Though after its bifurcation the state of Madhya Pradesh was expected to be better administered and greater attention was supposed to be given to promotion of investment, the early signs of industrial development are not very encouraging. On all the key indicators, such as fixed capital investment, employment, net value added and capital formation, the state has witnessed a declining performance in absolute terms, albeit due mainly to bifurcation. In key aspects, such as employment per unit, capital intensity, labour productivity and capacity expansion, the state's industry has performed only marginally better than the national average. And, except for labour productivity, all the other key performance parameters have shown a declining trend. More importantly, MP has failed to generate employment through the growth of small-scale industry.
