Gwalior's decline worries PHDCCI

In a recent seminar, PHDCCI has expressed concern at the slow pace of industrial growth in the Gwalior region, which has been losing ground because of the concessions and exemptions in Dehra Dun.

"Although the new MP industrial policy is attractive, area-based incentive packages are needed to revive and provide an impetus to industries in the Gwalior region," the chamber said in a statement.

PHDCCI feels the state government should focus on Gwalior, since it is a gateway to Madhya Pradesh for investors, traders, and tourists from the north.

"It is important for Gwalior to draw up a blueprint identifying the areas of specialisation. In addition to the focus on manufacturing, services including health, tourism, and education offer great potential. The region should be promoted as a hub for IT-related services like business process outsourcing," the chamber said.

A number of industries from the Malanpur industrial area have shifted to other states.

A geological survey of the Gwalior region may reveal the extent of resources like marble and sandstone, which have not been utilised to the advantage of the region. Forests in the region were a rich source for herbal products, particularly the Shivpuri and Morena regions, the chamber said.

At present, business is largely in the unorganised sector, leading to huge losses to the state in terms of revenue and value addition.

The chamber has asked from the state good infrastructure, storage facilities, marketing assistance, and other concessions to set up a gas-based captive power plant.

There was need for an action plan focusing on reviewing the tax structure to make it more competitive for hoteliers, tour operators, and transporters. The job will involve redefining the profile of the MP Tourism Development Corporation, restoring tourism properties, and working out attractive packages for tourist circuits.

Through upgrading connectivity, particularly roads, Gwalior should be developed as the focal point of the tourist circuit Gwalior-Shivpuri-Orcha-Khajurahao-Panna-Bandhavgarh.

However, the MP Tourism Development Corporation has proposed upgrading tourist circuits, and a status report has been submitted to the chief minister's office.

The chamber has also suggested giving an uplift to historical monuments, involving the locals in reviving tourism, and introducing multi-skill short-term training courses. Since the Indian Institute of Tourism and Travel Management is located in Gwalior, there is great potential for courses in tourism. The chamber has also suggested that the Gwalior airport should be operationalised for commercial flights.

The region should take advantage of the new foreign trade policy of the central government, which provides for setting up service sector institutions in special economic zones (SEZs). The Gwalior region should explore possibilities of developing an SEZ for the service sector, PHDCCI said.

The history of industry in the Gwalior region dates back to the latter half of the 19th century, when the Birlas established textile factories. Grasim of the A V Birla group belonged to this region, then known as Gwalior Rayon and Silk Mills.

That set in a rapid industrialisation process, leading to the establishment of a number of industrial units. An easy availability of manpower and cotton, ginning and pressing facilities, education labour force, and the progressive outlook of the rulers and the entrepreneurs contributed to the rapid industrialisation of Gwalior and the surrounding areas, particularly in textiles.