INTRODUCTION:

Industrial policy is a critical instrument for economic growth and structural transformation, guiding investment, innovation, and regional development. In resource-rich but economically diverse regions, such as the state of Chhattisgarh in India, industrial policy serves not only to attract investments but also to ensure that economic benefits are distributed equitably. The Government of India’s Economic Survey 2020-21 underscores the role of inclusive growth policies in bridging regional disparities and enhancing productivity by fostering targeted industrial growth in underdeveloped areas (Ministry of Finance, Government of India, 2021). Furthermore, industrial policies that address regional needs can support sustainable development by prioritizing both economic and social outcomes (NITI Aayog, 2021).

The evolution of industrial policy in India has increasingly focused on balancing rapid economic development with social inclusion, especially in states like Chhattisgarh that have an abundance of natural resources but face socio-economic challenges. According to the Organisation for Economic Co-operation and Development (OECD), inclusive growth policies must extend beyond purely economic measures to foster social equity, with a particular focus on supporting marginalized communities and economically underdeveloped regions (OECD, 2018). In Chhattisgarh, which was established as a separate state in 2000, the industrial policies implemented from 2004 to 2024 reflect a progressive shift towards inclusivity and sustainable development, moving from a reliance on core industries—such as mining and power generation—to a broader strategy that promotes small- and medium-sized enterprises (SMEs), technology-driven sectors, and eco-friendly practices.

Chhattisgarh’s policies align with the United Nations’ 2030 Agenda for Sustainable Development, emphasizing inclusive and sustainable industrialization to promote regional prosperity and reduce inequalities. Recent policies focus on technology, environmental sustainability, and empowering local communities through skill development and employment opportunities.

This paper examines the two-decade transformation of Chhattisgarh’s industrial policy, analysing how it has transitioned from a focus on core industries to a multifaceted strategy that integrates social inclusion, environmental sustainability, and sectoral diversification. By evaluating Chhattisgarh’s industrial journey, this research contributes to broader discussions on inclusive growth and provides insights for other resource-abundant regions seeking to balance growth with equity and environmental stewardship.

1. To analyze the shift in Chhattisgarh’s industrial policies toward inclusive growth.

2. To assess the impact of policies on regional development and employment.

This study examines how Chhattisgarh’s industrial policies have changed over the past two decades, focusing on their goals for inclusive growth, regional development, and sustainability. To explore this, the study addresses the following questions:

1. How has Chhattisgarh’s industrial policy evolved to promote inclusive growth from 2004 to 2024?

2. What impact have industrial policies had on regional development and employment opportunities in Chhattisgarh?

LITERATURE REVIEW:

Chhattisgarh's industrial policy transformation from 2004 to 2024 illustrates significant strides toward inclusive growth, regional development, and sustainability. This period witnessed a shift in policy frameworks designed to integrate marginalized communities into the economic mainstream. Policies have targeted socially and economically disadvantaged groups, including scheduled castes and tribes, offering subsidies, incentives, and tailored financial support to entrepreneurs from these communities. Such measures align with broader global trends of state-led capitalism, as highlighted in the literature on industrial policies worldwide, which emphasize inclusivity and equitable resource distribution (Silverwood and Berry, 2022; Bulfone, 2022). Additionally, Chhattisgarh has focused on employment generation through agro-based industries and MSMEs, creating opportunities particularly in rural and tribal areas. However, challenges remain in addressing gender disparities, especially in mining regions where industrial benefits are often inaccessible to women (Mukherjee, 2014).

The state's industrial initiatives have also driven substantial regional development, particularly through infrastructure projects like barrages, industrial parks, and transportation networks. Regions such as Korba and Raigarh have experienced significant transformation due to the establishment of mining, power, and steel industries. The introduction of the Single Window System has streamlined investment processes, reduced bureaucratic hurdles, and encouraged economic activity across various sectors. Despite these advancements, industrialization has resulted in socio-economic disruptions, including displacement of local communities, and widening inequalities. Case studies from Korba illustrate the paradoxical impact of development-induced displacement, where industrial growth has often marginalized native populations and disrupted livelihoods (Chowdhury, 2004; Ratha, 2019).

Sustainability has emerged as a central theme in recent industrial policies, particularly in response to the environmental degradation associated with heavy industrial activities. Policies now include measures to promote renewable energy, support environmental compliance, and encourage eco-friendly practices in industries. However, these efforts have not fully mitigated the environmental challenges posed by industrialization. For instance, the Mahanadi River Basin has faced significant ecological stress due to industrial water usage, leading to conflicts between industrial and agricultural stakeholders (Ratha, 2019). Carbon emissions from industrial hubs further underscore the need for robust mitigation strategies, including renewable energy adoption and carbon footprint reduction (Nair et al., 2019).

