However, his next remark, that leaders of industry, particularly in sectors "characterised by significant market power in the hands of a few producers", have a societal obligation to assist the government in moderating inflationary expectations, was contested sharply by industry.
"CII abhors cartelisation," outgoing president Sunil Mittal said, adding that charges of cartelisation in the telecom sector, for instance, were wholly unfair.
In his speech to the CII's National Council, the PM addressed the issue of inflation and said the international factors contributing to inflation, over which India had no control, could not be ignored.
"What is disturbing is the fact that while the world oil demand rose by just 1 per cent per annum over the past two years, crude oil prices shot up by over 90 per cent in US dollar terms and over 40 per cent in terms of Euros. This sharp rise in world oil prices has the effect of redistributing incomes away from oil importing developing countries to oil exporting countries," he said.
He said the government was doing what it could, but added that trade and industry could do its bit by absorbing, to the extent possible, the rise in input costs. "Industry must also pass on the benefits of tax and duty cuts to consumers," the PM said.
He also sought a measure of sobriety in corporate lifestyles and accepted compensation.
The PM warned that the effects of the sub-prime crisis had not ended and could continue to be on a rolling boil. The global response to this problem, he said, had not been adequate. "India's voice must be heard on such matters," he added.
While talking about all that the government had done on inclusive growth, the PM conceded there was a lack of political consensus on the way reforms should be approached. He however, said the glass should be viewed as half-full, not half-empty.
