Madhya Pradesh has potential to become $2.1 trillion economy by 2047-48: CII

Madhya Pradesh can potentially become a $2.1 trillion economy by 2047-48 from its current size of $164.7 billion, a report by the Confederation of Indian Industry (CII) has said. 

According to the report titled ‘Envisioning Madhya Pradesh Economy @ 2047’, the State can increase its share in India’s economy from the current 4.6% to 6% in the next 22 years. 

“Looking ahead, M.P. is poised to grow to $339 billion (₹31.1 lakh crore) by 2030-31 and further to $2.1 trillion economy by 2047-48. This growth will translate into M.P.’s share rising from the current 4.6% to 6.0% by 2047-48,” the report, launched on the first day of the State’s Global Investors Summit in Bhopal on Monday (February 24, 2025), read.

In a statement, the industry body said that the report underscores that if the State wishes to achieve the ambitious growth, manufacturing and industrial expansion must take centre stage. 

“For MP to propel itself towards $2.1 trillion milestone, it cannot rely solely on the agriculture sector; a strategic shift towards enhancing the manufacturing sector is imperative. This requires implementing structural reforms, developing industrial capabilities and fostering a conducive environment for trade and investment,” the report said.

“While the agriculture sector currently contributes 43% to M.P.’s economy, the share of manufacturing must rise from 7.2 percent to 22.2% by 2047 to sustain long-term growth,” it added. 

Pointing out the slow industrialisation of the State, the report said that Madhya Pradesh, with 5,058 factories as of 2022-23, accounts for a “mere 2%” of India’s total factories. 

“Also, the growth rate of factories in the State have slowed down to 1% in 2022-23, dropping from 3% growth observed in 2020-21,” it said, while adding that the state’s industrial output in real terms has experienced a significant upturn.

“In 2022-23, MP’s industrial output grew by 12.9%, rebounding from the 3.2% contraction during the pandemic year of 2020-21,” it read.

The report also highlights various suggestions for the State to improve its performance in various sectors such as MSME, infrastructure and providing skilled workforce. 

“It is well known that MP boasts of a thriving ecosystem for MSMEs and startups and ranks seventh out of ten top states as far as the number of small- scale enterprises is concerned. The task ahead is that of scaling up MSMEs through measures such as improving access to credit through provision of concessional lines of credit, support for improving market access by participating in exhibitions and trade fairs, facilitating export assistance to scale up MSMEs, initiating skill development programmes, facilitating digitisation and technological upgradation, among others,” it said.