Convert Crisis Into Opportunity: PM

Extraordinary times call for extraordinary efforts. Prime Minister Manmohan Singh would not have met India’s leading industrialists had the going been smooth for the economy. On November 3, the Prime Minister addressed (which lasted near about five minutes) India’s leading CEOs to harp on the one major factor. He said, “I invite all of you to join in the effort to convert this global crisis into an opportunity for India”.

Very much positive attitude from the Prime Minister, especially when the world is grappling with the falling GDP numbers. While majority of the media focused on the job cut aspect while covering the event, we feel there were many things that went unnoticed.

The Prime Minister emphasized on five major points in the meeting that was attended by the who’s who of India’s corporate world, including Mukesh Ambani, K V Kamath, Shashi Ruia, Deepak Parekh, K P Singh, Sajjan Jindal, Raj Kumar Dhoot, Anand Mahindra, Nandan Nilekani, besides many others. Apart from the Prime Minister, the government was represented by P. Chidambaram, Kamal Nath and RBI governor D Subbarao, besides other government officers.

Prime Minister mentioned very clearly that the priority for the economy was to protect Indian financial system from possible loss of confidence or the contagion effect. Secondly, he emphasized the need to have enough liquidity in the system and reiterated the steps taken by RBI to infuse the same. The third point the PM made was that we must ensure that Indian economy grows at a reasonable rate. This is very important as many of the economies are on the verge of degrowth. Prime Minister also made it clear that the government would give thrust on infra development through public as well as PPP projects. He also suggested that India Inc has social obligations and hence India Inc should not react in a knee-jerk fashion which could cause negative spiral in the society.

We really appreciate the latest initiatives of the Prime Minister, and we are glad to know that many of the things are in line with the appeal we had made in our letter addressed to the Prime Minister in the previous issue of the magazine. Today, India has the right opportunity to convert the global crisis into an opportunity, provided we take proactive step in the right direction. What is needed is a good co-ordination between the government and India Inc to ensure that we do not become a victim of the global slowdown but emerge as the winner from the present crisis.[PAGE BREAK]

India is growing and would grow as our banking systems are relatively strong and robust. Our Indian entrepreneurship is at peak and crisis is not something Indian entrepreneur are new to. They have survived in the past and converted it to derive the best out of it. We are sure that India Inc would seize the opportunity from the present crisis and would emerge as the winner. As K V Kamath, President, CII, rightly said after the meeting, “…the government is aware of further challenges and is active in trying to resolve these challenges and told us that ‘we are on it 24/7 and will continue to provide support as required’.”

After the meeting, Sajjan Jindal, President, Assocham, said that he agrees with the concerns of PM and appreciate the steps taken by the government to combat the economic turbulence.

On the other hand, FICCI has welcomed the government’s proposal to set up a high-powered group in the Finance Ministry to track the developments in the Indian economy and to maintain a constant link with Indian industry. Rajeev Chandra shekhar, MP and President, FICCI, said that the steps discussed in the meeting would take care of the basic concerns of Indian industry and help industry to refocus on growth and investment.

We at Dalal Street Investment Journal hope that the government continues to have constant dialogue with India Inc to ensure that India grows at the decent pace. Government must realize that today India Inc needs its support to take the Indian economy to the next level. Let us make sincere attempts to convert this crisis into a blessing in disguise.