Cooperation between Centre and States very important for nation's progress: PM

Published By : Admin | February 20, 2021 | 10:31 IST
Cooperation Between Centre, States Very Important: PM
Urges the states to take full advantage of PLI scheme and attract maximum investment

Namaskar!

I welcome all of you to the Governing Council of NITI Aayog. The essence of the country's progress is that the Centre and the states work together and move in a definite direction. We have to make cooperative federalism more meaningful and try to take the competitive cooperative federalism down to the state and district level so that the competition for development continues and development remains a prime agenda. We have brainstormed many times before on how to increase competition to take the country to a new height and even today it is natural that it will be emphasized in this summit. We have seen how the entire country succeeded and a positive image about India was generated in the world when the state and the central governments worked together during the Corona period.

Friends,

Now, when the country is going to complete 75 years of its independence, the meeting of this Governing Council assumes more importance. I would also urge the states to create committees at district level by linking all the people of the society in their states for 75 years of independence. A short while ago, there was a mention of points to be discussed in this meeting. These agenda points have been selected taking into account the country's top priorities. A new exercise was carried out to give adequate time of preparedness to the states before seeking suggestions from them on these agenda points. This time a healthy workshop between Niti Aayog and all the principal officials of the states was held. We have tried to include all those points in that workshop in today’s meeting. Therefore, there is a lot of improvement in the agenda as it has been made keeping in view the requirements of the states. This time the agenda points of the Governing Council are very specific because of this process and will make our discussion more substantial.

Friends,

In the last few years, we have seen that the opening of bank accounts towards empowering the poor of our country, increasing vaccination, increasing health care facilities, free electricity connections, free gas connections and free toilet construction schemes are showing an unprecedented change in their lives, especially in the lives of the poor. The campaign to provide pucca roofs to every poor in the country is also progressing at a rapid pace. Some states are performing very well whereas some states also need to pick up momentum. Since 2014, construction of more than 2.40 crore houses in villages and cities has been completed. You know that a campaign is underway to build houses with modern technology in six cities of the country. Within a month, the new technology will create new models in six cities of the country to build rapid and good quality houses. That too is going to be useful to every state in this endeavor. Similarly, we are working on a mission mode to ensure that water scarcity and water-borne diseases don’t hamper the development of the people and don’t accentuate the malnutrition problems. More than 3.5 crore rural households have been connected with piped water supply in the last 18 months since the launch of the Jal Jeevan Mission. The Bharat Net Scheme is becoming a major source of transformation for Internet connectivity in villages. When the central and state governments will work together in all such schemes, the pace of work will also pick up and their benefits to the last person will also be ensured.

Friends,

The positive response to this year’s budget has created an atmosphere of new hope all around and has expressed the mood of the nation. The country has made up its mind. The country wants to progress fast; the country does not want to waste time now. The youth of the country are playing a major role in making the mind of the country and therefore a new interest has developed towards the change. We are also seeing how the private sector of the country is coming forward with more enthusiasm in this development journey of the country. As a government, we have to honour this enthusiasm, the energy of the private sector and also provide it opportunities for the Atmanirbhar Bharat campaign. Atmanirbhar Bharat is a move towards a new India where every person, every institution and every enterprise has the opportunity to move beyond its full potential.

 

Friends,

The Atmanirbhar Bharat campaign is the way to develop an India that produces not only for its own needs but also for the world and this production also stands the test of the world. And, therefore, I always emphasize Zero Defect, Zero Effect. Keeping in mind the aspirations of a young country like India, we have to build modern infrastructure, promote innovation, use maximum use of technology and provide better opportunities for education and skills.

Friends,

We need to strengthen our businesses, MSMEs and start-ups. Each of our states has its own strong points; every district in every state has its own qualities, its own specialties. If we look at closely, there are several potentials. The government is short-listing and promoting products of hundreds of districts of the country for marketing and export. It has led to a healthy competition among the states, but it needs to be carried forward. Which state exports the most, exports many types of products, exports to the maximum countries, exports costly products. Then there should be competition among districts and how each district and state can emphasize exports. We have to take this experiment down to the district and block levels. We have to make full use of the resources of the states. We should earnestly take account of the exports from the states every month and increase it.

