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Road to Viksit Bharat runs through State Capitals
Broad policy direction and a share of funding might come from the Centre, but a large part of India’s development action happens at state level. What path should an ambitious Chief Minister who wants to make their state Viksit, follow? A leader with an eye for the history books can focus, for the shorter term, on job creation in their state; and for the longer term, on augmenting human capital and state capacity. This letter makes suggestions towards the former – which can be realised within the ambit of a five-year electoral cycle. To this end, a Chief Minister can work on identifying sectors where their state can be competitive, improve ease of doing business and overall investment climate on the ground, prioritise cities or city regions as engines of growth, and enhance labour-intensive sectors such as tourism. In the realm of ease of doing business, Prosperiti does granular analysis of labour laws, land and building bye-laws and other areas at state level, suggesting to state governments how they can reform these for better economic performance. For example, it has partnered with the Punjab government to draft the state rules under the new Labour codes, and with the Uttar Pradesh (UP) government to reform the state’s Factories Rules.