Madhya Pradesh Assured Of Massive Investment At The Global Summit

BHOPAL: Madhya Pradesh has been assured massive investment both by foreign and domestic investors in the course of two day Global Investment summit (GIS) held at Indore. Leading business houses of the country and also from abroad. The sectors that were assured investment include chemicals and petroleum (Rs. 77,000 crore), service sector (Rs. 71,000 crore), Auto, engineering and e-vehicles (Rs. 42,000 crore) Pharma and healthcare (Rs. 18,000 crore), Logistics and warehousing (Rs. 18,000 crore) and others (Rs. 1.25 lakh crore).

The state Government has prepared elaborate plan to expand state’s $ 150 billion economy to $ 550 billion economy by 2026 in a bid to align growth with Prime Minister Narendra Modi’s target of $ 5 trillion economy for India. Madhya Pradesh will be strongly pushing for economic diversification while creating jobs, adding value to agriculture and food processing, semi conductors and ESDM and boosting bio-economy, besides focusing on skill development and logistical upgrade.

The work has already started with identification of key sectors for economic transformation of Madhya Pradesh based on recommendations of various expert reports, participants of sessions on “Madhya Pradesh’s contribution to the $ 5 trillion economy’ were informed on the sidelines of GIS 2023, Madhya Pradesh State policy and Planning Commission vice-chairman Sachin Chaturvedi outlined four major areas of execution for transformation and said agriculture and allied products have a huge share in the state’s GDP. He said the need as to ensure value addition to the sector by developing an ecosystem, enhance skills and connectivity.

He said 455 trains pass through Madhya Pradesh giving a huge fillip to transportation. Chaturvedi spoke about the need for technology integration and said under an RBI plan, efforts are being made for financial inclusion at the district level.

He stressed on the need for statistical upgrade of the state and lauded the formation of Madhya Pradesh State Statistical Commission.

The focus should also be placed on developing a bio economy. “It is seen that Rs. 5 will show 550% increase to Rs. 5500 when invested in bio economy”. Chaturvedi said State Planning Commission member secretary Swantata Kumar Singh gave details of the roadmap prepared and focus areas.

There are many factors which held up industrialisation of the state. Among them high cost of logistics, being a landlocked state there is need for providing freight subsidy. The high cost of logistics involved in transportation of goods from manufacturing unit to destination makes the product out priced in the global market said industrialists on sidelines of Global Investors Summit.

Flexituff Group promoter Saurabh Kalani said “We are poised correctly for a good growth given a chance. There is a lot of potential provided we got better connectivity and improved logistics. Being a landlocked state, the logistic costs becomes much higher than other states and this makes us out priced in the market”.

Industry players said transport subsidies to exporters will level playing field for everyone.

An international buyer from Malaysia, Taizoon Hyder Tyebkhan said, “I am into hardware business. I came to attend the summit to meet suppliers of some hardware parts but unfortunately could not get any deals locked because of the price factor. Prices of products are very high in MP and do not suit my requirement”. Tyebkhan said in comparison to other countries the cost quoted by Indian businessmen is about 5-10 per cent higher.

Industry players stressed on bridging the infrastructure and logistics gap to give a fillip to domestic manufacturing and exports.

Directorate General of Foreign Trade (DGFT) additional secretary Santosh Sarangi said “MP needs to address the infrastructure and logistics gap. There are some key export clusters where the transportation facilities, connectivity issues still exist and those need to addressed”.

Addressing difficulties pointed out by participants of investors summit Chief Minister Shiv Raj Singh Chouhan assured that they will not have to take any permission to start operations in Madhya Pradesh and they will not be inspected for compliance of deemed permission for three years.

MP, a predominantly agricultural state, is keen to position itself as an industrial destination, leveraging its advantages of location, low land prices and abundance of water, power and human resources. “My government is committed to ensuring ease of starting business and ease of doing business. For this, we have made a big decision. Industrialists will not have to take any permission for starting an industry in areas earmarked and notified by us, whether it is industrial areas or MSME” Chouhan said. “Investors have complained about running around for clearance for several days. No permission needed. Start your work. You have to trust the investors. They will not run away with the land. Follow the rules. We have complete faith in you” Chouhan assured. “No officer will carry out inspection of industries for compliance of deemed permissions for three years. You must understand my intentions. We have full faith in you” he added. (IPA Service)