State's Key features
Madhya Pradesh is a state blessed with vast natural resources, rich cultural heritage, an excellent industrial base coupled with a progressive, investor friendly government. The State of Madhya Pradesh was formed on November 1, 1956. Located in Central India, Madhya Pradesh has a unique advantage, bordered by the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat and Chhattisgarh.
Fact File
Source: Central Statistical Organization

Key areas of strength
• Strategic Geographic Location
• Excellent interstate connectivity (National and State Highway, Train and Air Links)
• Rich and Fertile land and Natural resources
• Rich Mineral Wealth - copper ore, magnesium ore, limestone, diamonds, coal and coal-bed methane.
• Availability of Land at a reasonable cost
• Unexploited species of rare, valuable medicinal - herbal plants.
• Industrially peaceful and stable with a vibrant industrial base.
• Peaceful political scenario (Law and Order)
• Madhya Pradesh is major auto manufacturing base and is largest producer of radial tyres in India.
• It has largest soya processing hub in India.
• It is also hub for FMCG, consumer electronics, pharmaceuticals, herbal products, textiles and apparel.
• Growing gems and jewellery center.
• Madhya Pradesh is largest producer of oil seeds and pulses in the country. It is also the largest exporter of DOC (De-Oiled Cake) in India.
• 25% of pulses and 40% of grams grown.
• Largest producer of garlic and coriander and the grower of commercially favored varieties of wheat and potatoes.

Industrial Areas and Centres

Infrastructure

Power
Madhya Pradesh has the capability of generating 15000 MW of power in next 5-10 years. It is expected to be Power Surplus state by the year 2008-09.The potential areas is thermal, gas and alternative energy sources.

Roads
The total length of roads in the state is appr. 72416 kms. The length of national highway in the state is 5070 kms m while State highway extends to 9885 kms. The length of Major District Roads is 11114kms while Village Roads extends to 44233 kms. The state government has taken up the construction and upgradation of roads in a big way and about 60 thousand kilometres roads will be constructed and upgraded.

Railways
Trunk Rail route connecting northern India passes through Madhya Pradesh. Main junctions in the state are Bhopal, Bina, Gwalior, Indore, Itarsi, Jabalpur, Katni, Ratlam, Ujjain & Khandwa.

Aviation
Major airports linking Delhi, Bombay, Varanasi & Nagpur are Bhopal, Indore, Khajuraho & Gwalior. Stations linked by Vayudoot are Bhopal, Khajuraho, Satna, Rewa, Guna, Indore & Jabalpur. Vayudoot also connects Bhopal to Jaipur, Raipur & Nagpur. The government has geared up to upgrade the airports at Bhopal and Indore, both for cargo as well as passengers to international standards.

Water Resources
Water is a critical resource for supporting life and sustaining overall development. Fortunately, water is available in the state of Madhya Pradesh in plenty. The average surface water availability is 81.50 lakh hectare-metre contributed by ten major river basins -Chambal, Betwa, Sindh, and Ken basins in the north, Sone and Tons river basins in the east, Benganga basin in south and Narmada, Mahi and Tapti basins in centre and west. In addition, 35-50 lakh hectare metre ground water is available.

Education
Madhya Pradesh is known for high quality educational institutions ranging from schools to higher centres of learning and research. The government has taken several initiatives for extending the elementary education and training for teachers. The state strives to become a fully literate state by 2010. Under the Sarva Shiksha Abhiyan, an annual plan for Rs. 1800 crore is envisaged.

Industries
The industrial sector contributes 8 per cent to employment of the state workforce and 25 per cent to state GDP. The rate of annual industrial growth in the recent past has varied from 4 per cent to 6 per cent..

Agriculture and Agro Processing
Agriculture contributes almost one-third of the Gross State Domestic Product (GSDP), is the main source of employment for over 70 per cent population, and constitutes about 60 to 75 per cent rural income. The performance of the agriculture sector in the state has been impressive. From a growth rate of mere 1.5 to 2 per cent in the 1980s, the state has made rapid strides growing at the rate of 4 to 5 per cent, faster than the country's average of 3.1 per cent.

