NEW DELHI: Prime Minister Narendra Modi has issued a strong message to states, urging them to heed investor feedback and focus on easing the compliance burden, as tax benefits and free land alone are not sufficient to attract investment. This directive came during the governing council meeting of Niti Aayog on Thursday, as the PM sought to position India as an attractive investment destination with strong economic fundamentals amid global economic challenges.
PM's Warning Rooted in Investor Experience
The Prime Minister's warning was based on the experiences of overseas investors who are eager to invest but face a high compliance burden in some states. Addressing a press conference, Niti Aayog vice-chairman Ashok Lahiri stated that the PM urged states and union territories to transform India into a major investment destination. An official statement noted that states were encouraged to attract investments from partner countries.
States Asked to Fix 'Trouble Spots'
Lahiri said, “For ease of doing business, states were asked to identify the trouble spots and address them.” Niti Aayog member Rajiv Gauba added that the PM's focus on an easier regulatory regime should extend to the city level. Additionally, sources privy to the discussions told TOI that the PM underlined the need to ensure reforms go beyond announcements and are actually implemented.
Focus on Service Delivery and Grievance Redressal
PM Modi reiterated the need to ensure that services are available to citizens easily, without requiring them to visit government offices. He urged states to compete on this front and asked Niti Aayog to devise strategies to address the issue. Lahiri noted that another focus area was rapid grievance redressal.
Energy Security and Competitive Prices
Given the current challenges, especially on the energy front, the Union government and states discussed ways to make energy prices competitive while ensuring availability. The meeting included discussions on stepping up efforts in solar energy, biogas, and a reference to allowing the private sector into the nuclear energy space, seen as an effort to reduce reliance on fossil fuels.
West Asia Crisis and Energy Security
Responding to a question on the ongoing West Asia crisis and energy security, Lahiri said: “You can’t change the wind, you can only trim your sails. Just because the West Asia crisis is there, we can’t be paralysed. We have to keep doing our work, and that is what is happening.”
