MADHYA PRADESH...Madhya Pradesh boasts of rich ancient cultural & religious heritage. Duehick to a t...
Transcript of MADHYA PRADESH...Madhya Pradesh boasts of rich ancient cultural & religious heritage. Duehick to a t...
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MADHYA PRADESHTHE LAND OF DIAMONDS
SANCHI STUPA IN SANCHI, MADHYA PRADESH
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Table of Contents
Executive Summary……………….…..…...…..3
Introduction…….…………………...…...……...4
Economic Snapshot…………………….….…..9
Physical Infrastructure….…...........................15
Social Infrastructure…………….….........……22
Industrial Infrastructure..................................25
Key Sectors…………………………….......…27
Key Procedures And Policies........................35
Annexure……………………......................…42
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EXECUTIVE SUMMARY
The Gross State Domestic Product (GSDP) of Madhya Pradesh increased at a CAGR of 13.78% from 2015to 2020.
Exports of drug formulations and biologicals grew by 37% to US$1,159 million in FY20 against US$ 845million in FY19.
In FY20, exports of cotton yarn stood at US$308 million against US$ 267 million in FY19, a 15% YoY growth.In FY21, the export contributed 5% to the state’s total export (US$ 87.25 million).
Madhya Pradesh boasts of rich ancient cultural & religious heritage.
Due to a thick forest cover, the state has immense potential for wild life, adventure & eco-tourism.
In 2019, total tourist arrival in the state stood at ~89 million against ~84 million in 2018.
Due to its centralised location, Madhya Pradesh has excellent connectivity. Many FMCG companies havemoved their warehouses here to save on logistics expenses.
Upcoming theme based SEZs near Jabalpur, industry parks in Indore & food parks at multiple locations aimto promote sectoral growth.
Madhya Pradesh is growing as a solar power hub with Rewa solar power project (new 750 MW solar powerplant), which represents the country’s commitment to achieve the installed renewable energy capacity targetof 175 GW by 2022.
Source: Directorate of Economics and Statistics, Government of Madhya Pradesh; Ministry of Petroleum & Natural Gas, MNRESource: *in Rs. terms
Strong economy
Growth in cotton yarn export
Potential for tourism
Infrastructure support
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MADHYA PRADESH
INTRODUCTION
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ADVANTAGE MADHYA PRADESH
Strategically located business hub
The state is centrally located in India. Major consumer goods multinationals are situated in Madhya Pradesh in order to access major consumer markets & metro urban communities like New Delhi (740 km1), Mumbai (780 km1), Kolkata (1,350 km1) & Chennai (1,435 km1)
Geographical proximity with the automotive hub of NCR has favorably impacted Madhya Pradesh’s auto ancillary industry. The state’s well developed automotive cluster is now home to around 30 auto component and ancillary units.
Attractive investment avenues
With around 25.11% of the state’s area under forest cover, Madhya Pradesh has an enormous potential for drug, wood & agro-based commercial enterprises. Ideal soil & climatic conditions have made it a primary producer of coarse cereals, oilseeds & soybean in India.
The cluster-based advancement methodology promotes investments in automotive, textiles & biotechnology.
Plentiful limestone & coal reserves give development avenues for the cement industry.
Policy and infrastructure support
In Madhya Pradesh, the government has allocated Rs. 12.8 billion ( US$ 173.58 million) for implementing the Jal Jeevan Mission (JJM) by 2020-21 to provide sufficient drinking water to all rural households in the state.
In 2020, the Union Minister for Road Transport, Highways and MSMEs laid the foundation stones for developing 45 highway projects worth Rs. 1.25 trillion (US$ 16.95 billion) in Madhya Pradesh.
Rich resource pool
Madhya Pradesh adds around 270,000 graduates to the workforce each year, of which around 90,000 have technical skills. At labour costs of US$ 3.7 per day, the state has a significant cost advantage over metros.
The state houses some of the country’s most reputed institutes including Indian Institute of Management, Indian Institute of Foreign Management & Indian Institute of Technology.
AdvantageMadhya Pradesh
1 From Bhopal
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MADHYA PRADESH VISION
Housing
Improve civic infrastructure, including public & household sanitation facilities
Expand availability of affordable housing
Agriculture
Expand the outreach of agriculture technology & irrigation to remote farms.
Promote farm level diversification and value addition.
Transport
Develop the transportation network to enhance rural connectivity
Reform the institutional machinery for creating public transport facilities
Infrastructure
Skill development
Investment promotion
Skill development by expanding training infrastructure & capacity to aid 1 million youth in attaining wages & self employment
Make the state a world class tourist destination
Promote religious, adventure & heritage tourism & attract private investment
Connect all villages through world class highways
To be a leader in renewable energy & green technology
Keep the state power surplus by addition to the power generation capacity
VisionEnvironment Promote social & agro forestry
Revitalise ground water resources
Private sector participation in maintaining waste disposal & water conservation
Tourism
Enhance the ease of doing business for the benefit of investors
Attract higher investments in manufacturing, services & labour intensive sectors
Source: Government of Madhya Pradesh
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MADHYA PRADESH FACT FILE
Madhya Pradesh is located in central India. The state is surroundedby Uttar Pradesh in North, Chhattisgarh in East, Maharashtra inSouth, Gujarat and Rajasthan in west.
The most commonly spoken language of the state is Hindi. Englishand Marathi are the other languages used.
Bhopal, Indore, Gwalior, Jabalpur and Ujjain are some of the keycities of the state.
There are 11 agro-climatic conditions and a variety of soils availablein the state to support cultivation of a wide range of crops.
