ET Awards 2018: Economic offences must be checked, says Vice president Venkaiah Naidu

MUMBAI: Vice president Venkaiah Naidu said that India should reject the politics of populism and move toward that of pragmatism, which will benefit society in the long term. He also welcomed the bankruptcy code that will end crony capitalism, heal banks and get credit growth moving again.

“Freebies are not a solution. It is important to improve living conditions, create opportunities, reach the unreached, fund the unfunded and recognize the unrecognised--that is the way forward,” Naidu said during his keynote address at the Economic Times Awards for Corporate Excellence in Mumbai on Saturday evening. “This is the real democratization of economy and democracy.”

He also called for an end to the “loot and scoot” approach that has damaged the country’s banking system while urging entrepreneurs not to lose sight of equity and ethics while increasing contributions to corporate social responsibility.


“Ours is a banking-led economy, still short of a typical market-led economy. Certain aberrations, which cropped up in recent years in the form of ‘misuse’ of the assets of the banks have shaken the confidence of the people in corporates and banks. Bad loans have crippled many banks. This needs to be fixed quickly,” Naidu said.

Banks and companies need to aim for a new normal to ensure that every rupee is put to the most productive use.

“There is no place for a ‘loot and scoot’ approach,” he said. “Economic offences must not be allowed to go unchecked. Constant vigilance, effective supervision and timely action to bring the offenders to book will restore the financial system to good health.”

While noting that India is still not a market-led economy, the process of formalisation is well under way, helping to boost tax revenue among other things.