Strong financial governance essential for investor confidence, economic resilience: Govt official

New Delhi, June 17 (IANS) India’s journey towards Viksit Bharat 2047 must be built not only on growth, but on trust and strong financial governance, early-warning systems, and a robust pre-insolvency framework are essential to preserving enterprise value, investor confidence, and economic resilience, Anita Shah Akella, Joint Secretary, Ministry of Corporate Affairs, said on Wednesday.

Addressing the national conclave on the future of financial governance organised by Assocham here, she said while artificial intelligence and sovereign AI offer transformative opportunities, technology must remain anchored in human judgment, accountability, and ethical values.

“Ultimately, the institutions that endure are not merely the most powerful, but the most trusted,” said Akella.

The conclave highlighted the critical role of trust, transparency, accountability, and responsible innovation in strengthening India’s governance framework and supporting the country’s aspiration of becoming a developed nation by 2047.

Nitin Gupta, Chairperson, National Financial Reporting Authority (NFRA), underscored the importance of high-quality financial reporting as the foundation of sound corporate governance and economic growth.

Drawing lessons from global and domestic governance failures, he stressed that transparency and accountability are strategic imperatives rather than mere compliance requirements.

“In an era marked by geopolitical uncertainties, cyber risks and AI-driven disruptions, trust can only be built through accountability, professional courage and a commitment to transparent disclosures,” said Gupta.

Gyaneshwar Kumar Singh, Director General and CEO, Indian Institute of Corporate Affairs (IICA), highlighted the evolution of India’s regulatory framework towards trust-based governance and emphasised the need for boards and finance leaders to embrace a broader stakeholder-centric approach.

“India’s governance framework is steadily transitioning from a rule-based to a trust-based approach, supported by digitalisation, deregulation and decriminalisation. As businesses navigate an increasingly interconnected world, boards must move beyond a shareholder-centric mindset and embrace responsibility towards all stakeholders,” said Singh.

The conclave also featured insightful addresses key players of industries discussing emerging governance challenges and opportunities.

–IANS

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