"The state can turn out to be a major investment destination. Sadly, there has been no major investment here in the last two decades. Not just this, but the state has also lagged behind in creating a perception that it is ready to attract investors," he said at the HT-HH Uttar Pradesh Development Conclave.
Khaitan suggested the government pay attention to the concerns of the existing industries first.
"While the government has made a positive start, the challenges remain the same. There have to be combined efforts to deal with the challenges," he said.
Khaitan remarked that the state already had a number of industries. However, the need of the hour was to make these industries grow.
"The government has to be proactive and engage the various stakeholders. It is an encouraging sign that the government has invited all the industrial bodies to formulate the industrial policy, the draft of which has already been created," he pointed out, adding that this had helped create a feel-good factor among industry bodies.
Khaitan said the state, which had quality infrastructure and resources, needed good governance.