Vibrant Gujarat summit effect: Arun Jaitley hopes states will vie for investments

NEW DELHI: India's states will compete with each other to attract investment but only those that are consistent in pursuing reforms and business friendly policies are likely to succeed, finance minister Arun Jailtey said in a blog, commenting on investment summits of West Bengal and Gujarat.

FM had attended the investment summits of both the states. In his post 'A tale of two global summits' finance minister said the Centre was keen to help West Bengal grow, pointing out that the goods and services tax will help the state.

"The GST implementation will increase the revenues of West Bengal," FM said urging the Mamata Banerjeeled Trinamool government to reform.The government has faced stiff opposition from the party in the Rajya Sabha.

"The state would now need a consistent pro-reform and business friendly steps in order to build confidence in the mind of present and potential investors," Jaitley said adding that he was enthused by the fact that "groups representing a cross-section of industry, both manufacturing and service sector, attended the conference."

FM also said state would also benefit from coal auctions as some of the revenues will flow to its coffers. The coal ordinance that facilitated the auction will come up for parliament's approval in the winter session.

"Creation of more townships, better infrastructure, an industrial corridor, more effective utilisation of the sea resource has to be a future agenda of the state," FM wrote. "Gujarat Business Summit was a magnificent affair," Jaitley said switching to the Vibrant Gujarat summit that saw Rs 25 lakh crore worth MoUs signed on the first two days. "Vibrant Gujarat has become the principal economic convention in India.

This year Vibrant Gujarat marketed India," FM said welcoming competition among states. "A few months ago, Madhya Pradesh had organised its own investors meet. News reports indicate that Maharashtra is going to organise a similar meet," he said while making a case for consistent effort.

"States in India are going to compete with each other in cornering investment. I have no doubt that the ones which consistently and uniformly pursue reforms and business friendly policies are likely to succeed," FM wrote.