Parameters Madhya Pradesh
Capital Bhopal
Geographical area (sq km) 308,000
Administrative districts (No) 51
Population density (persons per sq km) 236
Total population (million) 82.89
Male population (million) 37.6
Female population (million) 34.98
Sex ratio (females per 1,000 males) 931
Literacy rate (%) 70.6
Source: Government of Madhya Pradesh website, National Informatics Centre Madhya Pradesh
Source: Government of Madhya Pradesh
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MADHYA PRADESH IN FIGURES
Parameter Madhya Pradesh India
GSDP as a percentage of all states’ GSDP 4.25 100.00
GSDP growth rate (%) 13.78 11.46
Per capita GSDP (US$) 1,551.60 1,382.99
Madhya Pradesh’s Contribution to Indian Economy (2018-19)
Parameter Madhya Pradesh India
Installed power capacity (MW) (as of August 2020) 24,952.90 372,693.36
Wireless subscribers (million)^ (as of March 2020)
75.23 1,157.75
Internet subscribers (million)^ (as of September 2020)
48.72 743.19
National highway length (km) (March 2019) 8,772 132,499
Airports (No) (July 2018) 8 129
Physical Infrastructure in Madhya Pradesh
Parameter Madhya Pradesh India
Literacy rate (%) 70.6 73.0
Birth rate (per 1,000 population) 25.1 20.4
Social Indicators
Parameter Madhya Pradesh India
Operational PPP projects (No) (as of December 06,2019) 187 1824
Operational SEZs (No)(November 2019)
5 238
Industrial Infrastructure
Parameter Madhya Pradesh India
Cumulative FDI inflows October 2019-June 2020 (US$ million)
172.89 30,443.59
Investments (as of June 2020)
Note: PPP - Public Private Partnership, SEZ - Special Economic Zone, GSDP, per capita GSDP figures are taken at current prices, exchange rate used is average of 2017-18 i.e. 64.45
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MADHYA PRADESH
ECONOMIC SNAPSHOT
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ECONOMIC SNAPSHOT - GSDP
At current prices, the Gross State Domestic Product (GSDP) ofMadhya Pradesh for 2019-20 stood at Rs. 9.07 trillion (US$129.73 billion).
Between 2015-16 and 2019-20, the GSDP of the state increasedat a CAGR of 13.78%.
GSDP of Madhya Pradesh at current prices
82.6
6 96.8
6 112.
45
112.
21 129
.73
5.41
6.50 7
.25 8
.10 9
.07
0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
140
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ billion Rs. trillion
CAGR (in Rs.) 13.78%
Source: Ministry of Statistics and Programme Implementation
Per capita GSDP of Madhya Pradesh at current prices
1043
.69
1209
.42
1372
.41
1416
.87
1551
.60
6832
0.00
8114
0.00
8845
2.00
9902
5.36
1093
71.9
7
0
20,000
40,000
60,000
80,000
100,000
120,000
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs.
CAGR (in Rs.) 6.79%
The state’s per capita GSDP was almost Rs. 109,372 (~ US$1,552) in 2019-20.
Per capita NSDP in the state increased at a CAGR of 12.48%between 2015-16 and 2019-20.
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ECONOMIC SNAPSHOT - NSDP
Net State Domestic Product (NSDP) of Madhya Pradesh wasabout Rs. 8.27 trillion (US$ 117.32 billion) in 2019-20.
Between 2015-16 and 2019-20, state’s NSDP grew at a CAGRof about 14.21%.
NSDP of Madhya Pradesh at current prices
CAGR (in Rs.) 14.21%
Source: Ministry of Statistics and Programme Implementation
Per capita NSDP of Madhya Pradesh at current prices
934.
98 1092
.09
1239
.83
1290
.10
1415
.28
6120
4.00
7326
8.00
7990
7.00
9016
5.33
9976
3.39
0
20,000
40,000
60,000
80,000
100,000
120,000
0
200
400
600
800
1,000
1,200
1,400
1,600
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs.
CAGR (in Rs.) 12.99%
The state’s per capita NSDP in 2019-20 was Rs. 98,763 (US$1,415.26).
Per capita NSDP of the state increased at a CAGR of 12.99%between 2015-16 and 2019-20.
72.5
9 86.0
3 99.1
1
105.
47 117.
32
4.86
5.91 6
.58 7
.37 8
.27
0
1
2
3
4
5
6
7
8
9
0
20
40
60
80
100
120
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ billion Rs. trillion
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ECONOMIC SNAPSHOT - PERCENTAGE DISTRIBUTION OF GSVA
In 2019-20, primary sector contributed 56.70% to the state’s GSVAat current prices, followed by tertiary sector (47.14%) and secondarysector (22.55%).
At a CAGR of 17.50%, primary sector witnessed the fastest growthamong the three sectors between FY12 and FY20.
Tertiary sector expanded at a CAGR of 12.78% between FY12 andFY20. Growth was driven by trade, hotels, real estate, finance,insurance, transport, communications & other services.
Secondary sector expanded at a CAGR of 8.70% between FY12 andFY20, driven by manufacturing, electricity, gas and water supply, andconstruction sectors.
Visakhapatnam port traffic (million tonnes)GVA composition by sector
33.85%
56.70%
27.09% 24.35%
39.06% 47.14%
2011-12 2019-20
Primary Sector Secondary Sector Tertiary Sector
17.50%
12.78%
8.70%
CAGR*
Source: Ministry of Statistics and Programme ImplementationNote: CAGR* is in Rs. terms
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ECONOMIC SNAPSHOT - FDI INFLOW & INVESTMENTS
According to the Department for Promotion of Industry and InternalTrade (DPIIT), FDI inflow in Madhya Pradesh stood at US$ 172.89million between October 2019 and June 2020.
