Free Press Journal

Combat crony capitalism with greater transparency: CII chief


New Delhi: Admitting that there are “black sheeps” in India, new CII President Ajay Shriram today said the best way to deal with crony capitalism is to introduce transparency and reduce discretionary power.

“One of the best ways to reduce any form of crony capitalism is by reducing the power to say no,” he told PTI in an interview.

Besides curtailing the discretionary powers, he also suggested for a balanced approach with a view to promote transparency in processes and systems.

“We have to accept that there are humans all over the world. We have had black sheep’s. It’s not only in India, it’s  in America, in Europe, every country. We should have a balanced approach and look at what to do with rules and regulations.We are also suggesting use of IT norms,” he added.

The issue of crony capitalism assume significance as earlier in the week, Finance Minister P Chidambaram has accused BJP’s prime ministerial candidate Narendra Modi of promoting crony capitalism.

Chidambarm had said: “Business is quite comfortable with Dr Manmohan Singh and UPA finance ministers but there are sections of businesses which are extremely comfortable with Mr Narendra Modi because his brand of capitalism is crony capitalism.”

CII, Shriram said, wants the new government to lay down clear norms to promote ease of doing business by removing unnecessary controls so that the country can move fast on the path of high growth.

When asked if the possibility of a Modi government is fuelling the stock market, he did not gave a straight answer but said there would be new set of people which would focus on economic growth.

“After elections whichever party comes, we get a new set of people. Whether it is Congress, BJP or someone else, it is momentum of positiveness,” he added.

Prime Minister Manmohan Singh has already announced his retirement while Chidambaram and former finance minister Yashwant Sinha are not contesting the general elections. Hence, there will be a new prime minister as well as the finance minister after formation of new government in May.

Senior BJP leader Arun Jaitley had recently said in Amritsar: “In last few days, there is a revival in stock market and the observation in the entire world is that FIIs are looking towards India as they hope there will be political change and government here will be formed under leadership of Modi”.

India is headed for 9-phase general elections starting next week and the new government is expected to be in place after the results are announced in mid-May.