Prime Minister Narendra Modi is fuelling the new competition by sending state governments a higher share of federal tax revenue. The ruling Bharatiya Janata Party (BJP) has extended control to a record 18 states, representing roughly 60% of India’s gross domestic product. “Irrespective of political affiliation, we should see state governments competing against each other for business investment.”Modi is fuelling the new competition by sending state governments a higher share of federal tax revenue. BJP or not, with states still wielding so much power, investors suggest the quality of the local chief minister is a big factor in a state’s performance. “Whether it’s a BJP state or a Congress state or a whatever state, it’s leadership that delivers results,” said Salil Singhal, an Indian businessman who works in both Rajasthan and Gujarat.

Source: Mint December 04, 2017 03:00 UTC