Madhya Pradesh Poised for US$2.1 trillion Economy by 2047: CII Report
CII Report Charts a Transformational Roadmap for MP’s Economic Leadership
Madhya Pradesh economy can potentially increase its Gross State Domestic Product (GSDP) to US$2.1 trillion (Rs 248.6 lakh crore) by 2047-48, growing at a CAGR of 8.6% from current US$ US$164.7 billion (Rs 13.6 lakh crore), according to a report by the Confederation of Indian Industry (CII). The report, titled “Envisioning Madhya Pradesh Economy@2047”, outlines a vision for economic growth, identifying key sectors, policy interventions, and investment opportunities that will drive the state’s transformation.
Commenting on the report, Mr Chandrajit Banerjee, Director General, CII stated that with a proactive state government dedicated to boosting investment and driving growth, Madhya Pradesh is well-placed to increase its contribution to India's GDP from the current 4.6% to 6.0% by 2047-48.
The report is based on comprehensive data analysis and stakeholder consultations, including inputs from industry leaders, policymakers, and academic experts. It serves as a blueprint for unlocking Madhya Pradesh’sfull economic potential, ensuring sustainable growth, job creation, and enhanced competitiveness.
Further, the report underscores that for Madhya Pradesh (MP) to achieve its ambitious growth targets, manufacturing and industrial expansion must take center stage. While the agriculture sector currently contributes 43% to MP’s economy, the share of manufacturing must rise from 7.2% to 22.2% by 2047 to sustain long-term growth.
To achieve this, the report outlines strategic interventions, categorized into horizontal (cross-sectoral) and vertical (sector-specific) approaches. The horizontal interventions are as under:
First, the state government should continue to push infrastructure growth by enhancing transportation infrastructure, developing more multi-modal logistics parks, expanding air cargo hubs, and improving air connectivity. Additionally, the state should focus on developing sector-specific industrial parks and smart city infrastructure, as well as building eco-friendly industrial parks to integrate renewable energy sources.
Secondly, priority should be given to availability of skilled workforce especially for employment elastic sectors such as textiles and food processing. For this, the state government should set up more Skill Parks and encourage industry participation in skill development to address the skill gaps.
Third relates to improving ease of doing business which is critical to create a robust ecosystem for business. Enhancing the efficiency of the Single Window System (SWS) for seamless approvals and clearances can bring significant benefits. Streamlining land acquisition and registration processes, integrating inspections, and providing timely clearances are crucial steps in this direction.
Fourth relates to scaling up MSMEs. It is well known that MP boasts of a thriving ecosystem for MSMEs and startups and ranks seventh out of ten top states as far as the number of small- scale enterprises is concerned. The task ahead is that of scaling up MSMEs through measures such as improving access to credit through 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 programmes, facilitating digitisation and technological upgradation, among others.
Apart from the above, there are four game-changing interventions which would bring the state on the global map. These includes measures related to boosting exports, driving deep tech innovation, facilitating green transition and strengthening the institutional mechanism. The latter could be implemented by creating an Economic Advisory Council to address the broad spectrum of economic reforms.
Apart from horizontal interventions, the report also covers vertical interventions which include sector specific strategies for high impact and sunrise sectors such as agribusiness and food processing, pharmaceutical, medical devices & healthcare, petrochemicals & natural gas, tourism, IT & ITeS, defence & aerospace, renewable energy among others.
According to Mr Banerjee, the state economy is at an inflection point and further impetus to structural reform to develop industrial capabilities would be the key to improve investor attractiveness in the state.
Madhya Pradesh has created new touchstones for building agriculture excellence based on technological innovation, advanced farming practices and widespread crop diversification. Based on successful strategies seen in agriculture, initiatives are required in the manufacturing and services sectors which would help the state to break new grounds in its march towards progress, the report highlighted.
24 February 2024
Bhopal. M.P.