Studies emphasize the importance of integrating community-based resource management and fostering circular economy practices to achieve long-term environmental and economic resilience (Basant, 2018). While Chhattisgarh has made commendable progress, its industrial policy trajectory must address the enduring challenges of displacement, inequality, and environmental sustainability to achieve balanced and inclusive growth.

METHODOLOGY:

This study adopts a qualitative research design to address its core objectives: analysing the shift in Chhattisgarh’s industrial policies toward inclusive growth, assessing their impact on regional development and employment, and examining the integration of sustainability in recent policies. A chronological and thematic approach is employed to evaluate the evolution of policies from 2004 to 2024, enabling a comprehensive understanding of their transitions and impacts.

The research is based on secondary data obtained from official government documents, industrial policy reports, statistical records, and academic literature. These sources provide detailed insights into the goals, strategies, and outcomes of industrial policies over the past two decades. Quantitative data on industrial investments, employment generation, and regional development are analysed alongside qualitative assessments of policy frameworks and their socio-economic implications.

ANALYTICAL FINDINGS:

Shifts in Chhattisgarh’s Industrial Policies for Inclusive Growth:

Over the past two decades, Chhattisgarh’s industrial policies have exhibited a significant shift from a resource-driven, core-sector-focused approach to a broader, more inclusive framework aimed at fostering equitable growth. In the early years (2004–2009), the state’s industrial policies prioritized leveraging its natural resource base, focusing heavily on core industries such as power, steel, and cement. While this approach successfully positioned Chhattisgarh as a resource-rich industrial hub, it largely excluded marginalized communities and smaller enterprises, leading to limited socio-economic inclusivity.

The transition toward inclusivity became evident in the policies introduced from 2014 onwards. Recognizing the importance of equitable participation, these policies emphasized the development of Micro, Small, and Medium Enterprises (MSMEs), agro-processing industries, and non-core sectors such as IT and biotechnology. Financial incentives, skill development programs, and targeted subsidies were introduced to empower entrepreneurs from marginalized communities, including Scheduled Castes (SC), Scheduled Tribes (ST), and women. For instance, the MSME Development Framework 2014–19 offered significant subsidies and technical support to small-scale enterprises, increasing their contribution to industrial growth.

The latest policy cycle (2019–2024) further deepened the inclusivity agenda by integrating local employment mandates, skill training initiatives, and sector-specific support for disadvantaged regions. Special emphasis was placed on eco-friendly practices and renewable energy industries, creating job opportunities for underserved communities while addressing environmental concerns. Programs such as the Skill Development Mission have targeted tribal and rural populations, bridging the gap between industrial growth and workforce participation.

Looking ahead to 2024–2030, the state aims to lead in green and technology-driven industries, focusing on renewable energy, circular economy practices, and balanced development. These strategies, aligned with global sustainability goals, position Chhattisgarh as a forward-thinking industrial hub.

Chhattisgarh’s industrial policies have evolved from a growth-centric model to one that balances economic expansion with social equity. The focus on MSMEs, marginalized groups, and regional inclusivity highlights a deliberate policy shift toward creating a participatory industrial ecosystem.

Table-1: Review of Policy Evolution in Chhattisgarh: 2004-2030

Policy Period	Key Objectives	Strategies	Major Outcomes	Key Challenges
2004-2009	Leverage resources, establish core industries	Focus on power, steel, cement; develop basic infrastructure	Growth in core industries; limited diversification	Sectoral concentration, regional disparities
2009-2014	Consolidate core industries, improve infrastructure	Develop transport corridors, rail projects; streamline regulations	Improved connectivity, steady growth; investor confidence	Continued focus on core industries, slow diversification
2014-2019	Shift focus to non-core sectors, promote MSMEs	Promote MSME development, public-private partnerships, export strategies	Increased MSME participation, sectoral diversity	Scaling MSME initiatives, ensuring equitable benefits
2019-2024	Achieve inclusivity, integrate sustainability	Encourage tech sectors, renewable energy, skill development	Adoption of sustainability practices; inclusivity in industrial workforce	Enforcing environmental standards, addressing persistent disparities
2024-2030	Foster green growth, enhance innovation, address regional disparities	Adopt renewable energy, digital transformation, circular economy practices	Balanced regional development, leadership in green industries	Sustaining green growth, managing resource efficiency

Evaluation of Policy Impacts on Regional Development and Employment:

Chhattisgarh's industrial policies have significantly impacted regional development and employment, though the benefits remain uneven. Early policies (2004–2009) concentrated on resource-rich areas like Korba and Raigarh, spurring industrial growth but creating regional disparities and exacerbating inequalities in tribal and backward districts due to displacement from large projects.

