Governance, regulation needed to sustain growth

Even as the country is regaining momentum in economic growth and expectations are to reach nine per cent growth this year, huge deficiencies in governance, regulation and business ethics should be addressed promptly to sustain the growth, said P Chidambaram, Union minister for Home Affairs.

Speaking at the centenary celebrations of the Southern India Chamber of Commerce and Industry (SICCI), he urged the companies to address the issue of decline in business ethics to deliver prosperity among the entire population in the country.

The goal of spreading prosperity to the population cannot be achieved unless the ethical deficit which has been more exposed in the last few months is not addressed by the industry, he said. The deficit in governance, including huge deficits in power and road, shipping and air transport are serious issues to be addressed by the government.

He said that there is a lack of adequate regulations in sectors which drive the growth of the country, such as real estate, mining and quarrying, which should be addressed.

People see robust growth in real estate sector and the greed grows along with it. Regulations should be put in place in the unregulated sectors to drive the growth successfully, he added.

The survival of the Indian banking sector during the recent global meltdown and the successive growth are due to the regulations implemented on time.

SICCI, a regional apex body of companies in south India, has expressed its interest in working with the government in developing infrastructure and generation of more employment.

There is a need to promote private sector participation and public-private partnership model, which would lead to wider distribution of projects and market potential, said A Vellayan, president, SICCI.