Prime Minister Manmohan Singh today asked the country’s industry leaders, including Ratan Tata and Mukesh Ambani, to reach out to the rural economy and help the government in food security and affirmative action.
The corporate honchos raised concerns over the possible impact of the European financial crisis on the Indian economy.
Singh reviewed the state of economy with Tata, Ambani, Azim Premji, Sunil Bharti Mittal, Swati Piramal, Chanda Kochhar, Deepak Parekh, Kesub Mahindra and Kiran Majumdar-Shaw at the first meeting of the newly constituted Prime Minister’s Council on Trade and Industry.
The Prime Minister asked them to form sub-groups on food security, public-private-partnership, backward area development and corporate social responsibility.
“The members held wide-ranging discussions on various issues, including the use of clean technology for energy and economic security and R&D to further industrial growth, contribution of industries in food security and affirmative action for social inclusion,” a PMO statement said.
Singh was assisted by Finance Minister Pranab Mukherjee, Commerce and Industry Minister Anand Sharma and Prime Minister’s Economic Advisory Council Chairman C Rangarajan.
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On the Euro crisis, Rangarajan, noted economist and former RBI governor, assured the members that the problem was small.
“Rangarajan said Greek problem was very small in terms of its impact on the Indian economy (but) we have to look after whether Euro is falling or rising, which is more important,” Piramal, who is also Assocham president, told reporters.
Rupee appreciation in the recent past and its impact on India’s exports also figured in the discussions.
She said both the prime minister and the finance minister assured industry of quick implementation of Goods and Services Tax and Direct Tax Code — the two of the most important tax reforms to be launched in the country.
Some of the industry members also sought opening up of the multi-brand retail and defence sectors to foreign investment.The members expressed confidence that the economy was well on the over 9 per cent growth trajectory.