From 2014 onwards, diversification efforts, such as promoting agro-industries, export-oriented sectors, and MSME clusters, created localized employment in rural areas. The Food Processing Policy 2014–19 notably benefited farmers and labourers by supporting cold storage and food processing units in underdeveloped regions.

Policies from 2019–2024 adopted a holistic approach, encouraging investments in backward areas through SEZs and industrial hubs. Skill training programs aligned with industry needs addressed workforce gaps, while renewable energy projects generated green jobs in rural areas, contributing to inclusive regional development.

Table-2: Role of MSMEs in economy (As on November 2021)

MSMEs Registered as Cooperatives
State	Micro Units	Small Units	Medium Units	Total MSMEs
Chhattisgarh	77	2	2	81
Madhya Pradesh	134	2	4	140
India	5,289	252	67	5,608
Employment generation by MSMEs
	Employment in Micro Units	Employment in Small Units	Employment in Medium Units	Total Employment All MSMEs
Chhattisgarh	440	123	313	876
Madhya Pradesh	1,542	39	1,426	3,007
India	1,01,143	27,236	27,781	1,56,160
Average Employment generated by per MSME
Chhattisgarh	6	62	157	11
Madhya Pradesh	12	20	357	21
India	19	108	415	28

Source: Ministry of MSME (November 2021)

From above table-2, we can see that cooperative MSMEs in Chhattisgarh are dominated by micro units (77 out of 81), generating 440 jobs with an average employment of 6 per unit. This is significantly below the national average of 19 jobs per micro unit. This disparity highlights the limited scalability and employment capacity of MSMEs in Chhattisgarh compared to Madhya Pradesh and the national average.

Table-3: Trends in Per Capita NSDP (Current Prices)

State/UT	2004-05	2005-06	2006-07	2007-08	2008-09	2009-10 (Prov.)	2010-11 (Prov.)	CAGR (2004-05 to 2010-11) %
Chhattisgarh	18,559	20,117	24,800	29,385	34,360	34,366	41,165	14.32
Madhya Pradesh	15,442	16,631	19,028	20,935	25,278	28,651	32,453	13.78
Bihar	7,914	8,223	9,967	11,051	13,728	15,457	19,111	16.71
Jharkhand	18,510	18,326	19,789	24,789	25,046	28,223	34,721	11.02
Uttar Pradesh	12,950	14,221	16,013	17,785	20,422	23,671	26,698	13.40
Uttarakhand	24,726	29,441	35,111	42,619	50,657	62,757	73,819	21.32
Haryana	37,972	42,309	49,261	56,917	67,405	82,037	93,852	16.87
Delhi	63,877	72,208	83,275	95,241	1,11,756	1,25,936	1,45,129	15.65
Kerala	32,351	36,958	41,318	46,865	54,560	62,114	69,943	14.73
All India	24,143	27,183	31,206	35,430	40,775	46,492	54,835	15.01

Source: Reserve Bank of India. (n.d.). Handbook of Statistics on Indian States

The CAGR analysis of per capita income (2004-05 to 2010-11) reveals significant regional disparities in economic growth, directly aligning with the study's focus on inclusive growth and regional development. Chhattisgarh, with a CAGR of 14.32%, demonstrates steady improvement, yet lags the national average of 15.01%, indicating scope for enhanced policy interventions. These trends underscore the need for targeted industrial policies in Chhattisgarh to bridge regional gaps, promote diversified industrial growth, and achieve balanced socio-economic development.

Table-4: Economic indicators of Chhattisgarh: 2013

Category	Indicator	Value (Year)
Economic Growth	Gross State Domestic Product (GSDP)	1.93 lakh crore (2013)
	Per Capita GSDP	70,920 (2013)
Industrial Performance	Share of Industry in GSDP	15% (2013)
	Share of Agriculture in GSDP	18% (2013)
Fiscal Health	Debt-to-GSDP Ratio	25.3% (2013)
	Revenue Surplus	4,300 crore (2013)
Employment	Formal Employment Growth	21% growth in EPFO accounts
	Public Debt	29,000 crore (2013)
Infrastructure	Road Length (per 1,000 sq. km)	420 km (2013)
	Electricity Availability (per capita)	1,015 kWh (2013)

Source: CAG Report Chhattisgarh, 2013

The 2013 CAG report highlights Chhattisgarh's industrial progress and challenges in achieving inclusive growth. With a GSDP of ₹1.93 lakh crore and a per capita GSDP of ₹70,920, the state demonstrated steady economic growth, though regional disparities persisted. Industry contributed 15% to GSDP, less than agriculture is 18%, highlighting the need for diversification.