Major Crops grown in the State are Paddy, Wheat, Maize and Jowar among Cereals, Gram, Tur, Urad and Moong among Pulses, while Soybean, Groundnut and Mustard among Oilseeds. Also commercial Crops like Cotton and Sugarcane are also grown in considerable area in few Districts. Horticulture Crops Potato, Onion, Garlic, along with fruits like Papaya, Banana, Oranges, Mango and Grapes are also grown in the State. Some area has also been brought under medicinal and narcotic crops. Production of cereals went up by 43 per cent, of pulses by 54 per cent and of cotton by 10 per cent and oilseed production grew by 143 per cent.

The investment opportunities in this sector include wheat processing, potato processing spices and edible oil. Three Agri-Export Zones have been sanctioned in Potato/Onion/ Garlic, Seed spices, and wheat.

Herbal Business
Madhya Pradesh is known for a wide range of herbs. It caters to about 40 percent of Indian herbal industry's requirement across spread across the country. The main herbal centres are Shivpuri, Betul, Katni, Neemuch and Lalitpur. Investment opportunities exist in this sector in the following

industries:
• Aloe Vera gel extraction and spray dried powder-manufacturing units.
• Units to produce extracts of various herbs
• Fractional distillation units for value addition in essential oils.
• Various ayurvedic drug formulation units.
• Promotion of food and vegetable colour dyes.
• Production of concentrates from flowers.
• Primary processing of raw herbs.
• Isabgol dehusking units.
• Herbal cosmetics
• Units to make perfumery compounds
• Production of bio-diesel.

Cement
The state is the third largest producer of Cement in the country catering to 13% of the National demand. Considering the present scenario and the availability of raw material, there is a scope of further investment of $2.5 billion in this sector. Madhya Pradesh's key strength in cement industry is the presence of large limestone reserves, estimated to be over 2 billion tonnes. Prominent cement companies present in the state include ACC, Grasim Industries, Jaiprakash Associates, Cement Corporation of India Ltd, Century Textiles and Mysore Cements.

Textiles and Apparels
The textiles of Madhya Pradesh are a part of the rich heritage of India. It encompasses a number if textile units (approx 51 units). The textile export from M.P. is around $250 Million approx. The state has a potential of attracting a total investment of $2.2 Billion approx in the textile sector in next 5 years, with integrated business models consisting of Composite mills & Garment units. There are vast opportunities for Spun Yarn, Fabric, Textile / Fashion Designing, Readymade Garments.

Pharmaceuticals
The Pharmaceutical sector in Madhya Pradesh envisages a potential of $ 1 Billion Investment in next 5 Years. There is tremendous scope for Bulk drugs / formulations, Herbal products, Contract research, Research centres / laboratories.

Chemicals
The Chemical sector in Madhya Pradesh envisages an Investment opportunity of over $75 billion, with a potential growth of 5 billion in the next 10 years.

Auto and Auto components:
This sector offers tremendous potential with reference to HCV/LCV/MCV/PC/2-3 Wheeler, Auto Components: Tyres, Engines, and Gears.

Minerals / Stone
The opportunities in this sector include Stone cutting & Polishing, Marble, Granite, Sandstone, Mineral / Gas exploration, Mineral excavation and Power generation plant.

Tourism Industry
With the view to speed-up development of Tourism in Madhya Pradesh, the State Government announced a New Tourism Policy in January 1995. The new tourism policy envisages creation of an environment conducive to attracting increased private investment in the tourism sector, and a more meaningful role for the Government.

The opportunities in this sector include
• Hotels,
• Resorts,
• Charter Flights,
• Adventure Zones,
• Amusement Parks and
• Tourist trains.

Incentives in tourism Industry
A special package of incentives for the tourism industry has been prepared. These incentives will also be available for private entrepreneurs for any of the following activities:
• Hotels, Motels and Restaurants.
• Heritage Hotels, Health Farms, Recreation Centres, Ropeways, Golf Courses, Museums, Amusement Parks, Craft Villages, Convention Centres, and all other bonafide tourism related activities recognised by the government.
• A/c Luxury Coaches, A/c Mini Buses, and imported Limousines purchased by registered tour operators for tourist transport.
• Activities connected with adventure tourism, such as hang gliding, para sailing, river rafting, boating, trekking, rock climbing etc.

