Speaking at the ET World Leaders Forum, he said that states should not worry about capital expenditure in the larger interest of development. “MP is not taking loans from anyone,” he said, adding that only three states-Uttar Pradesh, Maharashtra, and Madhya Pradesh-are spending money for growth without borrowing.
The state’s fiscal deficit is estimated to have narrowed to 4.11% in FY25 from 5.44% in FY21. The state gross domestic product (GDP) rose by 6.05% to ₹7.1 lakh crore in FY25 from ₹6.7 lakh crore the previous year.
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Speaking on the theme From Heartland to Global Hub: Madhya Pradesh’s Role in India’s Rise, Yadav highlighted that exports have also contributed to the state’s growth story. “Around ₹66,000 crore worth of exports are from MP alone,” he said.
Data shows that shipments from MP increased by 1.5% to₹66,218.4 crore in FY25 from ₹65,253.7 crore in the year before.ET World Leaders Forum: India is set to be a key driver of growth, says David SteinbachCiting an example of self-reliance, Yadav pointed to Madhya Pradesh’s recent policy on building medical colleges on the public-private-partnership (PPP) model under which 25 acres of land are allotted for one rupee to boost health infrastructure.”In a few years, as UG and PG seats rise, they will build their own hospitals, and after 10 years, we will reclaim them,” he said, stressing efficient use of government resources. “Ek ek rupee bachega sarkar ka, tabhi toh baat banegi (Every rupee saved strengthens the state),” he remarked.
To attract investments and support growth, the state is working on reforms across sectors.
Highlighting state incentives for foreign investments, the minister said, “We are rich in minerals, home to most cement, iron, and steel factories. We have surplus power, strong transport connectivity, ample land banks, and sufficient water resources.”
The state is also encouraging big-ticket investments by granting direct approvals for projects above Rs 500 crore. Such investors also receive electricity rebates and other benefits, which makes the state an attractive destination.
The state has been conducting industry conclaves in different regions, such as Gawlior, Jabalpur, Indore and Ujjain, to boost investments. The number of permissions required to set up an industry has also been cut to 10 from 29, the chief minister said, to boost ease of doing business.
“We have come up with 18 policies focusing on ease of business and quicker approvals for new industries seeking to establish within the state,” said the CM.
The state is also incentivising employment: industries creating jobs will receive viability gap funding (VGF) of ₹5,000 per worker for 10 years. According to official data, Madhya Pradesh labour force participation rate increased to 72.7% in 2023-24 from 67.8% the previous year. Talking about state’s role in India’s vision of becoming Viksit Bharat by 2047, the CM said that the state’s central location makes it a natural hub. Yadav noted that Madhya Pradesh is the source of over 247 rivers and is blessed with rich forest cover, minerals, agriculture, and thriving tourism. Ujjain ranks among the top destinations for religious tourism, and we are also developing the state as a centre for health tourism, he added. The state has witnessed a rise in tourist inflows, prompting the development of over 200 new hotels to meet the growing demand.
Calling this “the right time to work harder,” the CM warned against complacency. “If we get satisfied, it will result in stagnation.”
To accelerate growth, Yadav noted that the state government is committed to expanding its budget by 15-16% each year, aiming to double its size over the next five years.
Content Source: economictimes.indiatimes.com