Situated in the center of India, Madhya Pradesh
is the biggest state in the country. The economy of M.P. is primarily
agriculture- based. Nearly 80% of the population lives in villages.
Madhya Pradesh's Industrial Policy & Action Plan 1994 aims at
accelerating and strengthening industrial development, attracting more
capital investment, ensuring balanced regional development and providing
additional employment opportunities to help improve the standard of
living of the people.
Taking into account the rapid economic changes taking place at the
national and international levels, the policy aims to reduce the
regulatory role of the administration and strengthen, instead, its role
as a facilitator. It spells out measures to augment the physical and
human resource base and uses taxation as an instrument to increase
employment generation and develop synergistic linkages between different
sectors.
Land area: 443,446 sq. km.
Population: 66.2 million
Capital: Bhopal
Per Capita Income: Rs 5,845
Inflation Rate: 8.8%
Madhya Pradesh has good law and order situation and labor relations.
The state government lends support to the industries and the policies
are implemented. Policies are structures so as to attract investment.
Low cost labor is an advantage in the state. The state has reasonably
well developed road and railway network all over the state.
Unfortunately, the state has a severe deficit of power, regular
rationing and prohibitive tariff.
Incentives:
- Investment subsidy of between 5% and 15% of fixed cost for
small-scale units
- Interest rate subsidy of Rs 25,000 per year for small-scale units
- Special incentive schemes for large and medium-scale units
promoting ancillary units
- Special incentive scheme for new units with investment of Rs 500
crore or more
- Exemption from payment of entry tax for 8 years for
Export-Oriented Units
- EOU status to NRI projects with capital investments of Rs 2 crore
or more
- Sales tax exemption up to 150% of fixed asset investment for
District A (5 years)
- Sales tax deferment for 7 years of fixed asset investment for
District A (7 years)
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