INDUSTRIAL ECONOMY OF

CHATTISGARH, MADHYA PRADESH AND

ORISSA: A COMPARITIVE ANALYSIS

Project Submitted to-

Dr.Eritriya Roy

(Assistant Professor, HNLU Raipur)

Submitted by-
Gaurav vatwani
B.A.L.L.B.(Hons.)
Semester 2 Section “A”
Date of Submission

Hidayatullah National Law University Naya Raipur,

Chhattisgarh
 DECLERATION

I Gaurav Vatwani , hereby declare that, this project report entitled ‘Digital
Banking System in India: Prospects and Challenges’ submitted to
Hidayatullah National Law University, Raipur is record of an original
work done by me under the guidance of Dr.Eritriya Roy, Faculty
Economics Department, HNLU , Raipur and that no part of this work has
been plagiarized without citations.
Gaurav vatwani
Semester 2nd
B.A.L.L.B.(Hons.)
Section – A
 TABLE OF CONTENTS

1. CHHATTISGARH INDUSTRIAL

ECONOMY…………………………1-2

2. MADHYA PRADESH INDUSTRIAL

ECONONMY…………………………3-4

3. ODISHA INDUSTRIAL ECONOMY ........................5-6

4. REFERENCES……………………………………….7
RESEARCH METHODOLOGY

The project is of non-empirical in nature.

The project implies secondary sources for fulfilment of objective of study
The project is of descriptive and analytical in nature and various literature have been covered
from journals, news website, books, various published research works etc.

The structure of the project, as instructed by the faculty of economics has been adhered to
and the same has been helpful in the project a fine finish off.

SCOPE OF STUDY

The project report accounts for whole India and not to a specific region. Study covers
Industrial economy of Chhattisgarh Madhya Pradesh and Odisha.

LIMITATION OF STUDY

As the world in present scenario is affected from the pandemic and due to lockdown, it is not
possible to gather current data from the ground. As the project implies secondary data,
availability of proper data comes as constraint for study.
CHATTISGARH INDUSTRIAL ECONOMY

Chhattisgarh is headquartered in India's central region. The state is bounded on the west by
Madhya Pradesh and Maharashtra, on either the north by Uttar Pradesh, on either the east by
Odisha and Jharkhand, and even on the south by Andhra Pradesh. In 2020-21, Chhattisgarh's
Gross State Domestic Product (GSDP) was Rs. 3.62 trillion (US$ 51.39 billion) at current
market prices. Between 2015-16 and 2020-21, the state's GSDP (in Rs.) continuously risen of
9.97 percent at current rates.
Although since late twentieth century, Chhattisgarh has indeed been little by little
industrialising. The government has created a number of industrial estates as part of that kind
of planned expansion, mainly notably in Raipur and Bhilai Nagar. There were already
hundreds of large and medium-scale steel mills manufacturing hot coal, pig iron, sponge iron,
rails, ingots, and plates; Bhilai Nagar is home to being one of the greatest iron-and-steel
plants across the country.
Many metal industries, as well as several other emerging industries including certain
microelectronic devices and excellent electronic fibres, become aided by that of the
government. Cement works, and even some mills manufacturing paper, sugar, textiles
(cotton, linen, silk, and jute), timber, flour, and oil, have all been found mostly in private
sector (from oilseeds). Fertilizer, synthetic fibres, and chemicals are manufactured in a
variety of factories. Traditional handiworks, including certain textiles (including certain
saris), carpets, pottery, and gold- and silver-thread embroidery, seem to be the subject of
Chhattisgarh's small-scale industries.
Metals and Mining: Chhattisgarh is the only state in India to produce tin concentrates and
accounts for 36% of the country’s tin ore reserves.1 Dante Wada has been the only district
mostly in world which always produces tin, with six mines. Tin concentrate production
throughout the state reached 21,211 kg in 2018-19. Between April and November 2020,
Chhattisgarh's aggregate exports of aluminium and goods, iron and steel, iron ore, and iron
and steel products estimated At us$ 938.52 million. The quantity of minerals produced
throughout the state in 2018-19 (except from atomic, petrol, and minor minerals) has been
Rs. 9,575 crore (US$ 1.37 billion).