The state will be holding the sixth edition of its Global InvestorsSummit in October 2019. At the previous edition, the state witnessedexpression of interest’s worth Rs. 5,62,887 crore (US$ 83.75 billion).
152 investment intentions worth Rs. 12,762 crore (US$ 2.47 billion)were filed in the state during 2019.
Visakhapatnam port traffic (million tonnes)FDI Inflow in Madhya Pradesh in April 2000-June 2020 (US$ million)
123220
118101
80 76 28 32
82
173
654
0
500
1000
1500
2000
FY01
-FY1
1
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
Oct
19-J
un20
Source: Department for Promotion of Industry and Internal Trade
Year Number Proposed Investments (US$ billion)
2017 76 1.10
2018 140 3.49
2019 178 2.47
Investment intentions in terms of IEMs filed, LOIs / DILs issued
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ECONOMIC SNAPSHOT - EXPORT TRENDS
Merchandise export from Madhya Pradesh reached US$ 5.32 billion in FY20 and US$ 1.76 billion in FY21*.
Drug Formulations and Biologicals is the largest export item from the state, accounting for 27% of the total export in FY21*, followed by Aluminum& Products of Aluminum (9%) and Oil Meals (7%).
Source: DGCIS Analytics
Merchandise Export from Madhya Pradesh (US$ billion)
4.44
5.25
6.38
5.32
1.76
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
FY17
FY18
FY19
FY20
FY21
*
Principal Commodities Exported in FY21*
27%
2%
7%
9%5%5%3%
5%
38%
Drug Formulations,BiologicalsAC, RefrigerationMachinery, EtcOil Meals
Aluminium, Products ofAluminiumCotton Yarn
Cotton Fabrics, Madeups,EtcManmade Yarn, Fabrics,MadeupsBulk Drugs, DrugIntermediatesOthers
Note: *- till July 2020
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MADHYA PRADESH
PHYSICAL INFRASTRUCTURE
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PHYSICAL INFRASTRUCTURE - ROADS
Madhya Pradesh has national highways measuring 8,772* kms. Thestate also has 11,389 km of state highways, as of March 2019.
For the construction of roads through M.P. Road DevelopmentCorporation, allocation of US$ 42.92 million has been proposed bythe state Government in State Budget 2019-20.
As per State Budget 2019-20, provision of US$ 200 million underMukhyamantri Gram Sadak Yojana and that of US$ 28.62 million forState Rural Road Connectivity Scheme, have been made.
Under State Budget 2019-20, Government has allocated Rs. 2,500crore (US$ 357.70 million) for Pradhan Mantri Gram Sadak Yojana.
In August 2020, the Union Minister for Road Transport, Highwaysand MSMEs Mr. Nitin Gadkari laid the foundation stones for 45highway projects in Madhya Pradesh. Rs. 1.25 trillion (US$ 16.95billion) worth of development work is underway in Madhya Pradesh.~60-70% work has been completed on road works approx. worth Rs.300 billion (US$ 4.07 billion). These roads are aiming to improveconnectivity to the tourist spots and backward areas of the state. TheMinister announced that development work worth Rs. 500 billion(US$ 6.78 billion) is likely to be completed by 2023.
Road type Road length (kms)
National highways 8,772
State highways 11,389
Major district roads 22,129
Village roads 23,395
Road length 64,719
Source: NHAI, Ministry of Road Transport & Highways, State Budget 2019-20
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PHYSICAL INFRASTRUCTURE - RAILWAYS
Madhya Pradesh has around 4,954 kms of railway lines and thestate is connected to different states of the country through morethan 425 trains which travel on daily basis.
By end of 2019, Habibganj railway station in Madhya Pradesh willbecome Indian Railways’ first airport-like hub.
The railway network in Madhya Pradesh primarily falls under theWest-Central Railways, which was formed in 2002 and isheadquartered in Jabalpur. Part of the state is also covered byCentral and Western Railways.
Being centrally located, the railway network in the state assumesgreat significance. Madhya Pradesh’s capital, Bhopal is one of theforemost railway junctions in the country, as 220 trains travelthrough the capital alone.
Government of India has undertaken redevelopment of HabibganjRailways station in Bhopal. The station is being redeveloped at anestimated cost of Rs. 100 crore (US$ 15.52 million) and the totalvalue of development (including commercial development) has beenestimated at Rs. 450 crore (US$ 698.21 million).
Source: Maps of India
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PHYSICAL INFRASTRUCTURE - AIRPORTS
Madhya Pradesh has five operating airports at Jabalpur, Bhopal,Indore, Gwalior and Khajuraho.
Indore and Bhopal airports are the busiest airports in the state.During 2019-20, passenger traffic at Indore airport reached2,918,971 passengers with overall movement of 22,935 aircrafts.For the same period, passenger traffic at Bhopal airport stood at1,331,322 passengers with movement of 14,374 aircrafts.
Both Indore and Bhopal airports have strong cargo handlingcapacity. During 2019-20, Indore airport handled 10,770 tonnes ofcargo, whereas, Bhopal airport handled 1,526 tonnes of cargo.
Government of India has granted ‘site clearance’ approval toMadhya Pradesh Road Development Corporation Limited for settingup Singrauli domestic greenfield airport in Waidhan, Singrauli.
Airport 2017-18 2018-19 2019-20
Indore 2,269,971 3,158,938 2,918,971
Bhopal 722,243 810,307 1,331,322
Passenger traffic
Airport 2017-18 2018-19 2019-20
Indore 18,692 26,442 22,935
Bhopal 7,205 8,860 14,374
Aircraft movements
Airport 2017-18 2018-19 2019-20
Indore 10,851 11,729 10,770
Bhopal 1,153 1,746 1,526
Freight traffic (in tonnes)
Source: Airports Authority of India
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As of August 2020, Madhya Pradesh had a total installed power generation capacity of 24,952.90 MW, comprising 7,187.62 MW under stateutilities, 6,926.09 MW under central utilities and 10839.19 MW under private sector.