Table-5 : Economic indicators of Chhattisgarh: 2023

Category	Indicator	Statistical Data
Economic Growth	Gross State Domestic Product (GSDP)	4,57,608 crore (2022-23), 12.60% growth over previous year
	Per Capita GSDP	1,52,348, 34.33% growth since 2018-19
Revenue and Expenditure	Revenue Receipts	93,877.14 crore, 17.86% increase from 2021-22
	Revenue Expenditure	85,285.03 crore, 18.64% of GSDP
	Capital Expenditure	13,320.30 crore, 13.5% of total expenditure
Debt and Liabilities	Debt-to-GSDP Ratio	20.46%, improved from 22.84% in 2019-20
	Public Debt	68,754.84 crore, with 89% used for repayments
Sectoral Performance	Share of Agriculture in GSDP	10.7% growth in 2022-23 compared to previous year
	Share of Industry in GSDP	Declined to 12.21% in 2022-23 from 20.58% in 2021-22
	Share of Services in GSDP	Moderate growth of 14.43% in 2022-23
Expenditure Priorities	Subsidies on Energy and Food	8,306.28 crore, 52.64% allocated to food subsidies
	Committed Expenditure	40,314.09 crore, 47% of revenue expenditure

Source: CAG Report, Chhattisgarh, 2023

The findings from the State Finances Audit Report 2022-23 highlight significant progress and challenges relevant to Chhattisgarh’s industrial policy transformation. While the state’s GSDP grew by 12.60% in 2022-23, the declining share of industry in GSDP (from 20.58% in 2021-22 to 12.21% in 2022-23) underscores the need for renewed industrial focus. Capital expenditure, constituting 13.5% of total spending, reflects an emphasis on infrastructure development, yet regional equity remains a concern as agriculture’s growing share highlights rural inclusivity over industrial diversification.

Table-6 Percentage of Population Below Poverty Line by Social Groups (2004-05)

State/UT	Social Group	Rural (%)	Urban (%)	Combined (%)
Chhattisgarh	SC	32.7	52	40.9
	OBC	33.9	52.7	41.2
	Others	29.2	21.4	29.2
	All	40.8	41.2	40.9
Madhya Pradesh	SC	42.8	67.3	38.3
	OBC	29.6	55.5	38.3
	Others	13.4	20.8	38.3
	All	36.9	42.1	38.3
All India	SC	36.8	39.9	27.5
	OBC	26.7	31.4	27.5
	Others	16.1	16	27.5
	All	28.3	25.7	27.5

Source: Ministry of Social Justice, Govt. of India

The table reveals significant disparities in poverty levels among social groups across Chhattisgarh, Madhya Pradesh, and All India in 2004-05, highlighting critical challenges for inclusive growth. In Chhattisgarh, 40.8% of the rural population and 41.2% of the urban population lived below the poverty line, reflecting the need for targeted policies to address widespread deprivation. These findings underscore the importance of equitable industrial policies and regional development strategies to alleviate poverty and ensure inclusive socio-economic growth across all groups.

Table-7: Poverty

State/UT	MPI (2005-06)	MPI (2015-16)
Chhattisgarh	0.355	0.153
Madhya Pradesh	0.366	0.182
All India	0.283	0.121

Source: OPHI

The comparative MPI data underscores Chhattisgarh's significant progress in poverty reduction, with its Multidimensional Poverty Index (MPI) decreasing from 0.355 in 2005-06 to 0.153 in 2015-16, and the poverty rate dropping from 70% to 37%. This aligns with inclusive growth efforts reflected in state policies. However, Chhattisgarh's poverty intensity (41.5% in 2015-16) remains above the national average of 44.1%, indicating persistent deprivations in key areas like nutrition and basic infrastructure. Chhattisgarh's advancements demonstrate policy-driven inclusivity, yet underscore the need for sustained focus on multidimensional deprivations to achieve balanced regional development.

CONCLUSION

Chhattisgarh’s industrial evolution from 2004 to 2024 illustrates how strategic policies can address socio-economic disparities and promote sustainability. While early resource-focused strategies drove industrial growth, their exclusionary nature emphasized the need for inclusivity. Later policies empowered marginalized communities, diversified industries, and prioritized environmental sustainability, achieving significant poverty reduction and economic growth. However, regional inequities, environmental challenges, and declining industrial contributions to GSDP highlight the ongoing need to balance growth with equity. Chhattisgarh’s experience offers a valuable model for harmonizing economic, social, and environmental priorities in development.

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Received on 24.02.2025 Revised on 09.05.2025

Accepted on 08.07.2025 Published on 25.08.2025

Available online from September 08, 2025

Int. J. of Reviews and Res. in Social Sci. 2025; 13(3):141-146.

DOI: 10.52711/2454-2687.2025.00021

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