Policy framework and better coordination between the Centre and the states is also very important. For example, we have unlimited opportunities to promote the fishing industry and the blue economy of the coastal states and export fish. There should be special initiatives for our coastal states. You see, it can boost the economy as well as our fishermen. I would like you to be aware that the Central Government has introduced PLI schemes for various sectors. This is a great opportunity to increase manufacturing in the country. The states should also take full advantage of the scheme and attract more and more investment. The states should also take maximum advantage of reduction in corporate tax rates. You should contact such companies so that your state can take advantage of one of the lowest tax rates in the world.

Friends,

The funds provided for infrastructure in this year’s budget is being largely talked about. The expenditure on infrastructure will work to advance the economy of the country at many levels, creating a lot of employment opportunities. It has a multiple effect. The share of states in the National Infrastructure Pipeline is 40 per cent and, therefore, it is imperative that states and the Centre jointly synergize their budgets, make plans and set priorities. Now, the Indian government has preponed its budget a month earlier. There are three to four weeks between the state budget and the Union Budget. If the budget of the states is formed in the light of the budget of the Centre, then together they can move in one direction. I would like to see the budget of the states discussed in this direction. The states, whose budget is yet to come, can do this work on priority. Along with the Union Budget, the state budget is equally important in speeding up development and making the states self-sufficient.

Friends,

There is going to be a major rise in the economic resources of local bodies in the 15th Finance Commission. Improvement of governance at the local level forms the basis of people's quality of life and their confidence. Technology as well as public participation is also very essential in these reforms. I think time has also come to make the elected representatives of the Panchayati Raj system and civic bodies responsible for this convergence and outcomes. If the districts, states and the Centre work together to effect changes at the local level, the results are very positive and we have the example of the aspirational districts before us. The experimentation of aspirational districts is showing good results. But the required speed is not there in the recent past due to Corona. But, we can intensify that once again.

Friends,

Agriculture has immense capabilities. But we need to accept some realities. Despite being called an agricultural country, today, we import edible oil worth about 65-70 thousand crore rupees. We can stop this. Money can go to our farmers’ accounts. Our farmer is entitled to this money. But for this, we need to make our plans accordingly. Recently, we experimented with pulses and it was successful. The import bill of pulses has reduced considerably. There are several such products, food items which are there on our table unnecessarily. The farmers of our country should have no difficulty in producing such products, they need a little guidance. And, therefore, there are many agricultural products that our farmers can produce not only for the country but can also supply to the world. It is necessary for all the states to strategize their agro-climatic regional planning and help their farmers accordingly.

Friends,

In the last few years, a holistic approach has been adopted from agriculture to animal husbandry and fisheries. The result is that even during the corona period, agricultural exports in the country have increased considerably. But our potential is many times more than that. Storage and processing also need to be taken care of to minimize the wastage of our products and we need to tap as much potential for investment. We know that India exports raw fish to South East Asia. What I said at the beginning is that the fish is processed there and sold as processed products with huge profits. Can't we export processed fish products directly on a large scale? Can't all our coastal states create their own influence on this whole global market by taking their own initiative? Similar is the situation with many more fields and products. Reforms are very important to make sure our farmers get the necessary economic resources, better infrastructure and modern technology.

Friends,

Recently, a number of reforms have been introduced that reduce regulation and government interference. I have noticed that there are thousands of compliance requirements that now apply to common people, which can be eliminated. For example, we abolished such 1500 archaic laws recently. I would like to request the states to constitute a small team regarding this. We have technology. There is no need for asking people to furnish the same things time and again. Let us remove this compliance burden on the people. The states should come forward. I have also told the Indian government and our cabinet secretary is following up on it. The compliance requirements need to be reduced to the minimum. It is also important for ease of living.

Similarly, we have to give opportunity to our youth so that they can showcase their potential blatantly. You may have seen that some important decisions have been taken a few months back. Though it is not discussed widely, its consequences are huge. OSP regulations were reformed. It has given the youth the flexibility to work from anywhere. Our tech sector has benefited a lot due to this.

Recently, I was talking to some people associated with the IT sector. Several of them told me that 95 per cent of their employees were now working from home and their work was going well. Now you see how big a change this is. We need to emphasize these things. We should abolish all the restrictions that are prevalent. We have abolished a lot recently through reforms. You must have seen that a few days back we have made a very important decision. The rules associated with geospatial data have also been liberalized. Had we done this 10 years ago, perhaps apps like Google could have been developed in India and not outside. The talent of our people is behind such apps, but the product is not ours. This decision has helped our start-ups and tech sector immensely. I think this decision will help improve the ease of living of the common man of the country.

