PM assures industry captains of reforms

Says disappointed at negative comments from business leadership.

Amid rising political heat on the Lok Pal Bill, Prime Minister Manmohan Singh met the members of his council on trade and industry, including top corporate leaders.

He assured them that the government was committed to economic reforms.

It was disappointing to hear negative comments from the business leadership, he said. “Many of you have raised from time to time concerns with regard to our domestic policy. I would request you to appreciate that almost every major government decision has to be negotiated in the larger democratic arena.”

The government is committed to create a growth-oriented economic environment, he said, but has to play by the rules of coalition politics.

“This (to build consensus) may sometimes take longer than what we would like. But our direction and objectives are clear.”

Those who attended the meeting included Reliance Industries Chairman Mukesh Ambani, Tata Group Chairman Ratan Tata, Bharti Chief Sunil Bharti Mittal, Bajaj Group Chairman Rahul Bajaj, ICICI Managing Director Chanda Kochhar, HDFC Chairman Deepak Parekh and Swati Piramal from Piramal Group.

The prime minister said, “I am aware that many of you have concerns that the high interest rate regime is affecting your investment plans. In order to curb inflationary pressures, some reduction in aggregate demand was essential. We have seen some easing of inflation in the last few weeks and if this is sustained, I expect that the RBI will be able to ease up on monetary tightening, as well.”

The sharp depreciation of the rupee was also a matter of concern, he said. “We are watching the situation very closely and will take whatever steps are necessary to prevent wild fluctuations,” he added.

He said the exchange rate depreciation increased the profitability of exports and industry should take advantage of this development.

At the end of the two-hour meeting, most industry leaders said it was “very positive”.