Madhya Pradesh has potential for 18-fold growth to be $2.1 trillion economy by 2047-48: CII report

Bhopal: Madhya Pradesh can potentially increase the size of its economy by 18 times to $2.1 trillion (Rs 248.6 lakh crore) 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 lakh crore) by 2047-48, growing at a CAGR of 8.6 per cent, from the current $164.7 billion (Rs 13.6 lakh crore).

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.