States can play a big role in improving investments: Montek Singh Ahluwalia

NEW DELHI: Planning Commission Deputy Chairman Montek Singh Ahluwalia today said states can play a big role in improving the investment climate in the country, as a large number of policy matters fall in their domain.

"... very large part of what would constitute a good investment climate depends entirely on state governments," Ahluwalia said while addressing CII's annual meet here.

He listed a number of areas where states can play a big role to improve overall investment climate, including power, land, labour, state levies administration, roads, agriculture marketing and linkage and water.

"In the 12th Plan, we want to focus on what are the central government's responsibilities in policies and what are the ones that are pretty firmly in the hands of the state governments. The number is quite large," he added.

Emphasising that the role of states in fuelling the growth of the national economy has become very significant over the past few years, he suggested to bring out a survey -- 'Ease of Doing Business'-- for each state, which would encourage competitiveness amongst them.

He was of the view that the initiative (survey) should also bring out successful experiments carried out at state levels for adoption by others.

Ahluwalia pointed out that it is not true that the economic reforms have benefited only "well-off" states.

"Many people used to say that economic reforms will only benefit well-off states and states that are backward won't benefit...but this is not true," he added.