In a move to boost confidence of the industry, Prime Minister Manmohan Singh has decided to set up a government committee to quickly resolve various problems of the industry during this phase of global economic slowdown.
The high-powered committee will ensure the problems faced by the industry, including liquidity crunch and high interest rates are resolved to avoid job cuts and minimize the impact of the global credit crisis on the Indian economy.
"It (committee) may be headed by either Prime Minister or Finance Minister," Commerce Secretary G K Pillai said after eminent industry leaders today held a meeting with the Prime Minister here.
Finance Minister P Chidambaram, Commerce and Industry Minister Kamal Nath and Deputy Chairman of Planning Commission Montek Singh Ahluwalia would act as members in the committee.
Pillai also said that the government would react "positively" to the suggestions made to revive the housing and construction sectors, which were prime drivers of the economy.
Assocham President Sajjan Jindal, who was present in the meeting, said that the Prime Minister’s committee will see that "this fear (of job cuts) is not there and to see that there is no reduction in job creation."
Business leaders expressed concern over the slowdown in industrial growth to 1.3 per cent in August from a high of 10.9 per cent in the same month a year ago, mainly because of the manufacturing sector’s poor performance. The sector expanded by a mere 1.1 per cent.
Under the impact of a slowdown in major economies, India's exports growth has also declined to 10.4 per cent in September this year after showing a impressive expansion of over 35 per cent for the April-August period.
