Madhya Pradesh Export Promotion Policy 2025
₹1 Lakh Cr
State Export Goal by 2029
50% / ₹2 Cr
Export Freight Assistance Cap
₹65,254 Cr
Merchandise Exports, FY 2023-24
200+
Countries MP Exports To
Why the policy exists
Madhya Pradesh's exports grew at a 15.2% CAGR between 2019 and 2022, with merchandise exports of ₹65,254 crore in FY 2023-24 shipped to more than 200 countries. The policy targets ₹1 lakh crore of exports by 2029, aiming to increase the share of large export houses, promote diversification, and market "Made in Madhya Pradesh" globally. Key export sectors are pharmaceuticals, soya by-products, cereals, cotton, machinery, readymade garments, IT services, aluminium and plastics, auto parts and organic produce.
This is an add-on policy, not a substitute for IPP 2025 eligibility. Export Promotion Assistance is targeted at large industries manufacturing and exporting more than 25% of production — a unit must first clear the underlying Industrial Promotion Policy 2025 eligibility before these lines apply on top. Clause 11 fixes that this assistance is provided over and above IPP 2025, and IPP 2025's other terms apply by default, including the single-policy election rules, the FCI-based assistance caps and the 70% Madhya Pradesh domicile employment condition. Read both documents together.
MPIDC is the nodal agency. Six Inland Container Depots are operational — Tihi, Mandideep, Dhannad, Malanpur, Powerkheda and Kheda. The state sits on the Delhi-Nagpur and Amritsar-Kolkata Industrial Corridors, the Delhi-Mumbai Industrial Corridor influence zone, the Delhi-Mumbai Expressway and the upcoming North-South Dedicated Freight Corridor.
The nine export promotion assistance lines
| Line | Rule |
|---|---|
| 7.1 Assistance for First Time Exporters | One-time assistance for first-time state exporters: reimbursement of RCMC costs, max ₹10 lakh; reimbursement of export insurance premiums, max ₹25 lakh |
| 7.2 Export Multiple Assistance | Assistance over and above the Basic Investment Promotion Assistance under IPP 2025, to encourage first-time exporting units and increase the export value of existing units |
| 7.3 Export Freight Assistance | 50% reimbursement of transportation cost from factory premises to seaport or air cargo facility, for 5 years, up to ₹40 lakh per unit per year, overall cap ₹2 crore — introduced to offset the state's landlocked position |
| 7.4 Export Infrastructure Assistance | One-time subsidy of 25% of export infrastructure investment, up to ₹1 crore, for testing laboratories, R&D centres and export incubation centres |
| 7.5 Export Turnover Assistance | 10% of annual incremental FOB value, up to ₹2 crore across 5 years, applicable from the second year of export |
| 7.6 Export Marketing Assistance | 75% reimbursement, ceiling ₹5 lakh per annum for 5 years, for national and international trade fairs, exhibitions and buyer-seller meets — limited to once per unit per year |
| 7.7 Export Green Documentation Assistance | Up to 50% of expenses, max ₹20 lakh per unit per annum for 5 years, covering green-energy certifications, energy efficiency, quality testing, IGBC Gold/Platinum certification and compliance with EU ETS, CBAM, Net Zero and carbon offsetting regimes |
| 7.8 Export Financial Assistance | Subsidy on bank interest rate up to 5% on pre- and post-shipment rupee export credit, maximum ₹50 lakh overall for 5 years |
| 7.9 Export Growth Accelerator Assistance | Additional 5% of annual incremental FOB value, up to ₹30 lakh per annum for 5 years, restricted to specific product categories |
Growth Accelerator product categories: footwear and accessories; gems and jewellery; toys and accessories; optical, photographic, medical and surgical instruments; plastic and rubber; furniture; EV transport equipment; ACC cell components; electronics; drones; white goods; capital goods.
Lines 7.5 and 7.9 stack on the same FOB growth, but through different lenses. Export Turnover Assistance rewards incremental FOB value generally from year 2 onward; the Growth Accelerator rewards the same incremental FOB value again, at a lower rate but a separate cap, for the twelve listed categories. A unit in EV transport equipment or electronics with genuine export growth should be modelled for both lines simultaneously rather than treated as a choice — but the combined arithmetic against the ₹2 crore and ₹30 lakh per year caps needs working through before quoting a blended number.
Dedicated Export Park developer incentives
Eligibility and composition
- •Minimum 25 acres, with more than 70% of occupants being export-oriented units.
- •Occupant units must have a track record of exporting more than 25% of production over the previous 3 years.
- •At least 20% of reserved allotted plots must go to MSMEs.
- •Must provide common shared infrastructure, utilities and logistics, transportation infrastructure, warehouses, common processing, sorting, packaging and labelling facilities, port and terminal facilities, and customs clearance facilities.
PPP-mode incentives
| Category | Subsidy |
|---|---|
| Stamp duty & registration | 100% reimbursement |
| Fixed capital assistance for infrastructure | 50% of fixed capital investment or ₹20 lakh per acre on fixed infrastructure excluding land and dwellings, whichever less; capped at ₹40 crore, in 2 equal milestone-based instalments |
| Common Processing Facilities | 25% capital assistance for common processing, testing, quality and R&D facilities including sorting, packaging, labelling and marking, up to ₹25 crore |
| Green Industrialisation | 50% capital subsidy, max ₹5 crore for waste management systems; 50%, max ₹10 crore for Zero Liquid Discharge |
Fixed capital assistance follows a milestone-based release: the first instalment after infrastructure construction is complete, the second after 5 industrial units are established.
MPEPC, ICD reform and other state benefits
| Tier | Composition |
|---|---|
| Governing Body | Chairman: Chief Minister. Member Secretary: Principal Secretary, DIPIP, plus elected conveners of the sectoral panel committees |
| Executive Committee | Chairman: Chief Secretary. Member Secretary: State Export Commissioner (Managing Director, MPIDC) |
| Sectoral Panel Committees | Forum for member exporters to feed sector views to the Governing Body; each has a convener and sectoral industry representatives |
The MP Export Promotion Council creates and amends export policies, prepares yearly and 5-year export action plans and the estimated export budget, feeds suggestions to the Government of India, handles exporter grievance redressal, and coordinates value-chain stakeholders within and outside India.
ICD reform and other committed benefits
- •Customs-regulatory processes consume 11–15% of time at Indian ports, with turnaround from about 102 to 320 hours; for ICD-bound cargo, gate-in to gate-out runs about 128 hours with roughly 25% attributable to customs. The policy proposes shifting processes to ICDs via a dedicated FSSAI laboratory, customs clearances at the ICD, green channels, ULIP interventions, container scanners, e-Delivery orders through PCS1, RFID gate automation and a Gate-in Vehicle Booking System.
- •Dedicated export incubation hubs for startups and new exporters; a Green Card Scheme entitling holders to minimum inspection and speedy clearance across all state departments.
- •Alignment of the state's Gati Shakti portal with the National Master Plan; 20+ Gati Shakti cargo terminals with the Central Government, plus additional MMLPs, air cargo hubs and airports.
- •Design studios and quality-control infrastructure; a targeted programme to help MSMEs achieve ZED certification; priority-sector Special Economic Zones; district-level ONDC training; and a continuously updated exporter database on the state portal.
Source: Madhya Pradesh Export Promotion Policy 2025, Department of Industrial Policy and Investment Promotion, Government of Madhya Pradesh. Clause 12 reserves the State Government's right at any time to modify or cancel any provision, relax implementation, or issue clarifying guidelines.