Synopsis
The Madhya Pradesh government has set an ambitious target to achieve a two trillion economy by 2047. The upcoming business summit aims to attract more investment into the state, reflecting the significant changes and developments brought about since the BJP took control in 2004.Key Takeaways
- Two trillion economy target by 2047.
- Investment incentives in various sectors.
- Development of 160 parks by 2030.
- New infrastructure policies to ease business.
- Support for exporters and R&D initiatives.
Bhopal, Feb 22 (NationPress) The Madhya Pradesh government has set an ambitious goal of achieving a two trillion economy by 2047, while also focusing on attracting increased investment to the state during the upcoming business summit.
Since the BJP took charge of the state, significant transformations have been observed regarding the state's development. During the tenure of former Chief Minister Digvijay Singh, modest investors' summits were held in Khajuraho with limited attendees, but these events yielded minimal results.
After the end of Digvijay Singh’s administration in 2004, the BJP government, led by Shivraj Singh Chouhan, not only revived Global Investors' Summits but also established them as a biennial event.
The current government has made substantial efforts to elevate the state's gross domestic production to an impressive Rs 30 lakh crore by 2030, with an even more ambitious aim of reaching a two trillion economy by 2047.
An official indicated that according to newly reviewed policy documents, the government promises a wide range of incentives and financial support to ensure a smooth 'Ease of Doing Business' for investors across traditional and modern sectors, including IT and IT-enabled services.
Emphasizing various facilities detailed in the policy to be launched at the upcoming business summit, the official mentioned that Madhya Pradesh plans to create over 160 parks across different industrial sectors by 2030, in addition to export zones and initiatives promoting private-sector partnerships.
Moreover, the state envisions the establishment of 5-10 Smart Industrial Townships along critical industrial corridors, green industrial zones/eco-industrial parks, and integrated residential and commercial zones within new industrial areas—ambitions that seemed unattainable two decades ago.
A notable aspect of the new policy is the introduction of a one-time subsidy of 25 per cent for export-related infrastructure, capped at Rs 1 crore per entity, which encompasses testing laboratories, research and development centers, and export incubation centers.
In a stark contrast to previous Congress-led initiatives, the newly established 'Madhya Pradesh Udyogon Ki Sthapna Evam Parichalan Ka Saralikaran Adhiniyam, 2023' exempts industries from 22 approvals and inspections from seven departments for a duration of three years. This Act, which is now in effect, applies to 296 industrial regions throughout the state, as stated by the official.
Concerning incentives under the New Policy, qualifying investments will include significant advantages such as 50 per cent cost coverage for captive power generated from renewable energy (limited to 20 per cent of plant and machinery costs, including factory sheds and buildings), provided that at least 50 per cent of the produced power is utilized on-site.
Even imported second-hand or refurbished machinery with a projected lifespan of 10 years qualifies for incentives under the new policy.
The official noted that if a company exports over 25 per cent of its production, it will be eligible for a one-time subsidy of 25 per cent for export-related infrastructure up to Rs 1 crore per entity, including research and development centers and testing laboratories—a groundbreaking initiative launched by the state government.
Additionally, exporters can receive an incentive of Rs 2 crore annually for five years under specific conditions and export marketing assistance. The larger the export volume, the greater the incentives, the officials stated.
Regarding infrastructure advancements, the previous government lacked a strategic framework for park development. Conversely, the current state administration has already established multiple parks and is progressing with several more, including four supported by the Union government with a capital expenditure nearing Rs 2000 crore. There are also 38 new industrial areas under development, with a capital expenditure of Rs 3700 crore.
Prime Minister Narendra Modi’s recent post on ‘X’ is a sufficient response to Congress’s critiques regarding the upcoming business summit.
“The next two days will be dedicated to the development of Madhya Pradesh,” stated PM Modi.
It is noteworthy to mention that no prime minister participated in any investor summits organized during the Congress administration.
