In the area of administrative reforms, the CII President suggested that there was an urgent need to set up strong regulatory bodies at the state level. He was of the view that state laws, rules and procedures needed to be simplified and made investor friendly. He forcefully stated that the state governments should enforced rules and regulations in an impartial an strong manner which would ensure discipline and a good work ethos in the state. Mr. Bajaj took the examples of West Bengal, Madhya Pradesh and Punjab, which had achieved significant progress in this regard.

Mr. Bajaj believed that the districts should also be empowered and delicensing should be carried out at the state levels as well. He observed that in Goa a consensus had been built between all the political parties on the industrial policy of the state. Haryana, he added, had made significant progress in reducing the time schedule for issuing clearances and setting up of an industrial unit.

Speaking of the Joint Task Forces, Mr. Bajaj stated that these Task Forces had been set up between CII and the State Governments to promote government - industry partnership in the states of West Bengal. Jammu and Kashmir, Delhi and Andhra Pradesh.

Another area of focus, according to Mr. Baja, was the area of Vocaional Education and Training. He suggested that it is should be modernised and trades re-visited. As is the case in Punjub, industry should be involved in the management of it is and a joint evaluation of ITI students should be carried out between industry and government.

Mr. Bajaj stated that Information Technology is the key driver to competitiveness and should receive the focus and attention of the state government.

In the area of infrastructure, Mr. Bajaj stated that there was an urgent need to restructure and corporatise the existing public utilities, introduce competition and promote private sector participation Commending the Orissa State Electricity Board, which had achieved significant progress in corporatisation and privatisation, he called upon other states to emulate their example.

Expressing concern at the unsustainable level of fiscal deficits. Mr Bajaj stated that State Government would need to arrest the growing level of fiscal deficits. Taken together, the state fiscal deficits currently stand at 3.5% of GDP. The CII President suggested that the Mou's on Fiscal reforms which were signed between the Centre and the individual states basically entailed a time bound hike in user charges and charted a programme to contain the expenditure of the state government. The states, in turn, would receive additional assistance from the Centre if the conditions of the Mou were met, he added.