INDIAN STATE : MADHYA PRADESH

Major Industries

The industrial sector contributes 8 per cent to employment of the state workforce and 25 per cent to state GDP. The rate of annual industrial growth in the recent past has varied from 4 per cent to 6 per cent. Indutry in Madhya Pradesh is largely resource driven leveraging the state's natural wealth in the form of limestone, coal, soya, cotton, bauxite, iron-ore, silica etc. Therefore, the state has a strong industrial base in sectors like textile, cement, steel, soya processing and optical fibre.

Agriculture and Agro Processing

Madhya Pradesh is the fourth largest producer of agri produce in India with lowest consumption of fertilizer per hectare. Agriculture contributes almost one-third of the Gross State Domestic Product (GSDP) and is the main source of employment for over 70 per cent population and constitutes about 60 to 75 per cent rural income. The performance of the agriculture sector in the state has been impressive. From a growth rate of mere 1.5 to 2 per cent in the 1980s, the state has made rapid strides growing at the rate of 4 to 5 per cent, faster than the country's average of 3.1 per cent.

Major Crops grown in the State are Paddy, Wheat, Maize and Jowar among Cereals, Gram, Tur, Urad and Moong among Pulses, while Soybean, Groundnut and Mustard among Oilseeds. Also commercial Crops like Cotton and Sugarcane are also grown in considerable area in few Districts. Horticulture Crops Potato, Onion, Garlic, along with fruits like Papaya, Banana, Oranges, Mango and Grapes are also grown in the State. Some area has also been brought under medicinal and narcotic crops.

Notable contribution of state in National Agriculture Production

Production of cereals went up by 43 per cent, of pulses by 54 per cent and of cotton by 10 per cent and oilseed production grew by 143 per cent.

The investment opportunities in this sector include

• Wheat processing
  
• Potato processing
  
• Spices
  
• Edible oil

The state government promotes investment in the agriculture sector and attractive incentives are being provided to the private partners.

Land use classification

New Interventions in Agriculture and Agro-processing

• Agro-climatic zone wise planning
• Increasing the production in 5 years by implementing following programmes:
  • Convergence demonstration for doubling farm incomes in irrigated and rain fed areas, in each district.
    
  • Bringing additional culturable fallow and ravine land under cultivation & horticulture.
    
  • Intensive tank-bed cultivation in Rabi.
    
  • Promotion of agro processing industries.
• Increasing the production
  • Soil water management through institutional credit.
    
  • Enhancing seed replacement rate.
    
  • Balanced application of chemical & organic nutrients based in soil tests
    
  • Revamping cooperative credit and restoring the health of cooperative institution.
    
  • Introducing agriculture including horticulture and animal husbandry as a compulsory subject in middle schools.
    
  • Promotion of organic farming.
    
  • Enhancing per ha. use of fertiliser.
    
  • Judicious use of available water.
    
  • Intercropping of Horticulture crops.
    
  • New nurseries in private sector.
    
  • Medicinal crops & floriculture in each district.
    
  • Massive seed production programme involving the Seed Grower Co-operative Societies.
    
  • 20% increase in distribution of machinery & implements
    
  • Leasing out of large chunks of ravine land for horticulture use.
• Promotion to cultivation of Durum wheat.
  
• Increasing production of quality plants of horticulture especially through Private Nurseries.
  
• Increasing milk production through breed improvement & induction of high yielding milk cattle.
  
• Better enforcement of Insecticide Act, Seed Act & Fertiliser Control Order to ensure quality of inputs.
  
• Integrated approach for doubling food production and farm income by contact village concept -
  
  • Out of 52,000 villages in state 15,000 villages are identified as contact village in 2004 -05.
    
  • 2 villages will be adopted by each village extension worker(VLW).
    
  • Capacity building of key communicators in the village (Kisan Bandhu & Kisan Saheli)
    
  • Involvement of 'Kisan Bandhu' & 'Kisan Saheli' in extention activity as well as in establishing agri clinic & agribusiness centres.
    
  • Extension training through SatCom.
• Agri.- Export Zone: Three Agri Export Zones have been sanctioned:
  1. Potato/Onion/ Garlic
  2. Seed spices
  3. Wheat
• Agro processing industries
  • M.P. Agro. nominated as nodal agency
    
  • Agro processing is earmarked as thrust sector in new industrial policy.
    
  • Possibility of more than 1000 Agro industries in the state, promoting entrepreneurs.

Herbal Business

Madhya Pradesh is known for a wide range of herbs. It caters to about 40 percent of Indian herbal industry's requirement across spread across the country. The main herbal centres are Shivpuri, Betul, Katni, Neemuch and Lalitpur. The natural occurrence of most of the herbs blended with mass scale cultivation of many has made the state the herbal hub of the country. Madhya Pradesh is the raw material bowl of the herbal industry and is all set to become the main processing centre for several herbal products. The following factors make the state conducive for investments in the herbal industry:

• Of the 16 agro-climatic zones of the country, 11 fall in Madhya Pradesh. As a result, it is a natural habitat for over 50 per cent of the herbs used in pharmaceutical industry.
  
• Abundant availability of raw herbs
  
• Abundant availability of land for cultivation of various herbs
  
• Large-scale cultivation of a number of species has already been started, which can further be increased to a large scale, as there is plenty of fertile land available.
  
• Cheap land available for industrial operations
  
• The state is well connected by rail, road and air.
  
• Single window clearance system for drug license
  
• Preference allotment of land in industrial areas

Investment opportunities exist in this sector in the following industries:

• Aloe vare gel extraction and spray dried powder manufacturing units.
  
• Units to produce extracts of various herbs.
  
• Fractional distillation units for value addition in essential oils.
  
• Various ayurvedic drug formulation units.
  
• Promotion of food and vegetable colour dyes.
  
• Production of concentrates from flowers.
  
• Primary processing of raw herbs.
  
• Isabgol dehusking units.
  
• Herbal cosmetics
  
• Units to make perfumery compounds
  
• Production of bio-diesel.