At a review meeting in New Delhi on Monday with the Chiefs of Indian industry to assess the impact of the global meltdown, Prime Minister Manmohan Singh admitted that the global downturn in the wake of the ongoing financial crisis was likely to be severer and more prolonged than anticipated.
Dr. Singh conceded that the global liquidity crisis was dampening investor sentiment and the domestic industry. The banks too were affected, although the banking system was safe. He assured Corporate India that the government would take all possible steps to help sustain the growth momentum.
However, even while tackling the unprecedented severe situation, the Corporate India should refrain from resorting to knee-jerk reactions such as large-scale layoffs, the Prime Minister said, as such stringent steps might lead to a negative spiral.
The Prime Minister exhorted the Corporate India leaders to bear in mind its societal obligations in coping with the effects of this global crisis.