The Hindu Business Line : Government will look into concerns of industry: PM

Big meeting: The Prime Minister, Dr Manmohan Singh, flanked by the FICCI President, Mr Habil Khorakiwala (left), and the FIICI President-elect, Mr Rajeev Chandrashekhar, at the 80th annual session of the chamber in New Delhi on Friday. The Prime Minister has assured Indian industry that the Government would take care of its concerns in the Budget.

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New Delhi, Feb. 15 The Prime Minister, Dr Manmohan Singh, has assured the Indian industry that the Government would take care of its concerns in the forthcoming Budget session of Parliament.

“We are in the midst of the Budget session and the relevant ministries of the Government will take care of what the FICCI President has stated,” he said at the annual general meeting of the industry chamber here on Friday. Dr Singh was responding to outgoing FICCI President, Mr Habil Khorakiwala’s statement, expressing concerns about the rising value of rupee against the dollar.

“I am aware that there are many persisting problems. It has been our effort in the Government to redress these to the maximum extent possible within the political parameters of the day,” he said.

Export sops

Referring to Mr Khorakiwala’s demand that tax benefits for exports should be restored, at least temporarily, the Prime Minister said, “It is a priority and exporters will find a ready listening point in our Government.”

Dr Singh also said that keeping the check on inflation rate was on the top of the agenda for the Government, but added that controlling the price-line did not mean growth would be sacrificed. Amid fears that a hike in petrol and diesel prices might fuel inflation, he said that the Government has taken an important policy stand to keep inflation under check and ensure that growth is more inclusive.

“It hurts the poor more than the rich. Therefore, it is essential that we ensure that the poor are not adversely affected by high inflation, particularly on that of basic items of consumption. This is a matter of social priority and of their survival,” he said while calling inflation an iniquitous tax.

The Prime Minister also said that he also saw no reason why India cannot sustain high growth, while successfully containing inflation.

“I know that some of you are not happy about our emphasis on inflation control. There have been some impatient editorials about the sacrifice of growth at the altar of inflation control. Also there are global concerns of a slowdown. We need to be aware of these concerns and we will take steps to limit their impact on us. The Finance and Commerce Ministers are seized of the matter. I do not see any reason why we cannot sustain nine per cent growth even in the face of global slowdown,” Dr Singh said.

Growth story

He added that the Indian economy registered a growth rate of 9.6 per cent last year and is likely to touch almost 9 per cent this year. Dr Singh also said that a major part of India’s growth story is driven by domestic factors, particularly improved investment and consumption demand. However, India cannot be completely insulated from chilly global winds that may blow in our direction.

“It will also be the Government’s endeavour to maintain an environment conducive to enterprise and creativity, so that we do not choke off essential growth processes which are too essential for meeting our social and national goals,” the Prime Minister said.

Dr Singh added that the Government is likely to announce a package to address the indebtedness of farmers.

“We are looking into the credit needs of farmers. We cannot have a situation, where 80 per cent of this sector is outside the formal financial system and suffers from excessive indebtedness. We are trying to resolve this problem. I hope this would be done soon,” he said.

ITC bags award

The Prime Minister also presented the Annual FICCI Outstanding Vision Corporate Triple Impact Award 2007 to ITC Ltd for its contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation. The award for outstanding achievement in the category of Rural and Community Development Initiatives went to Steel Authority of India Ltd.