MP has potential for 18-fold growth to be $2.1 trn economy by 2047-48: CII

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Madhya Pradesh can potentially increase the size of its economy by 18 times to $2.1 trillion (Rs 248.6 trillion) by 2047-48, according to a report by industry body CII. In order to realise its potential, the state needs to focus on boosting the manufacturing industry and industrial expansion must take center stage, CII said.

According to the report 'Envisioning Madhya Pradesh Economy@2047', the gross state domestic product (GSDP) of the state can rise to $2.1 trillion (Rs 248.6 trillion) by 2047-48, growing at a CAGR of 8.6 per cent, from the current $164.7 billion (Rs 13.6 trillion). 

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 per cent to 6 per cent by 2047-48, CII Director General Chandrajit Banerjee said.

As per the report, for Madhya Pradesh to achieve its ambitious growth targets, manufacturing and industrial expansion must take center stage.

While the agriculture sector currently contributes 43 per cent to Madhya Pradesh's economy, the share of manufacturing must rise from 7.2 per cent to 22.2 per cent by 2047 to sustain long-term growth.

To achieve this, the report outlined strategic interventions, categorised into horizontal (cross-sectoral) and vertical (sector-specific) approaches.

The report suggested that 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, it 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.

Priority should also be given to availability of skilled workforce especially for employment sectors such as textiles and food processing, the report said, while suggesting setting up of more skill parks and encouraging industry participation in skill development to address the skill gaps.

Pointing out that to improve ease of doing business, which is critical to create a robust ecosystem for business, the report said enhancing 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," it noted.

On the scaling up of MSMEs, for which MP boasts of a thriving ecosystem, the report said,"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.".

Banerjee said Madhya Pradesh's economy is at an inflexion point and further impetus to structural reform to develop industrial capabilities would be the key to improve investor attractiveness in the state.

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 noted.