:: Press Releases ::
The Fifteenth Finance Commission meets representatives of Trade and Industry in Madhya Pradesh - New Delhi, Dated: 3 rd July, 2019.
The 15th Finance Commission headed by Chairman, Shri N.K. Singh alongwith its Members and senior officials met today with the representatives of the Trade and Industry in Madhya Pradesh. The Commission observed that: (i) Growth rate of GSDP (at constant price 2011) of Madhya Pradesh has fluctuated widely from 2012-13 to 2018-19, compared to GDP (at constant price 2011) of India. ii) Share of tertiary sector in GSVA (current prices 2011) of the State was 44, 20, & 36, respectively, in 2018-19. iii) In the Ease of Doing Business Rankings, Madhya Pradesh was ranked 7th, amongst all states, in 2017. iv) Industries in the state are largely natural resources driven. State has strong industrial base in sectors like textile, cement, steel, food processing, automobile and auto components, pharma and optical fibre. Further, as informed by the State in 2017-18, there was GST revenue shortfall of Rs. 3,458 crore as compared to the protected revenue, which is more than 26 shortfall. As per State’s Memorandum to the 15th Finance Commission, the key initiatives undertaken by State Government to promote Investment include: • Efforts towards strengthening the Single Window System in the State by developing INVEST Portal (Integrated New Venture Establishment) which will act as a one-stop solution for all investors by reducing the need to physically interface with various department authorities. • Comprehensive amendments in The Apprentices Act 1961 in December 2014 to make it more attractive for both industry and youth. This act makes it obligatory for employers to engage apprentices in designated trades and in optional trades. • Major reforms implemented in areas like Start-up Policy 2016, Simplification and Handholding, Funding support, Industry-Academia partnership, Support for Intellectual Property and Support for Innovation. The 15th Finance Commission observed: • State Government needs to take steps to facilitate structural transformation of the economy as in 2018-19, the primary sector contributed 44 to GSVA (current prices) of the State, making it largest among the 3 sectors of the economy (primary, secondary & tertiary). • The share of secondary sector in GSVA (current prices, 2011) of the State has declined from 27 in 2011-12 to 20 in 2018-19. On the other hand, the share of primary sector has risen from 34 to 44 during the same period. Representatives of Industries Associations CII, PHDCC, GIA, CREDAI, Madhya Pradesh Textile Association and representatives of Textile, Pharma, Food Processing, Electrical and Engineering, Auto, MSME industries were present. The Commission noted all the concerns highlighted by the representatives of the Madhya Pradesh Trade and Industry and promised to address them in its recommendations to the Central Government.