Bhopal: Madhya Pradesh's economy can potentially increase its Gross State Domestic Product (GSDP) to USD 2.1 trillion (Rs 248.6 lakh crore) by 2047-48, growing at a CAGR of 8.6 per cent from the current USD 164.7 billion (Rs 13.6 lakh crore), according Confederation of Indian Industry (CII) report.
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.
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 per cent to 6.0 per cent by 2047-48.
Further, the report underscores that for Madhya Pradesh (MP) to achieve its ambitious growth targets, manufacturing and industrial expansion must take centre stage.
While the agriculture sector currently contributes 43 per cent to MP'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.
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 the availability of a 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 skill gaps.
Third, improving ease of doing business is critical to creating 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, scaling up MSMEs is essential. MP boasts a thriving ecosystem for MSMEs and startups, ranking seventh among the top ten states in terms of the number of small-scale enterprises.
The task ahead is to scale up MSMEs through measures such as improving access to credit via concessional lines of credit, supporting market access by participating in exhibitions and trade fairs, facilitating export assistance, initiating skill development programs, and enabling digitization and technological upgradation.
Apart from these interventions, the report highlights four game-changing measures to bring the state onto the global map. These include boosting exports, driving deep tech innovation, facilitating a 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.
In addition to horizontal interventions, the report also covers vertical interventions that include sector-specific strategies for high-impact and sunrise sectors such as agribusiness and food processing, pharmaceuticals, medical devices & healthcare, petrochemicals & natural gas, tourism, IT & ITeS, defence & aerospace, and renewable energy.
According to Banerjee, the state economy is at an inflection point, and further impetus to structural reform to devel services sectors to help the state break new ground in its march toward progress.
Madhya Pradesh has created new touchstones for agricultural excellence based on technological innovation, advanced farming practices, and widespread crop diversification. Based on successful strategies seen in agriculture, similar initiatives are required in the manufacturing and services sectors. (ANI)