The new state of Chattisgarh is carved out from 16 districts of Madhya Pradesh, taking a neat slice off the eastern half of the state. It encompasses an area of 1,46, 361 sq km. It is one of the most backward regions of the country with a predominantly tribal population It is bordered by Bihar, and the new state of Jharkhand to its east, Orissa to the southeast, Andhra Pradesh to its south and Maharashtra in the west.

However, Chhattisgarh is mineral rich and is also considered the rice bowl of Madhya Pradesh, supplying food grain to over 6000 rice mills in the state. More than 70% of India's tendu leaf production used for making bidis happens in Chhattisgarh. But locals had for long nursed the grievance that the revenues it generates forth for the state exchequer were not reinvested.

The region remained underdeveloped and poverty-stricken. Leaders who were vocal in their demand for a separate state, stressed that the region served as a colony to the rest of Madhya Pradesh.