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PM asks industry to refrain from job cuts

business Updated: Nov 03, 2008 13:42 IST
IANS
PM asks industry to refrain from job cuts

Calling the current global financial crisis “abnormal”, and admitting that it had impacted the Indian economy, Prime Minister Manmohan Singh on 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 in New Delhi.

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The prime minister's comments came against the backdrop of a analysis by an apex chamber last week - but withdrawn later - that seven industries including steel and IT were looking at 25 per cent reduction in job cuts over the next 10 days.