Basic infrastructure is important for the establishment of industries in any state. To facilitate the basic infrastructure in Madhya Pradesh, the state government along with the central government has taken several initiatives.
The Government of Madhya Pradesh has paid special attention to building basic infrastructure in the past, due to which Madhya Pradesh is attracting investors in the last decade and a half, while on one hand better facilities of road, electricity and water have been developed in the state, on the other hand many innovations like single-window system have also been made for the convenience of the investors. As a result, opportunities for industrial investment have increased in the state.
Roads are the axis of development of any country and region. In Madhya Pradesh, there was a time when it was not clear whether there are potholes on the road or the road in potholes.
At that time the state’s bad roads had become a problem for industrialization. Bad roads had eclipsed all the possibilities of development, investment, and employment. Madhya Pradesh has also seen that period when the life of the people of the state had become difficult due to undeclared power cuts which in turn posed hindrance for the industries.
Today the situation in the state has changed. Due to industrial promotion policies of Chief Minister Shri Shivraj Singh Chouhan in the last few decades in Madhya Pradesh, the condition of industries has improved today. This is the reason why Madhya Pradesh has emerged as the first choice of investors.
Significantly, industries in Madhya Pradesh are largely dependent on natural resources. Here limestone, coal, bauxite, iron ore, diamond, copper, manganese ore, rock phosphate, silica, soya, cotton, oilseeds, pulses, and other natural resources are abundant. The state continues to have a strong industrial foundation for sectors such as textiles, cement, steel, food processing, automobiles, auto components, pharma, and optical fibre. In the 1980s, several changes helped in industrial development.
Madhya Pradesh State Industrial Development Corporation, aided by the state government, was formed with the aim of promoting the development of industries in this area. In the year 1983 there were only 49 industrial units in Mandideep, now there are about 650 industrial plants in Mandideep on which 450 factories are operated. The state government has continuously improved the business climate through its simple policies to attract investment.
In the industry promotion policy of the state government, where it was decided to provide favorable facilities to the industrial units, the permanent residents of the state are being given employment in the industrial units on priority.
Due to the implementation of GST system in the state, the process of providing continuous tax assistance to the broad category of industries has been rescheduled. In order to promote more and more industries, the state government has also implemented land pooling policy for acquisition of private land with mutual consent for industrial purposes, which has also increased the rate of industrial growth.