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Beyond promises: Transforming state business summits into engines of growth

Author - Ajay Khanna

Published By: The Economic Times
Posted on: March 13, 2025
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Beyond promises: Transforming state business summits into engines of growth

One crisp evening, over steaming cups of coffee, a conversation with a seasoned business leader, chairman of a prominent Indian conglomerate, turned to the whirlwind of state business summits. The sheer volume of these events, particularly in January and February, underscores their perceived importance in attracting investment. Yet, the question lingered: how many of these inked commitments truly translate into tangible economic development?

India's economic landscape is punctuated by a surge in state-led investment summits. Gujarat, Tamil Nadu, West Bengal, Maharashtra, Karnataka, UP and others have emerged as key players, hosting high-profile gatherings that draw global attention. The early months of 2025 witnessed a flurry of such events, with Tamil Nadu, Odisha, Uttar Pradesh, Karnataka, West Bengal, Kerala, Madhya Pradesh, and Assam announcing investment pledges running into trillions of rupees.

The Bengal Global Business Summit, for example, reported investment proposals worth INR 4.4 lakh crore and over 200 MoUs. Madhya Pradesh's Global Investors Summit and Assam 2.0 secured commitments of INR 30.77 lakh crore and INR 5 lakh crore, respectively. Maharashtra, at the World Economic Forum in Davos, signed 54 MoUs totalling INR 15.7 lakh crore. These figures are undeniably impressive, but the real challenge lies in converting these pledges into concrete projects that drive job creation, infrastructure development, and sustainable growth. The scepticism surrounding these summits stems from the perceived gap between promises and performance. To bridge this gap, states must focus on robust data, transparent monitoring, and effective execution.

Here I suggest five broad initiatives which the state governments can undertake to evaluate and follow up on these summits:

  1. Establish a High-Powered Investment Review Committee: Led by the Chief Secretary, this committee should rigorously track the progress of MoUs with timelines, identify bottlenecks, and provide regular updates to the Chief Minister. This ensures accountability and timely intervention.
  2. Implement Annual Progress Reporting: During each summit, states should provide detailed updates on the implementation status of previous commitments. This fosters transparency and builds investor confidence. Include quantifiable metrics like job creation, percentage of MoUs realized, and sector-specific growth.
  3. Facilitate Inter-State Best Practice Sharing: States should actively learn from each other. West Bengal's State-Level Investment Synergy Committee, Tamil Nadu's Biz-Buddy system, and Maharashtra's MAITRI platform offer valuable models. A National platform could be created by DPIIT for sharing success stories and challenges which can accelerate learning.
  4. Prioritize Good Governance and Ease of Doing Business: Streamlining approvals, simplifying regulations, and ensuring timely grievance Redressal are crucial. Like Invest India at the national level, states should establish dedicated investment promotion agencies to provide handholding and build investor confidence. Address challenges like land acquisition and infrastructure gaps transparently.
  5. Roll out the Red Carpet for Investors: Celebrate new and existing investments. Recognize and appreciate investors who contribute to the state's economic development. They are the best ambassadors for a conducive business environment.

However, one must also acknowledge the inherent challenges. Regional disparities in investment, varying levels of infrastructure development, changes in the state leadership, mind-set & capacity of the bureaucracy and the need for sustainable and inclusive growth require targeted strategies.

  • States need to consider a targeted approach with: Focus on Sector-Specific Strategies: Identify key sectors for investment and develop tailored policies to attract them.
  • Emphasize Sustainable Development: Ensure investments align with environmental and social goals.
  • Strengthen Centre-State Coordination: Foster collaboration with the central government to address national-level challenges.
  • Address Regional Disparities: Create incentives for investments in less developed regions.
  • Verify Data: Implement systems to verify the accuracy of investment commitment data.

The proliferation of state business summits reflects India's economic dynamism. By shifting the focus from mere promises to concrete action, states can transform these events into powerful engines of sustainable and inclusive growth.

(The writer is Co-Founder, Public Affairs Forum of India (PAFI), Views are personal)