And, friends, I would urge two things. Today, we have got an opportunity in the world. In order to mobilize that opportunity, we should focus on ease of doing business and our efforts for the citizens of India should be ease of living. Ease of doing business is important to gain opportunities and positioning India globally and for this we will have to improve our laws and systems. We need to stress ease of living to meet the expectations of the citizens of the country and to simplify their lives.

Friends,

I look forward to hearing your experiences and suggestions now. Today, we are going to sit for the day. We will take a short break but we will talk about all the topics. I am sure this time also I will hear constructive and positive proposals from all of you which will be very helpful in taking the country forward. Let both the Centre and the states put as much power as we can in the same direction so that we won’t let go off this opportunity which has been created for India in the world. With this expectation, I once again welcome you in this important summit. I await your suggestions. Many thanks.

 

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In this decade of the 21st century, India is riding the Reform Express: PM Modi at ET Now Global Business Summit
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You are all welcome to this Global Business Summit; I extend my greetings to each one of you. We are here to discuss the theme “A Decade of Disruption, A Century of Change.” After listening to Vineet ji’s speech, I feel my task has become much easier. But let me make a small request-since you know so much, it should sometimes also be reflected in ET.

Friends,

The past decade of the 21st century has been one of unprecedented disruption. The world has witnessed a global pandemic, tensions and wars in different regions, and supply chain breakdowns that shook the global balance, all within a single decade. But friends, it is said that the true strength of a nation is revealed in times of crisis, and I take great pride in the fact that amid so many disruptions, this decade has been one of unprecedented development for India, marked by remarkable delivery and the strengthening of democracy. When the previous decade began, India was the eleventh-largest economy. Amid such turbulence, there were strong apprehensions that India might slip further down. But today, India is moving rapidly toward becoming the world’s third-largest economy. And the “Century of Change” that you speak of will, I say with great responsibility, rest significantly on India. Today, India contributes more than 16 percent to global growth, and I am confident that in every coming year of this century, our contribution will keep increasing steadily. I have not come here like an astrologer making predictions. India will drive global growth; it will emerge as the new engine of the world economy.

Friends,

After the Second World War, a new global order took shape. But after seven decades, that system is breaking down. The world is moving toward a new world order. Why is this happening? It happened because the foundation of the earlier system was based on a “One Size Fits All” approach. It was believed that the world economy would be centered in the core and that supply chains would become strong and dependable. Nations were seen merely as contributors within that framework. But today, this model is being challenged and is losing its relevance. Every country now realizes that it must build its own resilience.

Friends,

What the world is discussing today, India made part of its policy as early as 2015, ten years ago. When NITI Aayog was established, its founding document clearly articulated India’s vision: India would not import a single development model from any other country. We would pursue an Indian approach to India’s development. This policy gave India the confidence to make decisions according to its own requirements and in its own national interest. That is a key reason why, even during a decade of disruption, India’s economy did not weaken but continued to grow stronger.

Friends,

In this decade of the 21st century, India is riding on a Reform Express. The greatest feature of this Reform Express is that we are accelerating it not out of compulsion but with conviction, and with a commitment to reform. Many distinguished experts and stalwarts of the economic world are present here. You have seen the period before 2014. Reforms were undertaken only when circumstances forced them, when crises struck, when no other option remained. The reforms of 1991 happened when the country faced the danger of bankruptcy and had to pledge its gold. That was the approach of earlier governments-they undertook reforms only out of compulsion. After the 26/11 terrorist attack, when the Congress government’s weaknesses were exposed, the NIA was formed. When the power sector collapsed and grids began to fail, only then did reforms in the power sector occur out of necessity.

Friends,

There is a long list of examples reminding us that when reforms are made under compulsion, neither the correct results nor the desired national outcomes are achieved.

Friends,

I am proud that in the last eleven years, we have carried out reforms with complete conviction-reforms in policy, in process, in delivery, and even in mindset. Because if policy changes but processes remain the same, if the mindset remains unchanged, and if delivery does not improve, reforms remain merely pieces of paper. Therefore, we have made sincere efforts to transform the entire system.

Friends,

Let me speak about processes. A simple yet crucial process is that of Cabinet notes. Many here would know that earlier, it would take months just to prepare a Cabinet note. How could a nation develop at that speed? So we changed this process. We made decision-making time-bound and technology-driven. We ensured that a Cabinet note would not remain on any officer’s desk beyond a fixed number of hours-either reject it or take a decision. The nation is witnessing the results today.

