States should focus on attracting private investment, improving project quality and access to finance, and boosting capital spending, even amid fiscal constraints, Chief Economic Adviser V. Anantha Nageswaran said on Saturday.

Speaking on the concluding day of a two-day conclave of state finance ministers and finance secretaries on the theme “Financing for Viksit Bharat”, organised by the finance ministry, Nageswaran endorsed a suggestion to raise States’ capital outlay from 2.4% to 3% of GSDP by 2031-32.

He outlined three priorities for States: creating an enabling environment for private investment through the availability of land, power and logistics, supported by effective single-window clearances; improving the quality of investment through robust project-preparation pipelines and credible project reports to facilitate access to domestic and multilateral finance, while directing credit towards underserved districts with growth potential; and strengthening States’ own capital expenditure despite fiscal constraints.

The conference provided a valuable opportunity for the Union and States to move beyond discussions on resource generation and sharing and deliberate collectively on financing India’s development over the next two decades.

“He noted that the quality of discussions and the openness with which States shared their perspectives had strongly established the case for holding the conference annually,” the ministry said in a statement.

Nageswaran emphasised that while India’s savings base was substantial and would need to grow further, significantly greater participation by private capital would be essential to mobilise the investment required for Viksit Bharat.

Emphasising that “Viksit Bharat depends on Viksit Rajya”, Nageswaran called for States to take forward the practices shared, ongoing deregulation efforts, and expert recommendations, and translate them into partnerships with clear responsibilities and timelines.