The NITI Aayog plans to hold bi-annual meetings with all states to deepen its engagement with them and push for major reforms.
A decision to hold such meetings was taken at a meeting between NITI Aayog officials and representatives of state governments.
A meeting was held on the role of NITI Aayog, and cooperative federalism. Vice chairman Arvind Panagariya, in his address, urged states to "seriously consider" reforms in agriculture, land and labour markets, acording to a release.
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The states, on their part, felt the Aayog should play the role of a knowledge organisation. It should also document and disseminate the best practices of so that the development effort could receive a fillip, the states felt.
Panagariya assured them of all possible assistance from the body. He also said the 14th Finance Commission had significantly enhanced devolution of resources to states and this meant more responsibility in exercising policy choices.
Three areas were taken up for discussion. The role of the NITI Aayog in fostering cooperative federalism; rationalisation of centrally-sponsored schemes and their implications; and, challenges in the budgeting exercise for the 2015-16 and planning for financial year 2016-17.
Panagariya underlined the need to gradually shift focus from planning to policy to influence the behaviour of actors - both public and private - in view of the changed economic scenario with a major share of investments coming from the private sector.
Many Indian states have now achieved sizes of economy that are larger than many countries. Hence, they need much greater interaction, not only nationally but also with international players, Panagariya said.