Vice President emphasizes on need for ethical corporate governance in Indian industry

Jamshedpur: Vice President M Venkaiah Naidu emphasized on the need for ethical corporate governance in Indian Industry.

Speaking at the centenary year celebrations of the Jamshedpur city, the Vice President said that some people took undue advantage of the system, and industry has a duty to eschew such elements.

Observing that a company’s ethics, values, and social responsibility play an important role in building its reputation, Me Naidu said that conducting business in an ethical manner builds confidence among customers and investors.

He appreciated the Tata Group for being synonymous with high ethical standards and the pioneering spirit of entrepreneurship. He also called upon the industry to shed its hesitation to make investments to facilitate economic growth.

Calling industry and agriculture as two eyes of nations, he opined that industry must compliment the efforts of government to achieve desired economic progress.

Describing Public-Private Partnership (PPPs) as one of the best models for development in a developing economy like India, the Vice President said that PPP models would lead to improved efficiency and faster delivery of services.

"In my view, it is the best way forward to develop infrastructure and other projects that give a fillip to economic growth," he said.

Referring to the recent policy interventions of the Reserve Bank of India, Mr Naidu said the measures were aimed at lowering the cost of funds for banks and providing funds to the industry.

He said that loans to the automobile sector, residential housing and micro, small and medium enterprises have been kept outside the purview of the cash reserve ratio, which at present stands at four percent of banks’ deposits.

Pointing out that the Reserve Bank of India had projected a GDP growth rate of six percent for the financial year 2020-21 he said that investment outlook in the Indian economy has begun to show signs of improvement and the inflation pressure was likely to ease in the financial year 2020-21.

Calling for incentivization of the wealth creation and increasing the ease of business, he cautioned against freebies. “Distribution without production will lead to ruin”, he said.

Stating that automation was expected to play a major role in the coming years and the workers of the future would have to be highly adaptable, the Vice President urged all business enterprises and manufacturing units to train and re-train their employees to face future challenges.

He said that there was no dearth of talent in India, only there was a  need to identify the talent and nurture it. Maintaining that this was not the responsibility for the governments alone, he called upon the industry to supplement the government’s efforts in skilling.

“Bridging the skills gap among the workforce must become an essential component of every organization’s activities,” he said.

Observing that a large part of the economic activity was dependent on agriculture and sectors allied with it, the Vice President opined that there was an urgent need for collective efforts to make agriculture profitable and sustainable.

While appreciating the government for its efforts to increase farmer's income, Mr Naidu urged the private sector to contribute by constructing cold storage facilities, providing transport facilities from villages to the nearby market yards as part of their CSR activity.

Stating that ensuring a viable, sustainable livelihood for those living in rural areas should the priority for all, the Vice President said that it would reduce the forced migration from rural areas.

The Vice President also visited the Center for Excellence and Tata Steel Archives in Jamshedpur wherein he was briefed upon the journey of hundred years Tata Steel.

After the event at Tata Steel, the Vice President also visited the hundred year old Andhra Bhakta Sri Rama Mandiram, in Jamshedpur city and performed puja and interacted with devotees.

Jharkhand Governor Droupadi Murmu, Minister Champai Soren senior officials of Tata Steel and functionaries of Workers Union were also present on the occasion.