Why State Reforms Will Decide Manufacturing Growth In India: Virmani

Speaking in Delhi, Arvind Virmani, Member of NITI Aayog, outlines the next phase of India’s reform agenda, shifting focus from the Centre to the states. He notes that key central-level challenges — including labour courts, income tax reforms and upcoming customs duty changes — are already being addressed. The spotlight is now on state-level reforms, particularly land availability for expanding industries, electricity pricing for businesses, and improvements in education and job skilling. Virmani stresses that high industrial power tariffs discourage investment and job creation, while better land policies are crucial for growing manufacturing capacity. He also underlines the importance of human capital, arguing that quality education and skilling must create productive workers, leading to higher wages and sustained economic growth.