POLICY GAMES

STATES ARE COMPETING AGAINST EACH OTHER TO PUT IN PLACE ENABLING POLICIES TO POWER THEIRAND INDIA'S-NEXT PHASE OF GROWTH

- RAJAT MISHRA 

ON AUGUST 15, 2020, in his Independence Day speech from the ramparts of the Red Fort, Prime Minister Narendra Modi not only lauded states for launching innovative and new policies, but also said that the need of the hour is a spirit of healthy competition among state governments, paving the way for India to reach new heights of development. “While the Centre and states may have different schemes, or different styles of working, dreams for a nation will remain identical,” the PM had said.

“The Prime Minister’s clarion call for states is reflecting in some innovative policies brought by the states. There is a sense of cut-throat, yet healthy competition across all the states. From MSMEs to tourism, and from the innovation index to start-ups, every sector is seeing proactive involvement of the states. That is very healthy for India’s growth story,” a bureaucrat tells Business Today on condition of anonymity. According to NITI Aayog, Karnataka, Telangana and Haryana were the top three states in its innovation index. Gujarat, Meghalaya and Karnataka were the top performers as far as the start-up ecosystem was concerned. And Kerala topped the list of states in the Health Index put out by NITI Aayog. “One thing is crystal clear. The business environment is such that no state can afford to miss the bus. They have to be vigilant, active and have to be on their toes whether it’s in terms of effort or policy intervention,” says another expert.