1
India, & About Chhattisgarh: Information on Industries, E. (2021). About Chhattisgarh: Information on
Industries, Geography, Economy & GSDP. Ibef.org. Retrieved 7 April 2021, from
https://www.ibef.org/states/chhattisgarh.aspx.

1|Page
Cement: Chhattisgarh's limestone deposits sustain a thriving cement industry. Around 5.4
percent of India's total limestone deposits are found in Chhattisgarh. In 2018-19, the state
produced 42.41 million tonnes of limestone.
The state's natural wealth, policy benefits, and infrastructure encourage investment in the iron
and steel, cement, and power industries. The Korba district of Chhattisgarh is regarded as
India's power city. Besides this, the state has significant bauxite, granite, and quartzite
deposits, making this a great place through low-cost manufacturing of end goods like cement
and aluminium.
Chhattisgarh chief minister (CM) Bhupesh Baghel announced the New Industrial Policy
2019-24 upon this state's 19th foundation day, which should be in place until 2024. It has
really turned its emphasis to non-core industries such as aeronautics, aircraft repair, food
industries, and local, small, and medium firms by facilitating them with great opportunities.
The proposal anticipates a selection of fiscal and non-fiscal advantages for industries that
entered the market mostly in state's mineral-rich backward districts. The policy has
segregated all development blocks in Chhattisgarh into different dimensions depending on
their backwardness in order to ensure the state's total and holistic development.

In order to introduce modern technologies into businesses and generate more opportunities,
the Chhattisgarh strategy includes a start-up kit. More services and less formalities would be
given to these start-ups. Big, super, and mega factories can now be excluded from paying any
electricity duty when establishing industrial units in any type of area. It is no longer necessary
to be a 100% exporter in order to qualify for a transportation grant.

On the allotment of land in the industrial areas of the Chhattisgarh State Industrial
Development Corporation and the Industries Department, micro, small, and medium
industries to be developed by qualified entrepreneurs in the general category will be given a
premium. The time frame for evaluating permanent capital investments in developed sectors
has also been expanded. The state has proposed a special incentive programme under the
Bespoke Policy to support the steel industry. The state government has cut the land transfer
rate, which has been a long-awaited demand of entrepreneurs.

2|Page
 MADHYA PRADESH INDUSTRIAL ECONOMY

Over the last decade, the government of Madhya Pradesh had worked hard to build the state
as something of an economic hub and promote it more as a possible investment destination.
In just the last five years, the state government has been investing over than $15.4 billion in
facilities and infrastructure. Madhya Pradesh having experienced a dramatic development in
order to contribute to sustainable growth over the last decade. Madhya Pradesh stands 5th
among Indian states in ease of doing business ranking conducted by World Bank and DIPP.2
The MPSIDC (Madhya Pradesh State Industrial Development Corporation Limited) is the
state's coordinating body for industrial growth. It serves as the focal point for coordinating,
triggering, and reviewing mega infrastructure programmes.
The Industries Department will be responsible of that same state's global economic growth.
The department encourages the development of MSMEs and large businesses across its eight
main departments. Directorate of Industries, Regional Industries Departments, LUN,
TRIFAC, SIDC, AKVNs, DTICs, IIDCs, and others are among these departments. The
department played a significant role in the implementation of that same Single Agency
Authentication in MP.
Audyogik Kendra Vikas Nigam
Madhya Pradesh's 51 districts are divided into seven AKVNs (Audyogik Kendra Vikas
Nigams), with headquarters in Bhopal, Indore, Gwalior, Jabalpur, Ujjain, Rewa, and Sagar.
One of the most important considerations in establishing an industrial unit is the availability
of land. In Madhya Pradesh, there are 48,000 hectares (1,18,610 acres) of government land to
choose from.
Textile production, car manufacturing, food processing, engineering, and agricultural
machinery manufacturing are also political leaders. The state's prosperous manpower seems
to be an additional benefit for economic growth. Most of the above reasons contributed to
Madhya Pradesh becoming an established economy.
Key Industries in MP
1. The economic base of the state is dynamic and vivid. Industry is predominantly
commodity, and used the state's natural resources including certain limestone, coal,
precious metals, silica, bauxite, soya, cotton, so on and so forth.

