Madhya Pradesh Economy Sees Strong Growth: 11.14% Growth Rate, Per Capita Income Reaches ₹1.69 Lakh
The Budget for the financial year 2025-26, presented on February 18, indicates that Madhya Pradesh is steadily moving toward becoming a developed state. The state recorded an impressive economic growth rate of 11.14% in 2025-26.
With this growth, the Gross State Domestic Product (GSDP) at current prices is estimated at ₹16,69,750 crore, compared to ₹15,02,428 crore in the financial year 2024-25. This robust growth demonstrates the strengthening of the state’s economy.
Key Highlights of the Economic Survey 2025-26
- Per capita income increased by ₹14,926, reaching ₹1,69,050 annually, compared to ₹38,497 in 2011-12.
- Growth observed across agriculture, livestock, tourism, and industry sectors.
- Fiscal deficit estimated at 4.6% of GSDP.
Agriculture Sector Growth
Agriculture continues to be the backbone of Madhya Pradesh’s economy, contributing 43.09% to the total economy.
- Overall agricultural production increased by 7.99%.
- Food grain production rose by 14.68% due to a 4.39% increase in food crop cultivation.
- Pulses production declined by 21.90% and oilseed production decreased by 5.27% due to crop pattern changes and uneven rainfall.
- Horticulture area expanded from 27.29 lakh hectares to 28.39 lakh hectares.
- Horticulture production increased from 409 lakh tonnes to 425 lakh tonnes.
- Milk production grew by 5.95% to 225.95 lakh tonnes.
- Per capita milk availability reached 707 grams per day.
Industrial and Infrastructure Growth
The industrial sector recorded a growth rate of 9.93%, driven by improved infrastructure and an industry-friendly environment.
- 1,028 industrial units were allocated 6,125 acres of land.
- Investment of ₹1,17,417 crore generated employment for 1,77,328 people.
- Investment proposals worth ₹30.17 lakh crore were received, with ₹8.57 lakh crore already implemented.
Foreign Direct Investment (FDI)
Between January and September 2025, the state received ₹327.34 crore in FDI:
- Indore – ₹135.58 crore
- Ujjain – ₹77.71 crore
- Bhopal – ₹58.52 crore
Export Growth
Exports increased by 6%, reaching ₹38,550 crore by October 2025. Major export items include:
- Pharmaceutical products
- Agricultural products
- Engineering goods
- Textiles
- Mineral-based products
Three Key Reasons for Economic Improvement
- Agriculture remains the backbone of the economy.
- 2025 declared as “Industry Year,” boosting investment and employment.
- Increased capital expenditure on roads, electricity, and irrigation accelerated economic activities.
Revenue Surplus and Fiscal Position
- The state continues to maintain a revenue surplus.
- Revenue surplus was ₹4,815 crore in 2021-22.
- ₹618 crore revenue surplus expected in 2025-26.
- State tax share in GSDP increased to 6.39%.
- Capital expenditure expected to rise 27% to ₹82,513 crore in 2025-26.
- Debt-to-GSDP ratio may rise to 31.30%.