BHOPAL
HAVING SHOWCASED its investment potential at the recently concluded Global Investors Summit, Madhya Pradesh is having its moment under the sun.
The promise of Rs30.77 lakh crore in investment has been reflected in a recently released report of the Confederation of Indian Industries, which says the state can potentially increase its Gross State Domestic Product (GSDP) to US$2.1 trillion by 2047-48. At this pace, the state’s contribution to India’s GDP will rise from 4.6 per cent to 6 per cent.
Digital expert Sarman Nagele said the meet held the promise of positive outcomes as the Centre had also thrown in its might behind the state government. Prime Minister Narendra Modi inaugurated the summit and Home Minister Amit Shah was present at its closing. In addition, chairmen of big industrial groups such as Adani and Godrej were also present. Another advantage, Nagele said, was that the state’s chief secretary, Anurag Jain, had previously served in the prime minister’s office and in the department for promotion of industry and internal trade.
In his wrap-up address, Jain said that the state would now chase investors and not the other way around. He also said that he would review investment proposals every month.
“Investors want easy access for dialogue with the chief minister and the chief secretary. That is possible in this government,” said Nagele.
The state has revamped some 30 policies besides notifying all public services, except those requiring Central government approval, under the Public Service Guarantee Act for time-bound delivery. This will make doing business much easier. Compliances and clearances have already been brought down to the barest minimum, while new operations have been exempted from government clearances for three years. Madhya Pradesh is the first state to enact the Public Service Guarantee Act.
New policies, like the one for setting up drone manufacturing units with a 40 per cent subsidy on investment, have been put in place, while old knots like land allotment have been eased. For instance, investors now can choose land on a portal.
Rajendra Kothari, former regional director of the state’s PHD Chamber of Commerce and Industry, said that while a GIS was a good way to stroke curiosity about the state, there must be sustained emphasis on listening to what investors want through direct dialogues. He said the state would have to let go of its self-limiting beliefs.
Despite the huge publicity garnered by the summit in Bhopal (the earlier ones were in Indore, the state’s industrial capital), Madhya Pradesh has some long-standing issues to grapple with. For one, promises have not always translated into actual investments. Though no figures are available in the public domain, experts say that the conversion rate is below 20 per cent.
The state will also have to tackle other long-standing challenges. For instance, it has one of the highest rates of outward migration―almost 12 per cent as per the 2011 census. Its per capita income at Rs1,40,583 is among the lowest. The state’s literacy rate stands below the national average of 74 per cent. On the other hand, however, it has one of the country’s lowest unemployment rates.