
VADODARA, May 11: Chairman of the Confederation of Indian Industries Western Region, Baba N Kalyani, has said that the recession had assumed serious proportions because of variances in the financial capacities of different industries. Most of them, excepting software and fast moving consumer goods, were badly affected, he said.
Addressing members of the Federation of Gujarat Industries FGI at an interactive meeting here recently, he attributed three causes for the recessionary trend: excessive production, industrial sickness which prevented firms from meeting financial obligations, and lack of a mechanism to check prices which were far below international prices.
He was of the view that state governments and industry should improve their communication with each other. He advised industry to establish a dialogue with the government for solving its problems.
Kalyani said that the CII was working to improve correspondence between industry and the government, and its effort had borne fruit as was visible in the improvement in the economy in the first quarter of the current financial year. He emphasised the need for looking into market conditions, level of competition, and corporate governance to come out of difficulties.
FGI president Amit Goradia said that the immediate issues concerning industries in Gujarat included the captive power policy, octroi abolition and high water cess.