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Madhya Pradesh—Investment Opportunities in the Heart of India

Madhya Pradesh has been a consistently performing state in India in terms of economic growth and is expected to continue to contribute significantly towards the national growth. This study focuses on the potential areas for investments across various sectors in Madhya Pradesh and the state’s ability to support industry growth because of its infrastructure and government policies. The focus sectors for growth are auto and auto-component engineering, healthcare and pharmaceutical, agriculture and food processing, mines and minerals, IT and ITeS, and tourism.


Executive Summary

In the fiscal year ending March 2014, Madhya Pradesh outpaced all major Indian states to top economic charts with an impressive growth of % and a gross state domestic product (GSDP) of INR crore. Notably, this was accomplished in a year when the national gross domestic product (GDP) completed its second consecutive year of sub- % growth. Going forward, Madhya Pradesh is one of the states expected to continue contributing significantly to future growth in the national GDP.

Key Sectors in Madhya Pradesh

Auto and auto-component engineering
Healthcare and pharmaceutical
Agriculture and food processing
Mines and minerals
IT and ITeS
Tourism

The state of Madhya Pradesh is the most consistent performer among all states in India, with an average growth of % during the years from 2011/2012 to 2013/2014. This high growth is led by an agricultural boost that has benefited the agriculture and food processing sector as well as an expansion in the services sectors covering tourism, information technology (IT), and information technology enabled services (ITeS).

Although industrial growth has been dampened in the past by country-wide conditions of poor investment and business climate, some sectors have high potential, such as mines and minerals. Other sectors include auto and auto-component engineering, textiles, cement, forest-based industries, pharmaceuticals, and manufacturing.

Table Of Contents

Madhya Pradesh—Investment Opportunities in the Heart of India
Contents
Executive Summary 4
The State of Madhya Pradesh4
Focus Growth Sectors 5
Auto and Auto-component Engineering6
An Overview 6
Investment Profile8
Infrastructure and Availability of Resources 9
National Best Practices 10
Government Policies and Incentives 12
Healthcare and Pharmaceutical14
An Overview 14
Investment Profile16
Infrastructure and Availability of Resources 17
National Best Practices 19
Government Policies and Incentives 20
Agriculture and Food Processing22
An Overview 22
Investment Profile24
Infrastructure and Availability of Resources 24
National Benchmarking of Best Practices 26
Government Policies and Incentives 26
Mines and Minerals Sector27
An Overview 27
Investment profile 28
Infrastructure and Availability of Resources 28
National Benchmarking of Best Practices 29
Government Policies and Incentives 30
9ADB 3
Madhya Pradesh—Investment Opportunities in the Heart of India
IT and ITeS Sector32
An Overview 32
Investment Profile34
Infrastructure and Availability of Resources 34
National Benchmarking of Best Practices 35
Government Policies and Incentives 36
Tourism Sector37
Current Scenario37
Investment Profile40
Infrastructure and Availability of Resources 40
National Benchmarking of Best Practices 41
Government Policies and Incentives 42
Legal Disclaimer44

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