NITI Aayog’s Vice-Chairman Dr Suman Bery on July 27 said Indian firms choose to remain “pygmy” in terms of employment due to self-imposed barriers which stops them from getting more employees. The issue needs resolution through a proper policy and not just government funding, he asserted.

Noting that there is low foreign direct investment (FDI) in the economy despite a liberal FDI policy, Prime Minister Narendra Modi has asked the NITI Aayog to work towards ensuring that the issue doesn’t lead to polarisation among states.

NITI Aayog member Dr. Arvind Virmani, on the other hand, stressed on the need to expand manufacturing beyond the five states where it is currently dominant. He called for a conducive environment in states as most manufacturing and FDI are eventually going to happen in states itself.

While NITI Aayog is targeting sectors like electronics, auto components and chemicals to ensure nothing is left behind; river grids, an investor friendly charter and zero-poverty are being looked at as priorities. The states of Uttar Pradesh, Uttarakhand and Gujarat have already prepared vision documents to act under Viksit Bharat whereas many others are in the process of preparing their plans.

During the day long NITI Aayog meeting, PM Modi stressed the need to grab opportunities for development by setting tangible goals, pushing for focus on good governance instead of only money as he called for an investor-friendly charter on the lines of Ease of Doing Business (EODB) rankings where states can compete with each other to attract FDI.

Post the NITI Aayog’s Governing Council meeting with states, NITI Aayog member Dr. VK Saraswat said that focus continues to remain on the combination between manufacturing and services to achieve economic growth. Reiterating the goal to achieve zero-poverty villages on the lines of Open Defecation Free (ODF) villages, NITI Aayog member Professor Ramesh Chand called for focus on rural economy as over 50% of manufacturing takes place in rural areas.