State governments and local governments must align their policies with those of the Union government to attract larger foreign investments, according to Prime Minister Narendra Modi.
In an exclusive interview with NDTV, Modi underlined the green shoots of "competitive and cooperative federalism" among states by strengthening regulations and normalising bureaucracy. "If I get the support of the states, all big players will come to choose India first," he said.
The prime minister said he is a strong proponent of fiscal discipline. In the vote-on-account Union Budget for FY25, presented on Feb. 1, the government stayed away from announcing populist measures before elections, he said.
Modi pointed to the "side-effects" of high fiscal deficit during his predecessor's tenure, and said the fiscal deficit target "must be followed religiously".
As one reduces taxation, government revenues tend to rise, Modi said. In the assessment year FY24, the Income Tax Department has recorded the filing of 8.18 crore tax returns up to Dec. 31, 2023—the highest ever.
At the same time, he said welfare schemes are a pillar for India's social infrastructure. "If welfare schemes are targeted and in sync with quality of life, then it will be an asset."
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