Manufacturing resurgence driving economic expansion in MP
Steps taken by Chief Minister Dr Mohan Yadav to simplify policies and processes, improve industrial infrastructure, and pursue aggressive doorstep investment outreach are beginning to show clear results, with official figures indicating a sharp resurgence in Madhya Pradesh’s manufacturing sector.
Officials said more than 4.26 lakh manufacturing units are currently active across the state. They described the rise as evidence of sustained momentum in industrial activity.
According to the figures, the number of registered manufacturing MSMEs has increased from 67,332 in 2022–23 to 1,13,696 in 2024–25. Officials attributed the growth to investment-promotion measures and reforms aimed at removing procedural bottlenecks, including changes under the Jan Vishwas (Amendment) Bill 2024 and improvements in the Industrial Land Allotment System and the Single Window Portal, which they said have made approvals more transparent and time-bound.
The MSME sector remains a major pillar of the state economy. More than 20.43 lakh MSME units are active across manufacturing, services, and trade. Officials said the sector contributes approximately 30 percent to the state’s Gross Domestic Product and provides employment to over one crore people.
Industrial activity has also expanded across Tier-2 and Tier-3 cities, generating employment for local youth and boosting small businesses, services, and ancillary industries. Officials said this expansion is helping strengthen regional balance in industrial development.
Logistics improvements have supported the sector’s growth. Projects under the PM Gati Shakti National Master Plan have helped connect industries with major domestic markets and export hubs. Officials said the development of multi-modal logistics parks, inland container depots, and improved road and rail networks has reduced transportation time and costs, enhancing industrial competitiveness.
The state’s startup ecosystem is expanding alongside the traditional industry. More than 6,000 startups and over 100 incubation centres are active in Madhya Pradesh. Under the Startup Policy 2025, initiatives such as seed funding, capital funds, and the Entrepreneur-in-Residence Programme aim to support innovation and link youth with employment generation.
Officials said plans to establish plug-and-play incubation centres in every district will provide further impetus to local entrepreneurship.
