Tax breaks, skilling & SEZs on cards for eastern states

A panel, headed by NITI Aayog member Ramesh Chand, on charting a roadmap for growth of Bihar, Jharkhand, Odisha, West Bengal and Andhra Pradesh could propose tax incentives, simplified compliance procedures and setting up special economic zones in these eastern states for holistic growth and development of the region, said a senior government official.

The panel, set up in line with the announcement in the budget for 2024-25 on a development roadmap for these states under the Purvodaya mission, is expected to submit its report next month.

“It could suggest incentives for manufacturing and skill development in these states to prevent large-scale migration of workforce to other developed and industrialised states,” the official told ET on condition of anonymity.


The incentives would be given largely by the state governments for attracting investments, but the Centre would back the central programmes, according to the official.

State-level plans with emphasis on key sectors including agriculture, rural development and allied sectors and mining are also being firmed up as part of the report to address the challenges being faced by these states.

Besides, the panel has carried out a thorough evaluation of the performance of existing development programmes in these states, both central as well as state schemes, and is likely to suggest necessary interventions to ensure last-mile delivery of scheme benefits.

It is also likely to suggest that a robust monitoring framework be put in place in each state to prevent delays in approvals for faster project execution.

Consultations between central ministries and top officials of the states have been held in the past one year to firm up the blueprint for sustainable growth and unlock the economic potential of eastern India.

According to the official, the roadmap will focus on three main pillars – creation of world-class infrastructure, human resource development with relevant skill sets to cater to the demand in the region and push to state-specific economic opportunities to support local manufacturing.

Besides, the panel will focus on boosting tourism in these states while also enhancing the services sector to drive overall economic growth.

The Centre, on its part, will ensure development of enough industrial corridors through these states to catalyse industrial development of eastern India, besides giving a substantial push to road development, airports, railways, waterways and power plants in the region.