Of the total installed power generation capacity, 16387.09 MW was contributed by thermal power, 3223.66 MW by hydropower, 273 MW bynuclear power and 5069.15 MW by renewable power. Total budget allocation for the energy sector in the state was estimated at Rs. 9,888 crore(US$ 1.41 billion) during 2019-20.
In 2020, the largest solar power project in Asia, the Rewa solar power project (new 750 MW solar power plant) in Madhya Pradesh, wasinaugurated by Prime Minister Mr. Narendra Modi.
In December 2019, the Government announced setting up a 2,000 MW Solar Power Park in the Bundelkhand and Chambal regions.
PHYSICAL INFRASTRUCTURE - POWER
Installed power capacity (MW)18
,813
.65
19,6
18.2
8
20,3
21.8
7
23,3
34.4
0
24,9
52.9
0
0
5,000
10,000
15,000
20,000
25,000
30,000
FY16 FY17 FY18 FY19 FY20
Break-up of installed capacity by source of power generation (as of August 2020)
65.67%
12.92%
20.31%
1.09%
Thermal Power
Hydropower
Renewable Power
Nuclear Power
Source: Central Electricity Authority, news sourcesNote: MW- Megawatt
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PHYSICAL INFRASTRUCTURE - TELECOM
According to the Telecom Regulatory Authority of India (TRAI), Madhya Pradesh (including Chhattisgarh) had ~75.23 million wireless subscribersand 0.66 million wireline subscribers as of March 2020.
Internet subscribers in the state reached 48.72 million, as of September 2020.
As of March 2020, teledensity (telephone connections per 100 persons) in Madhya Pradesh stood at 65.89%.
As of January 2020, 31.51 million people had submitted request for mobile number portability in the state.
Telecom infrastructure
Wireless subscribers (as of March 2020) 75,233,885
Wireline subscribers (as of March 2020) 669,418
Internet subscribers (in million)(as of September 2020) 48.72
Teledensity (in %) 65.89
Mobile Number Portability requests (in million) 31.51
Source: Telecom Regulatory Authority of India, Department of Telecommunications, *including Chhattisgarh
Total GPs 22,946
Cable laid (kms) 40,376
GPs for which cable laid (as of December 23, 2018) 12,691
GPs connected (as of January 2, 2019) 12,687
Service ready GPs (as of August 2020) 13,225
Performance status of Bharat Net project
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PHYSICAL INFRASTRUCTURE
Source: Bhopal Municipal Corporation, Ministry of Urban Development, Census 2011, State Budget 2019-20
Cities Population Literacy rate
Bhopal 2,371,061 80.37%
Indore 3,276,697 80.87%
Gwalior 2,032,036 76.65%
Ujjain 1,986,864 72.34%
Jabalpur 2,463,289 81.07%
Sagar 2,378,458 76.46%
Satna 2,228,935 72.26%
Smart cities in Madhya PradeshUrban
In State Budget 2019-20, an allocation of Rs. 300 crore (US$ 42.94million) was made for the Smart Cities Mission.
Seven cities of the state have been selected for Government ofIndia’s Smart Cities Mission.
Also, the state is home to 34 cities which have been chosen forAMRUT Mission.
Under the State Budget 2019-20, Government has been allocatedRs. 4,200 crore (US$ 600.94 million) for ‘Housing for All’ underUrban Development & Housing Department, Rs. 2,000 crore (US$286.16 million) towards AMRUT.
Rural
As of September 2020, 1.75 lakh houses were built under PradhanMantri Awaas Yojana - Gramin at Madhya Pradesh.
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SOCIAL INFRASTRUCTURE
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SOCIAL INFRASTRUCTURE - EDUCATION
Madhya Pradesh had a literacy rate of 70.6%; the male literacy rateis 80.5% and the female literacy rate is 60.0%.
As per the State Budget 2019-20, the Government proposed anallocation of Rs. 24,499 crore (US$ 3.51 billion) & Rs. 2,342 crore(US$ 335.10 million) for the development of school education &higher education in the state.
Under the State Budget 2019-20, Government has allocated Rs.3,109 crore (US$ 444.8 million) for Sarva Shiksha Abhiyan and Rs.750 crore (US$ 107.31 million) for Rastriya Madhyamik ShikshaAbhiyan.
In the State Budget 2019-20, the Government proposed an allocationof Rs. 360 crore (US$ 51.51 million) under skill developmentscheme.
Category Literacy rate (%)
Total 70.6
Male 80.5
Female 60.0
Reputed institutes of Madhya Pradesh
Indian Institute of Management (IIM), Indore
Indian Institute of Forest Management, Bhopal
Institute of Hotel Management, Bhopal
International Institute of Professional Studies, Indore
Indian Institute of Technology (IIT), Indore
AICTE Approved Education Statistics (2019-20)
Source: AICTE, Directorate of Technical Education, Madhya Pradesh, Higher Education Department- Government colleges of Madhya Pradesh, Madhya Pradesh Education Portal, National Health Portal, State Budget 2019-20
Under Graduate Post Graduate Diploma
Total Institutions 321 386 288
Girl's Enrolment 10313 15617 4128
Boy's Enrolment 40992 27993 24138
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SOCIAL INFRASTRUCTURE - HEALTH
As of May 2020, the public healthcare services network of Madhya Pradesh comprised 52 district hospitals, 424 community health centres, 1,566primary health centres and 12,128 sub-health centres.
