States Competing in a New Economic Arena

India's federal structure is witnessing a dynamic evolution, particularly in the realm of economic development. States are no longer passive recipients of centrally allocated funds or centrally driven industrial policies. Increasingly, they are actively competing to attract private and foreign direct investment. One of the most prominent tools in this competitive framework is the state-level investment summit—a platform to market their potential, pitch projects, and signal investor-friendliness.

These summits go beyond ceremonial showcases; they represent a strategic attempt by states to position themselves in global supply chains and attract critical infrastructure and job-creating investments.

Delhi’s October Investment Summit: Strategy and Goals

The Delhi government has proposed hosting a Global Investment Summit in October, with the goal of transforming the capital into an industrial and economic hub. According to The Indian Express, the summit will focus on attracting private players through Public–Private Partnerships (PPP) in areas like Baprola, Rani Khera, and Kanjhawala. These regions are being envisioned as future industrial corridors.

The government hopes to:

Create over one lakh jobs

Develop industrial areas with modern infrastructure

Brand Delhi as a competitive investment destination

This initiative mirrors similar efforts in states like Gujarat, Maharashtra, and Tamil Nadu, where investment summits have become a key tool in shaping economic narratives and attracting international attention.

Challenges and Enablers for State-Led Investment Initiatives

While summits generate attention and intent, translating MoUs into actual investments requires a robust enabling ecosystem. States need to overcome several challenges and leverage key enablers to make their summits impactful.

1. Land Acquisition and Regulatory Clearances

Lengthy approval processes and land disputes can stall even the most promising projects. A single-window clearance system, digitised land records, and local stakeholder engagement are essential to streamline project initiation.

2. Infrastructure and Connectivity

Investment zones must be well connected to ports, highways, airports, and power grids. Without this, industries face high logistical costs. Delhi, for instance, must align its industrial planning with broader infrastructure like the Delhi-Mumbai Industrial Corridor (DMIC).

3. Skilled Labour and Social Infrastructure

Investors prioritize locations where they can access skilled talent and quality living standards. States need to invest in technical training institutes, housing, healthcare, and schools to attract and retain both local and migrant labour.

4. Environmental Sustainability

Environmental concerns are increasingly shaping investment decisions. States must demonstrate commitments to green infrastructure, clean energy, and pollution control to attract global firms, especially those adhering to ESG (Environmental, Social, and Governance) standards.

Implications for Centre–State Relations and Federalism

State-level summits are also reshaping India’s federal landscape. As states become more assertive economic actors, there is a potential shift in fiscal and policy power from the Centre to the states. However, this requires effective cooperative federalism.

The Centre must:

Coordinate tax and regulatory frameworks to avoid policy clashes

Strengthen institutions like DPIIT and state-level investment promotion agencies

Facilitate inter-state knowledge sharing and best practice dissemination

An empowered state, backed by a supportive Centre, creates a virtuous cycle for investment and governance.

The Way Forward: Toward a National Investment Ecosystem

To make investment summits more than symbolic exercises, India must institutionalize them as part of a larger national economic strategy.

1. Encourage Biennial State Investment Summits

States should be encouraged to host summits every two years, with a clear roadmap, focused sectors, and measurable targets. This builds momentum and trust with investors.

2. Create a National Coordination Platform

A central platform linking all state investment summits, supported by DPIIT, can coordinate schedules, policies, and shared learnings. This ensures coherence and prevents duplication of effort.

3. Introduce Monitoring and Evaluation (M&E) Frameworks

States must track and publish return on investment (ROI), project implementation status, and investor feedback. Transparency can increase credibility and attract repeat investments.

Conclusion: Summits as Catalysts for Competitive Federalism

State-level investment summits are not just economic events—they are expressions of competitive federalism in action. If executed with seriousness, they can decentralize economic power, create jobs, and stimulate regional development. For India to unlock its full investment potential, states and the Centre must work in tandem, turning these summits into engines of long-term industrial transformation.