Jabalpur Regional Industry Conclave 2024: Can it address the employment crisis in the state? 

The Jabalpur Regional Industry Conclave 2024 was a pivotal event aimed at driving industrial growth and attracting significant investments to Madhya Pradesh. The event was inaugurated by Chief Minister Dr. Mohan Yadav, accompanied by key dignitaries. The conclave saw the participation of around 3500 representatives from major business groups, ministers, and international delegates from countries such as Taiwan, the UK, Fiji, and Japan.

Key highlights:

1.     Investment proposals:

The conclave attracted investment proposals totaling about ₹22,000 crore. This includes ₹17,000 crore for large industrial units and ₹5,000 crore for MSMEs. These investments are expected to generate a significant number of new jobs in the region.

2.     Major investments:

• One of the most notable announcements was from the Adani Group, which is likely to invest ₹10,000 crore in an ammunition plant near Shivpuri. This significant investment underscores the group's commitment to bolstering the defense sector in the region.
• Other major participants included ITC, Baidyanath, Eicher, and Dawat, highlighting the diverse interest from various industry giants.

3.     Focus on defense sector:

• Chief Minister Yadav emphasized Jabalpur's potential as a hub for the defense industry, aligning with India's Aatmanirbhar Bharat (self-reliant India) initiative.
• He highlighted the city's strengths, such as its defense institutes and skilled manpower, which make it an ideal location for defense manufacturing.
• The CM's office reiterated that the defense industry is Jabalpur’s forte, emerging as one of the most thriving industries in the city.
• The MP government has offered a 75% discount on land prices for defense sector investments up to 50 acres.

4.     Regional development initiatives:

• During the conclave, 340 acres of land were allotted to 265 industrial units.
• These units are expected to employ over 16,500 people, significantly boosting the local economy.
• The conclave in Jabalpur is part of a series of similar events aimed at different cities, with previous events held in Ujjain and upcoming ones planned for Sagar, Rewa, and Gwalior. These events collectively aim to attract investment and foster regional industrial growth across Madhya Pradesh.
• The MP State Industrial Development Corporation has targeted all four sectors, hoping to attract substantial investment and create 1.5 to 2 lakh direct and indirect employment opportunities.

5.     Government support and policies:

CM Yadav expressed confidence in the conclave's outcomes, emphasizing the state government's investor-friendly policies aimed at attracting investments in health, education, and various industries. The state’s central location and proactive policies are seen as key factors in making Madhya Pradesh an attractive destination for industrial investment.

Growth and employment scenario in Madhya Pradesh

The Jabalpur Regional Industry Conclave 2024 showed plans for new investments and economic growth, but it’s important to look at how it will affect unemployment in Madhya Pradesh. The state has a serious unemployment problem, with around 39 lakh young people without jobs, according to a written reply filed in the state assembly in 2022. Also, as per Centre for Monitoring Indian Economy (CMIE) data for the year 2022, unemployment rate in Madhya Pradesh is 3.2 per cent.

Even with the promise of new investments and job creation, there is still a big gap between the number of unemployed people and the new job opportunities. 

According to the recent NITI Aayog report on the National Multidimensional Poverty Index, approximately 2.30 crore people in Madhya Pradesh are classified as poor as of 2024, representing about 36.65% of the state's population. This positions Madhya Pradesh as the fourth poorest state in India, following Bihar, Jharkhand, and Uttar Pradesh. 

The report indicates that the state has made significant progress in poverty reduction, with a notable decline in the proportion of multidimensionally poor individuals from 36.57% in 2015-16 to 20.63% in 2019-21, reflecting a reduction of 15.94%.

Consistent follow-up is the key

The Jabalpur Regional Industry Conclave 2024 was a key event aimed at boosting industrial growth and attracting major investments to Madhya Pradesh. The conclave drew significant investment proposals and showcased interest from major industry players, with a strong focus on developing Jabalpur as a defense sector hub. These investments are expected to create many new jobs and support regional development.

Investments in large industrial units, MSMEs, and the defense sector are positive steps, but the unemployment issue needs bigger and quicker solutions. The conclave’s plans should be part of a larger, ongoing effort to create jobs in many sectors. Similar events have been held before, but consistent follow-through is crucial to achieving lasting impact. Solving Madhya Pradesh’s unemployment crisis needs constant and focused work beyond just one event’s promises.

Ankit Gupta is a Program Associate at TA.