Friends,

Let me also give the example of approvals for railway overbridges. Earlier, it would take several years to get a single design approved. Multiple clearances were required, and letters had to be written at various levels-and I am speaking not about the private sector, but about the government. We changed this as well. Today, see the pace at which road and railway infrastructure is being built. Vineet ji elaborated on this extensively.

Friends,

Another interesting example is border infrastructure, which is directly linked to national security. There was a time when even constructing a simple road in border areas required permissions from Delhi. At the district level, there was practically no authority empowered to make decisions; there were wall upon walls, and no one could take responsibility. That is why, even decades later, border infrastructure remained in poor condition. After 2014, we reformed this process, empowered local administration, and today we are witnessing rapid development in border infrastructure.

Friends,

One reform in the past decade that has created a stir worldwide is UPI, India’s digital payment system. It is not merely an app; it represents an extraordinary convergence of policy, process, and delivery. Those who could never even imagine accessing banking and financial services are now being served by UPI. Digital India, the digital payment system, the Jan Dhan-Aadhaar-Mobile trinity-these reforms were not born of compulsion but of conviction. Our conviction was to ensure the inclusion of citizens whom previous governments had never reached. Those who were never cared for, Modi honors and empowers. That is why these reforms were undertaken, and our government continues to move forward with this same spirit.

Friends,

This new mindset of India is also reflected in our Budget. Earlier, when the Budget was discussed, the focus was only on outlay-how much money was allocated, what became cheaper or costlier. On television, budget discussions would revolve almost entirely around whether income tax had increased or decreased, as if nothing beyond that existed in the country. The number of new trains announced would dominate headlines, and later no one would ask what happened to those announcements. Therefore, we transformed the Budget from being merely outlay-centric to being outcome-centric.

Friends,

Another significant change in the Budget discourse is this: before 2014, there was extensive discussion about off-budget borrowing. Now, there is the discussion about off-budget reforms. Beyond the Budget framework, we implemented next-generation GST reforms, replaced the Planning Commission with NITI Aayog, removed Article 370, enacted legislation against triple talaq, and passed the Nari Shakti Vandan Act.

Friends,

Whether announced within the Budget or beyond it, the Reform Express continues to gather speed. In just the past year, we have carried out reforms in the ports and maritime sector, taken numerous initiatives for the shipbuilding industry, advanced reforms under the Jan Vishwas Act, enacted the Shanti Act for energy security, implemented labor law reforms, introduced the Bharatiya Nyaya Sanhita, reformed the Waqf law, and introduced a new GRAM G Act to promote rural employment. Numerous such reforms have been undertaken throughout the year.

Friends,

This year’s Budget has propelled the Reform Express even further. While the Budget has many dimensions, I will speak about two important factors-Capex and Technology. As in previous years, infrastructure spending has been increased to nearly ₹17 lakh crore in this Budget as well. You are aware of the significant multiplier effect of capex; it enhances the nation’s capacity and productivity and generates large-scale employment across numerous sectors. The construction of five university townships, the creation of city economic regions in Tier-2 and Tier-3 cities, and seven new high-speed rail corridors, such Budget announcements are, in the truest sense, investments in our youth and in the nation’s future.

Friends,

Over the past decade, we have regarded technology and innovation as core drivers of growth. With this vision, we promoted a start-up culture and a hackathon culture across the country. Today, India has more than two lakh registered start-ups operating across diverse sectors. We encouraged our youth and fostered a spirit that rewards risk-taking. The results are evident before us. This year’s Budget further strengthens this priority. Significant announcements have been made, particularly for sectors such as biopharma, semiconductors, and AI.

Friends,

As the country’s economic strength has grown, we have also empowered the States proportionately. Let me share another figure. Between 2004 and 2014, over ten years, the States received around ₹18 lakh crore as tax devolution. In contrast, from 2014 to 2025, States have been given ₹84 lakh crore. If I add the approximately ₹14 lakh crore proposed in this year’s Budget, the total tax devolution to States under our government will reach nearly ₹100 lakh crore. This amount has been transferred by the Union Government to various State governments to advance development initiatives in their respective regions.

