Gujarat Chief Minister Narendra Modi, seen as the BJP's prime ministerial candidate, Thursday told a group of some 120 CEOs that India needs empowered states, flexible labour laws and a governance-backed development agenda.

The closed-door meeting was held at a five-star hotel and Modi was a listener for the first 20 minutes of the 75-odd minute exchange, with the CEOs seeking his views on a wide range of issues from his prime ministerial ambition to water, environment, poverty, the federal nature of the government, labour laws, education and skilling. Related: Hope for poll success in 2014 under your leadership, Uddhav tells Modi

"He did not note down the questions we asked, but responded to each one of them," said a CEO who was present. His response to the question on whether the "Gujarat model of development" could be replicated, was striking, said another CEO.

"India cannot have a 'one-size-fits-all' solution. Even within Gujarat, there are many districts with each having its own strengths and weaknesses. We need to have tailor-made solution for each state in the country," Modi is learnt to have said.

Reckoning that poverty and unemployment can be dealt with only by pursuing growth, Modi said states must be given the flexibility to write their own labour laws.

"He said the TDP's N Chandrababu Naidu and he had earlier suggested to the Centre that the labour issue should be removed from the concurrent list. This will give states the leeway to frame labour laws given their own peculiarity. No state can afford to ignore the interest of the labour force while framing laws, Modi pointed out," said a corporate leader who asked Modi about easing labour laws.

Responding to concerns of social tensions and caste differences, Modi said India must increase opportunities so that everyone has access to them. "Tensions arise when there is scarcity; so it is best to address the supply side," he was quoted as saying.

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