.6 SRS Bulletin Investments Department of Industrial Policy & Promotion, From FDI equity inflows (US$ billion) 1.371 332.11 April 2000 to March 2017 Industrial Infrastructure DEA, Ministry of Finance, Government of India, PPP projects completed & operational (No) 175 1,565 July 2017 Ministry of Commerce & Industry, Department of Operational SEZs (No) 1 186 Commerce, July 2016 1Including Chhattisgarh PPP: Public Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 8 MADHYA PRADESH For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP * . At current prices, the gross state domestic product (GSDP ) of GSDP ofVisakhapatnam Madhya Pradesh port at trafficcurrent (million prices tonnes) (in US$ billion) Madhya Pradesh for 2016-17 stood at US$ 99.41 billion. Between 2011-12 and 2016-17, GSDP of the state grew at a CAGR CAGR 15.2 % of 15.2%. 99.4 84.4 74.8 67.9 59.1 49.0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: GSDP* - “Advanced Estimates” provided by Directorate of Economics and Statistics, Government of Madhya Pradesh 9 MADHYA PRADESH For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP # . The net state domestic product (NSDP ) of Madhya Pradesh was NSDP ofVisakhapatnam Madhya Pradesh port at trafficcurrent (million prices tonnes)(in US$ billion) about US$ 88.77 billion in 2016-17. During 2011-12 and 2016-17, state’s NSDP grew at a CAGR of CAGR 15.16 % about 15.16 per cent. 88.8 75.1 66.7 60.7 51.8 43.8 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: NSDP# - “Advanced Estimates” provided by Directorate of Economics and Statistics of Madhya Pradesh,