Friends,

These days, there is considerable discussion about India’s FTAs-Free Trade Agreements. As I entered here, the conversations had already begun, and analyses are taking place across the world. Today, however, let me present another interesting perspective-perhaps not the angle the media seeks, but one that may be useful. I firmly believe that what I am about to say may not have crossed your minds either. Have you ever wondered why such extensive free trade deals with developed nations did not materialize before 2014? The country was the same, the youthful energy was the same, the government system was the same-so what changed? The change came in the government’s vision, in its policy and intent, and in India’s capabilities.

Friends,

Reflect for a moment-when India was labeled among the “Fragile Five” economies, who would have engaged with us? In a village, would a wealthy family agree to marry their daughter into an impoverished household? They would look down upon it. That was our situation in the world. When the country was gripped by policy paralysis, surrounded by scams and corruption, who could have placed their trust in India? Before 2014, India’s manufacturing base was extremely weak. Earlier governments were hesitant; hardly anyone approached India, and even if efforts were made, they feared that deals with developed nations would result in those countries flooding our markets and capturing them. In that atmosphere of despair, before 2014, the UPA government managed comprehensive trade agreements with only four countries. In contrast, the trade deals concluded by India over the past decade cover 38 countries across different regions of the world. Today, we are entering trade agreements because India is confident. Today’s India is prepared to compete globally. Over the past eleven years, India has built a robust manufacturing ecosystem. Therefore, India today is capable and empowered, and that is why the world trusts us. This transformation forms the foundation of the paradigm shift in our trade policy, and this paradigm shift has become an essential pillar in our journey toward a Developed India.

Friends,

Our government is working with full sensitivity to ensure that every citizen participates in development. Those left behind in the race for progress are being prioritized. Previous governments only made announcements for persons with disabilities; we too could have continued that path. But sensitivity defines governance. The example I am about to give may seem small to some of you. Just as our country has linguistic diversity, sign language too was fragmented-one form in Tamil Nadu, another in Uttar Pradesh, a third in Gujarat, a fourth in Assam. If a differently-abled person from one state travelled to another, communication became difficult. This may not appear to be a major task, but a sensitive government does not consider such matters trivial. For the first time, India has institutionalized and standardized Indian Sign Language. Similarly, the transgender community had long struggled for their rights; we enacted legislation granting them dignity and protection. In the past decade, millions of women were freed from the regressive practice of triple talaq, and reservation for women in the Lok Sabha and State Assemblies was ensured.

Friends,

The mindset within the government machinery has also transformed, becoming more sensitive. This difference in thinking is visible even in schemes like providing free food grains to the needy. Some in the opposition mock us; certain newspapers amplify such mockery. They ask why free rations are given when 250 million people have supposedly risen out of poverty. It is a peculiar question. When a patient is discharged from a hospital, does the doctor not still advise precautions for several days? Yes, the person has come out of poverty, but that does not mean support should immediately cease. Those with narrow thinking fail to understand that lifting someone out of poverty is not sufficient; we must ensure that those who have entered the neo-middle class do not slip back into poverty. That is why continued support in the form of free food grains remains necessary. Over the past years, the Central Government has spent lakhs of crores on this scheme, providing immense support to the poor and the neo-middle class.

Friends,

We also observe a difference in thinking in another context. Some people question why I speak of 2047. They ask whether a Developed India will truly materialize by then, and whether it matters if we ourselves are not present at that time. This, too, is a prevalent mindset.

Friends,

Those who fought for India’s independence endured lathi charges, imprisonment in Cellular Jail, and even mounted the gallows. Had they thought that independence might not come in their lifetime and questioned why they should suffer for it, would India ever have attained freedom? When the nation comes first, when national interest is paramount, every decision and every policy is shaped for the country. Our vision is clear-we must continue working tirelessly to build a Developed India. Whether we are present in 2047 or not, the nation will endure, and future generations will live on. Therefore, we must dedicate our present so that their tomorrow is secure and bright. I sow today so that the generations of tomorrow may reap the harvest.

Friends,

The world must now prepare to live with disruption. Its nature may evolve over time, but rapid change in systems is inevitable. You can already witness the disruption brought by AI. In the coming years, AI will usher in even more revolutionary transformations, and India is prepared. In a few days, India will host the Global AI Impact Summit. Nations and technology leaders from across the world will gather here. Together with all of them, we will continue striving to build a better world. With this confidence, I once again extend my best wishes to all of you for this Summit.

Thank you very much.

Vande Mataram.