Madhya Pradesh records 11.14% GSDP growth, CM Yadav says 'MP has become a rapidly growing economy'
Madhya Pradesh's capital expenditure is estimated at Rs 82,513 crore, leading to even the most developed states being surpassed.
The Madhya Pradesh government tabled the Economic Survey for 2025-26 in the state Assembly on Tuesday, presenting advance estimates that highlight strong economic performance and sectoral progress in the state. Chief Minister Mohan Yadav said that under the capable leadership of Prime Minister Narendra Modi, Madhya Pradesh's economy has become highly dynamic while ensuring inclusive development. With financial discipline, transparent governance, and visionary policies, the economy of Madhya Pradesh has strengthened significantly, he said.
According to the Economic Survey 2025-26, tabled the state's economy is systematically balanced and result-oriented. The latest economic indicators point to strong fiscal health and accelerating growth in Madhya Pradesh, underlining the government’s focus on infrastructure-led development, inclusive growth, and long-term reforms.
Unprecedented push in capital expenditure
Capital expenditure (Capex) has witnessed a sharp rise of 46 per cent since the formation of the present government. From 56,539 crore in 2023-24, Capex is projected to climb to Rs 82,513 crore in 2025–26, reflecting a clear emphasis on building infrastructure and productive assets.
The increase in capital expenditure is directly linked to new industries, improved connectivity, and employment opportunities. This clearly shows that the government is not just making announcements, but is investing on the ground.
Karnataka's capital expenditure for 2025-26 was Rs 71,336 crore, while Madhya Pradesh's capital expenditure is estimated at Rs 82,513 crore, leading to even the most developed states being surpassed.
Strong GSDP growth
The state's Gross State Domestic Product (GSDP) grew by over 10 per cent in the first year after the government's formation and is projected to cross 11.14 per cent in the second year. With double-digit growth for two consecutive years, the cumulative rise stands at 22.56 per cent, highlighting the impact of reforms in infrastructure, MSMEs and agriculture.
Rising per capita income
Per capita income has increased sharply from Rs 1,41,756 in 2023-24 to Rs 1,69,050 in 2025-26, a growth of 19.25 per cent in just two years. This surge reflects steady progress towards the vision of a "Prosperous Madhya Pradesh."
Agriculture and rural empowerment
Farmer-focused initiatives continue to strengthen the rural economy. The Bhavantar Yojana is helping shield farmers from market volatility, boosting confidence and encouraging higher production.
Digitisation of fertiliser distribution, through app-based stock monitoring, GPS tracking and Aadhaar-linked delivery, is ensuring timely and transparent access for genuine beneficiaries.
Pulse production has reached around 22.5 million tonnes, marking a growth of nearly 6 per cent and reinforcing rural incomes. At the same time, women pulse producer groups and the 'Lakhpati Didi' initiative are enabling rural women to achieve economic self-reliance.
Services, industry and jobs
The service sector now contributes 37 per cent to the state economy and recorded robust growth of 15.8 per cent last year, driven by tourism, IT and financial services.
New opportunities from the expansion of the service sector and the "Year of Industry and Employment" are being strengthened.
The industrial sector registered a growth rate of 9.93 per cent. Investment intent remains strong, with proposals worth nearly Rs 30 lakh crore received under GIS-2025, of which Rs 8.5 lakh crore has already been implemented.
MSMEs, startups and employment
Support to MSMEs and startups remains a key pillar. Assistance of around Rs 2,900 crore has been extended, with 1,723 active startups, a 13.6 per cent rise in company capitalisation and CSR expenditure of about Rs 600 crore. These efforts have translated into tangible outcomes, with 73,669 new jobs generated.
Looking forward, the state is gearing up with new industrial policies in sunrise sectors such as semiconductors and drones. With sustained investment, structural reforms and a clear development roadmap, Madhya Pradesh has set its sights on emerging as a developed state by 2047.