MUMBAI: Economic offences pose a direct challenge to the nation's health and wealth, Vice President M Venkaiah Naidu said on Saturday.
The world must wake up to this new challenge and adopt appropriate measures to deal with it, Naidu said while speaking at The Economic Times Awards for Corporate Excellence here.
The Insolvency and Bankruptcy Code enacted by the government has begun to turn the wheel, he said, adding that some big resolutions have happened and banks are getting back their money.
"There is now a change in mindset. There is greater eagerness to settle dues in a timely fashion. Because promoters know that once they are dragged to the NCLT, they could lose their companies. Banks are expected to recover over Rs 1.5 lakh crore of bad debts this year itself," he said.
"What does this clean-up mean? It is obvious that credit will go to those with bankable ideas and not to those with clout and connections. This is the democratisation of credit.
"The insolvency law epitomises the new way of doing business where there is no discretion in allocation of resources, there is no interference from the government, and banks take decisions based on merit of the proposal. Efficient allocation of capital is the bedrock of a robust modern economy," Naidu said.
There has been a clear demonstration of resolve, sense of purpose and urgency on the part of the central and state governments, corporations, entrepreneurs, investors and all other stakeholders to collectively strive for building a new India, where the aspirations of all the citizens will be fulfilled, he said.
"The formalisation of the economy can be gauged by the rapid rise in the number of income tax payers. While the total direct tax collection in 2013-14 was Rs 6.38 lakh crore, the total income tax collection for 2017-18 was Rs 10.02 lakh crore, an increase of 57 per cent in four years," the vice president said.
"We need to convert challenges into opportunities and ensure a nine per cent GDP growth on a consistent basis to improve the quality of life of our citizens. The country can leapfrog in development by adopting innovative solutions across all sectors from education to urbanisation, from health to infrastructure," he said.
It is believed that if India maintains an eight per cent growth rate consistently, we can become a USD 10 trillion and the third largest economy in the world, he said.
Naidu cited a PwC (PricewaterhouseCoopers) report which suggested that up to 40 per cent of India's USD 10 trillion economy in 2034 could be derived from new solutions.
Such solutions are likely to be implemented with 25-30 per cent less resources than those required by traditional solutions, he added.
"I have recently toured three countries in Latin America and three countries in Africa. I was overjoyed to hear from the heads of state in all these countries that Indian industrialists and businessmen have made significant contribution to their national economies.
"They welcomed Indians to their countries and strengthened bilateral economic ties. I find that there is vast scope for all of our industrial and business houses to make a mark in the global marketplace," he said.
"I also found during my recent visits that there was tremendous enthusiasm to invest in India. There was also widespread appreciation for the growth, reforms process and massive transformation taking place in India in recent times. I also found that the world is looking towards India for investment and for technology and innovations," Naidu said.
Indians for decades have been playing an important role in global technology landscape, he said.
"In fact, two of the world's biggest technology companies -- Google ( Sundar Pichai) and Microsoft (Satya Nadella) -- are led by Indian CEOs. More and more India-trained professionals are taking top positions in the world. The latest to join the high profile post of CEOs are Kalyan Krishnamurthy in Flipkart and Manik Gupta as Chief Product Officer in Uber," he said.
