Mandideep is closely connected to Bhimbetka, which is well known across the world for its rock paintings and also nearby Shiva Temple at Bhojpur (15 km) is a big attraction among the Hindu community. Looking back through history, Mandideep situated in close proximity to Bhojpur's Shiva temple was surrounded by a big lake since the 10th century. In the 15th century, Sultan Hussein Shah of Malwa demolished the Bhojpur dam, which kept releasing water for 3 years. Mandideep village came into existence when the land dried up. Initially, the pace of development was slow due to lack of infrastructure. HEG was the first industry to light the lamp of industrialization in Mandideep. In 1983, Mandideep housed 49 industrial units.
It has an Industrial area, just south of Bhopal capitalising on the proximity to Bhopal City. The major industries here are Hindustan Electro Graphite (HEG), Procter & Gamble, Eicher tractors Ltd, Lupin laboratories, and many more national and international level company have their manufacturing units at Mandideep.
In the 1980s, several changes helped industrial development. The Madhya Pradesh State Industrial Development Corporation completely aided by the state government was formed with the objective of promoting development of industries in this region.
About 660 plots were developed for various purposes. Besides, 45 km of pucca roads and a 42 km-long water supply system were developed.
Once a sleepy village in Raisen district, Mandideep, which started on an area of 560-acre (2.3 km2), is now sprawled across 2,000-acre (8.1 km2). Mandideep has three sub-stations of 250 MW each at present along with other facilities.
Mandideep houses more than 400 industrial units belonging to reputed companies including that of Procter and Gamble, HEG, LUPIN Laboratories, TAFE Tractors, Godrej Foods, Insulator and Electrical etc. It boasts of a total investment of Rs 4,000 crore.
The industrial area boasts of an export turnover to the tune of ₹ 1,700 crore and revenue of ₹ 1,400 crore in form of central excise, commercial tax, income-tax, property tax, etc. It was an island in the big lake(Bhopal to Hoshangabad)hence called in Hindi Deep, those days it has a weekly market, means mandi in Hindi so it was called Mandi Deep the "Island of Market".
As of the 2001 census, Mandideep had a population of 39,859 in 9,006 households. Males constitute 56% of the population and females 44%. Mandideep has an average literacy rate of 65%, higher than the national average of 59.5%: male literacy is 73%, and female literacy is 56%. 18% of the population here is under 6 years of age.
Mandideep is well connected to Railways,Roadways and Airways as it is a region of State Capital Bhopal.
Raja Bhoj International Airport is just 20 km from the area which serves daily flights for Delhi, Mumbai, Indore and Raipur. Bhopal Junction railway station is just 22 km from Mandideep which serves daily trains connecting Mandideep to Delhi, Mumbai, Kolkata, Chennai (formerly Madras), Hyderabad, Bangalore, Pune, Ahmedabad, Lucknow, Patna, Indore, Jabalpur, Jaipur, Chandigarh, Nagpur, Thiruvananthapuram, Raipur, Dehradun, Ranchi, Jodhpur, Agra, Guwahati, Gwalior, Khajuraho and Puri.
Manideep Railway Station is the other important railway station located south of Bhopal, and has stoppages for many trains like Panchvalley Express, Narmada Express, Dadar-Amritsar Express, Bhopal Express, Chhattisgarh Express (Amritsar-Bilaspur), Panchvalley Fast Passenger (Indore-Chhindwara), Jhansi - Itarsi Passenger.