Key comments of Manmohan Singh at meeting with industrialists

November 3rd, 2008 - 3:26 pm ICT by IANS  

Manmohan SinghNew Delhi, Nov 3 (IANS) Following are some key comments by Prime Minister Manmohan Singh during a meeting with leading industrialists here Monday on the global financial crisis and its impact on the Indian economy:”We are meeting at a time when the world economy is going through an unprecedented crisis which started in the financial sector in the US but has now spread globally.”

“The financial crisis has exacerbated a global downturn that was expected earlier but is now likely to be more severe and prolonged.”

“A crisis of this magnitude was bound to affect our economy and it has.”

“Our first priority was to protect the Indian financial system from possible loss of confidence or contagion effects.”

“I am happy to say that the direct exposure of our banks to problem assets is minimal. Our banks are well regulated and also well capitalized.”

“I think we have successfully conveyed to our people that our banking system, both in the public and the private sector, is safe. The government stands behind it and that no one should fear for the safety of bank deposits.”

“While every effort needs to be made to cut costs and raise productivity, I hope there will be no knee jerk reaction such as large scale lay-offs which may lead to a negative spiral.”

“Industry must bear in mind its societal obligations in coping with the effects of this global crisis. Government and industry must act in a true spirit of partnership to meet the challenges that lie ahead.”

“I would like to assure each one of you that the government will take all necessary monetary and fiscal policy measures on the domestic front to protect our growth rates.”

“On the international front, we are working closely with other countries to ensure coordinated policy action and increased development cooperation for the containment of this crisis.”

“We will seek reform of the international financial institutions, and improved regulation and supervision, to prevent recurrence of such crises.”

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