As per the State Budget 2019-20, Government has allocated Rs. 2,735 crore (US$ 4 391.33 million) to the National Health Mission.
The state Government proposed an allocation of Rs. 7,547 crore (US$ 1.08 billion) for the development of Public Health And Family WelfareDepartment in the state, during 2019-20.
Under Public Health Engineering, an allocation of Rs. 4,366 crore (US$ 624.70 million) was made by the state Government, as per the StateBudget 2019-20.
Health institutions (May 2020)
Sub Centres 12,128
Primary Health Centres 1,566
Community Health Centres 424
Sub District Hospitals 211
District Hospitals 52
Health indicators of Madhya Pradesh (2016)
Birth rate1 25.1
Death rate1 7.1
Infant mortality rate2 47
Life expectancy at birth (years)
Male (2011-15) 64.5
Female (2011-15) 65.3
Source: Ministry of Health & Family Welfare, Government of India, Sample Registration System (SRS) Bulletin, State Budget 2019-20Source: 1Per thousand persons, 2Per thousand live births
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INDUSTRIAL INFRASTRUCTURE
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INDUSTRIAL INFRASTRUCTURE
Madhya Pradesh State Industrial Development Corporation Limited(MPSIDC) is the nodal agency for industrial growth in the state. It isthe central point to coordinate, activate and ensure implementation ofmega infrastructure projects.
MPSIDC has established seven growth centres at Bhopal, Gwalior,Jabalpur, Indore, Rewa, Ujjain and Sagar. These growth centres areknown as Madhya Pradesh Audyogik Kendra Vikas Nigam Limited(AKVN).
Work on development of infrastructure in 22 industrial units isunderway with an investment of Rs. 1,820 crore (US$ 281.12million). The works is expected to be completed by December 2018.^
The state is home to five operational SEZs, six notified SEZs and 12formally approved SEZs. Bhopal, Indore, Gwalior and Jabalpur arethe major locations where SEZs have been approved. These SEZshave been proposed for IT/ITeS, mineral-based, agro-based andmulti-products.
Source: MP Trade & Investment Facilitation Corporation Ltd, Department for Promotion of Industry and Internal Trade
Operational SEZs in Madhya Pradesh (As of February 2020)
Name of SEZ Industry Location
Crystal IT Park IT/ ITeS Indore
Infosys Ltd IT Indore
Impetus Infotech Pvt. Ltd. IT/ ITeS Indore
Tata Consultancy Services Limited IT/ITES/BPO/KPO Indore
Indore SEZ Multi-product Dhar
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MADHYA PRADESH
KEY SECTORS
Agriculture and Food Processing
Textiles
Tourism
Pharmaceuticals
Mineral-based Industry
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KEY SECTORS - AGRICULTURE AND FOOD PROCESSING
Agriculture is the main source of livelihood for the people of the Madhya Pradesh.
An amount of Rs. 46,559 crore (US$ 6.6 billion) was allocated to farmers welfare and agriculture development in State Budget 2019-20.
Two mega food parks have been sanctioned by Government of India in Madhya Pradesh. One of the mega food parks - Indus Mega Food Park,Khargone - is already operational and has a leasable area of 24 acres.
In 2019-20, the total production of horticulture crops in the state was expected to be 31,243.51 thousand tonnes and area under production was2,106.23 thousand hectares. In 2019-20, total production of vegetables and fruits in the state was estimated at 19,832 million tonnes and 7,916million tonnes, respectively.
Source: MP State Facts Profile Department of Agriculture and Cooperation, National Horticulture Board, MP Economic Survey 2017-18, State Budget 2019-20Note: *Estimate, #Third Advance Estimates of Production of Foodgrains for 2019-20,**Target^- Till July 2020; 1As per third advanced estimates
Agriculture Exports from Madhya Pradesh (US$ million)**10
8.81
91.5
3
93.0
3
141.
36
134.
60
123.
69
49.7
7
0
20
40
60
80
100
120
140
160
FY15 FY16 FY17 FY18 FY19 FY20 FY21^
Crop Production - 2019-201
(‘000 tonnes)Area- 2019-201(‘000 hectares)
Fruits 7916.39 385.69
Vegetables 19832.27 1007.86
Aromatics andMedicinal 101.97 40.46
Spices 3010.17 639.70
Honey 2.30
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KEY SECTORS - TEXTILES … (1/2)
Madhya Pradesh is one of the major cotton producing states of India. In 2018-19, cotton production in the state reached 24 metric tonnes^.
Exports of cotton yarn is estimated at US$ 87.25 million in FY21* and accounts for 5% of the state’s total exports.
To attract investments into the sector, the Government has provided an interest subsidy for five years at a rate of 5% for textile projects and7% for composite textile projects without capping. Furthermore, the Government provided 100% assistance in plant & machinery for eightyears under Industrial Investment Promotion Assistance Scheme.
During 2018-19, silk production in the state stood at 100 million metric tonnes.
Production of textile raw material in Madhya Pradesh (in MMT) Exports of Cotton Yarn from Madhya Pradesh (US$ million)
377.
42
366.
37
214.
67 350.
87
266.
56 307.
87
87.2
5
0
50
100
150
200
250
300
350
400
FY15 FY16 FY17 FY18 FY19 FY20 FY21*
Source: The Cotton Corporation of India Ltd, 1 Projected, As per Cotton Advisory BoardNote: ^in lakhs bales of 170 kgs each, MMT - Million Metric Tonne, *-till December 2019
20.5
0
20.5
0
24.0
0
111.
00
103.
00
100.
