India Incs negative comments add to uncertainty

The Prime Minister met the heads of some of the largest corporates in the country. Ratan Tata,Chairman of Tata Sons,Mukesh Ambani,Chairman of Reliance Industries,Narayana Murthy,Chairman Emeritus of Infosys,Rahul Bajaj,Chairman of the Bajaj Group,Deepak Parekh,Chairman of HDFC Bank and Chanda Kochhar,managing director and CEO of ICICI Bank,were among those present.

He added that such comments have added to uncertainty and have emboldened those who have no stake in our economic growth.

Singh said,Our government is committed to create a growth oriented economic environment. However,in a democratic polity like ours and in the era of coalition politics,it often becomes necessary for the government to build a broad consensus on major public policy issues. This may sometimes take longer than what we would like.

Rising fuel prices,uncertainty in the euro zone,and anaemic growth in Western economies made the economys external environment difficult.

The situation on the domestic front is equally a matter of concern. The persistent high inflation for some time now is unacceptable. We have to steer the economy back to the path of fiscal consolidation.

Businesses had complained that the RBIs decisions to raise interest rates 13 times since March 2010 had led to their scaling back investment plans.

The PM said,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 the RBI will be able to ease monetary tightening as well. He said,I seek your vocal and expressed support when the government attempts measures that you believe are in public interest.