Inclusiveness and growth must complement each other and should go together, according to Mr M. Veerappa Moily, Union Minister for Corporate Affairs.
Addressing a meet organised by the Ministry, CII and MCX'SX on ‘Corporate Growth, Governance and Inclusion' in Bangalore on Friday, Mr Moily said “A day will come when we will be saying inclusiveness sustains growth.”
Emphasising, the importance of good corporate governance in public sphere he said that good governance would help channelise greater investments into the capital market.
Mr Moily said it is the time to talk about ‘Green Growth' minus corruption. ‘Green Growth' with no corruption should be applied not only to the business but also to politicians or public sphere. “It is time for us politicians to learn and sustain long-term in political sphere with value-creation.”
Governance policy
The Ministry of Corporate Affairs will seek industry help in identifying a suitable person to head the proposed National Corporate Governance Policy.
“Currently, we are in the midst of drafting the policy. When ready it will be taken before the industry for consultations and brought before the Cabinet by March 31,” Mr Moily said.
As the ratio of domestic savings to capital market investments have to go up, the Ministry of Corporate Affairs is carrying on massive investor education and awareness programmes.
Mr Moily said about 90 per cent of liquidity in capital markets comes from only 10 cities of India.
Referring to the Companies Bill, 2011, he said that the new legislation would help address issues of corporate governance, disclosure, social responsibility, and sustainable and inclusive growth in a more pro-active manner.
The Minister released an ‘Investors' Guide and a Primer for Investors' with the objective of encouraging, both beginners and existing investors, to make informed investment decisions.
Black money
Later speaking to reporters, Mr Moily said there were several regulatory issues like double tax system and legal impediments as laws in different countries are not in consonance.
“The Finance Ministry is fully involved in working out a plan on how the black money can be augmented. This problem has been persisting for many years. Our intention is not just bring back the black money, but to eliminate this menace. Steps like cleaning up the public procurement system are being worked at,” he said. The Government's intention is to also implement a mechanism that black money is not generated in the country, he added.
Dialogue-oriented
In his opening remark, Mr Adi B Godrej, President-Designate, CII, welcomed the Ministry of Corporate Affairs' consultative and dialogue-oriented approach. “In India growth needs sustenance and equitable growth. All sectors of society, especially the poor, should be allowed to take part in this inclusive growth,” he said. “Linking socio-economic initiatives is part of CII's CSR goal. By adopting this individual organisations can become real game changers,” he added.
IIP
Speaking on the sidelines of the meet, he said though the IIP numbers for December 2011 was lower, the real economy was doing quite well. “Generally the economy is doing well. But I think some of the indices need to be changed because the IIP indices still have overweight of slow-growing industries and underweight of fast-growing industries,” he said.