00
949698100102104106108110112
0
10
20
30
40
50
FY17 FY18 FY19
Cotton Production^ Silk Production
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KEY SECTORS - TEXTILES … (2/2)
Trident Limited, the flagship company of Trident Group, is one of the largest integrated home textilesmanufacturers over the world. The company has a bed linen manufacturing plant in Budni, Madhya Pradesh. Thefacility has capacity of 43.2 million metres per annum and is home to 500 looms. Also, the world’s largeststandalone terry towel manufacturing facility resides at the plant.Trident Limited
Grasim Industries Ltd, a flagship company of the Aditya Birla Group, is one of the leading companies in India withdiverse interests in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana andMalanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from puremerino wool along with polyester and other blends. The company has a wide retail network and also servesinternational apparel manufacturers.Grasim Industries Ltd
The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 1.1 Billion. The yarnmanufacturing units are located in Mandideep (130,994 spindles), Satlapur (222,624 spindles) and Bhudhni(60,000 spindles). In September 2013, the company added 36,288 spindles to its Satlapur plant. Furthermore, theBhudhni plant has a fabric weaving unit (400 looms) and a fabric processing unit with a capacity of 40 millionmetres per annum.Vardhman Textiles Ltd
Raymond is a major fabric manufacturer in India. Besides, the company also has business interests in engineeringand aviation. The company is one of the largest integrated manufacturers of worsted fabric in the world andcommands over 60.0% market share in worsted suiting in India. The total production capacity of the company isaround 38 million metres of wool and wool-blended products. One of the four plants of the company is located atChhindwara in Madhya Pradesh.Raymond Ltd
Key players in textiles industry
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KEY SECTORS - TOURISM
Source: MP economic survey 2017-18, Ministry of Tourism, State Budget 2019-20
Madhya Pradesh is blessed with scenic beauty, rich heritage ofpilgrim centres, temples and wildlife sanctuaries.
In 2019, foreign tourist arrivals and domestic tourist visits in thestate stood at 0.33 million and 88.71 million, respectively.
As per State Budget 2019-20, the state Government proposed anallocation of Rs. 229 crore (US$ 32.77 million) for the developmentof the state’s tourism department.
Major places of tourist interest in Madhya Pradesh are as follows:
• Kanha: One of the largest wild-life sanctuaries in Asia.
• Khajuraho: Some of the most famous sculptures in the world.
• Bhimbetka: The oldest cave paintings in the world.
• Sanchi: The oldest Buddhist Stupa in the world.
• Bandhavgarh: The highest density of tiger population in thecountry.
• Bhedaghat: Scenic marble rocks rising up to 100 feet.
Total tourist arrivals in Madhya Pradesh (in millions)
83.97 83.97
88.71
0.38 0.38
0.33
81.00 82.00 83.00 84.00 85.00 86.00 87.00 88.00 89.00 90.00
2017 2018 2019
Domestic Foreign
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KEY SECTORS - PHARMACEUTICALS
Madhya Pradesh is home to over 280 pharmaceutical units operatingin the industrial areas of Dewas, Indore, Pithampur, Mandideep andMalanpur.
Indore is one of the largest producers of pharmaceuticals like tablets,capsules, formulations in India.
Pithampur SEZ located in Indore is a production hub forpharmaceutical majors such as Cipla, Lupin, Mylan, etc.
Exports of drug formulations and biologicals will likely account for~27% of the state’s total exports in FY21*.
Source: Invest India
Exports of Drug Formulations and Biologicals from Madhya Pradesh (US$ million)
525.
78
909.
24
845.
22
1,15
8.55
468.
93
0
200
400
600
800
1000
1200
1400
FY17
FY18
FY19
FY20
FY21
*
Note: *- till July 2020
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KEY SECTORS - MINERAL-BASED INDUSTRY … (1/2)
Madhya Pradesh is one of the key mineral-producing states in India,providing tremendous potential for industrial growth.
The state has rich deposits of coal, limestone and manganese.Bauxite, dolomite, fire clay, granite and marble stones are othermineral resources available.
Major mineral-based industries in the state are cement, thermalpower generation, ceramic-products, tiles and refractory.
Madhya Pradesh is the sole diamond producing state in the country.Diamond production in the state reached 25,603 thousand tonnes in2019-20.
MOIL Ltd., a state-owned manganese ore mining company, isworking in Madhya Pradesh and Maharashtra on new projects worthRs. 5.18 billion (US$ 78.79 million), with the company aiming tocomplete these projects by August 2021. At the company's Ukwamine in Madhya Pradesh, a project worth Rs. 771.5 million (US$10.46 million) is underway to set up a sinking vertical shaft at a depthof 324 metres.
At Balaghat mine in Madhya Pradesh, work for sinking a largediameter high-speed vertical shaft of 750-metres depth isundergoing. At the Rs. 2.59 billion (US$ 35.12 million) project site,the shaft sinking and lining up to 480 metres depth is complete andthe overall project is scheduled to be completed by July 2021.
Source: Indian Bureau of Mines
Mineral 2016-17 2017-18 2018-19 2019-20
Coal 108,548 112,239 118,661 113,804
Bauxite 658.38 581.39 722.54 637.83
Copper ore 2,415.33 2,339.04 2,542.15 2,406.35
Copper conc. 68.19 75.48 82.94 60.95
Iron ore 1,730 2,679 2,792 3,124
Manganese ore 648.13 831.35 944 906
Phosphorite 68.80 113.30 98.60 99.30
Diamond (in carat) 36,516 39,699 38,437 25,603
Limestone 35,843 42,744 49,762 43,686
Mineral production in Madhya Pradesh (‘000 MT)
Note: MT - Metric Tonnes
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KEY INDUSTRIES - MINERAL-BASED INDUSTRY … (2/2)
Hindustan Copper Ltd (HCL) is a vertically integrated copper manufacturing company. In 1982, the companyestablished its Malanjkhand copper project, which has the single-largest copper deposit in the country. TheMalanjkhand mine has a copper deposit of 221 million tonnes with 1.3% copper concentration. The companypossesses an open-pit mine with a capacity of 2 million tonnes per annum, concentrator plant, tailing disposalsystem and other auxiliary facilities. The plant contributes around 80.0% of the copper production of the company.HCL’s mines and plants are spread across Rajasthan, Jharkhand, Madhya Pradesh and Maharashtra.
