Nageswaran highlighted the need for states to focus on creating conditions that can attract greater private investment. This would include addressing issues related to land, power, logistics and clearances, which can influence the pace and viability of investment projects.
He also stressed the importance of better project preparation. According to Moneycontrol, Nageswaran said states should develop credible project reports and project pipelines so that projects become more attractive to domestic and international financial institutions.
Referring to the Viksit Bharat initiative, he said the journey towards the 2047 development target would depend significantly on the role played by states. He emphasised the need for states to translate policy reforms and recommendations into partnerships with clear responsibilities and timelines.
Nageswaran also called for greater attention to directing credit towards underserved districts that have growth potential. Improving access to financing in such regions, he said, could help broaden the benefits of economic development.
States urged to raise capital expenditure
The conference also discussed ways to strengthen state-level public investment. Sudhir Shrivastava, former Additional Chief Secretary of Maharashtra, proposed increasing the capital outlay of states from the current 2.4% of gross state domestic product (GSDP) to 3% by 2031-32.
The proposal was discussed in the context of strengthening public investment by state governments and improving their ability to support infrastructure and development projects.
Financing requirements for agricultural transformation and the energy transition were also among the key themes discussed at the conference.
The energy-related discussions covered renewable energy, transmission infrastructure, battery storage, pumped-storage projects, carbon capture and carbon-credit frameworks. The conference also examined financing needs associated with transforming the agriculture sector, according to Moneycontrol.
Working groups comprising representatives from states are expected to take forward the discussions and identify sector-specific financing requirements, along with actionable recommendations.
The two-day conference brought together state finance ministers and finance secretaries, as well as representatives from academia, industry, banking and the policymaking community. Discussions focused on financing requirements for India’s development and the mobilisation of resources needed to support long-term growth.
