On February 17, 2026, the government of Madhya Pradesh released its latest Economic Survey. The report shows a state trying to change its image from a purely farming area to a modern industrial hub. While the headline growth of 11.14% suggests a strong recovery, the state is also managing a large amount of debt. Officials point to high spending on roads and buildings as the main reason for this progress. However, the balance between high growth and rising loans remains a key point of study for those watching the state's financial health.
Timeline and Key Figures
The Economic Survey was presented in the State Assembly by Deputy Chief Minister Jagdish Deora, just one day before the official budget. Chief Minister Mohan Yadav supported the findings, stating that the state has achieved "financial discipline."
February 17, 2026: Survey tabled in the Assembly.
Projected GSDP: ₹16,69,750 crore (an 11.14% increase from the previous year).
Per Capita Income: Reached ₹1,69,050 at current prices.
Real Growth: 8.04% (calculated using 2011-12 base prices).
Evidence: Economic Indicators and Sector Performance
The following data points were extracted from the official survey documents to show how different parts of the economy performed.
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| Sector | Growth Rate (Current Prices) | Share of Economy |
|---|---|---|
| Primary (Farming) | 7.31% | 43.09% |
| Secondary (Industry) | 9.93% | 19.79% |
| Tertiary (Services) | 15.80% | 37.12% |
The service sector, including hotels and trade, is now the fastest-growing part of the state's economy at 15.80%.
Infrastructure Spending: Capital expenditure (money spent on long-term assets) rose by 46%.
Revenue Surplus: The state expects a surplus of ₹2,618 crore this year.
Social Wins: The government claims a 0% dropout rate for students in classes 1 to 5.
Economic Growth vs. Rising Debt
The survey highlights a double-sided story regarding the state's finances. On one hand, the 11.14% growth is among the highest in India. On the other hand, the debt-to-GSDP ratio is projected to reach 31.30%.
The Government View: Officials argue that borrowing is necessary to build roads, power plants, and irrigation systems. They believe this "infrastructure-led" growth will pay off by attracting more businesses in the long run.
The Financial Concern: Is the state relying too heavily on loans to show growth? While the revenue is in surplus, the total debt continues to climb. This raises a question: Can the state maintain this growth rate if the cost of paying back these loans increases?
The Shift in Agriculture
Agriculture remains the "backbone" of Madhya Pradesh, making up over 43% of the economy. However, the survey shows a strange trend: total food production went up by 14.68%, but the actual land used for farming decreased by 2.48%.
Efficiency Claims: The government credits better seeds and irrigation for higher yields on less land. They also note a move toward "commercial crops" like fruits and vegetables (horticulture), which now cover 28.39 lakh hectares.
Market Risks: While production is high, certain crops like pulses and oilseeds saw a drop in production (21.9% and 5.27% respectively). Does this shift toward commercial crops make farmers more vulnerable to market price changes?
Investment and Job Creation
The state declared 2025 as the "Year of Industry," and the survey provides early data on the results of this focus.
Land Allocation: Over 6,125 acres of land were given to 1,028 new industrial units.
Employment: The government claims these new units will create roughly 1.77 lakh jobs.
Foreign Investment: Between January and September 2025, the state received ₹327 crore in Direct Foreign Investment (FDI), mostly in Indore, Ujjain, and Bhopal.
Expert Analysis
Financial analysts noted that the state’s health depends heavily on its share of central taxes.
"If revenue collection and the share from the Centre increase, the state’s development projects will gain financial strength," according to experts cited in the Business Standard.
The survey also points to an improvement in "social health." The Maternal Mortality Rate (MMR) dropped from 379 to 142. These figures suggest that while the state is focused on big business, it is also spending on basic health and safety for its citizens.
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Summary of Findings
The Madhya Pradesh Economic Survey presents a state in a period of rapid change. The move from 8.04% real growth to an 11.14% nominal projection shows a steady climb.
Main Conclusions:
Service Sector Lead: While farming is the biggest sector, the service sector is growing twice as fast.
Infrastructure Focus: Massive spending on construction is the primary tool the government is using to boost the economy.
Debt Levels: A debt ratio of over 31% is a significant figure that will require careful management in future budgets.
Social Progress: Claims of 0% school dropouts and lower maternal deaths suggest that economic growth is being paired with social programs.
The next step for the state will be the presentation of the full Budget, which will detail exactly how these growth targets will be funded and if the debt can be kept under control.
Sources Used
The Hindu: Madhya Pradesh Economic Survey projects State’s GDP at 11.14%
Business Standard: Madhya Pradesh's GSDP estimated to grow at 11.14%: Economic Survey
India TV News: Madhya Pradesh records 11.14% GSDP growth
New Kerala: MP Economic Survey: 11.14% GSDP Growth, Per Capita Income Rs 1.7L
Navbharat Times: MP Economic Survey 2025-26: Big Leap in MP's Economy
Dainik Jagran: MP Economy Soars: Per Capita Income and Growth Rates