Specific Incentives

Land
• Government land will be offered with the approval of the Empowered Committee as equity participation on behalf of the Government at current market value for setting up Joint Ventures.
• The companies thus formed who are given any kind of Government land will be expected to complete the project within a period of three years from the date of transfer of land, failing which the land will revert to the Government. The company will not be allowed to transfer the land to anybody else, or use it for any purpose other than that for which it is allotted.
• For construction of approved category hotels, etc. in the urban areas, exemption under Section 20 of the Urban Land Ceiling Act will be made available on a case-to-case basis as decided by the Empowered Committee.

Luxury Tax
New projects shall be exempt from Luxury Tax for ten years from the date of commencement of commercial operations.

Sales Tax
New projects shall be exempt from Sales Tax for ten years from the date of commencement of commercial operations.

Entertainment Tax
Entertainment Centres will be exempt from Entertainment Tax for ten years from the date of commencement of commercial operations.

IT/IT related services
Investment opportunities exist in the area of business Process Outsourcing, and software / hardware segments. Madhya Pradesh is targeting 5-10% of the Indian share of Global IT/ITES market.

Policy Framework
Industrial Promotion Policy 2004
With a view to attain a double-digit economic growth in Madhya Pradesh and for making the state prosperous, the state Cabinet has approved the new industrial policy (Industrial Promotion Policy 2004 and Action Plan). The Industrial Promotion Policy would be effective for five years from 1st April 2004.The new policy envisages on creating an industry-friendly administration, maximizing employment opportunities, tackling industrial sickness, to rationalizing rates of commercial taxes and bolstering private sector participation.

Objectives of the Policy to make state administration industry friendly by simplifying rules and procedures and to accelerate the pace of industrialization and make Madhya Pradesh industrially a leading state. It also aims to maximize employment prospects and attract NRI and foreign investment by developing world-class infrastructure.

Strategy of the Industrial Policy is to provide incentives and facilities in the state to achieve objectives of Industrial Promotion Policy and ensuring effective implementation of planned strategy. An Employment Board has been set up for employment generation under which policy for employment and self-employment schemes will be framed and monitored. Technological up-gradation, modernization and development of industrial units would be encouraged.

Information Technology Policy 2006
Madhya Pradesh strives to use Information Technology to improve the life of the common person leveraging the strengths of e-Governance and attract investment in the sector so that the educated youth is able to contribute to the development of the State.Transforming Resource Based Economy to Knowledge Based Economy.

Biotech Policy (2003)
The broad objectives of the policy shall, inter-alia, include promotion of biotechnology applications for conservation of the state's biodiversity and the sustainable use of its biotic resources.
• Production of high-yielding, draught and pest - resistant seeds for agriculture and horticulture crops suited to different agro-climatic zones.
• Improvement of the quality of livestock and poultry, especially the breeds indigenous to the state.
• Enhancement of the productive potential of the aquatic eco-system.
• Promotion and cultivation of medicinal and aromatic plants, and the processing and value addition of their produce.
• Production of cost effective drugs that help counter diseases common in the tropical and sub-tropical regions of the country.
• Promote environmentally safe technologies for pollution abatement, especially treatment of urban waste and industrial effluents.
• Afforestation and especially in the quick revival of species which have shown a tendency to decline.
• Generation and use of different types of bio-energy.

Strategy of the Policy
To help achieve the above laid objectives, the state governments through its different organs endeavor for the following:
• Expansion of opportunities for biotechnology education for research, industry, farmers and community level extension services.
• Promotion of community based biotechnology applications in agriculture, horticulture, livestock & poultry, fisheries, forestry and health sectors.
• Promotion of studies in the legal and regulatory aspects of intellectual property rights involving different stakeholders including farmers, tribal and rural communities, and the practitioners of traditional and herbal medicine.
• Establishment of biotechnology industry in the state.
• Establishment of a biodiversity and biotechnology network of institutions and agencies.

Useful Web Links
• Government of Madhya Pradesh
• Destination Madhya Pradesh