Hindustan Copper Ltd
NMDC is a public sector unit involved in mining of a wide range of minerals such as iron, copper, limestone,dolomite, gypsum, tin, graphite and diamond. The company is the single largest iron ore producer in the country.NMDC is the only organised producer of diamonds in India and produces diamond from its Majhgawan mine atPanna in Madhya Pradesh. The production capacity of the mine is around 84,000 carat per annum. The mineemploys around 199 persons.
NMDC Ltd
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MADHYA PRADESH
KEY PROCEDURES AND POLICIES
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KEY APPROVALS REQUIRED
List of approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration DIC for SSI/ SIA for large and medium industries
Allotment of land/shed DI/ SIDC/ Infrastructure Corporation/ SSIDC
Permission for land use District authorities/ State DI/ Dept. of Town and Country Planning (in case industry is located outside an industrial area)
No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board
Approval for construction activity and building plan Town and Country Planning/ Municipal and local authorities/ Chief Inspector of Factories/ Pollution Control Board, Electricity Board
No objection certificate Fire Department
Provisional Trade Tax registrations Central and State Excise Departments, Sales Tax Department
Before commencement of production
No objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board
No objection certificate Fire Department
Permanent trade tax registration under Central Sales Tax Act 1956 Central and State Excise Departments, Sales Tax Department
Registration under Central Sales Tax Act 1956
After commencement of production/activity
Registration Department of Commerce, Industry & Employment
Source: MP Trade & Investment Facilitation Corp. Ltd., SSIDC- Small Scale Industrial Development CorporationNote: SIDC- State Industrial Development Corporation, SSI- Small Scale Industries, SIA- Secretariat of Industrial Assistance, DIC- District Industrial Center,
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KEY INVESTMENT PROMOTION OFFICES
Agency Description
Department of Commerce, Industry & Employment
The department is responsible for industrialisation in the state through development of small, medium and large scale industries and new investments. The department is also responsible for creation of basic infrastructure and development of industrial parks. The department has several support institutions such as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas Nigam (AKVN) in six cities.
District Trade and Industries Centre District Trade and Industries Centres are district-level offices of the Department of Commerce, Industry
and Employment of the state Government. These centres are empowered to provide clearance for setting up industrial units.
Madhya Pradesh State Industrial Development Corporation
Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a support institution of Department of Commerce, Industry and Employment of the state Government. The organisation had the mandate to promote the state as an industrial destination and help companies set up and expand industries in Madhya Pradesh.
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CONTACT LIST
Agency Contact information
Department of Commerce, Industry & Employment
Mantralaya, Vallabh BhawanBhopal - 462 004Madhya Pradesh, IndiaPhone: 91-755-2441061Website: www.mpindustry.org
Directorate of Industries
Directorate of IndustriesVindhyachal BhawanBhopalMadhya Pradesh, IndiaPhone: 91-755-2677988, 2677966Email: [email protected]: www.mpindustry.org
Madhya Pradesh State Industrial Development Corporation Limited
AVN Towers 192 Zone-1, M.P. NagarBhopal-462 011, Madhya PradeshPhone: 91-755 - 427 0370 Fax: 91-755- 427 0280E-mail: [email protected], [email protected] Website: www.mpsidc.org
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COST OF DOING BUSINESS IN MADHYA PRADESH
Cost parameter Cost estimate Source
Cost of industrial land (per sq. ft.) US$ 4.8-28.7 Industry sources
Hotel cost per room per night(four-star, five-star hotel) US$ 76.6-95.7 Leading hotels in the state
Residential rent (for a 2,000 sq ft house, per month) US$ 268-335 Industry sources
Commercial rent (per sq ft per month) US$ 0.7-3.2 Industry sources
Power cost (per kWh) Industrial: 8-12.4 US cents Madhya Pradesh Electricity Regulatory Commission
Labour cost (minimum wages per day) US$ 3.73 Labour Department, Madhya Pradesh Government
Source: Madhya Pradesh State Portal, PwC Research
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STATE ACTS & POLICIES … (1/2)
Objectives
To provide adequate drinking water to all rural households in the state, the centre has allocated Rs. 12.8 billion(US$ 173.58 million) for implementing the Jal Jeevan Mission (JJM) in Madhya Pradesh in 2020-21
Jal Jeevan Mission (JJM)
Read more
PM SVANidhi scheme 2020
To help poor street vendors, impacted by COVID-19, resume livelihood activities.
Read more
To promote balanced and sustainable tourism, which enables socio-economic development and establishesMadhya Pradesh as a destination that provides a complete tourism experience.
Aims at providing an effective regulatory mechanism for sustainable tourism and developing the sector throughPPP.
Tourism Policy 2016 (As amended in 2019)
Read more
Draft Madhya Pradesh Electric Vehicle (EV)
Policy 2019
To put in place measures to support the creation of jobs in driving, selling, financing, servicing, charging andmanufacturing of EVs.
