CII hails States’ convergence on development

States are fast converging on the theme of development and are looking to compete with each other, Rajshree Pathy, Chairperson, Confederation of Indian Industry (CII), Southern Region, said here.

This is a welcome development, Pathy told BusinessLine on the eve of a meeting of the southern regional council scheduled for Saturday.

“In fact you’ll be surprised that for the very first time, Chief Ministers are going to other States with road shows seeking investments.

“It’s a very health development because it makes you feel the spirit of competitiveness. States also get to learn each other’s strengths and weaknesses and how to leverage them.’’

Ramesh Datla, Deputy Chairman, CII (Southern Region), said that the State-level competitive index being spearheaded by the Department of Industrial Policy and Promotion (DIPP) is in perfect alignment.

“We’re now evolving a State-level competitive index. The DIPP has drawn up a 98-point agenda for States.”

The department has been entrusted with the job of taking as many states as possible on board and ensure a certain benchmark.

When the Prime Minister goes abroad seeking investments and Chief Ministers follow suit, there is a need to put states in a position to receive these investments.

The DIPP has taken up mentoring kind of role here and it is working with the state governments, Datla said.

According to Pathy, the crucial component of the development theme is a shared responsibility of building India. “We share it in many ways. The CII takes the industry to join others to invest in development.”

On DIPP taking exception to GM’s decision to close down its Halol plant, she recalled that the Prime Minister has been emphasising ease of doing business. “We’re trying hard to get that on that track. You will appreciate such a thing is not going to happen overnight. But I do believe that DIPP has a point. Companies cannot close down plants just like that,” she clarified.

“What about the jobs at stake? One cannot fancy an MNC pulling down shutters merely because they find something not happening to their liking along the way. There has to be an exit policy. And the government is busy working on such a policy. There have been similar instances happening in different states as well from time to time,” she added.

According to her, things are on course to sorting out these sensitive issues. “But it is going to take a while and I think DIPP is on the right track.”