This report shows that while in 2005 MP was ranked 2nd in 2009 it slipped to 6th. Despite the fact that it is second term of a government with even most of local bodies being under BJP control there is little political explanation for same.
Report says States with higher levels of economic freedom tended to perform
better across a range of economic variables. They also had higher levels of
in-migration, while states with the least economic freedom had higher
levels of out-migration.
SO true MP sees large scale outward migration of labour, be it workers from bundelkhand going to Punjab, from Dhar Jhabua to work in slate mines in Gujarat or educated youth from Indore Bhopal to Pune Gurgaon as so called "chanakya" of Indore politics who happen to be IT and industry minister of state has got his priorities set on capturing power and real estate and not on bringing industries into state.
On factor like size of government MP has fell from 14th to 17th rank clearly indicating increase in size of government faster than increase in FDI