India Inc is worried over ‘delicate economic’ situation in the country

The bigwigs of Indian industries expressed their worry over the delicate economic situation in the country. At the national council meeting of the Confederation of Indian Industries (CII), held here on Thursday, the industry leaders deliberated in a tone that was sounding quite apprehensive.

The fact that the corporate profits are under pressure, the interest rate are going up , and the value of rupee depreciating became the cause of worry for the delegates.

“Unlike the Hyderabad meet held in July, the mood was not buoyant today”, the CII president KV Kamath admitted. “But, it is premature to asses the situation,” he added immediately..

The downturn in the capital market will not have much affect on the industries in immediate future. Industries are strong enough today. A large part of the project funding has come from internal resources. About 60 -65% of investment has come from internal accruals.

The CII’s national council, which met for the first time in Orissa, also deliberated on the problem of land acquisition all over the country.

“It is not just the land but a whole lot of issues involved,” Kamath said. Stating that the UPA government has tabled a Bill on land acquisition in the parliament, he said it needs to be examined.

Kamath said there has to be constant dialogues and negotiations between various stakeholders to resolve the issue in a transparent and equitable manner. Referring to Singur issue, he said “The government is willing and the industry has patient. It takes time to resolve”.

The president said the CII has constituted a task force under the chairmanship of its vice-president Venu Srinivasan to look at the land issues.

Allaying the fear of exhaustion of the natural resources, he said the identified natural resources are a fraction of the available potential. Kamath feels the industries are proactive to environmental issues and that there should be mechanism to cut short the time for according statutory environment clearances.Referring to his discussion with the chief minister Naveen Patnaik, Kamath said the organisation will work with the state to develop the man power.

The CII vice president V Srinivasan, eastern chapter chairman Sandipan Chokraverty, and Orissa chapter chairman, Santosh Kumar Mohaptra, were alos present at the media conference.