Economic Survey of Madhya Pradesh 2025-26 | 18 Feb 2026

Why in News?

The Madhya Pradesh Economic Survey 2025–26 was tabled in the State Legislative Assembly on 17 February 2026. It highlights a robust expansion of the state’s economy, driven by high growth in the tertiary sector and a significant rise in per capita income. 

Key Points: 

• Gross State Domestic Product (GSDP):The state’s GSDP (nominal) for 2025-26 is projected at approximately ₹16.69 lakh crore, indicating robust economic expansion. 
  • Nominal Rate: The nominal growth rate is estimated at 11.14%, reflecting acceleration in economic activity compared with the previous year. 
  • Real Rate: In real terms (constant 2011-12 prices), the state’s economy is expected to grow at 8.04%, demonstrating substantial growth after adjusting for inflation. 
• Fiscal Deficit: The fiscal deficit for 2025–26 is estimated to remain at 4.6% of GSDP. 
• Per Capita Income: The survey highlights a significant rise in per capita income to ₹1,69,050 in 2025-26 at current prices, up from ₹38,497 in 2011-12 — a more than four-fold increase over the decade. 
  • On constant prices, per capita income is estimated at ₹76,971, indicating real improvement in living standards. 
• Fiscal Balance:The state is projected to achieve a revenue surplus of ₹2,618 crore in 2025-26. 
  • Tax revenue growth is expected to be higher, with a projection of around 13.57% in 2025-26. 
• Debt Sustainability:The debt-to-GSDP ratio is estimated at 31.3%, demonstrating sustained debt management compared with higher levels in the recent past. 
• Sectoral Contribution to GSDP:The Survey provides a clear picture of sectoral contributions, demonstrating diversification and balanced growth across primary, secondary and tertiary activities: 

• Growth Trends: The tertiary sector recorded the fastest growth at 15.8%. The primary sector grew by 7.31%, and the secondary sector by 9.93% 
• Agriculture and Rural Development: The primary sector continues to be significant, with enhancements in crop production, livestock and allied activities. 
  • Infrastructure expansion such as rural roads and housing programmes contributes to livelihood resilience and structural transformation in rural areas. 
• Industry and Investment:Allocation of industrial land to 1,028 units with proposed investment exceeding ₹1.17 lakh crore indicates improving industrial confidence. 
  • Projected employment generation from these investments is estimated at around 1.7 lakh jobs, addressing the state’s employment challenge. 
• Services, Startups and Tourism:The services sector has grown rapidly, leveraged by trade, transport, hospitality and digital services. 
  • The state has 1,723 startups and 103 incubation centres, signalling rising entrepreneurial activity. 
  • Tourism and related service activities contribute significantly to the GSDP and job creation. 
• Education:Primary school dropout rate has reached zero, reflecting progress in universal education access. 
  • At the upper primary level, dropout rates have declined to 6.3%. 
  • Budgetary allocation to education stands at 10.37% of total expenditure — a significant policy priority for human capital development.  
• Health:Expansion of Ayushman health coverage and improvements in key health outcomes such as maternal mortality indicate enhanced public health infrastructure.  
• Strategic Goal: The state aims to reach a $2 trillion economy by 2047 and targets doubling its budget and GSDP by 2029.