Role of states critical in sustaining growth: Report

The role of state governments is expected to be increasingly critical in sustaining overall development of the country in coming times, according to a report.
The study by PHD Chamber of Commerce said that with the continuous increase in per capita income of states, there exists a tremendous potential for expansion of consumer markets, and enhanced employment opportunities with expanding production capacities.
"Going ahead, the role of states is expected to be increasingly more critical in sustaining the overall development of the country in coming times," the study said.
However, it added that there are several challenges to their growth, such as easing the supply side constraints in the economy, upskilling the workforce and increasing manufacturing competitiveness.

The study suggested that state policies should be focused on diversifying the beneficiaries of various socio-economic development programmes to ensure all inclusive growth.
The states should also focus on the comparative advantages of their respective strengths and specialisations and also adopt each other's best practices.
For example, Rajasthan has taken effective measures towards the implementation of labour reforms, whereas Punjab is now well on its way to rapid industrialisation through coordinated development of small, medium and large scale industries.