Due to considerable neglect and woeful infrastructure, the industrialclimate in Madhya Pradesh was termed 'sick' till 2003 as no enterprise is willing to set up operations there.
But everything changed gradually since 2005 with the state registering a double digit growth (10.2% of GDP) for the first time in 2011-12.
MP received a coveted award from President Pranab Mukherjee in January 2013 for improving its tourism, medical and infrastructural growth.
After Gujarat, Madhya Pradesh is being touted as the second preferred state for the corporate world to set up their industries.
The gross state domestic product (GSDP) grew at a compound annual growth rate (CAGR) of 12.83% from 2004-05 to 2014-15. It is among the fastest growing states in the country.
At current prices, the GSDP for 2014-15 was $84.27 billion as against $74.80 billion in 2013-14.
The state is centrally located in India.
As a result, major consumer goods MNCs are situated in Madhya Pradesh in order to access consumer markets and urban centres like New Delhi (740 km), Mumbai (780 km), Kolkata (1,350 km) and Chennai (1,435 km) (all distances from Bhopal).
Many FMCG companies have moved their warehouses to the state to save on logistics expenses.
There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops.
With around 33% of the region under forests, MP has an enormous potential for drug, wood and agro-based commercial enterprises.
The ideal soil and climatic conditions have made it a primary producer of coarse cereals, oilseeds and soybean in India.
MP offers a host of monetary and policy incentives for enterprisesunder the Industrial Promotion Policy-2010 and its Action Plan.
Besides, the government has unveiled exclusive policies for IT, biotechnology, tourism and SEZs to woo investors across the country.
To pull in investors and promote entrepreneurship, the state has selected TRIFAC, an agency that encourages a single window system, for speedy approvals of different clearances and consents.
MP State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state.
It is the central point to coordinate, activate and ensure the timely implementation of mega infrastructure projects.
MPSIDC has identified 19 industrial growth centres to attract medium and large industries, NRls to the state and provide various facilities with concessions to them.
To ensure a balanced and sustainable growth of industry across the state, MPSIDC had established seven growth centres in Bhopal, Gwalior, Jabalpur, Indore, Rewa, Ujjain and Sagar.
These growth centres are known as Madhya Pradesh Audyogik Kendra VikasNigam Limited (AKVN).
The state has made good progress in the infrastructure space with 19 industrial development parks, 129 industrial areas, six food parks, eight integrated development centres, three dry parks, one stone park, one IT park, one SEZ and an apparel park at Indore.
A gems and jewellery park is being developed in Indore to promote the diamond industry in the state.
The Cabinet Committee on Industrial Promotion (CCIP) has been constituted with chief minister as chairman and ministers of finance, commercial taxes and industries department as members.
The CCIP has authority to deal with all issues relating to the industrial promotion.
The CCIP is empowered to sanction a customised package of assistancebeyond what has been explicitly provided in the policies and official orders.
Such packages shall be available only to mega scale industrial units.
As part of the special package, CCIP can sanction fiscal concessions, tax exemptions, government dues and royalty deferments and any other incentives.
On the request of investors or on its own motion, CCIP may review incentive packages sanctioned to any mega scale industrial unit.
State government has set aside a substantial portion of both government and private land parcels for industrial development.
The government shall consider following measures pertaining landingavailability:
MP will soon house the world's largest 750 MW solar power station in Rewa district.
Global tenders for commissioning the solar power station in an area over 1,500 hectares at Bandwar region in Gudh tehsil of Rewa have been invited.
The joint venture project called Rewa Ultra Mega Solar is expected to start generating power by March 2017.
The project is a joint venture of Solar Energy Corporation of India and MP Urja Vikas Nigam, where in both parties have 50% equity stake.
In February 2014, Narendra Modi, as BJP's PM candidate, inaugurated Asia's largest solar power project at Neemuch.
Welspun's solar power project in Neemuch, 400 km from Bhopal, had come up at a cost of around Rs 1,100 crore on 305 hectares of land.