Madhya Pradesh
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.
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)
New Industrial Policy- 2004
Industrialization of the state is possible with excellent infrastructure and industry friendly environment. The contribution of Madhya Pradesh to India's Gross Domestic Production (G.D.P.) has not been commensurate with its rich and abundant natural resources. The Industry Promotion Policy has accordingly been laid down along the lines of its industrially advanced neighbouring states. The new State Government desires that in future the rate of economic development of the state should commensurate with other developed state. Therefore, to make Madhya Pradesh a prosperous state, it is essential that rate of economic development should be increased. The achievement of the desired growth rate would only be possible when the development of industries & service sector take place. Inadequate infrastructure and power shortages during the last one-decade in the country led to a sharp decline in capital investment in the state. It hindered the pace of industrialization and caused sickness in the industries. The Industrial Promotion Policy aims to address these issues by providing for developing quality infrastructure, reviving sick industries and providing maximum support, facilities and industry friendly governance for industries.