2
ASI. (2020). Industry. Slbcmadhyapradesh.in. Retrieved 9 April 2021, from
http://www.slbcmadhyapradesh.in/industry.aspx.

3|Page
 2. Mostly as result, manufacturing including certain cement, steel, textiles, and soya
production have a significant presence in the province.
3. Madhya Pradesh is home to a multitude of well-known and important businesses.
4. There is a strong auto, auto ancillary and pharmaceutical sector.3

OPPORTUNITY MADHYA PRADESH

 Madhya Pradesh is a state in India in which Geographically, the position is ideal.

 Interstate networking is excellent (national and state highway, train and air links).
 Natural resources and rich, fertile land
 Mineral capital is abundant (copper ore, magnesium ore,limestone, diamonds, coal
and coal-bed methane).
 Land is available at a reasonable price.
 Low-cost labour.
 Rare, useful medicinal and herbal plant varieties that are yet to be discovered.
 With a thriving agricultural base, it is industrially peaceful and secure.
 Constitutional situation that is peaceful (law and order).
 A diverse cultural heritage
 This is a major auto production centre. India'and biggest radial tyre manufacturer.
 India's largest soya processing centre.
 FMCG, consumer electronics, pharmaceuticals, natural goods, textiles, and
clothing all have a presence here.
 Gems and jewellery centre that is expanding.

Causes of low Industrialisation in MP

1. Poor Capital Accumulation: One of the main constraints is a low rate of capital
formation.
2. Political Constraints
3. Lack of Infrastructural Facilities: Due to a lack of adequate transportation (rail and
road) and communication facilities in many parts of the state, industrial growth has
been hampered in those areas, despite the fact that they have significant development
potential.
4. Poor Agricultural Production: India's industrial growth is heavily reliant on the
agricultural sector's performance. As a consequence, low agricultural production due
to natural factors is another significant factor contributing to economic stagnation.

3
SIKSHA, I. (2021). Industries of Madhya Pradesh - IAS SHIKSHA. IAS SHIKSHA. Retrieved 10 April 2021, from
http://iasshiksha.org/industries-of-madhya-pradesh/.

4|Page
ODISHA INDUSTRIAL ECONOMY

Odisha is home to another one of India's most mineral-rich states. Iron, lead, bauxite,
magnesium, nickel, chromite, granite, dolomite, graphite, decorative stones, beach sand,
China clay, tin ore, and several other minerals are present in the city. Odisha accounted the
highest percentage of mineral cultivation in India in terms of production in 2017-18, with
34.3 percent. In 2017-18, the value of minerals produced in the state was Rs 200.92 billion
(US$ 3.12 billion). Odisha has become one of the top ten states in proportion to the number
of MSME businesses. Together under Industrial Development Resolution of 2015, every state
provides a comprehensive variety of structural and policy advantages to corporations. In
addition, the state has services industry policies for software development and micro, nano,
and standard size corporations. To assist with investment promotion, the state government
has established "Team Odisha."
The majority of the state's manufacturing is based on its natural capital. Coal,
ferromanganese, cement, aluminium, and fertiliser processing, as well as nonferrous
smelting, are large-scale mineral-based industries. Chemicals, ceramic products, and
aeronautics equipment are among the other major industries. Heavy and large-scale
manufacturing are mostly located in the state's interior areas. The coastal plains, and from the
other hand, are mainly the responsibility of manufacturing plants (and even more so for
aluminium and brass), glassworks, and paper mills, and even some small-scale factories also
including cotton textile mills, sugar mills, and rice mills. A minimal but powerful arts and
crafts sector exists, which includes a highly esteemed inception of the contract (silk
production) industry. The mineral resources of Odisha are considerable. The state is a
national leader in the production of chromite, bauxite (aluminum ore), manganese ore,
graphite, and nickel ore.4 It can also be a leading company that manufactures iron ore. A
majority of the state's large-scale factories depend on coal from the Talcher area near the
east-central city of Dhenkanal.
Highlights of Industrial development in Odisha
The government has launched a new programme called the "New Odisha Industrial
Development Plan 2020" to increase the state's industrial base. By 2020, this is projected to
draw Rs 2.25 lakh crore in investments and a million jobs. Odisha is India's mineral

