New Delhi, Nov 3: Admitting that the present global economic
crisis is bound to affect the Indian economy and has done so, Prime
Minister Manmohan Singh on Monday, Nov 3 said that the government
is behind the banking system and no one should fear about safety of
the bank deposits. He also said more steps would be taken to
protect growth. "We have successfully conveyed to our people that
our banking system, both in public and private sector is safe and
the government stands behind it and that no one should fear for the
safety of banking deposits", Manmohan Singh told industry
"Government will take all necessary monetary and fiscal policy measures on the domestic front to protect our growth rates," he said, adding that India would seek reform of the international financial institutions for improved regulation and supervision to prevent recurrence of such a crisis.
He asked the industry to act in a 'true spirit of partnership' with the government to meet the challenges that lie ahead. Singh further said the inflationary process is showing signs of 'definite abatement.' The Prime Minister was meeting with leaders of India Inc to discuss the state of economy in the backdrop of global financial crisis.
Mukesh Ambani, Anand Mahindra, K V Kamath, Sunil Bharti Mittal, Deepak Parikh, Shashi Ruia, K P Singh and Rajkumar Dhoot were among those who attended the meeting on Saturday, Nov 1.
Besides, CII's Kamath, FICCI President Rajeev Chandrasekhar and Assocham chief Sajjan Jindal represented their chambers and urged the Prime Minister to give direction for enhancing liquidity in the system and restore confidence by lowering the interest rates.
Finance minister P Chidambaram, deputy chairman of Planning Commission Montek Singh Ahluwalia and RBI Governor D Subbarao were with the Prime Minister for the interaction with the industry to explore options for pushing the economic growth in difficult times.
Senior government officials, including Chairman of Prime Minister's Economic Advisory Council Suresh Tendulkar and Economic Affairs Secretary Ashok Chawla were among those who attended the meeting.