- 15% CAGR in Industry during (FY13-14)
- During 2006–11, the secondary and tertiary sectors grew faster than agriculture, outpacing the primary sector.
- State’s Industrial Promotion Policy (IPP) 2014 incentives and its central location have attracted major investments in the agro-products, consumer goods, drugs and pharmaceuticals, mines and minerals, manufacturing and textiles sectors
- The Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) and its subsidiary, Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVN) are the key nodal agencies for industrial development in the state.
Advantage Madhya Pradesh
- Strategic geographic location.
- Excellent interstate connectivity (national and state highway, train and air links).
- Rich, 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.
- Cheap labour.
- Unexploited species of rare, valuable medicinal, herbal plants.
- Industrially peaceful and stable with a vibrant industrial base.
- Peaceful political scenario (law and order).
- Rich cultural heritage.
- Major auto manufacturing base. Largest producer of radial tyres in India.
- Largest soya processing hub in India.
- Hub for FMCG, consumer electronics, pharmaceuticals, herbal products, textiles and apparel.
- Growing gems and jewellery centre.
- Largest producer of oil seeds and pulses in the country. Largest exporter of DOC (de-oiled cake) in India. Twenty-five per cent of pulses and 40 per cent of grams grown.
- Largest producer of garlic and coriander.
- Grower of commercially favoured varieties of wheat and potatoes. Largest producer of garlic and coriander.
Key Industries in MP
- The state’s industrial base is quite diverse and vibrant. Industry is largely resource-driven, leveraging the state’s natural wealth in the form of limestone, coal, iron ore, silica, bauxite, soya, cotton, etc.
- Therefore, the state has a strong industry base in sectors like cement, steel, textile and soya processing.
- Important and well-known companies having their manufacturing bases in Madhya Pradesh.
- There is a strong auto, auto ancillary and pharmaceutical sector.
Causes of Low Industrialisation in Madhya Pradesh
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Poor Capital Formation: Poor rate of capital formation is considered as one of the major constraint.
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Political Factors
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Lack of Infrastructural Facilities: Absence of proper transportation (rail and road) and communication facilities in many parts of the state, industrial development could not be attained in those regions in-spite of having huge development potentialities in those areas.
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Poor Performance of the Agricultural Sector: Industrial development in India is very dependent on the performance of the agricultural sector. Thus, the poor performance of the agricultural sector resulting from natural factors is also another important factor responsible for industrial stagnation.
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Gaps between Targets and Achievements
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Dearth of Skilled and Efficient Personnel: In the absence of properly trained and skilled personnel, it has become very difficult to handle such highly sophisticated computerized machineries necessary for industrial development. Moreover, social factors like immobility of labour and capital and lack of proper initiative and enterprises on the part of people of India are also highly responsible for this slow pace of industrialisation.
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Elite Oriented Consumption: The production of “white goods” like refrigerators, washing machines, air conditioners etc. expanded substantially along with the other luxury products. But the production of commodities for mass consumption has recorded a slow growth rate. This clearly reveals a ‘distortion of output structure’ of Indian industries, resulting in a recessionary tendency in the market of these luxury products in recent years.
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Concentration of Wealthin few hands only
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Poor Performance of the Public Sector: Public sector investment failed to generate required surpluses necessary for further investment in industrial sector of the country.
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Industrial Sickness: Another peculiar problem faced by the industrial sector of the country is its growing sickness due to bad and inefficient management.
