States have vital role in national development: PM Modi

Prime Minister Narendra Modi on Friday stressed upon the 'vital role' played by states and provinces in national development, adding that state governments have a

"It comes from a serious conviction, born from my experience, that states have a vital role to play in the national development. This is especially true for large and populous countries, with a high degree of geographical, social and economic diversity. It becomes even more relevant, when the constitutional and political systems are federal in structure. These attributes exist in both India and China, the world's two most populous nations," Prime Minister Modi said, while speaking at the launch of the India-China Forum of State Provincial Leaders.

Terming the launch of the forum as 'historical', Prime Minister Modi said that it will be become one of the most important instruments for deepening the economic partnership between India and China and contact between the two countries.

He further said that while the Centre can set the tone for economic development, it is for the states to implement it.

"The Central Government creates the macro-economic environment. It can set the broad social and economic agenda and directions for the nation. It can launch development policies and schemes. It can manage resources. But, in the end, the state governments have an important role in their implementation. But, as I saw in my own experience, state governments can take innumerable initiatives for the development of the states. That is the level of autonomy and responsibility that they enjoy under our Constitution," the Prime Minister said.

"In the same national environment, states are performing at different levels. For business investors, too, whether they are Indian or foreign, their journey may begin in Delhi, but their success ultimately depends on state capitals. Many of the critical requirements for success - infrastructure, land, utilities, skilled human resources and many approvals - ultimately depend on the state governments. But, for me, the involvement of states in our national effort is not just because of their constitutional and legal responsibilities," he added.

Earlier in the day, Prime Minister Modi was accorded with an official welcome ceremony at the Eastern Plaza in the Great Hall of People. Prime Minister Modi, along with Premier Li, inspected the Guard of Honour before the national anthems of India and China were played at the venue.

This was followed by restrictive talks between the Prime Minister and Premier Li, after which both leaders witnessed the signing of a record 24 agreements worth USD 10 billion.

Prime Minister Modi will later meet National People's Congress (NPC) standing committee chairman Zhang Dejiang, before visiting the Tsinghua University, where he is scheduled to address the students. He will then visit the Temple of Heaven, where he will have his final engagement in the city: a yoga-tai chi joint event.

In the evening, the Prime Minister shall depart for Shanghai, the third and final city he shall be visiting during his current tour of China.