New Delhi, Jul 27 (IANS): Prime Minister Narendra Modi on Saturday encouraged the states to provide an investor-friendly environment, as he directed the NITI Aayog to prepare an ‘Investment-friendly Charter’ of parameters which would include policies, programmes, and processes to be put in place for attracting investments.

The states may be monitored on the achievements in these parameters to promote healthy competition among them for attracting investments, said the Prime Minister while chairing the 9th Governing Council meeting of the NITI Aayog in the national capital on Saturday.

PM Modi also underscored the importance of law and order, good governance, and infrastructure as vital for attracting investments, rather than just incentives.

The meeting was attended by Chief Ministers and Lieutenant Governors representing 20 states and six Union Territories.

The Prime Minister also directed the NITI Aayog to study the suggestions of the states and UTs made during the meeting, encouraging the states to initiate Demographic Management Plans to address the issues of population aging in the future.

PM Modi asked the states to take up capacity building of government officials at all levels and encouraged them to collaborate with the Capacity Building Commission for the same.

The Prime Minister also emphasised cooperation and collective efforts of all states and the Centre to work together to achieve the vision of Viksit Bharat by 2047.

The Indian economy, which was ranked 10th largest in the world in 2014, has risen to become the fifth largest economy.

The Prime Minister also encouraged the creation of River Grids at the state level for the effective utilisation of water resources, as he suggested that we must target 'Zero Poverty' as a priority for Viksit Bharat.