State targets electronics, semiconductors, pharmaceuticals, AI and green steel as investment proposals worth nearly ₹8 lakh crore signal a new industrial trajectory
TFP Bureau, Raipur, September 2, 2026: Chhattisgarh is seeking to reshape its industrial identity from a mineral-rich state focused largely on mining and primary processing into a destination for high-value, technology-driven manufacturing.
Under the leadership of Chief Minister Vishnu Deo Sai, the state government is promoting investments in emerging sectors including electronics, semiconductors, pharmaceuticals, engineering, auto components, defence equipment, artificial intelligence and green steel. The strategy seeks to leverage Chhattisgarh’s existing strengths in minerals, energy and industrial infrastructure while moving towards greater value addition and finished-product manufacturing.
The foundation for the transformation has been laid through the State Industrial Development Policy 2024-30, which provides incentives for investment in electronics, information technology, AI, robotics, biotechnology, pharmaceuticals, defence and engineering. The policy also focuses on optimal utilisation and value addition of locally available resources.
Investment proposals touch ₹8 lakh crore
Investor interest in Chhattisgarh has risen significantly since the implementation of the new industrial policy. According to the state’s investment promotion portal, proposals worth around ₹8 lakh crore have been received during the past 18 months, with the potential to generate more than 1.5 lakh jobs.
A significant share of the proposed investments is in sectors beyond conventional mineral-based industries. These include artificial intelligence, data centres, semiconductors, pharmaceuticals, textiles and agro-processing.
Proposed investments in AI and data centres in Naya Raipur, along with semiconductor proposals exceeding ₹18,000 crore, underline the changing nature of the state’s industrial ambitions. The approval of an Electronics Manufacturing Cluster (EMC 2.0) in Rajnandgaon is expected to attract investments of more than ₹3,000 crore and create around 9,000 direct and indirect employment opportunities.
Green steel emerges as a major opportunity
Chhattisgarh’s established steel industry is also being positioned for a transition towards next-generation manufacturing. With the national focus increasingly shifting towards decarbonisation and environmentally sustainable production, green steel is emerging as a promising area of investment.
Investment commitments of around ₹13,840 crore secured during the Chhattisgarh Green Steel Dialogue held last month have strengthened prospects for the sector.
With abundant mineral resources, a well-established steel ecosystem and a strong energy infrastructure, the state is well placed to expand from conventional steel production into high-value and low-carbon steel products. National initiatives such as the Production Linked Incentive scheme for specialty steel are expected to further support this transition.
Pharma and electronics gain momentum
The pharmaceutical sector is also emerging as an important pillar of Chhattisgarh’s diversification strategy. Over the past 18 months, the state has received pharma investment proposals worth around ₹992.53 crore, while four projects involving investments of ₹216 crore are currently under implementation.
The electronics sector presents another major opportunity. With the Centre approving projects worth more than ₹69,000 crore under the Electronics Components Manufacturing Scheme, Chhattisgarh’s EMC 2.0 initiative could help the state integrate into the country’s expanding electronics manufacturing and supply chain ecosystem.
Local resources to drive regional economies
The state’s industrial diversification strategy is also being extended to regions such as Bastar and Sarguja, where the emphasis is on industries based on forest produce, food processing and locally available resources.
Rather than depending exclusively on large industries, the approach seeks to strengthen local entrepreneurship, generate employment and create value chains closer to the source of raw materials.
To facilitate investment on the ground, the government has strengthened the single-window clearance mechanism, the State Investment Promotion Board and online approval systems. Priority facilities and expedited clearances have also been introduced for projects involving investments of more than ₹100 crore.
With its mineral wealth, energy resources, industrial infrastructure and growing investment pipeline, Chhattisgarh is now attempting to make a decisive shift—from being primarily a supplier of raw materials to becoming a producer of high-value goods and advanced technologies.
The growing interest in electronics, semiconductors, pharmaceuticals, AI and green steel indicates that the state is laying the groundwork for a more diversified, technology-driven and employment-oriented industrial economy.