To enable faster adoption of electric vehicles in Madhya Pradesh by ensuring safe, reliable, accessible andaffordable Charging Infrastructure eco-system Read more
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1651558https://www.pib.gov.in/PressReleasePage.aspx?PRID=1652269http://madhyapradeshtourism.gov.in/Downloads/TourismPolicy.pdfhttp://www.mpurban.gov.in/pdf/MPEVDPolicy2019.pdf
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STATE ACTS & POLICIES … (2/2)
Objectives
IT, ITeS and ESDM Policy 2016
To increase the flow of investments in the state in Information Technology industry, ITeS & ESDM sectors.
To promote development of the IT, ITeS and ESDM sectors in a balanced manner in the State. Read more
To increase the flow of investments in the field of electronics manufacturing in the state.
Maximising employment generation opportunities and promoting establishment of FAB units.
Analog Semiconductor Fabrication Investment
Policy 2015 Read more
To improve investor facilitation and ensure rapid economic development and employment opportunities throughsustainable use of available resources.
Promotes SMEs and ensures PPP initiatives for industrialisation.
Envisages an industry-friendly administration and attracting investments by developing quality infrastructure.
Industrial Promotion Policy 2014
(Amended as of December 2018)
Read more
MP Incubation and Start-Up Policy 2016
To strengthen the start-up culture in the state by nurturing entrepreneurial skillsRead more
http://www.dit.mp.gov.in/documents/10192/1298301/IT%20Policy%202016.pdfhttp://www.aiggpa.mp.gov.in/images/files/KAIR/MP-STATE-POLICIES/INDUSTRY/Analog%20Semiconductor%20Fabrication%20Investment%20Policy,%202015.pdfhttp://www.invest.mp.gov.in/policies.action?OWASP_IFAMS=A60U-U4S9-H6MM-R9MH-FKWX-O55L-Y0UC-V4X6http://bhabha-coe.mapit.gov.in/commerce/upload/files/333215535352.pdfhttps://www.startupindia.gov.in/content/dam/invest-india/Templates/public/state_startup_policies/Madhya_Pradesh%20Incubation%20&%20Startup%20Policy%202016.pdf
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MADHYA PRADESH
ANNEXURE
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ANNEXURE…(1/2) - SOURCES
Data Sources
GSDP (state) Ministry of Statistics and Programme Implementation
Per capita GSDP figures Ministry of Statistics and Programme Implementation
Per Capita GSDP (India) Ministry of Statistics and Programme Implementation
Installed power capacity (MW) Central Electricity Authority
Wireless subscribers (No) Telecom Regulatory Authority of India
Internet subscribers (million) Telecom Regulatory Authority of India
National highway length (km) NHAI, Roads and Building Department-Government of India
Major and Minor Ports (No) India Ports Association 2019
Airports (No) Airports Authority of India
Literacy rate (%) Census, 2011
Birth rate (per 1,000 population) SRS Bulletin, September 2017
Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry and Internal Trade
Operational PPP projects (No) DEA, Ministry of Finance, Government of India
Notified SEZs (No) Ministry of Commerce & Industry, Department of Commerce
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ANNEXURE…(2/2) - EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year Rs. Rs. Equivalent of one US$
2004-05 44.95
2005-06 44.28
2006-07 45.29
2007-08 40.24
2008-09 45.91
2009-10 47.42
2010-11 45.58
2011-12 47.95
2012-13 54.45
2013-14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
2018-19 69.89
2019-20 70.49
Year Rs. Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
2018 68.36
2019 69.89
Source: Reserve Bank of India, Average for the year
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MADHYA PRADESHSlide Number 2EXECUTIVE SUMMARYINTRODUCTIONADVANTAGE MADHYA PRADESHMADHYA PRADESH VISION MADHYA PRADESH FACT FILEMADHYA PRADESH IN FIGURESECONOMIC SNAPSHOTECONOMIC SNAPSHOT - GSDPECONOMIC SNAPSHOT - NSDPECONOMIC SNAPSHOT - PERCENTAGE DISTRIBUTION OF GSVAECONOMIC SNAPSHOT - FDI INFLOW & INVESTMENTSECONOMIC SNAPSHOT - EXPORT TRENDSPHYSICAL INFRASTRUCTUREPHYSICAL INFRASTRUCTURE - ROADSPHYSICAL INFRASTRUCTURE - RAILWAYSPHYSICAL INFRASTRUCTURE - AIRPORTSPHYSICAL INFRASTRUCTURE - POWERPHYSICAL INFRASTRUCTURE - TELECOMPHYSICAL INFRASTRUCTURESOCIAL INFRASTRUCTURESOCIAL INFRASTRUCTURE - EDUCATIONSOCIAL INFRASTRUCTURE - HEALTHINDUSTRIAL INFRASTRUCTUREINDUSTRIAL INFRASTRUCTUREKEY SECTORSKEY SECTORS - AGRICULTURE AND FOOD PROCESSINGKEY SECTORS - TEXTILES … (1/2)KEY SECTORS - TEXTILES … (2/2)KEY SECTORS - TOURISMKEY SECTORS - PHARMACEUTICALSKEY SECTORS - MINERAL-BASED INDUSTRY … (1/2)KEY INDUSTRIES - MINERAL-BASED INDUSTRY … (2/2)KEY PROCEDURES AND POLICIESKEY APPROVALS REQUIREDKEY INVESTMENT PROMOTION OFFICESCONTACT LISTCOST OF DOING BUSINESS IN MADHYA PRADESHSTATE ACTS & POLICIES … (1/2)STATE ACTS & POLICIES … (2/2)ANNEXUREANNEXURE…(1/2) - SOURCESANNEXURE…(2/2) - EXCHANGE RATESDISCLAIMER