Introduction to Madhya Pradesh’s economy.pptx

Madhya Pradesh, located in central India, has a diverse economy driven by agriculture, industry, and mining. It's a major producer of wheat, soybeans, and pulses. Industries include textiles, cement, and automobile manufacturing, concentrated in cities like Indore and Bhopal. Rich in minerals like coal and limestone, mining contributes significantly. Tourism thrives with attractions like Khajuraho temples and national parks. Challenges include rural infrastructure and regional disparities, but ongoing development initiatives aim to bolster growth and connectivity across the state.

1. Introduction to Madhya Pradesh’s economy (Salient Features)

2. Economy of Madhya Pradesh is primarily agrarian and it is a champion in the development of agriculture and allied sector for more than a decade. Owing to an impressive agriculture growth rate, MP has been the recipient of the Krishi Karman Award consecutively from the last many years . The State has taken several concrete steps to attract investment, simplified various procedures for starting a business in 30 days, and set up an online system for the same. Due to these efforts, Madhya Pradesh is ranked fourth in the ‘Ease of Doing Business’ list as per the State Business Reform Action Plan-2019 ranking. According to the Department of Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in MP were valued at US$ 225.70 million between October 2019 to September 2020 .

3. Madhya Pradesh has immense potential to become the manufacturing hub of India due to availability of land, Narmada water, power surplus, almost negligible Labor-unrest incidents, presence of eminent skill institutes, and availability of the best infrastructure for setting up industries in the state . The state is suitable for the auto-sector, food processing, textile and apparel, defense sector logistics and warehousing development . The state is home to around 280 pharmaceutical units operating in the industrial areas of Dewas , Indore, Pithampur, Mandideep and Malanpur . Due to the abundance of tigers and other wildlife in the national parks of the state, it has been recognized as the ‘Tiger State of India’. The state is focusing on infrastructure development in agriculture and allied sectors and by developing the infrastructure it is attracting the industries, thereby generating employment opportunities.

4. Salient Features of Madhya Pradesh’s Economy

5. Madhya Pradesh is the 2nd largest state in the country in area. Its geographical area is 307.56 lakh hectares, which is 9.38 per cent of the total area of the country. Out of the total geographical area 307.56 lakh hectares of the state, only about 151.91 lakh hectares are arable. Out of this, at present, in about 145 lakh hectares area, Kharif crops and in about 119 lakh hectares area, rabi crops are being taken up. The crop density of the state is 165.70 percent. The total irrigated area in the State is about 110.97 lakh hectares from government and private sources. S.No Particulars Area (lakh Hectare) 1 Geographical Area 307.56 2 Gross Cropped Area (GCA) 261.15 3 % of Gross Cropped Area to total area 84.91 4 Net Sown Area (NSA) 152.05 5 Crop Intensity % (GCA/NSA) 1.72 6 Double Crop Area 99.23 7 Net Irrigated Area 115.35 8 Net Irrigated Area % to Net Sown Area 75.86 9 Net Sown Area % to Gross Cropped Area 58.22 10 % of Small & Marginal farmers to total farmers 75.56 11 Average land holdings (Hectare) 1.57 Land Utilization

6. MEANING OF DISPARITY : A noticeable and usually significant difference or dissimilarity. Disparity  contains the Latin  dis , meaning "apart" or "non-", so a disparity is a kind of "nonequality". The word is often used to describe a social or economic condition that's considered unfairly unequal. REGIONAL DISPARITY : The term “Regional Disparity” is defined as  the difference between economic .  performance and welfare between countries or regions AGRICULTURE DISPARITY : “Disparity” of agriculture is the inter-district difference in productivity, land use pattern and food availability status.

7. Madhya Pradesh economy is an agrarian economy and the path of development adopted by the state was to concentrate on this sector as industrial development did not give the desired results . This initiative of the state paid off and it has now become a poster boy for the champions of agriculture and state intervention. Government of the day did not go for balanced development approach, rather it concentrated on unbalanced growth model that is, developing those areas which were already doing well and had the potential to show exponential results in a very short period of time. Malwa and the Central region , mainly the areas growing Wheat and Soybean , have the highest Agricultural Development Index score of 77.1 and 54.6 respectively. State also initiated programs in horticulture whose benefits were reaped by both these regions. The Northern and Vindhya region have the lowest Agricultural Development Index score of 27.1 and 30 respectively which is not surprising as these regions have remained agriculturally backward and the physical features are also not viable for agriculture. AGRICULTURAL DISPARITY IN MADHYA PRADESH

8. Causes of Agricultural Backwardness in MP.: Depreciation in soil fertility: Growing one crop after the another (Improper crop rotation) Improper use of fertilizers inorder to boost up the nutrients of the soil. Soil erosion   II. Division and ploughing of cultivable land: Because of the laws of inheritance the fields are becoming small in size and the distance between the plots keeps on increasing leading to decrease in the land productivity.   III. Practices of Land Ownership: The zamindari system is still prevalent in the country and hence the zamindars take a major portion of the produce from the farmers,sometimes also taxes leading to demotivating the farmers in the production.

9. IV. Non economic fields ratio: The ratio of fields to cultivable land is less even after years of economic planning. Low field size leads to higher cost of production and less of produce leading to uneconomic production. Whereas where the fields size is more,the resources are less accordingly leading to more of uncultivable lands .   V. Decrease in Per Person availability of land: Since the population has been increasing and there is lack of industries and employment opportunities,more people from villages find it convenient to go for farming.But due to limited availability of land the cultivable land holding is confined to only some people leading to unexploited skills of available human resource.   VI. Seasonal employment-Unemployment: Due to unavailability of employment opportunities because of off season the labour becomes unproctive and lose their potential to grow the maximum limit of crops.   VII. Low payment rates to labourers .: Labor productivity is decreased due to Imbalance between demad and supply of labor Working mindset Less organized and leaned labor

10. VIII. Lack of Fixed Capital To make wells Water canals Fencing the fields Tractors and other machinery High amount of capital is required and long term loans are available with very difficulty at very high cost(interest rates) leading to production a undesired rates. Lack of working capital: Lack of farm management techniques Lack of technological advancements Follow up of agricultural policies XIII. Irrigation and power supply facilities XIV. Uncertain events without insurance.