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Crony capitalism in India ended with insolvency code: NITI Aayog CEO

IANS  |  Kolkata 

The world of in has ceased to be with the introduction of and Code, Aayog said on Thursday.

"The world of in has come to an end. Today, if you don't repay (the loan), you will lose your business empire. One after another, the businesses are losing their empire because it is going to NCLT (National Company Law Tribunal). The NCLT is bidding it out," he said responding to a query at an interactive session organised by the here.

Kant said: "The world has changed and there is no more in The and Code will ensure that. Therefore, it is incumbent that you take from and you should repay. Otherwise, the government will not survive in India... How can government not react when a incident happens?"

He said the banks were going bust because the advances by the lenders were not repaid and the government had to bring some discipline.

With the unearthing of fraud cases like incident, the government was held accountable and it appeared to be a regulatory failure, he added.

However, in order to achieve higher economic growth, he urged restructuring of many institutions of India.

"You can't get India into 9-10 per cent economic growth till you don't restructure many of your institutions ... many of our institutions, for instance, Medical Council of India, is an outdated body. It is not allowed to create doctors.... UGC, AICTE, and all these need to be radically restructured," he said.

He said it would be not be possible for India to grow at an annual rate of 9-10 per cent over decades, unless the country "consciously pushes for gender parity".

Kant said exports must also pick up in order to achieve higher economic growth and for which, micro, small and medium enterprises (MSMEs) should prosper.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 18:04 IST