According to CII, Madhya Pradesh's economy has the potential to grow by 18 times to $2.1 trillion (Rs 248.6 trillion) by 2047-48. To realize its full potential, the state must focus on boosting the manufacturing industry, with industrial expansion taking center stage, according to the CII.
Furthermore, as per the report 'Envisioning Madhya Pradesh Economy@2047', the state's gross state domestic product (GSDP) could reach $2.1 trillion (Rs 248.6 trillion) by 2047-48, growing at an 8.6 percent CAGR from the current $164.7 billion (Rs 13.6 trillion).
With a proactive state government committed to boosting investment and driving growth, Madhya Pradesh is well-positioned to increase its contribution to India's GDP from 4.6% to 6% by 2047-48, according to CII Director General Chandrajit Banerjee.
According to the report, for Madhya Pradesh to meet its ambitious growth targets, manufacturing and industrial expansion must take priority. While agriculture currently accounts for 43% of Madhya Pradesh's economy, manufacturing must increase its share from 7.2% to 22.2% by 2047 to ensure long-term growth.
To accomplish this, the report outlined strategic interventions divided into horizontal (cross-sectoral) and vertical (sector-specific) approaches. The report recommended that the state government continue to promote infrastructure growth by improving transportation infrastructure, creating more multi-modal logistics parks, expanding air cargo hubs, and improving air connectivity.
It should also focus on developing sector-specific industrial parks and smart city infrastructure, as well as creating eco-friendly industrial parks that incorporate renewable energy sources. Priority should also be given to the availability of skilled workers, particularly in employment sectors such as textiles and food processing, according to the report, which also recommends the establishment of more skill parks and encouraging industry participation in skill development to address skill gaps.
The report stated that improving the efficiency of the single window system (SWS) for seamless approvals and clearances can result in significant benefits for improving ease of doing business, which is critical in creating a robust business ecosystem. "Streamlining land acquisition and registration processes, integrating inspections, and providing timely clearances are crucial steps in this direction," it stated.
On the scaling up of MSMEs, for which MP boasts of a thriving ecosystem, the report stated, "The task ahead is that of scaling up MSMEs through measures such as improving access to credit through the provision of concessional lines of credit, support for improving market access by participating in exhibitions and trade fairs, facilitating export assistance to scale up MSMEs, initiating skill development programs, facilitating digitisation and technological advancement, among others."
According to Banerjee, Madhya Pradesh's economy is at a crossroads, and more structural reform to develop industrial capabilities will be critical to improving the state's investor attractiveness. Based on successful agricultural strategies, initiatives in the manufacturing and services sectors are needed to help the state break new ground on its path to progress, according to the report.
