NITI Aayog Prepares Investment Friendly Charter For Indian States, Uts

(MENAFN- KNN India) New Delhi, Dec 17 (KNN) India's economic growth is closely tied to its federal structure, with states playing a vital role in attracting investments.

Each state operates as a distinct economic entity, with its own policies, resources, and competitive advantages.

This decentralised approach significantly contributes to the overall economic development of the country, as states are able to tailor their strategies to local needs and opportunities.

To further strengthen this framework, NITI Aayog is preparing an Investment Friendly Charter aimed at enhancing the investment attractiveness of India's states and Union Territories (UTs).

NITI Aayog is working on identifying key indicators across four pillars to assess the investment potential of various regions. These pillars are:

• The first pillar , Resources and Natural Risks, will focus on assessing the availability of natural resources in each state, alongside potential environmental or geographical risks that could impact investments.
  This will help determine how each state's natural assets align with the needs of various industries.
• The second pillar , Business Ecosystem and Regulatory Risks, will evaluate the ease of doing business in each state, including regulatory frameworks and potential bureaucratic barriers. States with streamlined business ecosystems will be more attractive to investors.
• The third pillar , Government Policy & Financial Risks, will analyse the fiscal policies, investment incentives, and the financial stability of each state. This pillar will help identify states that offer supportive policies and financial backing for investors.
• The fourth pillar , Infrastructure & Socio-political Stability, will focus on the quality of infrastructure and political stability. States with strong infrastructure and socio-political stability are crucial for ensuring long-term investments.

To take this forward, NITI Aayog has organised a meeting with industry associations on December 20, 2024. The meeting will be chaired by Ishtiyaque Ahmed, Head of the Industry & Foreign Investment Vertical at NITI Aayog.

(KNN Bureau)

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