Chhattisgarh is a unique state from every dimension; from culture, flora and fauna, people, minerals, geographical diversity to MSMEs and large industrial hubs. 

In the last two decades remarkable economic progress has been made on the industrial front. On the 20th birth anniversary of the state of Chhattisgarh, India’s rice bowl, and power capital, we reflect on its incredible journey. Here are the major highlights of the two amazing decades:

  • The state has grown at an impressive CAGR of 9.75% between 2015-16 and 2020-21. At current prices, its GSDP estimated at US$ 51.83 billion in 2020-21.
  • Chhattisgarh is India’s first power surplus state with no power cuts, and a completely electrified state. It is also the second largest coal powered electricity producer. Constant power supply has encouraged industrial development of core industries and is also conducive to future industries that are looking for a place to set up their factories or businesses, core as well as IT enabled. 
  • In 2000, CG’s power capacity was only 900MW, which today stands over 23,000 MW and is set to touch the levels of 30,000 in a short while. The subsidy on bills has also helped the development of the people of the state.
  • Massive and Effective IT enabled Public distribution system- It has been a source of inspiration for the entire country. Removing the middle men with systematic and trackable distribution of ration has reached all, even the farthest of the state’s regions. 
  • 4th and 6th Rank Ease of Doing Business: Reformative nature of polity and administration has proved its mettle by achieving 4th rank in EODB, though it has slipped to 6th, it’s still an impressive feat and conducive to economic progress.
  • Chhattisgarh is the Rice bowl of India and produces 19116 varieties of rice. A lot of agro industries have set up in the past two decades and there is good scope for agro-based industries.
  • Over the years Naya Raipur, the first ‘new city’ of the 21st century, has been built as a planned city with incredible economic, political, educational potential as well as to become a leading IT Hub.
    Since India’s focus on industrial with the first year plan, industries have been the focal point of economic progress and Chhattisgarh’s story falls in concurrence to the indian story.
  • Chhattisgarh’s Economic growth Story: 

Over the last half-a-decade the state has grown at near double digits and has made substantial progress at every end. Here are the economic highlights summarizing CG’s rise.

Analyzing the various economic sectors, the graph shows clearly the sectoral trends. 

  • Agriculture has had a tumultuous growth record, mostly because it depends heavily on monsoon. Government has done impressive work in the last decade to link dams and barrages to agricultural lands. Since 80% of the population depends on agriculture, more initiates can be taken for consistent agricultural productivity.
  • Industry and Services: It is a sign of development, when services outgrow core industries and contribute to a larger share of the economy. 

CG has just reached that moment where the more value is being added by the tertiary or the service sector than the industry. Also the growth rate of services has consistently been more than that of industries. The contribution of agriculture and industries has been decreasing consistently which is also a good indicator of right development.

On the other hand, the expenditure of the state in the areas of education, health, agriculture and more, have been much more than the national average. It is the result of such investments that growth was possible and sustainable. 


CRISIL Accolade
CRISL, the international rating agency rated CG as among the fastest growing and employment generating states during the period 2013-2017. In its ‘State of Growth’ report CRISIL acknowledges the state to be one of the best performers in manufacturing, trade transportations and communications services. The report also notes that the high levels of growth are more impressive keeping in view the below 3% levels of fiscal deficit. 

Industrial Infrastructure Growth 

Chhattisgarh is making significant investment in industrial infrastructure and its nodal agency  CSIDC has set up: 

  • Various Industrial Growth Centres
  • Over Five Industrial Parks 
  • Three integrated infrastructure development centres (IIDC) 
  • One Special Economic Zone (SEZ) in Rajnandgaon District. As of February 2020, the state had two formally approved SEZs.

Electronics, IT and ITES Investments and Initiatives in CG

Chhattisgarh has adopted modern technology, for efficiency and process improvement and governance. Today the state has made headways in adopting IT for data driven decision making and transparency, Innovation, Business Incubation, and Entrepreneurship. 

Concrete steps that have been taken: 

  • Establishment of the first Smart City in the country at Naya Raipur
  • Creation of Electronic Manufacturing Clusters and ITIR

Electronics Manufacturing Cluster (EMC) is being established in over 70 acres of land in Naya Raipur. It is aimed at providing one stop integrated facilities with manufacturing support, welfare and common infrastructure facilities to the prospective electronics manufacturing industries.

  • Access to Finance to new IT&ITeS units of the state
  • Interoperability and Standards for operations in the state
  • Developing Online Clearance and encouragement to Online Economy
  • Education: Upskilling and workforce availability by helping establish IIT, IIIT and IIM

After two decades of effort CG has developed a unique set of advantages for the industries

  • Rich labour pool: Minimal labor problems and losses due to unrest 
  • Energy Rich: Abundant power for any industrial requirement at subsidized rate
  • Mineral resources: Chhattisgarh has deposits of limestone, iron ore, copper, bauxite,

dolomite & coal that can support any industry requirement. 

  • Policy and fiscal incentives, Well-drafted policies for the IT/ITeS, Minerals and Energy sectors.
    • 80% rebate on land premium; 100% exemption on stamp duty as well as 100%; exemption on sale to another IT unit; concession on Built-up space lease/rental; 

Technical Patent subsidy; Margin Money subsidy; Industrial Award Scheme

Conclusion

The incredible growth C.G. has achieved in the last two decades has set the ground for more growth and development. The strong trends of all round investment and social developments are bound to take CG to greater golden heights.