According to the report published by the Confederation of Indian Industry in February 2025, the share of pharmaceutical sector of Madhya Pradesh in terms of gross fixed capital formation in India is:

Question

UnlockIAS · Accepted Answer

Correct — C, 1.9%. The CII report 'Envisioning Madhya Pradesh Economy@2047', released in February 2025 around the Bhopal Global Investors Summit, benchmarks each of MP's key sectors against the all-India sector using Annual Survey of Industries (MoSPI) data for 2022-23. In its table on the pharmaceutical sector, Madhya Pradesh's share of India's pharma sector on gross fixed capital formation — the capital actually invested in plant, machinery and buildings — is 1.9 per cent. In rupee terms MP's pharma GFCF rose to Rs 594 crore in 2022-23 from Rs 311 crore in 2019-20, which is 3.3 per cent of all investment happening in MP's industry but still only 1.9 per cent of the country's pharmaceutical capex.

Why the other options are wrong — (a) A real number from the same table, but a different indicator — 2.9 per cent is MP's share of India's pharmaceutical factories (158 units in 2022-23), not of gross fixed capital formation.  (b) Also from the same table: 1.0 per cent is MP's share of India's pharmaceutical real output (Rs 5,772 crore in 2022-23). Output and investment are different columns — a state can invest more than it currently produces.  (d) Again a genuine figure from the same block, but for net profit — MP accounts for about 2.2 per cent of the Indian pharmaceutical sector's net profit (Rs 1,911 crore in 2022-23). The question asks specifically about capital formation.

Concept: Gross fixed capital formation (GFCF) is the national-accounts measure of investment: spending on fixed assets such as plant, machinery, buildings and equipment, net of disposals. Because it is forward-looking — you build capacity before you produce — GFCF is the indicator analysts watch to judge whether a sector is expanding. Sector benchmarking reports therefore report a state's share of a national industry separately for factories, output, capital formation, profits and employment; the four options in this question are simply four of those columns. For Madhya Pradesh's pharmaceutical sector the picture in 2022-23 is a small but capital-hungry industry: factory count and output falling, capex and profit rising sharply.

State PCS 2026 Q88 — Madhya Pradesh GK PYQ with Answer

State PCS 2026 Q88 — Madhya Pradesh GK PYQ with Answer