Government and business must act as partners to spur economic growth: Venkaiah Naidu

Vice President Venkaiah Naidu held up the mirror to both government and industry on Monday, cautioning them to take corrective steps so that India proceeds apace on the path to development and prosperity.

Naidu, a former union minister, urged government to embrace the private sector as force for good and a partner in development. At the same time, industry must not deviate from the path of responsibility and adhere to ethical business practices, he said at The Economic Times Awards for Corporate Excellence here.

“Government and business must act as partners to spur economic growth,” said Naidu, 68, in his characteristically outspoken and witty style.

“Indian political system has a weakness. They condemn business in the day, and they do business with the businessman in the evening,” he said. “We should never feel shy to encourage business or industry,” he added.

Naidu, who was minister for urban development as well information & broadcasting until his elevation to the second-highest office in India in August, was also unsparing in his assessment of how the private sector should behave.

“The image of India Inc has taken a little beating in recent years due to various scams and instances of crony capitalism,” he said. “While the people have no problem with wealth creation they lose faith in Indian businessmen as well as the system when they see adoption of wrong means, diversion of funds and non-repayment of loans worth thousands of crores.”

He was emphatic that no one expects businesses to be run as charities, but he was clear that businesses must “ behave responsibly and ethically” while pursuing business interests and should discharge wider social responsibility in protecting interests of all stakeholders.

“I don’t intend to tar everyone with the same brush. Sitting in this hall and outside are many entrepreneurs who work honestly and I applaud them,” he told the gathering of India’s business elite who were there in large numbers to applaud the winners of India’s most prestigious accolades for business excellence.

Naidu, was of the view that the expression of entrepreneurial ability requires empowerment and an enabling environment. The country is witnessing a multi-pronged effort to unleash potential and it is the responsibility of the government to create a conducive environment for entrepreneurship to flourish and private investment to grow, said the vice –president, who stressed the need for greater partnership between public and private institutions.

“Every reformatory measure will face some hiccups in the intial stages but ultimately we arrive at a new normal with positive spinoffs,” he said. And India, which must realize the dreams and aspirations of 130 crore citizens must ensure the new normal rests on the principles of transparency, accountability, efficiency and an expanded formal economy

“Bold reforms with clear vision and purpose have to be implemented with missionary zeal unmindful of temporary setbacks,” said Naidu who was emphatic that while reforms are the need of the hour, the country must focus on inclusive growth and bridging disparities.