4
Goldberg, M. (2021). Odisha - Economy. Encyclopedia Britannica. Retrieved 10 April 2021, from
https://www.britannica.com/place/Odisha/Economy.

5|Page
heartland, with mineral production valued at US$3.64 billion, almost as much as the
combined total of 21 various Indian nations. Around 50% of India's aluminium smelting
capacity and around 20% of India's steelmaking capacity are located in the state. Odisha was
just the first state to implement the Single Window clearance scheme. The Orissa Industries
(Facilitation) Act of 2004 was the first of the standards in the country to establish a single
window clearance scheme. Bhubaneswar, Odisha's capital, are among the most business-
friendly cities in this country. The World Bank has ranked it as India's third best city for
doing business. It was recently ranked first out of 97 cities in India in the Smart City
Challenge. As a result, a vast and diverse pool of talent has emerged. According to a new
National Employability Report, engineering graduates from Odisha are the country's second
most employable engineers.
Main objectives of the 2004 act
 Industrial developments are cleared faster and in a single location, and
 knowledge about industrial projects is disseminated in a single location.
 To make the inspection of factories by various agencies/authorities more effective.

There will be touch points for big and medium projects, such as "Shilpa Jyoti" in IPICOL,
and "Shilpa Sathi" in the Directorate of Industries, Orissa, and DICs for tiny and small units.
These touch points will also have escort services for interactions with different departments
and authorities. Taking into consideration the industrial policy's goals, the government of
India also has sanctioned the construction of growth centres in Duburi, Chhatrapur, Kalinga
Nagar in Bhubaneswar, Jharsuguda, and Kesinga, and perhaps even the foundation of
customized industrial estates.

6|Page
 REFERENCES

1. India, & About Chhattisgarh: Information on Industries, E. (2021). About

Chhattisgarh: Information on Industries, Geography, Economy & GSDP.
Ibef.org. Retrieved 7 April 2021, from
https://www.ibef.org/states/chhattisgarh.aspx.
2. ASI. (2020). Industry. Slbcmadhyapradesh.in. Retrieved 9 April 2021,
from http://www.slbcmadhyapradesh.in/industry.aspx.
3. SIKSHA, I. (2021). Industries of Madhya Pradesh - IAS SHIKSHA. IAS
SHIKSHA. Retrieved 10 April 2021, from http://iasshiksha.org/industries-
of-madhya-pradesh/.
4. Goldberg, M. (2021). Odisha - Economy. Encyclopedia Britannica.
Retrieved 10 April 2021, from
https://www.britannica.com/place/Odisha/Economy.
5. WRAP, B., & Politics, E. (2021). Chhattisgarh's new industrial policy focuses on
setting up industries in Naxal-hit areas. Businesstoday.in. Retrieved 15 April 2021,
from https://www.businesstoday.in/current/economy-politics/chhattisgarh-new-
industrial-policy-focus-on-industries-in-naxal-hit-areas-cm-bhupesh-baghel--non-
core-sectors/story/388142.html.

7|Page