Manmohan Singh asks industry to refrain from job cuts

November 3rd, 2008 - 2:53 pm ICT by IANS  

Manmohan SinghNew Delhi, Nov 3 (IANS) Calling the current global financial crisis “abnormal”, and admitting that it had impacted the Indian economy, Prime Minister Manmohan Singh Monday asked India Inc to refrain from “knee-jerk” reactions like lay-offs.“The financial crisis has exacerbated a global downturn that was expected earlier but is now likely to be more severe and prolonged,” the prime minister said during a meeting with leading industrialists at his South Block office here.

“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,” he said.

“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.”

The prime minister’s comments came against the backdrop of a analysis by an apex chamber last week - but withdrawn later - that seven industries including steel and IT were looking at 25 percent reduction in job cuts over the next 10 days.

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