Infosys founder NR Narayana Murthy on Sunday called for greater privatisation of India's public sector industries, saying that privatisation was a necessary prerequisite for high economic growth. Murthy said he agreed with the 'minimum government, maximum governance' agenda set by the current government.
Infosys founder NR Narayana Murthy on Sunday called for greater privatisation of India's public sector industries, saying that privatisation was a necessary prerequisite for high economic growth. Murthy said he agreed with the 'minimum government, maximum governance' agenda set by the current government.
He added the caveat, however, that if the reform suggested by him was to succeed, it would require a strong regulatory watchdog that would ensure that private interests did not abuse public sector enterprises after privatisation. Speaking at the Zee Jaipur Literature Festival 2015, Murthy said, "It is best if the business of business is left to the private sector, as long as you have a good regulatory sector. The rule must be that 99% of people can conduct their business without government interference."
In response to an audience question, Murthy said that only "honest-minded, fair and competent" businessmen should be offered the chance to buy public sector enterprises.
Murthy made it clear that he was referring not only to privatisation of industries but also the education sector. He said education levels in the country could be raised through the private sector, provided there was a strong regulatory body to oversee it.
He lamented the fact that the regulatory bodies in the country today are not doing their work effectively.
He said that every ministry should have an advisory body that would serve as a watchdog over the respective ministry. The body should consist of eminent people from various walks of life. Every three months, this body could put out a public report on the functioning of its ministry, Murthy further suggested.
He said that 10% economic growth per year, a growth rate which the current government aspires to reach, could not be achieved through privatisation alone. He also called for such legal reforms as would make land acquisition easier for businesses. Praising China in this context, Murthy said that the Shanghai municipality, a few years ago, had made land available within 20 days of application to Infosys for opening its Shanghai branch, in sharp contrast to the land acquisition process in India.
Murthy was at the literature festival after passing up on an invitation to meet visiting US president Barack Obama in New Delhi. "I had a commitment (to speak at the festival)," he said.
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