Indian Economy has gone a serious change since the liberalization, privatization and globalization policy of 1991 was enacted. This paper looks at the major development of the India's growth and how did it affect the state of Madhya Pradesh. Globalization was the integration of world economies, investment was encouraged by relaxation of tariffs and extensive taxes, which indeed promoted the boom of Indian Economy. During the same time, Madhya Pradesh was facing bifurcation, into another state, once deemed as the pioneer of growth due to its extensive human capital, it now faced turmoil at the hands of confusion and disbelief in its leaders. After getting depleted of the chuck of states resources, how did the state take advantage of the national economic policy to develop the states economy and what impacts has it had over the years.