Madhya Pradesh Unveils Top-Tier Investment Policies to Woo Investors Before Global Summit

As Madhya Pradesh prepares to host the Global Investors Summit (GIS) on February 24-25, 2025, in Bhopal, the state government has introduced a sweeping set of incentives to attract industrial investment. Chief Minister Mohan Yadav, hailed the new investment framework as the country’s most competitive, promising unmatched support for businesses eyeing the centrally located state.

During an event in Bhopal on February 21, where Rs 450 crore in financial aid was distributed to over 1,100 micro, small, and medium enterprises (MSMEs), Mr. Yadav outlined a policy designed to simplify and incentivize industrial growth. “We’ve cut through the red tape,” he said, noting that the number of required permissions has dropped from 38 to just 10 across 19 sector-specific policies. This streamlined approach, he argued, complements Madhya Pradesh’s logistical edge and ambitious economic goals, including a target to boost the state budget to Rs 4 lakh crore (about $48 billion) in the coming fiscal year.

The incentives package is expansive. Women entrepreneurs will receive an additional 10 percent discount on various benefits, a move aimed at fostering gender equity in business. Industrialists building multi-story complexes can expect subsidies on development costs, while freight subsidies exceeding 50 percent aim to ease export burdens. For broader appeal, the state is offering interest subsidies on capital expenditure loans—capped at reasonable limits—and up to 50 percent concessions on land registration and stamp duties for select sectors like textiles, electric vehicles (EVs), and solar manufacturing.

Madhya Pradesh’s Semiconductor Policy 2025, approved by the state cabinet on February 18, exemplifies the tailored approach. Some of its offerings: a capital subsidy of up to 40 percent (maxing out at Rs 150 crore), a 6 percent interest subsidy for five years, concessional land rates, and a Rs 2 per unit power tariff subsidy for a decade. Similar generosity extends to other sectors. The Biofuel Scheme 2025, for instance, includes infrastructure grants and electricity tariff concessions to position the state as a green energy hub, according to reports from ANI.

The MSME sector, a key focus, benefits from a forthcoming policy set to debut alongside GIS. Web sources indicate it will feature capital support and job creation subsidies, with freight cost relief highlighted by Minister Chaitanya Kumar Kashyap as a game-changer for exporters. “It’s easy to transport goods from here to any corner of India,” Mr. Kashyap said, reinforcing the state’s pitch as a connectivity powerhouse. For employment-heavy industries, such as cotton-based manufacturing—where Madhya Pradesh produces 43 percent of India’s total output—the government offers Rs 5,000 per laborer annually for up to 10 years.

The GIS, to be inaugurated by Prime Minister Narendra Modi and concluded by Union Home Minister Amit Shah, will spotlight these incentives before delegates from over 60 countries. State officials, including Vishwas Sarang, the minister for sports and cooperatives, emphasized the event’s potential to showcase Bhopal’s ecosystem. “Our connectivity, climate, and policies are unmatched,” he said. A dedicated textile expo will highlight the PM MITRA Mega Integrated Textile Park in Dhar, backed by Rs 6,000 crore in commitments, while IT and electronics summits will pitch policies like the Global Capability Centre Policy 2025.

The state’s transformation is already underway. Bhopal has undergone a rapid makeover, with redeveloped roads and cultural displays, as noted by Free Press Journal. Investments totaling Rs 21,000 crore from 34 tech firms, announced recently, signal early momentum. With GIS on the horizon, Madhya Pradesh is betting that its blend of subsidies, simplified rules, and strategic positioning will turn it into an industrial juggernaut.