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Jairam Ramesh: Assocham statement ‘irresponsible’

Special Correspondent

‘The industrial bodies should stop making scary headlines’

BANGALORE: Union Minister of State for Commerce and Power Jairam Ramesh and Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday came down heavily on the Associated Chambers of Commerce and Industries of India (Assocham) for its statement that corporates were set to cut their work force by 25 to 30 per cent due to global recession.

“It is irresponsible on the part of Assocham to make such an outrageous statement,” remarked Mr. Jairam Ramesh while speaking to journalists in Bangalore. “The industrial bodies should stop making scary headlines in a bid to arm twist policies,” the minister observed.

The Assocham had said that corporates engaged in businesses such as IT-enabled services, aviation, steel, financial services, real estate, cement and construction are set to lay off about 25-30 per cent of the workforce within the next 10 days as part of their cost-cutting measures to stay afloat.

Mr. Ahluwalia endorsed the views of the minister on the statement of Assocham. “It is okay if the Assocham is saying that there will be a reduction in the additional jobs to be created. But if they say that the existing jobs will be cut, it is nothing but irresponsible,” he said.

He indicated that it might not be possible to keep the fiscal deficit for the present financial at a targeted level of below 3 per cent due to the not so normal economic situation.

Pointing out that “it is a difficult financial situation,” he welcomed the protective measures taken by the Prime minister, Finance minister and the RBI.

Referring to the decline in the inflation rate on Thursday for the first time in the last four months, Mr. Ahluwalia said his stand – that the inflation was bound to reduce – had been vindicated. The inflation has moderated as a result of government policies and international developments. As a result of this, inflation is not as serious a concern as it was two months ago, he observed.

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